use individual images to better answer the questions. Thanks!
Four roommates are planning to spend the weekend in their dorm room watching old movies. and they are debating how many to watch. Here is their willingness to pay for each film: Willingness to Pay (Dollar's! Eric Kenji Paolo Van # 1 First lm 10 9 6 3 Second 9 7 4 2 lm Third film 8 5 2 1 m D D Fourth lm 7 Fifth lm 6 1 D D Within the dorm room, the showing of a movie Is ' a public good. If it costs $8 to rent a movie, the roommates should rent 3 movies in order to maximize the total surplus. Suppose the roommates choose to rent the optimal number of movies you just indicated and then split the cost of renting equally. This means that each roommate will pay $ Complete the following table with each roommate '5 total willingness to pay for this many movies and the surplus each person obtains from watching the movies. Total Willingness to Pay Consumer Surplus Roommate (Dollars) (Dollars) In order to split the cost in a way that ensures that everyone benets, the cost could be divided up based on the benets each roommate receives. The practical problem with this solution is that each roommate has an incentive to -_ the value of the movies to him. Suppose they agree in advance to choose the efficient number and to split the oost of the movies equally. True or False: when Eric is asked his willingness to pay, he will have an incentive to tell the truth. , True - False -s teaches you that the optimal provision of a public good will occur if individuals do not have an incentive to hide their valuation of the good. This exam ,- Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). You also pay federal income taxes as in the following table: #2 On Taxable Income... The Tax Rate Is... From $0 to $9,075 10.0% From $9,076 to $36,900 15.0% From $36,901 to $89,350 25.0% From $89,351 to $186,350 28.0% From $185,351 to $405,100 33.0% From $405,101 to $406,750 35.0% From $406,751 and above 39.6% Complete the following table with how much tax of each type you pay if you earn $10,000 a year. (Note: Ignore any credits or deductions of one tax type on other tax liabilities.) Amou I'It Tax Type (Dollars) State Income Tax 10.5%: 25.8%: 29.8%: 34 Federal Payroll Tax Federal Income Tax ' 3% '_ and your marginal tax rate is Complete the following table with how much tax of each type you pay if you earn $40,000 a year. Amou nt Tax Type (Dollars) State Income Tax Federal Payroll Tax Federal Income Tax Taking all taxes into account, your average tax rate is _ V in this case. , and your marginal tax rate is
