1. Two goods, Police and AOG. Assume prices are 1. Budget is 1000. The city receives a categorical grant of 500 for police services. Show a situation where taxes are reduced and police services remain unchanged. This is called_

1. Two goods, Police and AOG. Assume prices are 1. Budget is 1000. The city receives a categorical grant of 500 for police services. Show a situation where taxes are reduced and police services remain unchanged. This is called_

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.3IP

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Price (thousands of dollars) 100 80 60 40 20 5 10 15 MC 20 MB 25 Quantity (police officers) The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo, Oklahoma. Police protection is a public good. If the city of Hugo hires 25 officers, then OA. marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25. B. marginal benefit will exceed marginal cost, which means that Hugo should reduce the number of officers they hire. OC. marginal benefit equals marginal cost. D. marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25. OE. None of the above answers is correct. 1 5 $ 54 # 3 R E D MacBook Pro % ^ 5 6 F T Y 27 G H U כ 8 * 00 X C V B N H ed J - < ) 9 -O M K Time Remaining: 00:44:50 Next 40 |- 00 0 L V- P .V 11 + لالي = - ? H r command option } 1
1 The functional e-demand factors can be organized into three quality packages(USS): Use quality, System Quality, and Service quality. Select one: a. False b. True
Assuming that a problem is “convex,” net benefits are maximized when a. Producers select a level of production where internal benefits equal external costs. b. Producers select a level of production at which costs equal benefits. c. Producers engage in an activity up to the point where marginal benefit exceeds marginal cost. d. Producers engage in an activity up to the point where marginal benefit equals marginal cost. e. Producers engage in an activity up to the point where total average revenue exceeds total average cost.
5. Assume James was asked by the local government to move out of his house because of the wild fire threat 10 miles away lives. He had to stay at a motel for one week and the additional living expenses amount to $1, Would the expenses be covered? If so, by which section of policy? Circle your answer. Coverage C Coverage D Coverage E Not covered 6. James negligently burns some leaves and causes his neighbor’s house to burn. The damage incurred by the neighbor is $170,000. a. Which coverage section is relevant here? Circle one: Coverage A Coverage B Coverage C Coverage E b. How much would the insurer pay? Circle one: $12,000 $60,000 $100,000 $120,000 $170,000 7. A living room window is broken in a hailstorm. The curtain (personal property) is water stained and must be replaced. The actual cash value of the damaged curtain is $200. Replacement cost is $300. a. Is hailstorm a covered…
1. Whether the government has taken any action on Call to Action ? 2. Discuss the current status of Call to Actio
25. Solutions for information asymmetries include all of the following except: A) labeling requirements. B) Pigouvian taxes. C) deductibles. B) anti-lemon laws. 26. The Tragedy of the Commons occurs when there is a good that is: A) nonrivalrous and nonexcludable. C) rivalrous but nonexcludable. 27. In which of the following market structures is there only one buyer? A) Monopolistic competition. B) Oligopoly. C) Monopsony. D) Monopoly. 28. bank charges higher interest rates on mortgages and therefore only ends up with bad credit risks is an example of which phenomenon? A) Principal/Agent Problem. B) Adverse Selection. C) Monopsony. D) Moral Hazard. B nonrivalrous but excludable. B) rivalrous and excludable. Extra Credit: E constant-cost industry is one in which: A) a higher price per unit will not result in an increased output. B) if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth. C) the demand curve and therefore the unit price and…
1. When the S-shaped function cuts the 45-degree line from below there is ____ equilibrium.A. stableB. unstableC. multipleD. matched2. A situation in which one party to a potential transition has more information than anotherparty is called ____.A. Asymmetric InformationB. Information externalityC. Pecuniary externalityD. Pareto Improvement3. This theory proposes that a 'bit by bit' investment will not impact the process of growth.A. Coordination failuresB. Multiple equilibriaC. The Big PushD. O-Ring theory4. The situation of being unable or only barely able to meet the subsistence essentials of food,clothing, shelter, and basic health care.A. POVERTYB. ABSOLUTE POVERTYC. REAL POVERTYD. NORMAL POVERTY5. It is the savings expressed as a proportion of disposable income over some period of timeA. SAVINGS RATIOB. NET SAVINGS RATIOC. NET RATIO OF SAVINGSD. NET SAVINGS6. A condition that must be present, although it need not be in itself sufficient, for an event tooccur.A.…
1. You are the coordinator of a nonprofit that distributes donated items to three local homeless shelters and want to figure out a way of distributing the donated items to the shelters who need it the most. Which of the following would most likely achieve your goal? Select the correct answer a. Send all the donations to the shelter that has the least. b. Divide the donations evenly among the three shelters. c. Ask shelters to submit their requests, and decide what to send where based on their answers. d. Offer each shelter a virtual "budget" and have them bid on different items. 1.1 Which of these best represent a planned approach and which best represent a market approach? Divide the answer into two groups (planned and Market approach) a. send all the donations to the sheller that has the least b. ask sellers to submit their request and decide what to send where based on their answers c. divide the donations evenly among the three shellers d. offer each sheller a…
To properly protect consumers, _____. a. tests of a product can safely assume that the product will be used in just the way that the manufacturer intends it to be used. b. if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it. c. only new products, not established products, need to be tested. d. accidents occur exclusively as a result of product misuse.
Project Repair highways Build new highways Build a new bridge Build a new tunnel Expand existing airport Total Cost (in millions) $100 $100 $100 $100 $100 Total Benefit (in millions) $80 $90 $140 $115 $130 This table shows the costs and benefits for some new projects that a local government is considering. Based on these costs and benefits, which project should the government select? O Build new highways O Expand existing airport O Build a new bridge O Build a new tunnel O Repair highways
If an excise tax on cigarettes offsets the negative externalities associated with smoking, it means that: a. The Pareto efficient level of smoking will decline. b. The private marginal benefit of smoking will rise. c. The privately efficient level of smoking will equal the Pareto efficient level. d. The private marginal cost of smoking will decline. 9.In the Principal-Agency relationship in health care markets, the _______ acts as the agent for the ________, the principal. a. Government; insurer. b. Insurer; government. c. Health care provider; patient. d. Patient; health care provider. In the presence of external benefits for a health care service, the private market will generally provide: a. The economically efficient level of output. b. Less than the Pareto efficient level of output. c. More than the Pareto efficient level of output. d. The answer depends on the nature of the benefits
Chapter 12 List and discuss the steps in the consumer decision making process. provide an example of each step. List and discuss the three steps in the three perspectives on decision making Chapter 13 Describe the value equation and provide an example. Discuss what evaluative criteria is and what determinant criteria is provide an example of each, Describe 2 factors affect evaluative criteria. Describe the difference between compensatory rules an non-compensatory rules.