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Chapter 1: Problem 6

This morning you made the following individual choices: you bought a bagel and coffee at the local café, you drove to school in your car during rush hour, and you typed your roommate's term paper because you are a fast typist-in return for which she will do your laundry for a month. For each of these actions, describe how your individual choices interacted with the individual choices made by others. Were other people left better off or worse off by your choices in each case?

Short Answer

Expert verified
Question: Evaluate the impact of the three choices on other people in each given situation, and determine whether they were left better off or worse off.

Step by step solution

01

Choice 1: Buying a Bagel and Coffee at the Local Cafe

To understand how this choice interacts with others, one should consider the following points: - The purchase supports the cafe and its employees, contributing to their income. - If the cafe was crowded, the time and space occupied could have affected other patrons, either by causing a delay or reducing available seating. - The choice of this cafe over others can impact the demand for other cafes' products. Other people's lives improve through the support of the cafe and its employees, though the experience of other patrons may have been worsened because of crowding and wait times.
02

Choice 2: Driving to School During Rush Hour

This action's impact on others can be analyzed by examining the following points: - By contributing to rush hour traffic, other drivers may experience delays or increased congestion. - The use of a car increases fuel consumption and emissions, which can have negative environmental effects and impact others' health. - Choosing to drive independently rather than carpool or utilize public transport could have created additional demand for parking spaces at school. In this case, other people might be left worse off due to increased traffic, emissions, and competition for parking spaces.
03

Choice 3: Typing Roommate's Term Paper in Exchange for Laundry Services

The interaction between this choice and others can be understood by considering: - The roommate benefits from a faster completion of the term paper, which could improve their academic performance and reduce stress. - The agreement to do laundry in exchange saves time and effort, which can be spent on other responsibilities or activities. - Mutual agreements like this help to foster trust and a sense of community, benefiting the relationship and the living environment. In this situation, both individuals seem to be better off due to the arrangement, with both time and effort saved through the exchange of services.

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Most popular questions from this chapter

Which of the following situations describes an equilibrium? Which does not? If the situation does not describe an equilibrium, what would an equilibrium look like? a. Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes when you travel by highway but only 15 minutes when you go by side streets. b. At the intersection of Main and Broadway are two gas stations. One station charges \(\$ 3.00\) per gallon for regular gas and the other charges \(\$ 2.85\) per gallon. Customers can get service immediately at the first station but must wait in a long line at the second. c. Every student enrolled in Economics 101 must also attend a weekly tutorial. This year there are two sections offered: section A and section B, which meet at the same time in adjoining classrooms and are taught by equally competent instructors. Section A is overcrowded, with people sitting on the floor and often unable to see what is written on the board at the front of the room. Section \(\mathrm{B}\) has many empty seats.

In each of the following situations, explain how government intervention could improve society's welfare by changing people's incentives. In what sense is the market going wrong? a. Pollution from auto emissions has reached unhealthy levels. b. Everyone in Woodville would be better off if streetlights were installed in the town. But no individual resident is willing to pay for installation of a streetlight in front of his or her house because it is impossible to recoup the cost by charging other residents for the benefit they receive from it.

In each of the following cases, explain whether you think the situation is efficient or not. If it is not efficient, why not? What actions would make the situation efficient? a. Electricity is included in the rent at your dorm. Some residents in your dorm leave lights, computers, and appliances on when they are not in their rooms. b. Although they cost the same amount to prepare, the cafeteria in your dorm consistently provides too many dishes that diners don't like, such as tofu casserole, and too few dishes that diners do like, such as roast turkey with dressing. c. The enrollment for a particular course exceeds the spaces available. Some students who need to take this course to complete their major are unable to get a space even though others who are taking it as an elective do get a space.

Describe some of the opportunity costs when you decide to do the following. a. Attend college instead of taking a job b. Watch a movie instead of studying for an exam c. Ride the bus instead of driving your car

In 2012, Hurricane Sandy caused massive destruction to the northeast United States. Tens of thousands of people lost their homes and possessions. Even those who weren't directly affected by the destruction were hurt because businesses failed or contracted and jobs dried up. Using one of the principles of economy-wide interaction, explain how government intervention can help in this situation.
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