This topic contains a solution. Click here to go to the answer

Author Question: ________, in economics, refers to a preference for equal outcomes within the target population. ... (Read 51 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
________, in economics, refers to a preference for equal outcomes within the target population.
 
  A) Randomness
  B) Rationalism
  C) Fairness
  D) Liberalism

Question 2

Define reservation values. If a buyer of a product has a reservation value of 10, the seller of the product has a reservation value of 3, and the equilibrium price of the product is determined at 5,
 
  calculate the consumer surplus and the producer surplus.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

poopface

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

C

Answer to Question 2

A reservation value is the price at which a trading partner is indifferent between making the trade and not doing so. For a buyer, this is the highest price he is willing to pay for a good or service. For a seller, it is the lowest price he is willing to accept for a good or service.
Consumer surplus = 10 - 5 = 5
Producer surplus = 5 - 3 = 2




poopface

  • Sr. Member
  • ****
  • Posts: 339

 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

For a complete list of videos, visit our video library