Reference no: EM13815538
In each of the following situations, the possible bundles contain apples and oranges and either 0, 1 or 2 of each. An example bundle would be 2 apples and 1 orange = (2, 1). In each part, there is a description of a set of preferences. If an ordering can be made, make the ordering of the 9 possible bundles, and list any bundles that would be on the same indifference curve. If the ordering cannot be made, give an example of which bundles cannot be ranked and explain which assumption on preferences is being violated.
a) Non-satiated in both goods. Apples always better than oranges.
b) In bundles with zero of either oranges or apples, the bundle with more oranges is better. If the bundle has 0 oranges, the bundle with more apples is better. In bundles with at least 1 apple, the best bundle is the one that has the biggest total of apples and oranges. In bundles with at least 1 orange, the better bundle is the one that generates the biggest number when the number of apples is divided by the number of oranges.
c) Non-satiation applies to all relevant bundles (So (1, 2) pref (1,0)). For the others...
(1, 0) pref (0,1) (1, 1) pref (0,2) (2, 0) pref (1,1)
(2, 0) pref (0,1) (0, 2) pref (2,0) (1, 2) pref (2,0)
(0, 2) pref (1,0) (2, 1) pref (0,2) (1, 2) pref (2,1)
|
Fallacies and errors in sound reasoning
: Use the Internet to locate at least two (2) advertisements that exhibit any of the following fallacies: equivocation, false authority, ad hominem, appeal to ignorance, or bandwagon
|
|
Describing the current state of the health care
: Write a short (2-3 page, double-spaced, typed) essay identifying and describing the current state of the health care industry using the tools we have studied this semester.
|
|
Specific human capital less likely to change jobs
: Why are people who possess specific human capital less likely to change jobs, other things being equal, than those who possess general human capital? Does this imply that people who possess large amounts of specific human capital will never migrate..
|
|
Implication of the efficiency wage theory for unemployment
: What is the implication of the efficiency wage theory for unemployment? In what way are piece rates, commissions, and royalties, profit sharing, and stock options substitutes for efficiency wages?
|
|
Explain which assumption on preferences is being violated
: In each of the following situations, the possible bundles contain apples and oranges and either 0, 1 or 2 of each. An example bundle would be 2 apples and 1 orange = (2, 1). In each part, there is a description of a set of preferences. If the orderin..
|
|
Amount of non-labor income make such different labor supply
: Frankie and Johnny can both earn a wage rate of $10 per hour and, coincidentally, both have $100 per week in non-labor income. Assume that both have T = 100 hours per week to allocate to leisure and work. Frankie chooses to work 40 hours per week. Us..
|
|
Testing whether the mean transaction time
: A sample of 16 ATM transactions shows a mean transaction time of 67 seconds with a sample standard deviation of 12 seconds. When testing whether the mean transaction time is different from 60 seconds at the 0.05 significance level, choose the best co..
|
|
When testing whether the mean transaction time is different
: A sample of 16 ATM transactions shows a mean transaction time of 67 seconds with a sample standard deviation of 12 seconds. When testing whether the mean transaction time is different from 60 seconds, what is the test statistic?
|
|
Curves are presumed to be backward-bending
: Explain why most market labor supply curves slope upward and to the right, even though individual labor supply curves are presumed to be backward-bending?
|