All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
economics

Questions and Answers of Economics

The widget industry is competitive. Widget factories pollute the neighborhoods where they are located. The following diagram shows the demand for widgets and the private and social marginal cost
The widget industry is competitive and a source of localized air pollution (the pollution affects only people who live near widget factories). The following graph shows the demand for widgets and the
Suppose that reckless driving imposes costs (in the form of medical bills) on both the drivers themselves and on pedestrians. Each mile of reckless driving costs drivers $1 and pedestrians $0.25. The
True or False: If the courts enforce a negligence standard in determining liability for auto accidents, then people will take too many car trips.
A radical revision of accident law has been proposed. The proposal is that every individual who is within 1 mile of an auto accident when it occurs must pay a fine equal to the sum of all of the
Betty hires Veronica to build an addition to Betty's house. They agree on a price and Veronica begins the job. After the work is partially completed, Betty changes her mind and decides that the
In the situation of the preceding problem, suppose that courts want to choose a standard (either reliance damages or expectation damages) that induces efficient behavior. Having worked the preceding
Each potential user of the Phoenix River Bridge is willing to pay up to $299 per crossing, provided there are no other cars to slow him down. When there are more cars, willingness to pay goes down.
Let A be the value of a visit to the aquarium and let Î· be the elasticity of A with respect to the number of visitors. (That is, Î· is the elasticity of the lightly colored
A fisherman at Hardin Lake can catch 20 fish per day, provided he has the lake to himself. Two fishermen can catch 19 fish apiece per day, and three can catch 18 fish apiece per day. Other numbers
Happy, Grumpy, Dopey, Sleepy, Sneezy, Doc, and Bashful are miners, who have nothing to do with their time but to go mining. There are no other miners in the vicinity. Each miner can dig in either of
Two roads go from Hereville to Thereville. One road is very wide and can easily accommodate all the traffic that would ever want to use it, but it is in poor repair and unpleasant to drive on. The
A race of dwarfs lived near a forest where apple trees grew wild. Any dwarf who wanted to could enter the forest and pick apples for himself and his family. One day a giant came, claimed the forest
True or False: A communally owned lake is more valuable in a town where everybody is an excellent fisherman than in a town where people vary widely in their fishing ability.
Suppose that the town of Springfield establishes an aquarium with free admission and that all residents of Springfield are identical. True or False: If the population of Springfield is sufficiently
Rollo's Roller Rink is located in a town where everyone is identical. Rollo's is subject to crowding and becomes less pleasant when it is crowded. True or False: If Rollo is a monopolist, he will
Which of the following are nonexcludable? Nonrivalrous? Both? Neither?a. Network TV programmingb. Cable TV programmingc. Textbooksd. Statues in the parke. Water fountains in the park
A public radio station soliciting donations argued that its listeners would be irrational not to contribute. "Unless our fund drive is successful," they warned, "we will have to go off the air.
Most of the people living on the north side of Boomtown are apartment dwellers who commute into the center of town every day to go to work. The city is considering building a new subway line between
Cleantown and Grimyville are identical except for the inferior air quality in Grimyville. All potential residents have identical tastes. Apartments in Cleantown rent for $300 per month. The cost of
In the preceding problem, drop the assumption that everyone is identical. Some hate pollution more than others do. The one person in Grimyville who hates pollution the most considers the cost of
Suppose that you want to sell your car to one of several people and that you decide to auction it off. You are curious to know the highest price that each of the potential buyers would be willing to
A factory that emits noxious smoke is located near a small cluster of homes. It is up to you to decide whether the factory will have to install pollution-control equipment. A key variable in your
Consider a firm that produces according to the production function:Q = √KLwhere Q is the firm's output and K and L are the quantities of capital and labor that it employs. With this production
Consider a perfectly competitive industry with many identical firms, each producing according to the production function:Q = √KLLabor and capital are supplied to the industry according to the
True or False: A rise in the demand for apples has no effect on the productivity of apple-pickers and hence no effect on the demand for apple pickers.
True or False: If the demand curve for a product is vertical, then any rise in the wage rate could be passed on entirely from firms to customers, without any fall in production. Thus, a rise in the
True or False: If labor and capital are complements in production, then the long-run labor demand curve is more elastic than the short-run labor demand curve.
a. Prepare graphs like those in Exhibit to illustrate the relationships between short-run and long-run labor demand when capital and labor are substitutes in production.Labor Demand in the Short Run
a. Use Exhibit to show that when labor and capital are the only inputs and when they are complements in production, the long-run labor demand curve must slope downward.Labor Demand in the Short Run
True or False: The industry demand curve, for a regressive factor is likely to be more elastic than the sum of the firms' demand curves.
