Microeconomics (2nd Edition) (Pearson Series in Economics)
Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
Question
Book Icon
Chapter 18, Problem 3P

(a)

To determine

Reason for $0 to be the dominant strategy when an individual cares only about its own consumption and benefits.

(b)

To determine

Contribution in case the individual is altruistic.

Blurred answer
Students have asked these similar questions
Suppose that there is an environmental policy that could reduce the average concentration of a toxic substance to which 3 million people are exposed. Suppose that as a result of the reduction in exposure the risk of death reduces from 1 out of 50,000 to 1 out of 60,000. a. What is the expected number of lives that could potentially be saved from this environmental policy? a. If each of the 3 million people who are exposed is willing to pay $8 for this reduction in risk, then what is the implied value of a statistical life that is potentially saved as a result of this environmental policy? a. Your boss asks you to estimate what must be the maximum cost of such an environmental policy. Provide a justification for the upper limit on the cost of such an environmental policy.
6. You are the mayor of a town with 20,000 residents. The head of your economic development agency recently conducted a survey in which the 20,000 residents said that a small public library in the center of town would be worth $40 to each of them. The cost to build the library is $500,000. Which of the following is the most efficient option? a. The library should be built and paid for with donations collected from residents, as these donations should more than cover the cost of the library. b. The library should be built and paid for by the wealthiest ten percent of the residents. c. The library should be built and paid for by the town government and paid for with a tax on the residents because all residents would benefit from it but some residents would not donate if they were asked. d. The library should not be built.
11     When performing a benefit cost analysis of different options to provide clean water to a community, the option that should be chosen is the option that maximizes the benefit to cost ratio.   True or False?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
EBK HEALTH ECONOMICS AND POLICY
Economics
ISBN:9781337668279
Author:Henderson
Publisher:YUZU
Text book image
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning