Please answer question 1 1. Does the first welfare theorem apply to the market for oil and gas? Explain youranswer in one or two sentences.2. Cyclists travel faster on their bicycles when wearing helmets. Is this an example ofadverse selection or moral hazard? Explain your answer.3.On Monday, a coffee shop has one worker and one coffee machine. The managerhires a second member of staff on Tuesday. The two workers argue with each other andproduction on Tuesday is less than it was on Monday. What technical assumption overproduction functions does this violate? Explain your answer.4.Chess is an example of a simultaneous move game - true or false. Explain youranswer.

According to the first welfare theorem, which is a cornerstone of economic theory, every…

Answered: 1. Does the first welfare theorem apply…

Business

Economics

1. Does the first welfare theorem apply to the market for oil and gas? Explain your answer in one or two sentences.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 9PA

See similar textbooks

Related questions

Q: small strip-mining coal company is trying to decide whether it should purchase or lease a new…

A: The equivalent annual worth analysis is one of the most utilized analysis methods for the evaluation…

Q: The table below shows data for the production of Avocados for an individual firm operating in a…

A: The value of the Marginal product of labor is the value generated by each additional unit of labor…

Q: (ii) Draw a negatively sloped yield curve and label it curve 1. On the same diagram draw a new yield…

A: The yield curve has long been used as a measure of the condition of the economy. Typically, a…

Q: I need help describing the key assumptions that characterize a perfectly competitive market and…

A: Perfect competition is a kind of market structure that enables several firms to provide the same…

Q: An analysis of the impact of entrepreneurship on the economy

Q: Draw a negatively sloped yield curve and label it curve 1. On the same diagram draw a new yield…

A: The yield curve has long been used as a measure of the condition of the economy. Typically, a…

Q: An affluent country's income per capita is consistently growing at a pace higher than that of less…

A: The Solow Growth model is a model of economic growth created by financial specialist and Nobel Prize…

Q: Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts…

A: Opportunity cost is the cost of producing 1 good in terms of other. Opportunity cost shows the…

Q: T Suppose the fictional country of Katmai produces only two goods: sorghum and microprocessors. The…

A: The PPF is the production possibility frontier. The Points are efficient when points lies on the…

Q: 2022, many people worried that record inflation (peaking at 8.1%) may eat away at growth. But the…

A: The rate of inflation varies throughout the short term, and it is common for rates to be more…

Q: Old Southwest Canning Co. has determined that any one of four machines can be used in its…

A: The interest rate at which all cash flows, both positive and negative, from a project or investment…

Q: Two business partners have the opportunity to undertake a new project which will lead to a profit of…

A: A Nash equilibrium in game theory refers to a set of tactics where no player, given the strategies…

Q: In 2016, when the interest rate on 10-year German government bonds became negative, an article in…

A: According to the expectations theory, which describes how interest rates are structured throughout…

Q: The 3-month June 2023 dollar interest rate futures contract is currently priced at 95.50. The…

A: An interest-rate futures contract is an agreement between the seller and buyer for the sale of an…

Q: The graph shows the market for orange pickers in Florida. If Florida introduces a minimum wage for…

A: Equilibrium is where the labor demand curve intersects the labor supply curve. At equilibrium point…

Q: Suppose you are the president of a country whose government debt-to-GDP ratio is exploding, and you…

A: The debt-to-GDP ratio refers to a measure of a country's government debt in relation to its gross…

Q: Use the following graph to answer questions 1 through 3: 25- -24- -23+ 22 -21- 20- -19- -18- 17+ 16+…

A: The demand curve is the downward sloping curve. The supply curve is the upward sloping curve. The…

Q: Calculate the external rate of return using the MIRR method if i;= 18% per year and i = 10% per…

A: External rate of return is the return that considers the interest rate that is external to a…

Q: Ann Marie is 28 years old and just received an inheritance from her parents. She wants to find out…

A: Given that; The age of Ann Marie is = 28 years The amount of monthly payment is USD 5,000 for 15…

Q: 3. A small firm intends to increase the capacity of a bottleneck operation by adding a new machine.…

A: A production system bottleneck is a congested area that slows or halts progress. Temporary…

Q: Suppose that population growth increases. The Solow growth model with population growth and…

A: A macroeconomic model that describes long-term economic development in an economy is the Solow…

Q: A movie monopolist sells to college students and other adults. The demand function for students is…

A: (Question d is answered as per asked) The demand for a good is the willingness of consumers to buy…

Q: Under pressure from the Canadian and U.S. governments in the early 1980s, Japanese automobile…

