Suppose that you are selling your old laptop in the second hand market and you know that if RAM are not overwhelmed, the computer's probability of not breaking down is 95%. The buyer can: -Use the laptop carefully by not downloading too many applications that overwhelm the RAM. In this case the laptop will break down 5% of the times. -Disregard the laptop's memory constraint and overwhelm the RAM. In this case the laptop will break down 50% of the time. To signal the quality of your laptop, you provide a partial insurance that gives the buyer 1500$ towards replacing it with a new laptop, whose cost is 2500$. Assume that the buyer likes playing a videogame whose download overwhelms the computer RAM and gains a value of 200$ if he is able to do so. Will the buyer use the laptop carefully? Why? 0 Yes, because the cost of misusing the laptop for the buyer $2500* 0.5=$1250. This is higher than the value of misusing it ($200) Yes, because the cost of misusing the laptop for the buyer 1000$* 0.5=$500. This is higher than the value of misusing it ($200) 0 No, because the cost of misusing the laptop for the buyer $1000* 0.5=$500. This is higher than the value of misusing it ($200) 0 No, because the cost of misusing the laptop for the buyer $1500* 0.5=$750. This is higher than the value of misusing it ($200) Laura earns more than John and does so in a legitimate way. Both have similar backgrounds and endowments. Which economic philosophy would argue against redistributing income from Laura to John? 1. liberalism 2. libertarianism 3. socialism 4. utilitarianism 5. none of the above 0 liberalism libertarianism O socialism O utilitarianism 0 none of the other options The Australian government wants to create a new income tax that collects 10% for all incomes between $10000 and $50000; 15% for income between $50001 and $100000; and 20% for incomes above $100000. What is the difference in the average tax rate (ATR) for one worker earning $75000 and the other $45000? What about the difference in the marginal tax rate (MTR) between them? O ATR difference 2.6%, MTR difference 5% O ATR difference 5.0%, MTR difference 5% O ATR difference 7.8%, MTR difference 10% O ATR difference 10.3%, MTR difference 10% O None of the other options