Consider a household consisting of four college friends. The friends have made a commitment to live together for the next five years. Presently they live in Milwaukee where Abby will earn $200,000, Bonnie will earn $120,000, Cathy will earn $315,000, and Donna will earn $150,000 over the next five years. They have the option of moving to Miami. Moving to Miami would impose a one-time moving cost of $5,000 on each person. If they move to Miami, however, Abby will earn $180,000, Bonnie will earn $150,000, Cathy will earn $300,000, and Donna will earn $100,000 over the next five years. Moreover, each friend prefers to live in Miami over Milwaukee. In particular, Abby and Bonnie both value the quality of life in Miami versus Milwaukee over the next five years at $40,000 while Cathy and Donna place the value at $25,000 each. Should the household move to Miami or stay in Milwaukee? Is anyone a tiedmover or a tied stayer?

Explanation:

See the attached for a spreadsheet of the values given in the problem statement. We have simply added the salary to the value of the preference and subtracted the one-time moving expense.

The right-most column shows the net increase in value of moving to Miami for each of the householders. Bonnie achieves so much more value that her net value outweighs the rather significant hit in value that Donna experiences.

If the vote is by net value to the householders, they must vote to move. There are no householders that have a net zero change in value.

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Comment on democracy

A decision based on net value does not account for the rather significant cost to Donna. If the household values mental health and interpersonal relationships, the fact that one member suffers badly from the move should be enough to sway the decision against it.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.