EconomicsQuestion 9Which of the following is not true about Lindahl pricing?O a. There is unanimous agreement with the equilibrium in the sense that no individual would be motivated to make a change.O b. Although marginal cost may not equal marginal benefit for all individuals, every individual receives a net gain.O C. An obstacle to achieving it is that individuals might be impelled to conceal their true preferences.Od. It is an idealized but impractical way to determine equilibrium in a market for public goods.Question 10Which of the following explains "market failure" (or non-viability or the "death spiral") of some insurance markets?O a. consumption-smoothing.O b. moral hazard.Oc. adverse selection.O d. reduced levels of "self-insurance."O e. diminishing marginal utility or benefit.Question 11The debt ceiling disputes that arise in the U.S. Congress over whether to raise the ceiling to allow more borrowing and spending could arise from widespreadacceptance ofO a. Arrow's Impossibility Theorem.O b. direct democracy.Oc the theory of size-maximizing bureaucracy.O d, the median voter modelO e. Leviathan theory.

9. The Lindahl price is a fictitious figure. It's the amount of money a person would be prepared to…

Question 9 Which of the following is not true about Lindahl pricing? a. There is unanimous agreement with the equilibrium in the sense that no individual would be motivated to make a change. O b. Although marginal cost may not equal marginal benefit for all individuals, every individual receives a net gain. O. An obstacle to achieving it is that individuals might be impelled to conceal their true preferences. O d. It is an idealized but impractical way to determine equilibrium in a market for public goods.

Question 9 Which of the following is not true about Lindahl pricing? a. There is unanimous agreement with the equilibrium in the sense that no individual would be motivated to make a change. O b. Although marginal cost may not equal marginal benefit for all individuals, every individual receives a net gain. O. An obstacle to achieving it is that individuals might be impelled to conceal their true preferences. O d. It is an idealized but impractical way to determine equilibrium in a market for public goods.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 16P: Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers....

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Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
The phrase "Diminishing Marginal Utility" refers to the fact that O The more people consume a good or service, the total satisfaction that they receive decreases O The more people consume a good or service, the more willing suppliers are to produce it O The more people consume a good or service, the less additional satisfaction they receive O The more people consume a good or service, the more additional satisfaction they receive
Assume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?
Price Keram H 1 1 4 Becky's D for Blueberries Demand Refer to the graph above to answer this question. The graph shows Becky's demand for blueberries which can be purchased in any quantities and sold at any price What is Becky's total willingness to pay for 6 kilograms of blueberries if the price of each kilogram of blueberries is $27 Multiple Choice O O O O O $12. Cannot be determined. $18. $6. $2
People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior? O Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils. Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information. Because people generally do not know which products are reviewed by these consumer magazines. None of the above explain this behavior.
Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, “What is the right amount of variety? Can there be too many varieties of shoes, for example?” the bold question i dont understadnwhat they are trying to ask me to do
Suppose there are two consumers in the market for a good, consumer 1's inverse demand function is p=80 – 24, and consumer 2s inverse demand function is p =36 - : Suppose further that the inverse market supply is p 20 + q. What is the competitive equilibrium? Oa. Competitive equilibrium price is 28 and competitive equilibrium quantity is 8 O b. Competitive equilibrium price is 40 and competitive equilibrium quantity is 8 O C Competitive equilibrium price is 40 and competitive equilibrium quantity is 20 O d. Competitive equilibrium price is 28 and competitive equilibrium quantity is 20
Your neighborhood pizza restaurant has a deal: Pay $3 at the door, and eat as much pizza as you want for lunch. What is the marginal cost of eating your second slice of pizza? O $1.5 O Impossible to say if we don't know how many slices you eat in total. O so O $3
According to Alan Krueger, drivers who partner with Uber appear to be attracted to the platform in large part because O the level of compensation O the fact that earnings per hour do not vary much with hours worked, which facilitates part-time and variable hours of the flexibility it offers O all answers are correct
The graph shows the market for paper. The government passes a new law that limits the quantity of paper that producers sell to 40 tons of paper a day. C because This market for paper is O A. efficient; production is greater than zero O B. inefficient; the marginal cost of the 40th ton of paper is greater than the marginal benefit from the 40th ton of paper inefficient; more paper could be produced O C. O D. inefficient; the marginal benefit from the 40th ton of paper is greater than the marginal cost of the 40th ton of paper O E. efficient; the marginal cost of the 40th ton of paper equals the marginal benefit from the 40th ton of paper Draw the deadweight loss when production is 40 tons of paper a day. Label it. 20.00 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00+ 4.00- 2.00- Price (dollars per ton) 6.00 0.00+ 0 S ID 40 60 80 100 120 Quantity (tons per day) >>> Draw only the objects specified in the question. 20 OU 140
Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Why or why not? O A. Economic analysis can provide such an answer because it seeks to address both positive and normative questions such as "what is" and "what ought to be." O B. Economic analysis cannot provide such an answer because it seeks to address positive questions such as "what is." OC. Economic analysis can provide such an answer because it seeks to address normative questions such as "what ought to be." O D. Economic analysis can provide such an answer because it seeks to address positive questions such as "what is." O E. Economic analysis cannot provide such an answer because it seeks to address normative questions such as "what ought to be."
Next question The demand curve is also the O A. total benefit curve. B. total cost curve. O C. marginal deadweight cost curve. O D. marginal benefit curve. O E. marginal cost curve. O Time Remaining: 00:53:28 Next (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e