A: A trade restriction on the quantity of a good that an exporting country is permitted to export to…

Q: A) Compare world distributions of corn, wheat, and rice production. To what extend to differences…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Chonamae wants to open a cat cafe with her friends Yolanda and Francis. However, Francis has a…

A: A person or entity that owns shares in a corporation is referred to as a stockholder, sometimes…

Q: Kai went to the apple store and bought the latest apple tv 4k. If the device costs P12,000 and is to…

A: Given: Present value (PV) = P 12,000 No of years = 5 Interest rate = 8% compounded monthly Yearly…

Q: Seafarms is building a new plant where the equipment maintenance costs are expected to be $150 the…

A: Given P =$150 Increase in cost every year = $50 The expected life of the plant = 10 years Interest…

Q: Which of the following is an example of a contractionary fiscal policy? O a. The Bangko Sentral ng…

A: The use of government expenditure and taxation to lower inflationary pressures and sluggish economic…

Q: immy is selling his toy dinos again. The consumer demand curve for the dinos is given by:…

A: The elasticity of demand measures the responsiveness of change in demand to change in price.…

Q: What is the welfare criterion in an exchange model

A: The study of how the distribution of resources and goods impacts social welfare is known as welfare…

Q: io 0 ВО Which point/s represent an equilibrium in the goods market? O a. A only O b. A and D O c. A…

A: Goods market equilibrium is given as Y = C + I + G + NX C is the consumption I is the investment G…

Q: In the Solow growth model without population growth and technological progress, which of the…

A: Solow growth model explains the behavior of economies in the long-run. The model uses a capital…

Q: Suppose that the income increases from $2900 to $3250. As a result, quantity demanded changes from…

A: Income Elasticity of demand helps us to know about the nature of the product and whether it is a…

Q: P3: Elasticity a. Using the demand function: Q=-3p+ 150. Find the total revenue and marginal revenue…

A: The marginal revenue informs on the change in total revenue when an extra good or service is…

Q: Describe a couple examples of Perfect Competition

A: The perfectly competition refers to the market where larger number of buyers and sellers exist in…

Q: Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: Refer to…

A: When we talk about market arrangements that have lots of customers and sellers of similar goods and…

Q: Suppose that two countries share identical technology, depreciation rate, saving rate, and…

A: In economics, the capital stock refers to the total value of physical capital assets in an economy…

Q: The OLS estimation of the relationship between GRADE and HOURS of studying gives the following…

A: Formula for the t-statistics for the slope coefficient is given as => t -statistics (slope…

Q: 1) What are the key differences between the theory of multinational enterprises and conventional…

A: Trade: The primary theory of economics includes the buying and selling of goods and services with…

Q: Which of the following would reduce the natural rate of unemployment? (1) The Internet provides more…

A: Natural rate of unemployment can be defined as lowest level which can be sustained by a healthy…

Q: Suppose Country A has twice the population growth but half the technological growth of Country B.…

A: Robert Solow created the Solow growth model, an economic framework for examining the variables that…

Q: Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the…

A: The international institutions help in managing trade concerns among the countries and providing a…

Q: Lucille receives an annual salary of $37,500 based on a 37.5-hour workweek. What are her gross…

A: Gross earnings refer to the total amount of money that an individual earns before any deductions are…

Q: Hilton a US based Multinational Company will receive 2,000,000 Euros in one-year time from items it…

A: Given, Hilton a US-based Multinational Company will receive 2,000,000 Euros in one-year time from…

Q: calculate the maximum change in demand deposits in the banking sytem as a whole resulting from…

A: Demand deposits is one kind of deposits which can be actually withdrawn at any time. So demand…

Q: Figure 10-12 Price External benefit 21 22 Supply Line 1 Line 2 Quantity Refer to Figure 10-12. An…

A: ***Since the student has posted multiple questions so the expert is required to solve only the first…

Q: From the data in the table about supply of alarm clocks, calculate the price elasticity of supply…

A: Elasticity of supply refers to the responsiveness of percentage change in the quantity supplied due…

Q: The price of comparable French wines decreases. One hundred new wineries open in California. The…

A: We are assuming ourselves to be managers of California winery. We have to identify the effects of…

Q: Suppose the price elasticity of demand for the market of mobile phones is 0.90. If all…

A: Elasticity of demand refers to the change in the quantity demanded / supplied due to changes in the…

Q: Consider a market where supply and demand are given by QS =P-20 and QD =130-2P, respectively.…

A: Deadweight loss is a measure of the inefficiency that results from market distortions such as taxes,…

