Chapter+2+-+Rational+Economic+Behavior

Chapter+2+-+Rational+Economic+Behavior - Chapters 1 & 2...

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Rational Economic Behavior
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You Go to Bathroom? 1. Toilet seat : Americans with Disabilities Act (ADA) regulations are administered by U.S. Department of Justice (for government and commercial buildings). For example, The toilet seat height should be 17 to 19 inches above the floor . The flush controls for an ADA compliant toilet must not be higher than 44 inches from the floor. The toilet also needs to be positioned so that people who use wheelchairs have adequate space to approach. Adequate floor space must be given for people to approach ADA- compliant toilets in a wheelchair. 2. Toilet tank : Energy Policy Act of 1992 introduced low-flow regulations. It requires that all residential toilets be manufactured using the 1.6-gallons- per-flush standard. 3. Price of water : Regulated either by city or state governments. A Day in the Life
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Wash your hands, take a shower? 1. Faucet and Shower head : The Federal Energy Policy Act of 1992 mandates that "all faucet fixtures manufactured in the United States restrict maximum water flow at or below 2.5 gallons per minute (gpm) at 80 pounds per square inch (psi) of water pressure or 2.2 gpm at 60 psi.“ Make a little breakfast for yourself? 1. Price of electricity : Regulated by states. 2. Price of natural gas : Regulated by states. 1. Price of milk : Many states regulate it. 2. Vitamin D in milk 3. Nutrition information on back of cereal box. 4. Price of bread: All kinds of agricultural price support programs. 5. Fluoride in water A Day in the Life
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You go out, thinking you left the government at home? Think again! 1. Helmet law, seat belt law., airbags, child seats 2. Traffic laws 3. Unleaded gasoline, tax on gasoline, octane level of gasoline 4. A little friendly notice that the chemicals in gas station may kill you 5. Subsidized public transportation You go to school? 1. Free public education 2. Subsidized tuitions 3. Low interest student loans Where do you live? 1. Rent control and low-income housing 2. Government policy to provide low-interest mortgage loans 3. Lemons laws 4. Property taxes 5. Don’t-bother-your-neighbor city ordinances A Day in the Life
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A Day in the Life You feel safe at home, somewhat? 1. Government provides national security
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Chapter+2+-+Rational+Economic+Behavior - Chapters 1 & 2...

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