CurrentlyThe Price of Consuming Housing $x _ { 1 }$ Is Lowered by the Fact That Home Mortgage Interest Is

question 20

Essay

Currently.the price of consuming housing $x _ { 1 }$ is lowered by the fact that home mortgage interest is tax deductible.Suppose the government proposed to eliminate this implicit subsidy of your housing consumption,raising the price from $\left( p _ { 1 } - s \right)$ to $p _ { 1 }$ .At the same time,the government lowers the tax on other consumption,lowering the price from $\left( p _ { 2 } + t \right)$ to $p _ { 2 }$ .
a.Write down your original budget constraint assuming the consumer has income I.
b.Suppose the utility function
$u \left( x _ { 1 } , x _ { 2 } \right) = x _ { 1 } ^ { 0.25 } x _ { 2 } ^ { 0.75 }$ captures your tastes,and suppose
$I = 10,000$ ,
$p _ { 1 } = 10$ ,
$p _ { 2 } = 1$ ,
$s = 6$ and
$t = 1$ .Write out the utility maximization problem for this consumer prior to any policy change.
c.How much housing and other goods will this consumer consume prior to any policy change?
d.How much would this consumer be willing to pay to get the policy change implemented?

Comprehend the meaning of Type I and Type II errors and how they apply in social science contexts.

Define and explain the significance of "testability" in scientific theories.

Recognize the importance of demographic and characteristic data in understanding human behavior.

Grasp the value of simplicity and parsimony in scientific theories.

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Definitions:

Prejudice

Prejudice involves prejudging people based on biases, stereotypes, or without actual knowledge, often leading to unfair treatment or discrimination.

Ethnic Identity Development

The process through which individuals come to understand and feel a connection to their ethnic group, including its culture, traditions, and values.

Ethnic Identity Search

The process by which individuals explore and seek to understand their cultural heritage, values, and customs as part of their overall identity.

Unexamined Ethnic Identity

A state where an individual has not critically explored or reflected upon the cultural, historical, and social significance of their ethnic background.