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
microeconomics principles applications

Questions and Answers of Microeconomics Principles Applications

4. Eric and Kyle are fishers with different equipment and, as a result, different costs for catching fish. Eric’s costs for catching fish are $1000 per tonne for the first 5 tonnes and then $2500
3. Suppose that Sea Shell Oil Company (SS) is pumping oil at a field off the coast of Nigeria. At this site, it has an extraction cost of $30 per barrel for the first 10 million barrels it pumps each
2. A coal-fired power plant can produce electricity at a variable cost of 4 cents per kilowatt-hour when running at its full capacity of 30 megawatts per hour, 17 cents per kilowatt-hour when running
1. Suppose that the current (first) generation consists of 1 million people, half of whom are women. If the total fertility rate is 1.3 and the only way people die is of old age, how big will the
5. Ingvar and Olaf are the only two fishers in their area. Each has been assigned an ITQ that allows them to catch 20 tonnes of salmon. Ingvar’s MC of catching salmon is $6 per tonne while Olaf’s
4. Good methods for helping to protect natural resources include [LO19B.4]a. Establishing property rights and giving them to local usersb. Encouraging first-come, first-served property rightsc.
3. After mining 9273 tonnes of coal, Blue Sky Mining’s managers note that the marginal cost of mining the next tonne would be$40 per tonne. They also calculate that the user cost of mining that
2. It would cost the town of Irondale $50 million to build a gaspowered generator that could produce a maximum of 5 megawatts of electricity at 15 cents per hour. An alternative would be for Irondale
1. The long-run downward trend in commodity prices is consistent with the idea that [LO19B.1]a. We are quickly running out of resourcesb. Resource demands have been increasing faster than resource
11. Aquaculture is the growing of fish, shrimp, and other marine species in enclosed cages or ponds. The cages and ponds not only keep the creatures from swimming away but also provide
10. Various cultures have come up with their own methods to limit catch size and prevent fishery collapse. In old Hawaii, certain fishing grounds near shore could be used only by certain individuals.
9. Advanced Analysis User cost is equal to the present value of future profits in the model presented in Figure 19B-2. Will the optimal quantity to mine in the present year increase or decrease if
8. Advanced Analysis Suppose a government wants to reduce its economy’s dependence on coal and decides as a result to tax coal-mining companies $1 per tonne for every tonne of coal they mine.
7. If the current market price rises, does current extraction increase or decrease? What if the future market price rises?Do these changes in current extraction help to ensure the resource is
6. Recall the model of non-renewable resource extraction presented in Figure 19B-2. Suppose a technological breakthrough means that extraction costs will fall in the future (but not in the present).
5. Suppose you hear two people arguing about energy. The first person says that we are running out of energy. The other counters that we are running out of cheap energy. Which person is correct, and
4. A community has a nighttime energy demand of 50 megawatts, but a peak daytime demand of 75 megawatts. It has the chance to build a 90-megawatt coal-fired plant that could easily supply all of its
3. Resource consumption per person in Canada is either flat or falling, depending on the resource. Yet living standards are rising due to improvements in technology that allow more output to be
2. Demographers have been very surprised that total fertility rates have fallen below 2.0, especially because most people in most countries tell pollsters that they would like to have at least two
1. Describe Thomas Malthus’s theory of human reproduction.Does it make sense for some species—say bacteria or rabbits? What do you think makes humans different? [LO19B.1]
LO19B.4 Relate how to use property rights help to prevent deforestation and species extinction.
LO19B.3 Show how the profit motive can encourage resource conservation.
LO19B.2 Describe why using a mix of energy sources is efficient, even if some of them are quite costly.
LO19B.1 Explain why the falling birth rate means that we are not likely to run out of natural resources.
4. Refer to Figure 3-6. Assume that the graph depicts the Canadian domestic market for corn. How many bushels of corn, if any, will Canada export or import at a world price of $1,$2, $3, $4, and $5?
