Explain The Quasi-Experiment Conducted By Deacon And Sonstelie
1. Describe the quasi-experiment conducted by Deacon and Sonstelie in 1985 that was designed to reveal the value of time.
The experiment was led to calculate the estimation of time waited. They discovered the average waiting times at the Chevron stations where the costs were 39.5 cents per gallon than the normal cost at different stations. The waiting time at this station was 14.2 minutes. With the normal gas buy of 10.5 gallons, every hour invested in waiting up was about $17 every hour. This was near the normal time-hourly wage rate in the United States. This infers the benefit of wage rates is like the worth of waiting.
2. A new recreational area in a small town will take 20 full-time (40 hours per week) workers 3 weeks to complete. …show more content…
At $20 every hour, this measure of work would cost $48,000 to complete. Joined with the material costs, the total would be $123,000.
(Part B) This would without a doubt change the opportunity costs by bringing down the opportunity cost of enlisting work. For instance, if the town paid 20 unemployed laborers to do the work and these laborers esteemed their leisure time at $10 every hour, the opportunity cost of procuring these laborers would just be $10 every hour, regardless of whether they were being paid $20 every hour. Therefore, the opportunity cost of doing the recreational area would be lower.
3. Suppose you can take one of two summer jobs. In the first job as a flight attendant, with a salary of $5,000, you estimate the probability you will die is 1 in 40,000. Alternatively, you could drive a truck transporting hazardous materials, which pays $12,000 and for which the probability of death is 1 in 10,000. Suppose that you're indifferent between the two jobs except for the pay and the chance of death. If you choose the job as a flight attendant, what does this say about the value you place on your
The experiment was led to calculate the estimation of time waited. They discovered the average waiting times at the Chevron stations where the costs were 39.5 cents per gallon than the normal cost at different stations. The waiting time at this station was 14.2 minutes. With the normal gas buy of 10.5 gallons, every hour invested in waiting up was about $17 every hour. This was near the normal time-hourly wage rate in the United States. This infers the benefit of wage rates is like the worth of waiting.
2. A new recreational area in a small town will take 20 full-time (40 hours per week) workers 3 weeks to complete. …show more content…
At $20 every hour, this measure of work would cost $48,000 to complete. Joined with the material costs, the total would be $123,000.
(Part B) This would without a doubt change the opportunity costs by bringing down the opportunity cost of enlisting work. For instance, if the town paid 20 unemployed laborers to do the work and these laborers esteemed their leisure time at $10 every hour, the opportunity cost of procuring these laborers would just be $10 every hour, regardless of whether they were being paid $20 every hour. Therefore, the opportunity cost of doing the recreational area would be lower.
3. Suppose you can take one of two summer jobs. In the first job as a flight attendant, with a salary of $5,000, you estimate the probability you will die is 1 in 40,000. Alternatively, you could drive a truck transporting hazardous materials, which pays $12,000 and for which the probability of death is 1 in 10,000. Suppose that you're indifferent between the two jobs except for the pay and the chance of death. If you choose the job as a flight attendant, what does this say about the value you place on your