It has been estimated that the herd immunity threshold for the H1N1 flu of 2009 was 25% but that for the H1N1 flu of 1918 it was 74%. In most years, the herd immunity threshold for the flu is around 50%. The herd immunity threshold is a function of the contagiousness of the flu strain and the effectiveness of the flu shot. There was no flu shot in 1918, the herd immunity in 1918 came from people having had the flu and subsequently having immunity. c. What subsidy per vaccine would be necessary in order for Q* percent of the population to choose to be fully vaccinated? (Assume that individuals will respond to monetary incentives - as we discussed in class, vaccines may be a case where people will not respond to monetary incentives.) Explain in words and graphically.

Hedonic wage studies indicate a willingness to pay $40 per person for a reduction in the risk of a premature death from an environmental hazard of 1/100,000. If the exposed population is five million people, what is the implied value of a statistical life? To answer this question, first you find that the number of saved lives is . Also, find that the total willingness to pay is $ use thousands separators. . Thus, the implied value of a statistical life is $ Hint: Don't

Edwina, a commodities broker, has acquired an option tobuy 1,000 oz of gold at $50/oz. If she takes the option and ifCongress relaxes import quotas, she can sell the gold for$80/oz. If she takes the option and Congress does not relaxthe import quotas, however, the company will lose $10/oz. Edwina believes that there is a 50% chance that the governmentwill relax the quota. She also has the option of waiting untilCongress decides whether to relax the import quota. If sheadopts this strategy, however, there is a 70% chance that someother broker will have already taken the option.a If Edwina is risk-neutral, what should she do? b If Edwina’s utility function for a change x in her as-set position is given by u(x) (10,000 x)1/2, what should she do?

Suppose that you own a used car dealership. You want to sell a 2005 Honda Civic LX. You know that this car is of high quality, and it cost you $5000 to acquire it (so you will not sell it at a price below $5000). However, consumers cannot see the quality of the car at the time of purchase. They believe that 25% of the cars in the used car market are high-quality cars and 75% are low-quality cars or “lemons.” A typical lemon costs $2000 to acquire (so you will not sell it at a price below $2000). Consumers are eager to buy and are willing to pay up to $3000 for a lemon and $6000 for a high-quality car. (a) Suppose for a moment that buyers could observe the quality of your car at the time of purchase. At what price would you be able to sell the 2005 Honda Civic Accord LX? If you had a lemon instead, what price would it sell at? (Suppose as a dealer you can induce buyers to pay at their highest willingness to pay. Keep this assumption in all of the following questions.) From now on,…

Suppose that you own a used car dealership. You want to sell a 2005 Honda Civic LX. You know that this car is of high quality, and it cost you $5000 to acquire it (so you will not sell it at a price below $5000). However, consumers cannot see the quality of the car at the time of purchase. They believe that 25% of the cars in the used car market are high-quality cars and 75% are low-quality cars or “lemons.” A typical lemon costs $2000 to acquire (so you will not sell it at a price below $2000). Consumers are eager to buy and are willing to pay up to $3000 for a lemon and $6000 for a high-quality car. From now on, suppose that only you (the seller) know the quality of the cars. (Buyers do not know the quality, but know the proportion of high- and low-quality cars in the market). Suppose that you could offer bumper-to-bumper warranties. You know that offering a warranty on a high-quality car costs, on average, $450 per year of warranty offered, while a warranty on a lemon is very…

The accompanying table shows the results from a test for a certain disease. Find the probability of selecting a subject with a negative test result, given that the subject has the disease. What would be an unfavorable consequence of this error? The probability is (Round to three decimal places as needed.) What would be an unfavorable consequence of this error? O A. The test would be shown to be not effective. OB. The test would be shown to be not reliable. O C. The subject would experience needless stress and additional testing. O D. The subject would not receive treatment and could spread the disease. The individual actually had the disease Yes Positive 343 Negative 10 No 9 1148

H3. TRUE OR FALSE Consistent extremists are a high percentage of the American population (over 20%).

Katya needs 6 hours to knit a scarf and 7 hours to knit a hat. Andreas needs 3 hours to knit a scarf and 8 hours to knit a hat. It has been proposed that Katya send 800 hats to Andreas. How many scarves must Katya receive in return so that Katya in not worse off if she accepts the proposal?

Lactose intolerance causes difficulty digesting dairy products that contain lactose (milk sugar). It is particularly common among people of African and Asian ancestry. In the United States, 82 % of the population is white, 14 % is black, and 4 % is Asian. Moreover, 15 % of whites, 70 % of blacks, and 90 % of Asians are lactose intolerant.. What percent of the entire population is lactose intolerant?

With the COVID-19 epidemic, the demand for ethyl alcohol, which is very important for meeting the hygiene needs, has also increased and the insufficient supply has caused the price of ethyl alcohol to rise suddenly. During this period, the price of ethyl alcohol per liter rose to 400 TL, which caused a serious increase in all disinfectant prices, including cologne. The government, which wants to prevent the consumer from being victimized, limited the price of ethyl alcohol per liter to 150 TL and banned the sale in the market above this price. What does this government practice set an example for? Explain on the figure.