3. The following hypothetical production possibilities tables are for China and Canada. Assume that before specialization and trade the optimal product mix for China is alternative B and for Canada
2. The following are hypothetical production possibilities tables for New Zealand and Spain. [LO19.1]
1. Assume that the comparative-cost ratios of two products—baby formula and tuna fish—are as follows in the nations of Canswicki and Tunata: [LO19.1]Canswicki: 1 can baby formula = 2 cans tuna
13. Canadian apparel makers complain to Parliament about competition from China. Parliament decides to impose either a tariff or a quota on apparel imports from China. Which policy would Chinese
12. Draw a domestic supply-and-demand diagram for a product in which Canada does not have a comparative advantage. What impact do foreign imports have on domestic price and quantity? On your diagram
11. Suppose that if Iceland and Japan were both closed economies, the domestic price of fish would be $100 per tonne in Iceland and $90 per tonne in Japan. If the two countries decided to open up to
10. Suppose that the current international price of wheat is $6 per bushel and that Canada is currently exporting 30 million bushels per year. If Canada suddenly became a closed economy with respect
9. True or False? If a country is open to international trade, the domestic price can differ from the international price.[LO19.2]
8. Which of the following are benefits of international trade?Select one or more answers from the choices shown. [LO19.1]a. A more efficient allocation of resourcesb. A higher level of material
7. We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don’t we see full specialization—for instance, all cars in the world being made in
6. Suppose that the opportunity-cost ratio for watches and cheese is 1C : 1W in Switzerland but 1C : 4W in Japan. At which of the following international exchange ratios (terms of trade)will
5. Suppose that the opportunity-cost ratio for fish and lumber is 1F : 1L in Canada but 2F : 1L in Iceland. Then _______ should specialize in producing fish while _______ should specialize in
4. Suppose that the opportunity-cost ratio for pears and apples is 4P : 1A in British Columbia but 1P : 2A in Ontario. Which province has the comparative advantage in producing apples? [LO19.1]a.
3. True or False? If Country B has an absolute advantage over Country A in producing bicycles, it will also have a comparative advantage over Country A in producing bicycles. [LO19.1]
2. In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps.In Country B, the production of 1 bicycle requires using resources that could
1. In Country A, a worker can make 5 bicycles per hour. In Country B, a worker can make 7 bicycles per hour. Which country has an absolute advantage in making bicycles? [LO19.1]a. Country Ab. Country
9. How might protective tariffs reduce both the imports and the exports of the nation that levies tariffs? In what way do foreign firms that “dump” their products onto the Canadian market in
8. In 2014, manufacturing workers in Canada earned an average wage of $23.19 per hour. That same year, manufacturing workers in Mexico earned an average wage of $6.36 per hour.(a) How can Canadian
7. Evaluate the effectiveness of artificial trade barriers, such as tariffs and import quotas, as a way to achieve and maintain full employment throughout the Canadian economy. How might such
6. “The potentially valid arguments for tariff protection are also the most easily abused.” (a) What are these particular arguments? (b) Why are they susceptible to abuse? (c) Evaluate the use of
5. Why is a quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quota for the world economy?
4. What is an export demand curve? What is an import supply curve? How do such curves relate to the determination of the equilibrium world price of a tradable good? [LO19.2]
3. Suppose Big Country can produce 80 units of X by using all its resources to produce X and 60 units of Y by devoting all its resources to Y. Comparative figures for Small Nation are 60 of X and 60
2. Explain the following: “Canada can make certain toys with greater productive efficiency than can China. Yet we import those toys from China.” Relate your answer to the ideas of Adam Smith and
1. Distinguish among land-, labour-, and capital-intensive goods, citing an example of each without resorting to book examples.How do these distinctions relate to international trade? How do
4. After specialization and international tradea. Canada can obtain units of soybeans at less cost than before tradeb. Brazil can obtain more than 20 tonnes of soybeans, if it so choosesc. Canada no
3. After specialization and trade, the world output of steel and soybeans isa. 20 tonnes of steel and 20 tonnes of soybeansb. 45 tonnes of steel and 15 tonnes of soybeansc. 30 tonnes of steel and 20
2. Before specialization, the domestic opportunity cost of producing 1 unit of steel isa. 1 unit of soybeans in both Canada and Brazilb. 1 unit of soybeans in Canada and 2 units of soybeans in
1. The production possibilities curves in graphs (a) and(b) implya. Increasing domestic opportunity costsb. Decreasing domestic opportunity costsc. Constant domestic opportunity costsd. First
2. Imagine an economy with only two people. Larry earns$20,000 per year, while Roger earns $80,000 per year. As shown in the following figure, the Lorenz curve for this twoperson economy consists of
1. In 2015, Forbes magazine listed Bill Gates, the founder of Microsoft, as the richest person in the United States. His personal wealth was estimated to be $76 billion. Given that there were about
6. In the taste-for-discrimination model, an increase in employer prejudice against visible minorities workers would cause the discrimination coefficient to ________ and the demand curve for visible
5. If women are crowded into elementary education and away from fire fighting, wages in firefighting will tend to be ________ than if women weren’t crowded into elementary education. [LO18B.6]a.
4. Suppose that the last dollar that Victoria receives as income brings her a marginal utility of 10 utils while the last dollar that Fredrick receives as income brings him a marginal utility of 15
3. Suppose that a society contains only two members, a lawyer named Monique and a handyman named James. Five years ago, Monique made $100,000 while James made $50,000.This year, Monique will make
2. Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include(select one or more answers from the choices shown): [LO18B.1]a.