True or False: The isocosts of a monopsonist in the labor market are not straight lines.
Use a graph to demonstrate the social welfare consequences of monopsony.
True or False: If there is monopsony in the labor market, a minimum wage law can lead to increased employment.
Suppose that labor and capital are both supplied perfectly inelastically to the U.S. economy.a. Show the producers' surplus earned by capital on a graph of the marginal product of labor. Explain
True or False: If firms earn zero profits and if labor and capital are the only inputs, then a rise in wages must be bad for the owners of capital.
True or False: If firms earn zero profits and if labor and capital are the only inputs, then labor and capital must be complements in production.
Suppose that there are exactly three factors of production: skilled labor, which is represented by unions; unskilled labor, which is not represented by unions; and capital. Currently, skilled labor
In order to promote economic expansion, the town of Hyde Park has declared certain areas of the city to be "no-tax zones." Businesses located in these areas are exempt from all city taxes. As a
True or False: If an individual suddenly found that he needed less sleep per night than previously, his consumption would go up.
Jack can work up to 8 hours a day at a wage rate of W and as much more as he wants at the higher overtime rate of W′. He chooses to work 10 hours. Jill can work as many hours as she wants at a wage
Suppose that all people have identical tastes and identical talents, but that those who attend college become more productive and hence earn higher wages. On the other hand, college students have to
Dick recently received a substantial inheritance from his aunt and immediately started working more hours at his job. If Dick’s wage rate increases, can you predict what will happen to the number
Jane recently received a substantial inheritance from her aunt and immediately started working fewer hours at her job. If Jane’s wage rate increases, can you predict what will happen to the number
Leisure is an inferior good for Horace.a. Use indifference curves to show the income and substitution effects of an increase in Horace’s wage rate.b. Could Horace’s labor supply curve be
Hortense earns a wage of $10 per hour and chooses to work 35 hours per week. One day, her employer tells her that while he will continue to pay her $10 an hour for her first 35 hours each week, he
Car wash attendants currently earn $5 per hour and choose to work 50 hours per week. A law has just been passed requiring car washes to pay double wages for any hours in excess of 40 per week. The
True or False: A man who earns his entire income in wages will respond more sharply to a rise in the wage than will a man whose income is mostly from property.
True or False: Workers who like their jobs will be more productive at the margin than those who don’t.
Suppose that an unexpected blight wipes out a large portion of this year’s agricultural harvest. What happens to the wage rate, the amount of labor supplied to the marketplace, and the amount of
Suppose that a tornado destroys a large number of major factories. a. What is the effect on the demand for labor?b. If the factories are owned by workers (say, through stock ownership), what is the
Suppose that an epidemic kills half the workers in an industry that produces goods for export. What is the effect on the wage rate, the amount of labor supplied to the marketplace, and the amount of
In the preceding problem, suppose that instead of being produced for export, the good being manufactured is sold to the very workers who produce it. How does your answer change?
True or False: If the capital stock is fixed and if the level of output is fixed, then a rise in the marginal productivity of labor benefits the owners of capital.
How would the wage rate and the level of employment be affected by the invention of a costless pill that made it unnecessary for anyone to sleep?
Contrast the effects on employment, output, and wages of (a) a year of bad weather resulting in low agricultural productivity and (b) nuclear contamination that lowers agricultural productivity
Contrast the effects on employment, output, and wages of (a) an income tax that is expected to be in effect for 1 year and (b) an income tax that is expected to be permanent.
The current federal tax law allows deductions for the depreciation of physical capital. True or False: One effect of this deduction is to reduce the average level of education.
True or False: If the interest rate and the price of bonds both rise simultaneously, the quantity of borrowing could go either up or down.
Under the U.S. patent law, an inventor can be granted a patent that confers the exclusive right to produce and market his invention for 17 years. After that time, anybody can produce and market the
You have just been informed that you have 2 years to live and are considering a night of debauchery to take your mind off the news. The consequence of such behavior is eternal damnation, beginning on
Suppose that apartments in San Francisco typically sell for $300,000 and rent for $1,500 a month. The market interest rate is 10%. True or False: The market must be anticipating a rise in apartment
True or False: If a house in New York and a house in California are identical in every way except for the fact that the California house is susceptible to being destroyed by earthquakes, then the
Textbook publishers typically issue new editions every 3 years, in order to keep copies of the old edition from circulating on the used-textbook market. Suppose that each student keeps his or her
Explain exactly what is wrong with the following argument: If the government buys me a suit of clothes with borrowed money and never pays off the debt, then my grandchildren will be taxed to make
a. Jeeter owes $1,000 on his student loan. The debt is growing at the market interest rate of 10%. Jeeter would like to pay off the loan now, but the bank will not allow him to do so until 5 years
Write a brief letter in response to the following column:DEAR ANN LANDERS: This is going to seem like a terrifically trivial problem compared to most you receive, but I’ve got to get it off my
In New York City, every taxicab driver must own a license (called a medallion) to drive a cab. The city has issued a fixed number of medallions, and they are traded on the open market. Because the
True or False: If a monopolist owned an exhaustible resource, he would control its availability so that the price rose faster than the rate of interest.
