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

Questions and Answers of Microeconomics Principles

1.2. IfU.S. government statistics counted education spending as part of investment, which would rise, which would fall, and which would remain unchanged? (Note: You might use rise, fall, and
1.1. During World War II, the government did a good job measuring nominal GDP. But if the price level was calculated incorrectly, we might get a completely wrong idea about what happened with real
1.11. What is the difference between a nation's wealth and it GDP? How are the two related?
1.10. Let' urn up some basic facts ofU.S. economic hi tory with numbers:a. Fir t, let's measure the size of the Great Depression:Real GDP in 1929(peak): $323 billion Price level in 1929: 33 Real GDP
1.9.a. U.S. GDP is approximately $14 trillion. If GDP were divided up equally among all 300 million Americans, what would each person get? If you and your nine best friend took almost all of the GDP
1.8. The underground economy and other non priced production make it difficult to accurately measure the precise level of GDP. But GDP could still be very accurate for measuring changes in the
1.7. Consider the following two claim . The first would be a typical statement at the magazine The Nation, while the second would be a typical statement at the magazine ational Review:Europeans have
1.6. Let's think about an economically sound way to measure the value ofleisure. To keep this simple, we'll just think about the value of leisure to people who could work but who decide to stay home.
1.5. Let's figure out GDP for Robinson Crusoe.a. Initially, he is stuck on an island without the wisdom and local knowledge of Friday.Because Crusoe is a proper Englishman, he wants to keep his
1.4. Let's see what fraction of the economic pie goes to workers in the form of wages, and let's see if it has changed over the years. The "wage share" seems like it should be easy to calculate, but
1.3. We noted that "government purchases" don't include all government spending. A big part of what the U.S. government does is transfer money from one person to another. Social Security (payments to
1.2. Since W odd War II, who were the only three recession-free U.S. presidents? (We'll revisit the question of how presidents matter for the economy in later chapters.)
1.1. Calculate GDP in this simple economy:Consumer purchases: $100 per year Investment purchases: $50 per year Government purchases: $20 per year Total exports: $50 per year Total imports: $70 per
1.12. What is the national spending identity? This identity is very important in macroeconomics.It is as important as basic anatomy in medical school: You won't be able to cure a person until you
1.11. Attach the appropriate fractions to the "long-term averages" in Figure 6.6. (Some fractions will be left over.) These fractions may turn out to be more memorable than the exact percentages in
1.10. Looking back over the last 10,000 years of human history, which is more "normal": for GDP per capita to grow or for GDP per capita to stay about the same?
1.9. According to the National Bureau of Economic Research, which of the following are "normally"part of the definition of a recession?A fall in nominal income A fall in employment A fall in real
1.8. In the last 20 years, have recessions been getting more frequent or less frequent than they used to be?
1.7. By definition, is nominal GDP higher than real GDP?
1.6. Are the following included in U.S. GDP?Briefly explain why or why not:a. Used textbooks sold at your college bookstoreb. Used books sold at a garage salec. Cars made in the United States at a
1.5. Calculate the annual growth rate of nominal GDP in the following examples:Nominal GDP in 1930: $97 billion. Nominal GDP in 1931: $84 billion.Nominal GDP in 1931: $84 billion. Nominal GDP in
1.4. Police officer: "I pulled you over for speeding.You were going 80 miles per hour."Driver: "But that's impossible, officer! I've only been driving for 15 minutes!"The government reports GDP
1.3. What happened to spending on medical services and recreational activities after 1950?
1.2. What is included in GDP: all goods, all services, or both?
1.1. According to Table 6.1, what country has the highest GDP? What country on the list has the highest GDP per person? What countries on the list have the second highest GDP and the second highest
1.7. Labor unions are some of the strongest proponents of the minimum wage. Yet in 2008, the median full-time union member earned$886 per week, an average of over $22 per
1.6. In a command economy such as the old Soviet Union, there were no prices for almost all goods. Instead, goods were allocated by a"central planner." Suppose that a good like oil becomes more
1.5. Antibiotics are often given to people with colds (even though they are not useful for that purpose), but they are also used to treat life-threatening infections. If there was a price control on
1.4. Let's measure consumer surplus if the govern ment imposes price controls and goods ended up being randomly allocated among those consumers willing to pay the controlled price. If the demand and
1.3. Suppose that the market for coats can be described as follows:Quantity Demanded Quantity Supplied Price$120$100$80$60(millions)16 18 20 22(millions)20 18 16 14 V>iii 0:::0 uz z
1.2. In New York City, some apartments are under strict rent control, while others are not. T his is a theme in many novels and movies about N ew York, including Bonfire of the Vanities and When
1.1. If a governm.ent decided to impose price controls on gasoline, what could it do to avoid the time wasted waiting in lines? There is surely more than one solution to this problem.
1.17. We noted that in the 1970s price floors on airline tickets caused wasteful increases in the quality of airline trips. Does the minimum wage cause wasteful increases in the quality of workers?
