Your Friend Informs You That He Cannot Be Held Responsible

question 85

Multiple Choice

Your friend informs you that he cannot be held responsible for showing up late for a movie because he is the lastborn child in a family of six.How do you respond?

• A) "Those excuses are lame.Birth-order effects are just not that powerful."
• B) "You misread the data.Lastborns are the most socially and academically competent of siblings."
• C) "You are correct.I'll try to keep that in mind the next time you're late."
• D) "Your parents had higher expectations for you than for the other children.You should know better."

Interpret graphical representations of marginal private and social benefits and costs.

Understand the concepts of private and external benefits in the context of public goods and common resources.

Analyze the economic implications of policies designed to correct for positive externalities.

Illustrate how external benefits influence the socially optimal level of good or service provision.

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of an unknown population parameter with a certain degree of confidence.

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean.

Point Estimate

A single value (or point) estimate derived from sample data to approximate a population parameter.

Confidence Interval

A range of number sets, derived from statistical analyses of samples, assumed to hold the invisible value of a population characteristic.