True or False: A net borrower is always made worse off by a rise in the rate of interest.
Herman has an income of $2 this year and will have an income of $3 next year. At the current rate of interest he chooses neither to borrow nor to lend. True or False: If the interest rate goes up,
Contrast the effects on the interest rate of (a) a year of bad weather resulting in low agricultural productivity and (b) nuclear contamination that permanently lowers agricultural productivity.
Contrast the effects on current consumption and the interest rate of (a) a tax on production that is expected to be in effect for 1 year only and (b) a tax on production that is expected to be
Suppose that the interest rate is 12% and that the representative agent’s tastes are such that the interest rate would have to rise to 20% to get him to voluntarily cut current consumption by
The discussion surrounding Exhibit suggests that when the government spends $1 wastefully, it does not matter (for determining the equilibrium interest rate) whether the government gets the $1 by
Repeat problem 21 assuming that the government manages to spend the $1 super-productively, using it to provide Terry Taxpayer with goods that he values at $2.
True or False: When the government spends $1, the equilibrium interest rate is unaffected by whether the dollar is spent wastefully or productively.
Felix G. Rohatyn, a well-known financier, published a letter on the editorial page of the New York Times on July 1, 1990. He wrote:I was startled and dismayed by [an earlier Times editorial]
True or False: When the interest rate goes up, investment becomes more desirable.
You are thinking of purchasing the house that you currently rent for $10,000 per year. What is the most you would pay for the house?
Suppose that scientists discover a new method of harnessing nuclear fusion as a practical energy source. At the moment, the method is still on the drawing boards, but it is clear that within 10 years
Suppose that an increase in world tensions makes it more likely than before that there will be a nuclear war within 10 years. Such a war would kill half the world’s population and destroy 90% of
Consider an agricultural society in which seeds can either be planted immediately to produce food almost instantly or stored for planting next year to produce food then. Suppose that this society
According to Dr. Johnson, “He is no wise man who will quit a certainty for an uncertainty.” Comment.
Whenever John is offered the opportunity to take either side of a bet in which the odds are even slightly unfair, he invariably does bet something. True or False: John is certainly not risk-averse.
Jill likes to bet on heads when the odds are fair, but will bet on tails only if offered very favorable odds. Draw her indifference curves.
True or False: A risk-preferring person will always bet, no matter how much the odds are against him.
Bookmakers organize betting on football games in the following way: First, they determine a “point spread” that one team is expected to beat with 50-50 probability. Then bettors are allowed to
True or False: If “sickly” people could insure against illness at the same rates available to healthy people, they would end up preferring illness to good health.
True or False: Speculators are less harmful to society than they at first appear, because they sometimes err in forecasting the future and their losses due to these errors compensate the rest of us
Suppose that it is known for certain that the demand for wheat this year is identical to the demand for wheat next year. This year’s wheat crop of 100 tons has just been harvested. Everybody
True or False: Nobody would ever hold a stock that was below the efficient set, since there is always an alternative with less risk or greater expected return.
In New York State, the drinking age is 18. Studies show that 18-year-old drivers have a much higher crash rate than do 16- and 17-year-olds. The same studies indicate that if the drinking age were
Suppose that in reality the number of cars demanded, Q, depends on the real interest rate, r, according to an equation of the formQ = Ar + BWhere A and B are constants. An econometrician believes
What is managerial economics? What role does it play in shaping business decisions?
Management sometimes is described as the art and science of making decisions with too little information. What kinds of additional information would a manager want in the seven examples cited in the
Suppose a soft-drink firm is grappling with the decision about whether or not to introduce to the market a new carbonated beverage with 25 percent real fruit juice. How might it use the six decision
Listed here are several examples of bad, or at least questionable, decisions. Evaluate the decision maker€™s approach or logic. In which of the six decision steps might the decision maker
A manager makes the statement that output should be expanded as long as average revenue exceeds average cost. Does this strategy make sense? Explain.
The original revenue function for the microchip producer is R = 170Q - 20Q2. Derive the expression for marginal revenue, and use it to find the output level at which revenue is maximized. Confirm

Showing 4800 - 4900 of 28069

First
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved