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

  Find the price at which output is sold in a nash equilibrium

Find the price at which output is sold in a Nash equilibrium and show that this price decreases as n increases as the number of firms increases without bound.

  Compute and illustrate mpl and apl

Let q=K^(.75)*L^(.25) denote the production function, and w and r denote the prices of K (captial) and L (labor). Suppose K is fixed at 10 and L is variable. Compute and illustrate MPL and APL

  What happens to the supply and demand

Beer and pizza are complements because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza.

  If the price of seiko wristwatches increases

If the price of Seiko wristwatches increases from $125 to $200 and as a result the number of Seiko wristwatches purchased decreases, then:

  Draw a supply and demand diagram of a commodity

Draw a supply and demand diagram of a commodity you buy every day for your own consumption or a hypothetical commodity, say X, and show the equilibrium price and quantity demanded and supplied in the diagram.

  Design engineers creating high-end lighting fixtures

Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please sort their various costs, listed below, into the correct ca..

  What is the monopolists optimal markup of price

What is the monopolist's optimal markup of price above marginal cost

  What it means for all the markets to be competitive

Oil is shipped from Alaska to California and Florida. It is also shipped from the Persian Gulf to Florida and to Europe, and from the North Sea to Europe. Assume that the world market and the individual markets for oil are competitive and that a t..

  Discuss the advantages and benefits of job costing

Discuss the advantages and benefits of job costing. Explain how job costing works. Include how job costing handles direct and indirect costs?

  Science knowledge grows on the basis of either human

science knowledge grows on the basis of either human curiosity or human need. explain this statement with the help of

  The table immediately below shows the national accounts

The table immediately below shows the national accounts for an imaginary economy. The Expenditure-based estimate of the economy's GDP? The amount of Capital depreciation experienced by the economy? How did you find this? The Income-based estimate of ..

  Now calculate the unregulated monopolistic outcome

A firm’s Marginal Revenue curve (in class we called this also Marginal Value) is given by w=1200-2L, where w stands for the wage and L for the quantity of labor. The labor supply curve is given as w=L.

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