EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9780100605930
Author: Blinder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 1DQ
To determine
The fairness of the given situation.
Expert Solution & Answer
Explanation of Solution
In the given situation, both the proposals are not fair for poor people. Such people have less discretionary income and may cut back the usage more than the other people. The group of people who are unfairly harmed are those who use large quantities of water or electricity and they face difficulty in cutting back. In fact, questions related with fairness are much difficult to answer by the economists. The criteria for efficiency are objective, but the criteria for fairness are subjective. Thus, the better way to do is to explain the criteria clearly.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Are options b through h correct or incorrect?
Hello can any one help with this Economics
question:
A restaurant serves two special dishes, A and
B to its customers consisting of 60% men and
40% women. 80% of men order dish A and the
rest B. 70% of women order B and the rest A.
In what ratio of A to B should the restaurant
prepare the two dishes ?
Stuck here
Chapter 14 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
Knowledge Booster
Similar questions
- You are on a cruise in the Caribbean Sea, which cost $1,000. On this particular day you have the choice between two activities, both of which would provide marginal mental benefits to your state of mind. The first is a scuba diving trip whose cost was included in the price of the cruise (you get to swim with a school of hammerheads). The second is a shopping spree on St. Thomas that would cost you $500. Which costs and benefits (select all that apply) should you consider when deciding which activity to undergo? The $1,000 cost of the cruise. All of the above. The marginal benefits of the shopping trip. The $500 cost of the shopping trip. The marginal benefits of the scuba trip.arrow_forwardEd spends an hour studying instead of watching Netflix with his friends. The opportunity cost to him of studying is zero. Since Ed chose to study rather than to watch Netflix, the value of studying must have been greater than the value of watching Netflix. the enjoyment he would have received if he had watched Netflix with his friends. the improvement in his grades from studying for the hour. the improvement in his grades minus the enjoyment of watching Netflix. 0000arrow_forwardWhy does knowing the facts help people maximize their choicesarrow_forward
- Describe two decision-making traps identified in Chapter 11 of your text that affected important choices you have made in your lifearrow_forwardgive three examples of important tradeoffs that you face in your lifearrow_forwardYou need some garbage bags for your house and decide to stop by one of the local Dollar Generals (DG). You are faced with two alternatives that make sense to you. The first option is a box of 38 bags and the price is $7.00. The second option is a box of 17 bags at a cost of $5.00. What is the better choice?arrow_forward
- Please can you help me with those questions? 1) You own a DVD of the film 'A Beautiful Mind'. The opportunity cost of watching the DVD the second time A) is one-half the cost of the DVD, since this is the second time you have watched it. B) the amount of money you could get from selling the DVD after watching it the first time. C) is the value of the best alternative use of the time you spend watching the DVD on this occasion. D) is zero as you already own the DVD. 2) A retired individual decides to spend the day playing golf. The opportunity cost of this decision A) could be measured by using the wage rate this individual earned prior to retirement. B) is zero, since the individual is retired and is not forgoing any income to spend the day golfing. C) is equal to cost of the golf outing. D) equals the cost of the golf outing plus the value of the individual's alternative use of time 3) When the price of a good falls and customers tend to buy more of it instead of…arrow_forward1) You own a DVD of the film 'A Beautiful Mind'. The opportunity cost of watching the DVD the second time A) is one-half the cost of the DVD, since this is the second time you have watched it. B) the amount of money you could get from selling the DVD after watching it the first time. C) is the value of the best alternative use of the time you spend watching the DVD on this occasion. D) is zero as you already own the DVD.arrow_forwardYou have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon? Select one: O a. $57 O b. $12 ○ c. $22 ○ d. $8arrow_forward
- Would you say that a sacrifice represents the cost of a particular decision?arrow_forwardsocial preferences are not really preferences, and unselfish behavior is really motivated by the desire to follow rules and conventions with respect to what is fair. Is this interpretation correct?arrow_forwardTonight, you and your friends are planning to see Black Panther for which you have a $4 off coupon. Without the coupon, the ticket is $10. Once you are at the cinema, your friends now want to see Captain Marvel. Both movies start and end at the same time. Assume that you have nothing else to do. If you decide to see Captain Marvel with your friends, what is your opportunity cost?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning