Section 14

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Suppose that some members of a population are infected with a sexually transmitted virus that causes disease X, and some are infected with another sexually transmitted virus that causes disease Y. Some members of the population may be infected with both viruses. While diseases X and Y are similar in that they are both sexually transmitted diseases, the disease X is much more harmful to its carriers than the disease Y is to its carriers. Condom use is highly effective in preventing the transmission of either disease. Suppose scientists discover a cure for the sexually transmitted disease X. This cure (a vaccination) will eliminate the virus causing the disease X from its carrier before its carrier can suffer any harm from the virus. Everybody is immediately given this vaccination against the disease X. a. What do you expect to happen to the prevalence of the virus causing the disease X in the population? Draw a graph with time on the horizontal axis and prevalence of the virus causing…

Suppose that some members of a population are infected with a sexually transmitted virus that causes disease X, and some are infected with another sexually transmitted virus that causes disease Y. Some members of the population may be infected with both viruses. While diseases X and Y are similar in that they are both sexually transmitted diseases, the disease X is much more harmful to its carriers than the disease Y is to its carriers. Condom use is highly effective in preventing the transmission of either disease. Suppose scientists discover a cure for the sexually transmitted disease X. This cure (a vaccination) will eliminate the virus causing the disease X from its carrier before its carrier can suffer any harm from the virus. Everybody is immediately given this vaccination against the disease X. What do you expect to happen to the rate of condom use in the population over time? Add a curve for the rate of condom use to your graph.

New answer needed

Lactose intolerance causes difficulty digesting dairy products that contain lactose (milk sugar). It is particularly common among people of African and Asian ancestry. In the United States, 82 % of the population is white, 14 % is black, and 4 % is Asian. Moreover, 15 % of whites, 70 % of blacks, and 90 % of Asians are lactose intolerant.. What percent of the entire population is lactose intolerant?

The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-and control’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). Suppose the government decided to issue tradeable permits for a certain form of pollution, does it matter for economic efficiency whether the government allocates the permits to firms or whether it auctions them off? Why or why not?

Question 4: Suppose that scientists develop a way to cross tomatoes and potatoes into a new super veggie (after much debate over whether it would be called a totato or a pomato, the latter name won). There are only 6 consumers in the world that would even consider buying a pomato, each of whom wants just one, and so the scientists ask these 6 consumers how much they will pay (WTP) for one pomato. The consumers respond (truthfully) Consumer VWTP Alex 7 Ben 16 Carrie 14 Dan 24 Ellie 8 Frances 10 (1) Draw the market demand curve for pomatoes (2) Suppose the price of pomatoes is p= 10. What is the consumers' surplus? (3) If the price increases to p 16, what is the loss in consumer surplus? How much of this is due to fewer pomatoes being sold and how much is due to the higher price of pomatoes on the units that are sold?

You are the manager of an organization in America that distributes blood to hospitals in all 50states and the District of Columbia. A recent report indicates that nearly 50 americans contractHIV each year through blood transfusions. Although every pint of blood donated in the unitedstates undergoes a battery of nine different test, existing screening methods can detect only theantibodies produced by the body’s immune system-not foreign agents in the blood, newlyinfected HIV donors can pass along the virus through blood that has passed existing screeningtests. Happily, researchers have developed a series of new tests aimed at detecting and removinginfections from donated blood before it is used in transfusions. The obvious benefit of these testsis reduced incidence of infection through blood transfusions. The report indicates that the currentprice of decontaminated blood is $60 per pint. However, if the new screening methods areadopted, the demand and supply for…

Peoples' behavior in behavioral economic games like the Dictator Game generally show that Many people seem to prefer outcomes that benefit others Under conditions of anonymity, most people are completely selfish. People are not generous unless they are in situations in which their partners will be able to reciprocate. There is very little variation in peoples' responses across cultures.

