6.2. Of the following three rules, which leads to the least amount of inequality
ID: 1163838 • Letter: 6
Question
6.2. Of the following three rules, which leads to the least amount of inequality, where inequality is measured as the difference between the persons with the most and least consumption?
A. Licenses awarded by lottery at the beginning of the year
B. Licenses awarded by lottery at the beginning of each month
C. Licenses that are sold at auction each month with the revenue shared among all members of the communit
.
Suppose that a government auctions 40 licenses each month. Last month, in the first auction, 25 people bid 3.2 pounds of protein, 20 people bid 3.1 pounds, 15 people bid 3.0 pounds, 5 people bid 2.9 pounds, and 10 people bid 2.8 pounds.
7.1. What was the lowest winning bid in the auction last month?
A. 3.2 pounds of protein
B. 3.1 pounds of protein
C. 3.0 pounds of protein
D. 2.9 pounds of protein
E. 2.8 pounds of protein
Suppose that a government auctions 40 licenses each month. Last month, in the first auction, 25 people bid 3.2 pounds of protein, 20 people bid 3.1 pounds, 15 people bid 3.0 pounds, 5 people bid 2.9 pounds, and 10 people bid 2.8 pounds.
7.2. Suppose that in the auction from last month you did not win a license. Remember that if you can fish, you catch 4 pounds of protein this month. If you hunt, you catch 1 pound of protein. Suppose that you think everyone else will bid the same way again this month, and the lowest winning bid will stay the same. Among these choices, which is your best strategy this month?
A. Bid 3.3 pounds of protein.
B. Bid 3.2 pounds of protein.
C. Bid 3.1 pounds of protein and submit your bid very early.
D. Don't bother to bid.
Suppose that a government auctions 40 licenses each month. Last month, in the first auction, 25 people bid 3.2 pounds of protein, 20 people bid 3.1 pounds, 15 people bid 3.0 pounds, 5 people bid 2.9 pounds, and 10 people bid 2.8 pounds.
7.3. Suppose that students who were initially confused learn how the auction works. Suppose that they are being graded on the basis of how much total protein they are able to consume. In this case, which of the following is a more likely outcome in an auction of the licenses?
A. The winning bid is just below a price of 3 pounds of protein.
B. The winning bid is just above a price of 3 pounds of protein.
Thanks a lot
Explanation / Answer
Answer
6.2) The correct option is C. Because revenues are shared ammong the community the difference between the persons with the most and least consumption is less than that of other options.
7.1) The correct option is A, 3.2 pound of proteins because it is the highest bid among all the bids.
7.2) The correct option is A, 3.3 pound of proteins because it is only option that will giva you a guarentee license.
7.4) The correct option is A. The winning bid is just below a price of 3 pounds of protein.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.