Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 9Q
(a)
To determine
Definition of free-riding.
(b)
To determine
Throwing garbage on the street as a free-rider problem.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A local fair charges a $15 entry fee and $1.75 per ride. Dustin has $35 to spend. What is the maximum number of rides Dustin can go on? a 8 b 11 C 12 d 20
Instructions
There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers.
a. What are economic profits? Explain in detail.
b. Do economic profits harm the interests of consumers? Explain in detail.
c. Can there be a socially useful outcome when economic profits exist? Explain in detail.
d. Do lower prices always benefit consumers? Explain in detail.
c. 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? The
expected marginal costs? How would the following conditions change your benefit-cost
equation?
The street is busy.
i.
ii.
The street is empty and it was 3 a.m.
ii.
You are in a huge hurry.
iv.
A police officer is standing 100 feet away.
v.
The closest crosswalk is a mile away.
vi.
The closest crosswalk is 10 feet away.
Chapter 1 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
Knowledge Booster
Similar questions
- What is free rider problem and under which condition does it occur? Explain with an example.arrow_forward. Your best friend has just purchased a new Sport Utility Vehicle (SUV). “These things are great.” he says. “They can get you to the private unspoiled places no one else can reach. On the road, it’s nice because you sit so high and can see over the other cars.” Your friend thinks everyone should buy an SUV. Is there an error in his reasoning? If so, what is it? (Use economics terms).arrow_forwardHow would you decide "how many pizza slices to eat a buffet? Which two laws to consider? A. compare the demand and supply for pizza B. compare the marginal benefit of the next slice and the price of the slice C. compare the marginal benefit of the next slice and the marginal cost of the next slice. D. eat as many as you want to eat and not full yet.arrow_forward
- Joab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves. According to the economic way of thinking, by playing this game, Joab and his friends were O not responding to the incentives they faced. making an irrational choice. making a rational choice. not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.arrow_forward1. What makes a certain behavior unethical? * a.If it might cause harm to yourself. b.If it might cause too much happiness to others. c.If it might cause confusion to others. 2. A normative study of ethics, as is often done in philosophy or moral theology, engages the question: What could or should be considered as the right way of acting? Identify a good example that could illustrate what normative study of ethics is a .Ethics is based on the primitive practices of humans. b. Ethics is based on existing doctrines and tells us what is the prescribe human behaviors. c. Ethics is based on religious practices 3. What makes rule necessary for peace and order? * a.Rule forces people to comply with societal standards. b.Rule organizes moral development of the members of society. c. Rules guide people to do what they want and need to do. 4. Which of the following is a moral issue? a. A student finds naked painting offensive. b. A student confuse about his/her career. c. A student…arrow_forwardIf the marginal cost of a cup of tea is greater than its marginal benefit, then to increase efficiency a. nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of cups of tea is being produced. b. more cups of tea should be produced. production should be halted. c. fewer cups of tea should be produced d. More information is needed about the price of a cup of tea in order to determine if production should be increased, decreased, or not changed.arrow_forward
- The city of Edmonton is trying to figure out if they should add lights to crosswalks on busy roads. The lights would cost the city $80 000 to install and would improve safety at these crosswalks. If the crosswalk lights reduce the risk of fatality by 1 percent and the city estimates the value of human life is $10 million, what would an economist advise the city to do? Select one: O a. The economist would advise the city to install the lights because the cross out expected benefit of $1 000 000 is greater than the cost. O b. The economist would advise the city to not install the lights because the expected benefit of $80 000 is equal to the cost. cross out O c. The economist would advise the city to install the lights because the expected benefit of $100 000 is greater than the cost. cross out O d. The economist would advise the city to not install the lights because the expected benefit of $10 000 is less than the cost. cross outarrow_forward9. Chapter malper, Section .11, Problem 022 (ID: 022.11.MANK09) The Pennsylvania Turpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay toils at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case? Ca. Common resource Ob. Private good. Oc. Public good Cd. Club goodarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc