Explain why voluntary transactions improve social welfare

Assignment Help Business Economics
Reference no: EM131246871

Explain why voluntary transactions improve social welfare. Can consumers get more or less happiness (holding their income/wealth constant) if they are forced into transactions they don’t want versus being able to choose what transactions they participate in?

Reference no: EM131246871

Questions Cloud

What are the money supply-the monetary base : In the nation of Wiknam, people hold $1,000 of currency and $4,000 of demand deposits in the only bank,Wikbank.The reserve–deposit ratio is 0.25. What are the money supply, the monetary base, and the money multiplier? Wiknam’s central bank wants to i..
Consumption-investment and real money balances : Discuss the short and the long-run impacts of the following scenarios on the interest rate (r) price level (P), and national income (Y) level, consumption, investment and real money balances, using the IS-LM model (diagram). Discuss the short and lon..
Name of the access control mechanism : What is the name of the access control mechanism that allows the data owner to create and administer access control?
Improving working conditions for apparel workers : If anti-sweatshop movements are successful in raising pay and improving working conditions for apparel workers in foreign countries, how will these changes abroad affect labor market outcomes for workers in the apparel and retailing industries in the..
Explain why voluntary transactions improve social welfare : Explain why voluntary transactions improve social welfare. Can consumers get more or less happiness (holding their income/wealth constant) if they are forced into transactions they don’t want versus being able to choose what transactions they partici..
Describe the environment : 1. Describe the environment in which you feel the safest and why? 2. What concerns do you have? 3. What malicious software do you worry about the most?
Household saving and investment behavior : Consider the following model of a very simple economy. Household saving and investment behavior depend in part on wealth (accumulated savings and inheritance). In the late 1990's many were concerned with very large increase in stock value (a form of ..
Problem regarding the digital divide : What is meant by the term "Digital Divide" in relation to the Internet? Which groups of people are most negatively affected by the Digital Divide, and why? What are some of the consequences of the Digital Divide to both individuals and society?
Determine the maximum value and the minimum value : Take these three numbers determine the maximum value and the minimum value - Determine and display if the year entered is a leap year.

Reviews

Write a Review

Business Economics Questions & Answers

  Which of the following categories of contracts

The doctor examines him, prescribes medication, and gives him a bill for medical services. This agreement falls into which of the following categories of contracts?

  Estimate the deadweight loss from monopoly

Estimate the deadweight loss from monopoly. Assume, in addition to the costs above, the musician on the album has to be paid. The company is considering four options.

  The marginal private benefit for commodity

The marginal private benefit (MPB) for commodity X is given by MPB = 20 – X, where X is the number of units consumed. The marginal private cost (MPC) of producing X is 2X (MPC = 2X). For each unit of X produced, the marginal external cost (MEC) of pr..

  5the benefit of cutting down a forest is 1 million now the

5.the benefit of cutting down a forest is 1 million now. the environmental cost of that harvest is 10year forever.1 at

  Defining average variable cost-marginal cost

The statements and equations below show various ways of defining Average Variable Cost, Marginal Cost, and Average Total Cost. Below, TC is used to abbreviate Total Cost, VC is used to abbreviate Variable Cost, and Q is used to abbreviate quantity. D..

  Write out the individuals budget constraint in case

Suppose an individual consumer has preferences over consumption c given by u(c) = c^1/2 . The individual faces uncertainty of the following form: With probability π the individual has wealth of ω which she can spend on consumption; with probability 1..

  Largest net benefit from using the scarce resource clean air

From an economist's perspective, an important consideration for policies to address global warming is: Which of the following does not illustrate the asymmetric information problem: In a well-functioning cap-and-trade system for pollution rights, the..

  Auction format is a first-price sealed-bid auction

Two bidders are about to compete in an auction for an object. Each of them has a private value for the item that the other believes is distributed uniformly from zero to fifty. Suppose that the auction format is a first-price sealed-bid auction. Prov..

  Market in supply-anddemand terms

The crop of hops in the Yakima Valley has been greatly affected by the invasive plant species. As a result, craft breweries in the Northwest turn to hops from Germany to make up the short-fall. How would you illustrate this change in the Washington h..

  About the express agreement

Ginny is an agent of Vroom! Motors, and is designated to sell and deliver antique cars. She spends her own money to call clients, visit them and finalize the deals. There is no express agreement between Ginny and Vroom! Discuss the situation.

  Draw bills in difference map

Suppose that Bill cares only about chai and bagels. Her utility function is U=CB, where C is the number of cups of chai she drinks in a day, and B is the number of bagels she eats in a day. Draw Bills in difference MAP. Set up Bills optimization prob..

  Produce jeans and stained glass

Suppose that Italy and Sweden both produce jeans and stained glass. Italy's opportunity cost of producing a pane of stained glass is 4 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 10 pairs of jeans.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd