Explanation It requires a positive assessment as the question is fact-based i.e. How much vaccine will be in stock by the end of November. It requires a positive assessment as the question is based on cause and effect relationship. It requires a normative assessment as the question is based on value judgment i...

The mayor of Gotham city, worried about the potential epidemic of deadly influenza this winter, ask an economic adviser the following series of questions. Determine whether a question requires the economic advisor to make a positive assessment or a normative assessment. How much vaccine will be in stock in the city by the end of November? If we offer to pay 10% more per does to the pharmaceutical companies providing the vaccines, will they provide additional doses? If there is a shortage of vaccine in the city, whom should we vaccinate first-the elderly or the very young? ( Assume that a person from one group has an equal likelihood of dying from influenza as a person from the other group) If the city charges $25 per shot, how many people will pay? If the city charges $25 per shot, it will make a profit of $10 per shot, money that can go to pay for inoculating poor people. Should the city engage in such a scheme?

Microeconomics

5th Edition

ISBN: 9781319098780

Author: Paul Krugman, Robin Wells

Publisher: Worth Publishers

See similar textbooks

Concept explainers

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral. This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illust…

Question

Chapter 2, Problem 14P

To determine

The mayor of Gotham city, worried about the potential epidemic of deadly influenza this winter, ask an economic adviser the following series of questions. Determine whether a question requires the economic advisor to make a positive assessment or a normative assessment.

How much vaccine will be in stock in the city by the end of November?

If we offer to pay 10% more per does to the pharmaceutical companies providing the vaccines, will they provide additional doses?

If there is a shortage of vaccine in the city, whom should we vaccinate first-the elderly or the very young? ( Assume that a person from one group has an equal likelihood of dying from influenza as a person from the other group)

If the city charges $25 per shot, how many people will pay?

If the city charges $25 per shot, it will make a profit of $10 per shot, money that can go to pay for inoculating poor people. Should the city engage in such a scheme?

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Chapter 2, Problem 13P

Chapter 2, Problem 15P

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education