1.16. In the market depicted below there is either a price ceiling or a price floor-surprisingly, it doesn't matter which one it is: Whether it's an$80 price floor or a $30 price ceiling, the chart
1.15. Suppose you're doing some history research on shoe production in ancient Rome, during the reign of the famous Emperor Diocletian.Your records tell you how many shoes were produced each year in
1.14. President Jimmy Carter didn't just deregulate airline prices. He also deregulated much of the trucking industry, as well. Trucks carry almost all of the consumer goods that you purchase, so
1.13. In the 1970s, AirCal and Pacific Southwest Airlines flew only within California. As we mentioned, the federal price floors didn't apply to flights within just one state. A major route for these
1.12. Rent control creates a shortage of housing, which makes it hard to find a place to live.In a price-controlled market, people have to waste a lot of time trying to find these scarce,
1.11. Consider Figure 5. 9. Your classmate looks at that chart and says, "Apartment construction slowed down years before rent control was passed, and after rent control was passed, more apartments
1.10. In the late 1990s, the town of Santa Monica, California, made it illegal for banks to charge people ATM fees. As you probably know, it's almost always free to use your own bank's ATMs, but
1.9. In the town of Freedonia, the government declares that all street parking must be free:There can be no parking meters. In an almost identical town of Meterville, parking costs$5 per hour (or
1.8.a. As we noted, Assar Lindbeck once said that short of aerial bombardment, rent control is the best way to destroy a city. What do you think Lindbeck might mean by this?b. How does paying "key
1.7. So, knowing what you know now about price controls, are you in favor of setting a $2 per gallon price ceiling on gasoline? Create a pro-price control and an anti-price control answer.
1.6. A "black market" is a place where people make illegal trades in goods and services. For instance, during the Soviet era, it was common for American tourists to take a few extra pairs of Levi's
1.5. During a crisis such as Hurricane Katrina, governments often make it illegal to raise the price of emergency items like flashlights and bottled water. In practice, this means that these items
1.4. Let's count the value oflost gains from trade in a regulated market. The government decides it wants to make basic bicycles more affordable, so it passes a law requiring that all one-speed
1.3. On January 31, 1990, the first McDonald's opened in Moscow, capital of the then Soviet Union. Economists often described the Soviet Union as a "permanent shortage economy,"where the government
1.2. When the United States had price controls on oil and gasoline, some parts of the United States had a lot of heating oil, while other states had long lines. As in the chapter, let's assume that
1.1. In rich countries, governments almost always set the fares for taxi rides. The prices for taxi rides are the same in safe neighborhoods and in dangerous neighborhoods. Where is it easier to find
1.14. The basic idea of deadweight loss is a willing buyer and a willing seller can't find a way to make an exchange. In the case of the minimum wage law, the reason they can't make an exchange is
1.13. How do U.S. business owners change their behavior when the minimum wage rises?How does this impact teenagers?
1.12. A review of the jargon: Is the minimum wage a"price ceiling" or a "price floor"? What about rent control?
1.11.a. If the government forced all bread manufac turers to sell their products at a "fair price"that was half the current, free-market price, what would happen to the quantity supplied of bread?b.
1.10. Business leaders often say that there is a"shortage" of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, a recent AP article was entitled
1.9.a. Consider Figure 5.8. In a price-controlled market like this one, when will consumer surplus be larger: in the short run or in the long run?b. In this market, supply is more elastic, more
1.8. In the chapter, we discussed how price ceilings can put goods in the wrong place, as when too little heating oil wound up in New Jersey during a harsh winter in the 1970s. Price controls can
1.7. Price controls distribute resources in many unintended ways. In the following cases, who will probably spend more time waiting in line to get scarce, price-controlled goods? Choose one from each
1.6. Between 2000 and 2008, the price of oil increased from $30 per barrel to $140 per barrel, and the price of gasoline in the United States rose from about $1.50 per gallon to more than$4.00 per
1.5. The Canadian government has wage controls for medical doctors. To keep things simple, let's assume that they set one wage for all doctors: $100,000 per year. It take about 6 years to become a
1.4. If a government decides to make health insurance affordable by requiring all health insurance companies to cut their prices by 30%, what will probably happen to the number of people covered by
1.3. Suppose that the quantity demanded and quantity supplied in the market for milk is as follows:Price per Gallon$5$4$3$2$1 Quantity Demanded 1000 2000 3500 4100 6000 Quantity Supplied 5000 4500
1.2. When a price ceiling is in place keeping the price below the market price, what's larger:quantity demanded or quantity supplied? Ho does this explain the long lines and wasteful searches we see
1.1. How does a free market eliminate a hortage?
1.7. Let's take the idea from the previous question and use it to explain why businesses sometimes try to make their employees happy. If a business can make a job seem fun (by offering inexpensive
1.6. When the crime rate falls in the area around a factory, what probably happens to wages at that factory?
1.5. Economists often say that prices are a "rationing mechanism." If the supply of a good falls, how do prices "ration" these now-scarce goods in a competitive market?
1.4.a. If oil executives read in the newspaper that massive new oil supplies have been discovered under the Pacific Ocean but will likely only be useful in 10 years, what is likely to happen to the
1.3. Many clothing stores often have clearance sales at the end of each season. Using the tools you learned in this chapter, can you think of an explanation why?