The town of Fenerbahce has hired world‐class econometricians to investigate their criminal justice system. The researchers report an interesting finding. People who were previously detected and punished by law enforcers gain a better understanding of the functioning of the law enforcement system, and are better able to exploit laws designed to protect defendants against the state. Thus, people who have been detected and punished before are better able to avoid detection and punishment. In particular, theyreport the following facts: ‐ The offense of jay‐walking causes social harm of $100.‐ A person who has never been punished for jaywalking before faces a 0.5probability of being detected while jaywalking.‐ A person who has been punished before for jaywalking faces a probability of0.25 of being detected while jaywalking. The town wants to implement optimal punishment schemes. It is well known thateveryone in Fenerbahce is risk‐neutral and rich (i.e. not judgment proof). Moreover, the…

Ten years ago, the town of Easton decided to increase its annual spending on education so that its high school graduates would be able to earn higher wages. Now Easton has asked you to evaluate the effectiveness of the spending increase. Their data show that before the spending increase, the average annual salary of recent high school graduates was $25,000 and that now that average salary has risen to $28,500. Fortunately for your analysis, a neighboring community (Allentown) did not change its annual spending on education. Ten years ago, recent Allentown high school graduates earned an average of $22,500, and now that average is $23,750.   (a) Use a difference-in-differences estimator to determine whether Easton’s spending increase caused the wages of their high school graduates to increase. (b) What underlying assumption do you have to make in order for your estimate to be valid? What might cause your underlying assumption to be invalid? (c) This data set contains only two…

For questions 44 and 45 consider the following: The town of Fenerbahce has hired world-class econometricians to investigate their criminal justice system. The researchers report an interesting finding. People who were previously detected and punished by law enforcers gain a better understanding of the functioning of the law enforcement system, and are better able to exploit laws designed to protect defendants against the state. Thus, people who have been detected and punished before are better able to avoid detection and punishment. In particular, they report the following facts: The offense of jay-walking causes social harm of $100. A person who has never been punished for jaywalking before faces a 0.5 probability of being detected while jaywalking. A person who has been punished before for jaywalking faces a probability of 0.25 of being detected while jaywalking. The town wants to implement optimal punishment schemes. It is well known that everyone in Fenerbahce is risk-neutral and…

For questions 8-10 assume that Rosa has a 10% chance of getting sick in the next year. If she gets sick, her medical bills will amount to $3600. She has a wealth of $10,000. Suppose she has the utility function u(x) = Vx, where x is her net wealth at the end of the year. What is Rosa's risk premium? (Answer should be a dollar sign followed right after by a whole number, i.e. $24) Enter your answer here

Suppose there are two types of persons: high-ability and low-ability. Firms wish to use education as a screening device where they intend to pay $25,000 to workers without a diploma and $35,000 to those with a diploma. Assume it costs $8,000 of for a high-ability person to obtain a diploma. If is cost $10,000 for a low-ability person to obtain a diploma, can the firm use diploma to screen low ability from high ability worker. Explain and support your answer using math. How would your answer change it the cost of obtaining a diploma for a low productivity person were to increase to $15,000.

The following is an excerpt describing the Oregon Medicaid lottery: In 2008, Oregon implemented a limited expansion of its Medicaid program for low-income adults through a lottery, selecting names from a waiting list to fill a limited number of available spots. Those selected had the opportunity to apply for Medicaid and to enroll if they met eligibility requirements. Based on the description, you might describe the Oregon Medicaid lottery as a: randomized experiment "As if random" natural experiment a true natural experiment

When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway. Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Valerie places a value of $15,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Valerie simply bids $15,000/2=$7,500 and wins the piece of art. The expected price paid by Valerie, with no other bidders present, is $________.. Suppose the owner of the artwork manages to recruit another bidder, Antonio, to the auction. Antonio is known to value the art piece at $12,000. The expected price paid by Valerie, given the presence of the second bidder Antonio, is $_______. .

