Can you devise a survey that does make people reveal truth

Assignment Help Microeconomics
Reference no: EM13887915

Suppose the average value that a person in a certain city places on having 1000 extra police of?cers out on the streets for a year is $10. Some people have a higher value and some a lower value. The population is 7 million. The city government decides to ask people how much they value an extra 1000 police to see if it is worth spending the $50 million a year needed. Two questionnaires are proposed. The ?rst version of the question- naire asks people to assess the value to them of the extra police and explains that people will pay whatever amount they answer-on the condition that the total of answers is at least $75 million. The second version of the questionnaire also asks people to reveal how much they value the extra police, but it says that everyone will pay the same amount if the police are hired, provided the sum of the personal valuations exceeds $75 million.

(a) What would be the results of the different surveys?

(b) Which is better?

(c) Does either survey give people the incentive to tell the truth?

(d) Can you devise a survey that does make people reveal the truth?

Reference no: EM13887915

Questions Cloud

What are the advantages of the cash payback technique : Describe the process a company may use in screening and approving the capital expenditure budget. What are the advantages and disadvantages of the cash payback technique?
What is motivating employees at listo systems : What theories and/or studies could be applied here to better understand what is motivating employees at Listo Systems
Create a code of ethics policy for the company : Imagine your organization has no policy or code of ethics. If the company's top executive asked you to create a code of ethics policy for the company, what would you include
How did your decisions or outcomes compare : How did you know when the two of you were approaching the same ethical dilemmas from different ethical perspectives? What was the outcome? How did your decisions or outcomes compare
Can you devise a survey that does make people reveal truth : Suppose the average value that a person in a certain city places on having 1000 extra police of?cers out on the streets for a year is $10. Some people have a higher value and some a lower value. The population is 7 million.
How industrial revolution is represented in literature : Compare respective approaches, paying special attention to selected poems by Wordsworth and Shelley and With specific reference to Mathew Arnold's poems, show how the poet sees himself as a sick man in a sick society.
Does future generations cannot vote have any bearing : Does it make sense for there to be any limits on the ability of a democratically elected government to run ?scal de?cits? Does the fact that future generations cannot vote have any bearing on this issue?
Analyze transactions resulted in a cash flow from activities : Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.
Find the rectangle of largest area : Use the method of Lagrange multipliers to find the rectangle of largest area, with sides parallel to the axes, that can be inscribed in the ellipse (x / a)2 + ( y / b)2 = I. What is that maximum area?

Reviews

Write a Review

Microeconomics Questions & Answers

  The cause-effect chain of monetary policy

First define the concept of monetary policy and explain which schedule in the IS-LM model would be directly affected by the use of monetary policy. Next, define the concept of the transmission mechanism (or the cause-effect chain of monetary policy),..

  Use first order conditions for profit maximisation

Use the first order conditions for profit maximisation to show that a monopolist will never produce on the inelastic portion of his demand curve.

  Write down the reasoning why you would prefer one method

managing the product through successive stages of the product life cycle is an important role for a product manager.

  Take a small company to be established and construct a cost

take a small company to be established and construct a cost revenue analysis to see how feasible the project could be?

  Do you own a home that is financed by a mortgage

If so, how large a down payment did you make? Is the interest rate fixed or variable? If you pay the mortgage off early, are there prepayment penalties? Based on this answers to this question, would you classify your mortgage as prime, subprime, o..

  Explain why any tax on coffee may impact on tea produce

Using an appropriate model explain why any tax on coffee may impact on tea produce?

  How does the government budget deficit affect economy

how does a government budget deficit affect the economy? identify two periods in recent history in which the united

  What would be production possibility frontiers for brazil

suppose that there are two products clothing and soda. both brazil and the united states produce each product. brazil

  Regarding international trade theorem

Regarding International Trade Theorem.  According to Stolper-Samuelson Theorem, if a labor rich country put a small tariff on its imports, what would happen to real wages compared to the free trade equilibrium? Is the country better off?

  In 2009 the fed initiated a program called qe or

in 2009 the fed initiated a program called qe or quantitative easing to try and stimulate the economy. using a fully

  How much does the money supply increase in each case

Spielberg takes $100 out of his piggy bank and deposits it in his Hollywood Bank checking account. By how much does the total amount of deposits in the banking system increase (i) if this $100 stays in the banking system as reserves, and (ii) if bank..

  The productivity standard for the distribution of income

Explain why the productivity standard for the distribution of income entails rewarding people based on their contribution to society total output.

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