Loose Leaf Microeconomics with Connect Access Card
20th Edition
ISBN: 9781259287084
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 5P
Subpart (a):
To determine
The value of gains and losses in utility.
Subpart (b):
To determine
The value of gains and losses in utility.
Subpart (c):
To determine
The value of gains and losses in utility.
Subpart (d):
To determine
The value of gains and losses in utility.
Subpart (e):
To determine
The value of gains and losses in utility.
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d. In this model, workers earn the same total assets whether they work L1 or L2 hours. Is the worker better offff at L1 or L2 hours of work?
e. If disutility from work were included in the model, would this shrink, expand, or keep the same the size of the region where workers have no incentive to work?
f. In your own version of Figure 18.7, draw three sets of plausible utility curves that take assets as a positive input and hours worked as a negative input. Draw one set so that the worker elects to work less than L1 hours, one set so that the worker elects to work exactly L1 hours, and one set so that the worker elects to work more than L2 hours.
g. Explain why the utility curves cannot be drawn so as to induce the worker to work between L1 and L2 hours.
h Yelowitz (1995) studies a Medicaid reform measure that reduced the Medicaid work disincentive. One of the reforms he studied raised the Medicaid eligibility threshold income level by 33%. Draw a new version of the…
EXPECTED UTILITY THEORY
• Goal utility and goal difficulty are combined to determine goal selection according to expected utility theory according to this theory, the goal that is selected is based on its utility and estimated probability of being achieved. Utility refers to the usefulness of the goal in providing satisfaction or happiness
• Expected utility = Utility × subjective probability .
Question- Explain what you understand from this theory above and give an example of how it can be useful .
When using the social ecological model, which of the following would be considered part of the "exosystem" of influence on an individual's physical activity?
O Personal factors
O public policy
O Institutional factors
O Exosystem does not exist in the social ecological model
If you have a client who wants to work out on his own, which of the following method of prescribing exercise intensity you should recommend to be more accurate?
O Rating of perceived exertion (RPE)
O Talk test
O % Age predicted HRmax
O % Heart rate reserve (measured)
Chapter 8 Solutions
Loose Leaf Microeconomics with Connect Access Card
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