The Forest Service is responsible for maintaining our commons forests, and controlling responsible access and safe usage of forest campsites and trails by the public. Currently, the forest service is trying to decide whether to increase the resources devoted to thinning parts of the forest in Eastern Washington so as to reduce the risk of wildfıres. They thus took a survey of Washington Residents to see how much they would be willing to to pay in order to have better air quality and fewer wildfires. The results of the survey would be used by the government in making budgetary decisions about tax collection and revenue allocation for forest management. How much How much How much would you be would you be would you be willing to pay willing to pay willing to pay PERSON to reduce the to reduce the to reduce the risk of forest risk of forest risk of forest fıres by 10% fires by 30% fires by 50% 50 50 30 Amy 20 20 Brian 20 15 10 Catherine 50 40 30 David 20

question is partially incorrect but I am not sure how to solve it

Government support for the development of Covid-19 vaccines took two different forms.  Some firms accepted grants (a.k.a, direct monetary support) for vaccine development and testing.  As a condition of the grant, the government has options to purchase a first and specific number of vaccine doses.  Other firms chose not to accept grants.  Instead they negotiated advanced-purchase agreement to support pre-approval manufacturing of vaccines.  The purchase agreement stipulates that payment will be made upon delivery of the pre-specified number of doses. Is the successful development and delivery of a vaccine for Covid-19 virus risky or an uncertainty?

Government support for the development of Covid-19 vaccines took two different forms.  Some firms accepted grants (a.k.a, direct monetary support) for vaccine development and testing.  As a condition of the grant, the government has options to purchase a first and specific number of vaccine doses.  Other firms chose not to accept grants.  Instead they negotiated advanced-purchase agreement to support pre-approval manufacturing of vaccines.  The purchase agreement stipulates that payment will be made upon delivery of the pre-specified number of doses. 1.  Is the successful development and delivery of a vaccine for Covid-19 virus risky or an uncertainty? 2.  In the case of direct support agreements, who bears the cost of failure? 3.  In the case of advanced purchase agreements, who bears the cost of a failure? 4.  Pfizer was the first firm to have its vaccine authorized for use in the U.S.  It did not accept a grant to support development and testing, but the Pfizer did negotiate an…

Recently, television commercials promoting toothpaste featured a well-known chef expressing satisfaction with the latest in toothpaste flavors, including citrus, herbal, mint, and cinnamon. U.S. consumers fully understand the health benefits of brushing their teeth, so makers of the various brands sold in the toothpaste market seek to emphasize how good their toothpastes taste. Manufacturers have also differentiated their toothpastes by promoting them as beauty products. Using such names as “Whitening Expressions” and “Rejuvenating Effects,” toothpaste companies battle in media ads to convince toothpaste consumers that their great-tasting brands of toothpaste will also produce the brightest smiles. If a number of consumers become convinced that a particular brand of toothpaste really will “rejuvenate” their teeth, what will happen to the price elasticity of demand for that particular toothpaste?

Consider two groups of citizens, each group can either choose to drive x = d or to take public transport x = p. The first group, group 1, enjoys driving and has the following 3 benefit from using their car within the ULEZ area: B1(x1 = d) = 18. The second group, group 2, does not enjoy driving and has a benefit of B2(x2 = d) = 0 from driving their car. If they don’t drive, citizens can use public transport to get around. The benefit of doing so is the same for both groups: B1(x1 = p) = B2(x2 = p) = 10. Both groups drive cars that do not meet the ULEZ requirements and therefore create excessive pollution.    For simplicity, we consider that pollution, and the health problems it induces, are the main cost of driving. This cost is imposed on both groups and is equal to Ci(x1 = d, x2 = d) = 10 if both groups drive, Ci(x1 = p, x2 = d) = Ci(x1 = d, x2 = p) = 5 if only one group drives and Ci(x1 = p, x2 = p) = 0 if neither group drives, where i represents either group 1 or group 2. The…

Consider two groups of citizens, each group can either choose to drive x = d or to take public transport x = p. The first group, group 1, enjoys driving and has the following 3 benefit from using their car within the ULEZ area: B1(x1 = d) = 18. The second group, group 2, does not enjoy driving and has a benefit of B2(x2 = d) = 0 from driving their car. If they don’t drive, citizens can use public transport to get around. The benefit of doing so is the same for both groups: B1(x1 = p) = B2(x2 = p) = 10. Both groups drive cars that do not meet the ULEZ requirements and therefore create excessive pollution.    For simplicity, we consider that pollution, and the health problems it induces, are the main cost of driving. This cost is imposed on both groups and is equal to Ci(x1 = d, x2 = d) = 10 if both groups drive, Ci(x1 = p, x2 = d) = Ci(x1 = d, x2 = p) = 5 if only one group drives and Ci(x1 = p, x2 = p) = 0 if neither group drives, where i represents either group 1 or group 2. The…

