1 Describe some of the trade-offs faced by each of the following:a. a family deciding whether to buy a new carb. a member of Congress deciding how much to spend on national parksc. a company president deciding whether to open a new factoryd. a professor deciding how much to prepare for classe. a recent college graduate deciding whether to go to graduate school2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 3 The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?4 Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.a. regulating cable TV pricesb. providing some poor people with vouchers that can be used to buy foodc. prohibiting smoking in public placesd. breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companiese. imposing higher personal income tax rates on people with higher incomesf. instituting laws against driving while intoxicated5 Discuss each of the following statements from the standpoints of equality and efficiency.a. “Everyone in society should be guaranteed the best healthcare possible.” b. “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”11. In what ways is your standard of living different from that of your parents or grandparents when they were your age? Why have these changes occurred?

Question

1 Describe some of the trade-offs faced by each of the following:a. a family deciding whether to buy a new carb. a member of Congress deciding how much to spend on national parksc. a company president deciding whether to open a new factoryd. a professor deciding how much to prepare for classe. a recent college graduate deciding whether to go to graduate school2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (air￾fare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psy￾chological. How can you compare the benefits to the costs? 3 The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the intro￾duction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?4 Explain whether each of the following govern￾ment activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.a. regulating cable TV pricesb. providing some poor people with vouchers that can be used to buy foodc. prohibiting smoking in public placesd. breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companiese. imposing higher personal income tax rates on people with higher incomesf. instituting laws against driving while intoxicated5 Discuss each of the following statements from the standpoints of equality and efficiency.a. “Everyone in society should be guaranteed the best healthcare possible.” b. “When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”11. In what ways is your standard of living differ￾ent from that of your parents or grandparents when they were your age? Why have these changes occurred?

Accepted Answer

"Since you have posted multiple questions with multiple sub-parts, I can only answer the first 3…

Describe some of the trade-offs faced by each of the following: a. a family deciding whether to buy a new car b. a member of Congress deciding how much to spend on national parks c. a company president deciding whether to open a new factory