Question

Please answer question 1

1. Does the first welfare theorem apply to the market for oil and gas? Explain your
answer in one or two sentences.
2. Cyclists travel faster on their bicycles when wearing helmets. Is this an example of
adverse selection or moral hazard? Explain your answer.
3.
On Monday, a coffee shop has one worker and one coffee machine. The manager
hires a second member of staff on Tuesday. The two workers argue with each other and
production on Tuesday is less than it was on Monday. What technical assumption over
production functions does this violate? Explain your answer.
4.
Chess is an example of a simultaneous move game - true or false. Explain your
answer.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Chapter 12 List and discuss the steps in the consumer decision making process. provide an example of each step. List and discuss the three steps in the three perspectives on decision making Chapter 13 Describe the value equation and provide an example. Discuss what evaluative criteria is and what determinant criteria is provide an example of each, Describe 2 factors affect evaluative criteria. Describe the difference between compensatory rules an non-compensatory rules.
Please answer the following questions.1. Explain the factors affecting Demand.2. Explain the difference between positive and negative externalities alongwith an example.3. How are public goods different from private goods?4. Explain the Law of Supply.5. With regard to demand and Supply, explain the point of MarketEquilibrium.
1. Whether the government has taken any action on Call to Action ? 2. Discuss the current status of Call to Actio
pter 31 A market Multiple Choice о O O O reflects upsloping demand and downsloping supply curves. entails the exchange of goods, but not services. is an institution that brings together buyers and sellers. always requires face-to-face contact between buyer and seller. 54 11,044 AUG 28 Prev Saved 1 of 14 H+
ANCOSA The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some 50 miles of concrete highway." Source: https://www.juneauempire.com/opinion/opinion-guns-vs-butter-and-greed-over-all/ Accessed: 14/08/22 The dilemma that all nations confront in the above example is that... A. an increase in national defence is only possible if we produce more civilian goods and services. B. civilian goods and services can only be produced if we have adequate protection from the military. C. an increase in spending in national defence implies more sacrifices of civilian goods and services. D. spending in national defence can be accomplished using the same resources at the same time. Assume that coffee and tea are substitutes. Derrick and Thandi are vendors at the station. Derrick sells tea and Thandi coffee. They usually sell these drinks at R5…
Whether a certain criterion is determinant or not is independent of the situation in which a product is consumed. True False In the context of disposing of consumer refuse, recycling cuts down on garbage while providing raw materials for other new products. True False Which of the following is a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a positive outcome? a. Hope b. Confusion c. Surprise d. Pride Which of the following best describes chronic, repetitive purchasing behaviors that are in response to negative events or feelings? a. Addictive consumption b. Impulsive purchasing c. Window shopping d. Compulsive buying Retaliatory revenge is when a consumer yells insults and makes a public scene in an effort to harm the business. True False
Provide short answer for the following. 1. Market failure. 2.Externality. 3.Substitution effect of a price change. 4. Diminishing marginal utility. 5.Indifference curve?
Hal and Miranda have a general partnership business for landscaping projects. Hal makes a contract with a customer for a project one day while Miranda is absent and leaves on vacation the next day. Miranda does not feel she has the time to perform the contract for the customer. Which of the following is true? A. Only Hal is obligated to perform the contract. B. Miranda is obligated to perform the contract. C. Miranda may relinquish her obligation to perform the contract since Hal signed it without her knowledge.
Please see question bellow and 1st answer. Please help with the 2nd part of the question. What kind of incentives would help with the problem? The black rhino is one of the most endangered species on the planet. In southern Africa in 1970 there were 65,000 Black Rhinos. Now there are only 2,500. Basic economics tells us why they are in trouble and what we can try to do about it. Why do people kill the black rhino? Because they can make a lot of money relative to the risk of getting caught - just like drug trafficking and lying on your taxes. In Asian communities the horn is viewed as an aphrodisiac and a powerful pain reliever. In Yemen sabers are made from them. As a result one horn can fetch $30K on the black market. The average yearly income in southern Africa is $1,000 and falling. The black rhino is worth more dead than alive. This is a market that does not correct itself. Another piece of this, that is common to many environmental challenges, is that most black rhinos are…
10. There are four statements about welfare economics. Which of the following statement is TRUE? A. Social optimal allocations do not need to be Pareto optimal. B. A fair allocation could be Pareto inefficient. C. Coase theorem states that if all agents' preferences are well-behaved, then the efficient level of the externality generating commodity is produced no matter which agent is assigned the control right. D. Groves and Clarke mechanism of truth revelation does not necessarily generate a Pareto efficient outcome.