Consider two groups of citizens, each group can either choose to drive x = d or to take public transport x = p. The first group, group 1, enjoys driving and has the following 3 benefit from using their car within the ULEZ area: B1(x1 = d) = 18. The second group, group 2, does not enjoy driving and has a benefit of B2(x2 = d) = 0 from driving their car. If they don’t drive, citizens can use public transport to get around. The benefit of doing so is the same for both groups: B1(x1 = p) = B2(x2 = p) = 10. Both groups drive cars that do not meet the ULEZ requirements and therefore create excessive pollution.    For simplicity, we consider that pollution, and the health problems it induces, are the main cost of driving. This cost is imposed on both groups and is equal to Ci(x1 = d, x2 = d) = 10 if both groups drive, Ci(x1 = p, x2 = d) = Ci(x1 = d, x2 = p) = 5 if only one group drives and Ci(x1 = p, x2 = p) = 0 if neither group drives, where i represents either group 1 or group 2. The…

John and Sotiris live on trees in two different forests. They each have eight hours to work in a day. John can grow a Yam in 1 hour or raise a Zebra in 2 hours. Sotiris can grow a Yam in 2 hours or raise a Zebra in 4 hours. Both John and Sotiris consume equal numbers of Yams and Zebras. When calculating the welfare benefits of markets, the standard analysis only includes the parties involved in exchange. Using the American Opioid Crisis as an example, explain how poorly regulated markets can cause harm to third parties not involved in exchange.

Due to an increased number of patients seeking COVID-19 tests and counseling, the clinic and the counseling centre at the leading public hospital was converted to provide both health screening services and counseling services. Using all of its staff, the clinic can screen a maximum of 10 clients or it can counsel 6 clients. Using all of its staff, the counseling centre can screen a maximum of 6 clients or counsel 12 clients. Who has the absolute advantage in health screening? Who has the absolute advantage in counseling services? Who has a comparative advantage in health screening? Who has a comparative advantage in counseling services? What is the opportunity cost of counseling services?

Answer only 2 out of the 4 questions!

When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway. Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Yakov places a value of $35,000 on the art piece and that he values this art piece more than any other collector. Suppose that if no one else shows up, Yakov simply bids $35,0002=$17,500 $35,000 2 = $17,500 and wins the piece of art. The expected price paid by Yakov, with no other bidders present, is. Suppose the owner of the artwork manages to recruit another bidder, Bob, to the auction. Bob is known to value the art piece at $28,000. The expected price paid by Yakov, given the presence of the second bidder Bob, is.

7) There is some popular unrest in a dictatorship. The population might be in a revolutionary mood, in which case they would be willing to violently overthrow the dictator, or just grumbling, in which case they would not. There is a 30% chance the population is in a revolutionary mood. The population knows their own type, but the dictator does not. After nature chooses whether the population is in a revolutionary mood, the population can decide to protest or not. The dictator observes the populations behavior, and then can peacefully resign or hold onto power. The dictator can make this choice whether or not the population protests. If the dictator holds onto power, the population can violently overthrow the dictator or not. The dictator gets 50 utility for retaining power, O utility if they peacefully resign, and -100 utility if they are overthrown. The revolutionary population gets 50 utility for the dictator resigning, 30 utility for overthrowing the dictator, and -50 utility for…

The Centers for Disease Control and Prevention (CDC) has a new vaccine against a disease and are trying to determine the optimal percentage of the population that should be vaccinated. They do not recommend vaccinating the whole population against the smallpox virus because the vaccine has undesirable, and sometimes fatal, side effects. Suppose the following table gives the data about the effects of the vaccine.   Percent of population Deaths Due to Deaths due to Marginal Marginal Cost vaccinated Disease vaccine side Benefit of the of the Vaccine     effects Vaccine (extra (extra deaths       lives saved by due to side       vaccine) effects) 0% 200 0 NA NA 10% 180 10     20% 160 25     30% 140 55     40% 120 95     50% 100 140     60% 80 200           a. Calculate the Marginal Benefit (in terms of how many extra lives are saved by the…