Anexo C Simulación
C.1 Métodos numéricos
C.1.3 Métodos de discretización y tipos de malla
o sell, the options are to sell it yourself (see above) with a value for $250,000, with a probability of 90% and added cost with a realtor is 250,000 (.9) - 12,500 = $212,500. It is ltor.
. The high school graduate is paid $25,000, but there is a 75% probability of a $7500
he "C" average college graduate is paid $30,000, but there is a 50% probability of a new search cost is 3750. 30,000 + 3750 = 33,750.
ge graduate is paid $35,000, but there is a 5% probability of a The new search cost is 375. 33,000 + 375 = 33,375.
ince they will perform equally well, you should hire the "A" average college graduate ecause the cost is lower.
u
s which assumption about information?
. Information provides benefits.
with different levels of education who, if they work out, will d You can hire the high school graduate for $2
out. You can hire the "C" average college graduate for $30,000 it working out. Y
K
1. The marginal benefit of inter exceeds the marginal cost o 2a. If you sell the hous
1
days is $250,000 (.6) - 5000 = 150,000 - 5,000 = $145,000. Therefore, you should sell it now
2b. If you wait 30 days t
of $145,000 or sell with a realtor of 12,500. The value of selling better to use the rea
3
new search. The new search cost is 5625. 25,000 + 5625 = 30,625.
T
$7500 new search. The The "A" average colle
1. Adam Smith's Invisible Hand Theory make a. Information is costly.
b
c. Buyers are ignorant.
d. Buyers are fully informed.
e. none of the above
2. Improving information will have which effect on economic surplus?
a. Increase it.
. where marginal benefit is highest.
. none of the above . People are risk neutral if
ey will accept any gamble.
. they will accept a gamble only if it is better-than-fair.
t a fair or better gamble.
. they will not accept an unfair gamble.
e of the above
ou will refuse any fair gamble you are loving.
neutral.
averse.
avoiding.
competitive.
. When buyers and sellers are not equally well informed about a good, there is
. asymmetric information.
. risk aversion.
. The Lemons Model explains how b
istribute it.
d
e. Eliminate it.
3. The optimal amount of information is
m available.
re marginal cost is lowest.
d
c. symmetric information.
d
e. costly information.
7
a. asymmetric information decreases the average quality of goods for sale.
b. people with lower quality goods are more likely to sell them.
c. reservation prices for used goods are lower.
d. there is a downward spiral in the average quality of used cars.
e. all of the above
8. That insurance is purchased disproportionately by those who are most costly to insure is an example of
a. adverse selection.
b. conspicuous consumption.
c. statistical discrimination.
d. risk aversion.
e. none of the above
9. Hiring lawyers based on the cars they drive and the clothes they wear is hiring based on
a. adverse selection.
b. conspicuous consumption.
c. statistical discrimination.
d. risk aversion.
e. none of the above
10. According to the theory of disappearing political discourse, those who ________ are likely to remain silent?
a. support a position b. are against a position c. believe strongly d. are apathetic
e. are easy to understand
Problems/Short Answer
1. Consider a gamble in which you win $10 if a six-sided die (with 1 - 6 on the sides) rolls a six. If any other number is rolled, you lose $2. The die is "loaded" so that there is a 20% chance that it will roll a 6.
a. What is the expected value of the gamble?
b. If you are risk neutral, will you accept the gamble? Explain.
2. Suppose you own and manage your own t-shirt business. Currently you buy your lain t-shirts (on which you put a logo) from a retail supplier in town. You know that if
down your stand and spent time searching the internet, you could find a better
Hours spent researching Price of t-shirts p
you closed
price for your next shipment of 1000 t-shirts. But, closing down the stand would decrease your profits by $50 per hour. The reduction in the price you must pay for t-shirts after different amounts of internet research is shown in the table below.
______________________________________
. d
a. The expected value = .2 (10) - 2 (.8) = 2 - 1.6 = .4
b. You would take the gamble because it is "fair or better" (i.e., the expected value is positive).
0 4.50
1 3.75
2 3.00
3 2.40
4 2.00
5 1.80
a. How long should you spend researching lower t-shirt prices? Explain.
Key
Multiple Choice 1
2. a 3. e 4. c 5. c 6. b 7. e 8. a 9. b 10. a
Problems/Short Answer 1
1
2. You should research as long as M B. The MC is $50, the marginal
benefit is the savin t is 75, 75, 60,
40, 20. MB excee
C = (or exceeds) M
gs per shirt times 100. Therefore, the marginal benefi ds MC for 3 hours of research.
N tes on Teaching: Part 4 Labo or Markets and the Public Sector
art IV looks at labor markets and the public sector. Chapter 13 presents labor markets nd the issue of income distribution. Chapters 14 and 15 present material related to the
iding goods and services and financing their provision ncluding environment, health, and safety).
Chapter 13 now combines material from the previous Chapter 13 and Chapter 16, so that sections on monopsony, comparable worth,
cost-benefit d security. The coverage of
, ding of The pro nd equilibrium work the same way as well. Therefore, instructors can Dis s are important aspects of labor markets that did not apply in
the course in which to have students do research on their own community.
Community-ased research, or possibly service learning, give students the opportunity to see a direct nk between their studies and what is going on in their own community. These topics
ustrate and discuss opportunity cost. What is the tradeoff me equality) and efficiency? What role can or should
nt and market e many articles that appear in
debates and to critique Overview
P a
role of government in prov (i
What’s New?
labor markets and income redistribution are covered in one chapter. The combined chapter omits several examples as well as the
utilitarianism, tax policy, occupational choice, and redistribution and analysis. Chapter 14 has a new section on public health an
marginal cost pricing and natural monopoly have been moved to earlier chapters.
Notes and Suggestions
Product markets have been discussed throughout previous chapters. In this section students are introduced to the market for labor. Since they now have an understan markets, it is useful to present the similarities between the product labor markets.
supply and demand curves in the labor market have the same slopes as they did in the duct market, a
take advantage of the similarities and need only emphasize the differences.
crimination and union product markets.
The remaining topics in this section relate to the role of government in affecting distribution of income and providing goods and services. This is a good part of the b
li
can be used to clearly ill etween equity (e.g. inco b
government play in these areas? What is the tradeoff between governme
rovision of health, safety and environmental quality? What are the pros and cons of p
each? These questions can be addressed using some of th e popular press. It is an excellent opportunity to look at local th
the economics presented in the press.