What is sam''s compensating variation for the proposed policy

Assignment Help Econometrics
Reference no: EM131161096

Sam currently earns $30,000 a year. The government is considering a policy that would increase Sam's income by 12 percent, but raise all prices by 8 percent. What is Sam's compensating variation for the proposed policy? Can you compute it without knowing his preferences? Why or why not?

Reference no: EM131161096

Questions Cloud

Describe the effects that the statistical information : Describe the effects that the statistical information on a specific race or ethnicity in the areas of health, crime, employment, or education may have in terms of being a predictor of behavior. Provide your opinion on the most likely effects these..
Explain capital evaluation methods strengths and weaknesses : Select one of the capital investment evaluation methods describedt. Fully explain the capital evaluation method's strengths and weaknesses. Take a position and defend the use of your selected method.
Does this change alter the consumption of nuts or bolts : What does your answer tell you about the size of substitution effects resulting from changes in the price of nuts?
What is the impact on your recommendation of the fact : What is the impact on your recommendation of the fact that the operating cash inflows associated with press A are characterized as very risky in contrast to the low-risk operating cash inflows of press B?
What is sam''s compensating variation for the proposed policy : What is Sam's compensating variation for the proposed policy? Can you compute it without knowing his preferences? Why or why not?
Calculate the change in albert''s consumer surplus : Using the method described in Section 6.2, calculate the change in Albert's consumer surplus.
How politics in health care organization motivates employees : Examine the impact of motivation on quality, safety, and legal risks associated with health care organizations. Assess how politics in a health care organization motivates and demotivates employees and recommend strategies to mitigate the challenge..
How does that revenue compare to her economic losses : How much revenue will the government raise by taxing Beatriz? How does that revenue compare to her economic losses? Does the new tax raise enough revenue for the government to compensate her for her loss?
Defend against unauthorized access and data loss : defend against unauthorized access and data loss potentially compromising intellectual assets, sensitive data and the company's reputation in the marketplace.

Reviews

Write a Review

Econometrics Questions & Answers

  What is chinas opportunity cost of producing wheat

In China, it takes 100 hours to produce 1 digital camera or 4 hours to produce 1 lb. of wheat. In S. Korea, it takes 60 hours to produce 1 digital camera or 3 hours to produce 1 lb. of wheat. What is China's opportunity cost of producing one pound of..

  Explain qualitatively your result

It is more useful to express the OPE as a function of [NOx] rather than as a function of [NO2] because of the rapid cycling between NO and NO2. Explain qualitatively your result. Does this dependence hinder or enhance the effectiveness of NOx emissi..

  Compute the expected present discounted value

For which of the problems listed in (a) through (c) would you want to use real payments and real interest rates, and for which would you want to use nominal payments and nominal interest rates to compute the expected present discounted value? In e..

  Examine two potential transfer pricing issues

Two procedures you would propose as the tax manager of an MNE to reduce the audit potential for transfer pricing issues by the IRS. Provide examples to support the expected impact of your recommendations

  What average price change per year for the entire period

An economist has predicted that for the next 5 years inflation will be 8%, and then there will be 5 years at 6% inflation rate. This is equivalent to what average price change per year for the entire 10-year period

  What is the optimal numbers of towers to build

A cell phone company is considering investing in additional cell phone towers. It estimates that if it builds K towers, its benefit in terms of increased profits will be: B(K)=500K-K^2 in millions. Assume each tower costs $20 million to build.

  What is the book cost of the stainless steel pump

A pump has faild in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 years. However, a used staniless steel pump that should last 3 more years has been sitting in the maintenance shope for a ..

  What is the impact of higher rate of technological progress

Prove that the steady-state equilibrium is unique and globally (saddle-path) stable. What is the impact of a higher rate of technological progress?

  Why the product is important in the building process

Research a product from one of the 4 options listed and write a detailed report on the product. This report should explain how the component is built and designed; why the product is important in the building process

  Compute a consumer price index for apples for each year

Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys only 10 red apples. In year 2, red apples cost $2, green apple costs $1, and Abby buys only 10 green apples. a. Compute a consumer price index ..

  How often to go to atm when norminal interest rate is higher

Solve Tracy's problem of how often to go to the ATM when the norminal interest rate on her bank account is 10%, she spends $30 each day, it costs her $0.50 each time she uses the ATM, and she thinks that there is a 15% chance that she will lose he..

  Solve the following linear programming model graphically in

solve the following linear programming model graphically. in addition write the problem in standard form and do a

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