1. Suppose that Canada has a Gini ratio of 0.41 while Sweden has a Gini ratio of 0.31. Which country has a more equal distribution of income? [LO18B.1]a. Canadab. Swedenc. They are actually equal
9. Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? [LO18B.6]10. Use a demand and supply
8. Comment on or explain the following: [LO18B.4]a. To endow everyone with equal income will certainly make for very unequal enjoyment and satisfaction.b. Equality is a superior good: the richer we
6. Should a nation’s income be distributed to its members according to their contributions to the production of that total income or according to the members’ needs? Should society attempt to
5. Briefly discuss the major causes of income inequality. With respect to income inequality, is there any difference between inheriting property and inheriting a high IQ? Explain. [LO18B.2]
4. Why is the lifetime distribution of income more equal than the distribution in any specific year? [LO18B.1]
3. How does the Gini ratio relate to the Lorenz curve? Why can’t the Gini ratio exceed 1? What is implied about the direction of income inequality if the Gini ratio declines from 0.42 to 0.35?How
2. Assume Syed, Beth, Sabine, David, and Mikkel receive incomes of $500, $250, $125, $75, and $50 respectively.Construct and interpret a Lorenz curve for this five-person economy. What percentage of
1. Use quintiles to briefly summarize the degree of income inequality in Canada. How and to what extent does government reduce income inequality? [LO18B.1]
LO18B.6 Discuss labour market discrimination and how it affects income inequality.
LO18B.5 Identify the conflicts that arise in designing welfare policy.
LO18B.4 Describe how poverty is measured and its incidence according to several characteristics.
LO18B.3 Explain the trade-off between income equality and economic efficiency.
LO18B.2 Discuss the extent and sources of income inequality.
LO18B.1 Explain how income inequality in Canada is measured and described.
5. You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you can expect to earn an accounting profit that is, on average, at
4. Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now? How much of the future value is total interest? By how much would total interest be greater at a
3. To fund its wars against Napoleon, the British government sold consol bonds. They were referred to as “perpetuities”because they would pay £3 every year in perpetuity (forever).If a citizen
2. Suppose that the demand for loanable funds for car loans in the Vancouver area is $10 million per month at an interest rate of 10 percent per year, $11 million at an interest rate of 9 percent per
1. Suppose that you own a 10-hectare plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per hectare for seed, $80 per hectare for fertilizer,
5. Entrepreneurs are the residual claimants at their respective firms. This means that they [LO18.6]a. Only get paid if there is any money left over after all the other factors of production have
4. As shown in Table 18-2, $1000 invested at 10 percent compound interest will grow into $1331 after three years. What is the present value of $2662 in three years if it is discounted back to the
3. Angela puts $1000 in a savings account that pays 3 percent per year. What is the future value of her money one year from now? [LO16.4]a. $970b. $1000c. $1003d. $1030
2. In the 1980s land prices in Japan surged upward in a speculative bubble. Land prices then fell for eleven straight years between 1990 and 2001. What can we safely assume happened to land rent in
1. When using a supply-and-demand model to illustrate how land rents are set, economists typically draw the supply curve as a vertical line because [LO18.1]a. The supply of land is fixedb. The supply
9. Why is the distinction between insurable and uninsurable risks significant for the theory of profit? Carefully evaluate the following statement: “All economic profit can be traced to either
8. How do accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of economic profit? Classify each of the following
7. Distinguish between nominal and real interest rates. Which is more relevant in making investment and R&D decisions? If the nominal interest rate is 12 percent and the inflation rate is 8 percent,
6. What are the major economic functions of the interest rate?How might the fact that many businesses finance their investment activities internally affect the efficiency with which the interest rate
5. Here is the deal: You can pay your college or university tuition at the beginning of the academic year or the same amount at the end of the academic year. You either already have the money in an
4. Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping? Explain the equilibrium interest rate. List some factors that might cause it to change. [LO18.3]
3. If money is not an economic resource, why is interest paid and received for its use? What considerations account for the fact that interest rates differ greatly on various types of loans? Use
2. Explain why economic rent is a surplus payment when viewed by the economy as a whole, but is a cost of production from the standpoint of individual firms and industries. Explain: Land rent
1. How does the economist’s use of the term rent differ from everyday usage? Explain the following statement: Though rent need not be paid by society to make land available, rental payments are
LO18.5 Explain the role of interest rates in allocating capital, allocating R&D spending, and helping to determine the economy’s total output of goods and services.
5. Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid
4. Suppose that low-skill workers employed in clearing woodland can each clear one hectare per month if they are each equipped with a shovel, a machete, and a chainsaw. Clearing one hectare brings in
3. Assume a firm is a monopsonist that can hire its first worker for $6 but must increase the wage rate by $3 to attract each successive worker (so that the second worker must be paid$9, the third
2. Complete the following labour supply table for a firm hiring labour competitively: [LO17.2]Units of labour Wage rate Total labour cost Marginal factor(labour) cost 0 $14 $_____ 1 14 _____ $_____ 2

Showing 1 - 100 of 2353

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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