1.2. Think about two products: "safe cars" (a heavy car such as a BMW 530xi with infrared night vision, four-wheel antilock brakes, and electronic stability control), and "dangerous cars" (a
1.1. For many years, it was illegal to color margarine yellow (margarine is naturally white). In some states, margarine manufacturers were even required to color margarine pink! Who do you think
1.12. In recent years, there have been news reports that toys made in China are unsafe. When those news reports show up on CNN and Fox News, what probably happens to the demand for toys made in
1.11. In 2002, the Atkins diet, which emphasized eating more meat and fewer grains, became very popular. What do you suppose that did to the price and quantity of bread? Use supply and demand
1.10. If a snowstorm was forecast for the next day, what would happen to the demand for snow shovels? Is this a change in quantity demanded or a change in demand? This shift in the demand curve would
1.9. The market for sugar is diagramed below:a. What would happen to the equilibrium quantity and price if the wages of sugar cane harvesters increased?b. What if a new study was published that
1.8. If the price of margarine decreases, what happens to the demand for butter? What happens to the equilibrium quantity and price for butter? What would happen ifbutter and margarine were not
1.7. Suppose you decided to follow in Vernon Smith's footsteps and conducted your own experin1ent with your friends. You give out 10 cards, 5 cards to buyers with the figures for willingness to pay
1.6. The market for marbles is repre ented in the graph below. What is the total producer surplus? The total consumer surplus? What are the total gains from trade?Price$11 5Supply Quantity
1.5. In the figure below, how many pounds of sugar are sellers willing to sell at a price of $20? How much is demanded at this price? What is the buyer's willingness to pay when the quantity is 20
1.4. Determine the equilibrium quantity and price without drawing a graph.Price of Quantity Quantity Good X Supplied Demanded$22 100 225$25 115 200$30 130 175$32 150 150$40 170 110 Equilibrium: How
1.3. If the price of a one-bedroom apartment in Washington, D.C., is currently $1,000 per month, but the supply and demand curves look as follows, then is there a shortage or surplus of
1.2. Consider the following supply and demand tables for bread. Draw the supply and demand curves for this market. What is the equilibrium price and quantity?Price of Quantity Quantity One Loaf
1.1. Suppose the market for batteries looks as follows:Quantity What is the equilibrium price and quantity?
1.11. What's the best way to think about the rise in oil prices in the last 10 years, as China and India have become richer: Was it a rise in demand, a fall in demand, a rise in supply, or a fall in
1.10. What's the best way to think about the rise in oil prices in the 1970s, when wars and oil embargoes wracked the Middle East? Was it a rise in demand, a fall in demand, a rise in supply, or a
1.9.a. When demand increases, what happens to price and quantity in equilibrium?b. When supply increases, what happens to price and quantity in equilibrium?c. When supply decreases, what happens to
1.8.a. When demand increases, what happens to price and quantity in equilibrium?b. When supply increases, what happens to price and quantity in equilibrium?c. When supply decreases, what happens to
1.7. When supply falls, what happens to quantity demanded in equilibrium? (This should get you to notice that both suppliers and demanders change their behavior when one curve shifts.)
1.6. "What happened in Vernon Smith's lab? Choose the right answer:a. The price and quantity were close to equi librium but gains from trade were far from the maximum.b. The price and quantity were
1.5. Jules wants to purchase a Royale with cheese from Vincent. Vincent is willing to offer this tasty burger for $3. The most Jules is willing
1.4. Now, Jon is in Japan, trying to get a job as a full-time translator; he wants to translate English TV shows into Japanese and vice versa.He notices that the wage for translators is very low. Who
1.3. Jon is on eBay, bidding for a fir t edition of the influential Frank Miller graphic novel Batman:The Dark Knight R eturns. In this market, who is Jon competing with: the seller of the graphic
1.2. When the price is above the equilibrium price, does greed (in other words, self-interest) tend to push the price down or does it push it up?
1.1. If the price in a market is above the equilibrium price, does this create a urplus or a shortage?
1.5. The industrial areas in northeast Washington, D.C., were relatively dangerous in the 1980s.Over the last two decades, the area has become a safer place to work (although there are still several
1.4. What should happen to the "demand for speed"(measured by the average speed on highways)once airbag are included on cars?
1.3. For most young people, working full time and going to school are substitutes: You tend to do one or the other. When it's tough to find a job, does that raise the opportunity cost of going to
1.2. The economist Bryan Caplan recently found a pair of $10 arch supports that saved him from the pain of major foot surgery. As he stated on his blog (econlog.econlib.org), he would have been
1.1. Michael is an economist. He loves being an economist so much that he would do it for a living even if he only earned $30,000 per year.Instead, he earns $80,000 per year. (Note: This is the
1.14. Suppose that the upply curve for solar panel 1s as shown in the diagram:0 20 40 60 80 100 Quantity The government decides that it would like to increase the quantity of solar panels in use, so
1.13. Cars and gasoline are complements. What will happen to the demand curve for gasoline if the price of car decreases? Why? (Hint: What happens to the quantity demanded of cars?)Price $80 70 60 50

Showing 900 - 1000 of 3636

First
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
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