Principles of Macroeconomics (11th Edition)
11th Edition
ISBN: 9780133023671
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 2, Problem 3P
To determine
Is the efficiency statement is right or wrong.
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.. Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? What are the expected marginal costs? How would the following conditions change your benefit cost equation?
The street was busy.
The street was empty, and it was 3:00 A.m.
you were in a huge hurry.
There was a police officer 10 metres away.
The closest crosswalk was 1 kilometre away.
The closest crosswalk was 5 metres away.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other
features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for
purchase.
CPU
Total
Marginal Total Marginal
GHz
Benefit
Benefit
Cost
Costs
2.0
$1,000
$900
2.5
$1,400
$100
$1,200
$1,500
3.0
$300
3.5
$1,900
4.0
$2,000
$400
The total benefit of a 3.0GHZ computer is:
Air pollution in the country of Gawanza has grown over the last ten years with an increase in manufacturing industries. The government of Gawanza now has a plan to reduce the CO2 emissions into the air by 10% per year over the next 10 years. What do you expect will happen?
The marginal cost and marginal benefits to Gawanza of reducing CO2 will be lowest in the last few years of implementing this plan.
The marginal cost and marginal benefits to Gawanza of reducing CO2 will be lowest in the last few years of implementing this plan.
The marginal cost of reducing CO2 will be the highest and marginal benefits of reducing CO2 will be the lowest in year ten.
The marginal cost of reducing CO2 will be the highest and marginal benefits of reducing CO2 will be the lowest in year ten.
The marginal cost and marginal benefits to Gawanza of reducing CO2 will be highest in the last few years of implementing this plan.
The marginal cost and marginal benefits to Gawanza of reducing…
Chapter 2 Solutions
Principles of Macroeconomics (11th Edition)
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