GE Micro Chapter 18_solutions_fmt

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1、211Acemoglu,Laibson,andList

2、MicroeconomicsChapter18SocialEconomicsQuestions1.Howdoesthestandardmodelofhomoeconomicusdifferfromthehomoeconomicusthatisstudiedinbehavioralandsocialeconomics?Answer:Inthestandardeconomicmodel,EconomicManispresumedtoberationalandcompletelyselfish.Thetraditionalhomo

3、economicussatisfieshisownneedswithoutthinkingabouttheneedsofothers.Behavioralorsocialeconomicslooksatavariantofhomoeconomicuswhoactsmoreselflesslyandwhoisinfluencedbyhissurroundings.Hisactionsareinfluencedbypreferencesforfairness,trust,andrevenge.Hisdecisionsarenotalwaysmadeinisolation;heisaf

4、fectedbythepeoplearoundhim.2.Supposetheactofgivingisviewedasaneconomicgood.Howcanthepriceofcharitabledonationsbemeasured?Doesthequantitydemandeddecreaseasthepriceofgivingincreases?Answer:Oneofthewaysofmeasuringthepriceofgivingisbylookingattaxadvantagesofcharitabledonations.Supposeyoumakea$100

5、charitablecontributionandyourtaxrateis30percent.Asthetextexplains,youcandeductyourcontributionfromyourincomewhenyoucalculateyourtaxes.Yourtaxableincomewillthereforebe$100lowerasaresultofthecontribution.Youwillsave30%x$100=$30intaxesandsothepriceofyour$100charitablecontributionis$100-$30=$70.T

6、hereisagooddealofevidencethatthequantitydemandedof“charitablegiving”doesfallasthepriceofgivingincreases.TheTaxActof1986reducedthetaxadvantagesofcharitablegivingforindividualsintheUnitedStates.Asaresult,individualsinthehighestincomebracketsreducedtheircontributionstocharityconsiderably.3.Whati

7、sthedifferencebetweenpureandimpurealtruism?Canyougiveexamplesfromyourexperiences?Answer:Purealtruismisamotivationsolelytohelpothers.Peopledonatemoneyorvolunteerbecausetheyreallywanttohelpothersandimprovetheirwell-being.Impurealtruismisamotivationsolelytohelponeselffeelgood.PureAltruisminvolve

8、sthosewhovolunteeratachildren’shospitalbecausetheyreallywanttoentertainsickchildrenandboosttheirmorale.Impurealtruisminvolvesthosevolunteeratthechildren’shospitalbecausemostoftheirclassmatesdo.4.Refertotheexperimentinthechapteronsolicitingdon