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

1.12. Assume that butter and margarine are substitutes.What will happen to the demand curve for butter if the price of margarine increases? Why?
1.11. If income increases and the demand for good X shifts as shown below, then is good X a normal or inferior good? Give an example of a good like good X.Price Quantity
1.10. Let's think about the demand for plasma TVs.a. If the price for a 50" plasma TV is $2,010, and Newhart would be willing to pay$3,000, what is Newhart's consumer surplus?b. Consider the figure
1.9. If the price of glass dramatically increases, what are we likely to see a lot less of: glass windows or glass bottles? Why?
1.8. From the following chart, draw the demand curve for pencils (in hundreds):Quantity Demanded Price$5$15$25$35(in hundreds)60 45 35 20
1.7. Consider the following demand curve for oil:Price of oil per barrel$40 25 15 10 Price 10 20 40 55 Quantity of oil (MBD)b. If the price was $10, how much oil would be demanded?c. What is the
1.6. Consider the fam1ers talked about in the chapter who have land that is suitable for growing both wheat and soybeans. Suppose all farmers are currently farming wheat but the price of soybeans
1.5. In Sucrosia, the supply curve for sugar is as follows:Price(per 100 pound bag)$30$50$70 Price of sugar$70 50 30 Quantity 10,000 15,000 20,000 10 15 20 Quantity of sugar(1000s)Under pressure from
1.4. Using the following diagram, identify and calculate total producer surplus if the price of oil is $50 per barrel. R ecall that for a triangle, Area = (1 /2) X Base X Height. (You never thought
1.3. Suppose LightBright and Bulbs4Y ou were the only two suppliers of 60-watt lightbulb in Springfield. Draw the supply curve for the 60-watt lightbulb industry in Springfield from the following
1.2. From the following table of prices per 100 pencils and quantities supplied (in hundreds of pencils), draw the supply curve for pencil :Quantity Price$5$15$25$35 Supplied 20 40 50 55
1.1. Consider the following supply curve for oil.Note that MBD stands for "millions ofbarrels per day," the usual way people talk about the supply of oil:Price of oil per barrel$50 30 20 15 12 20 25
1.13. Do taxes usually increase the supply of a good or reduce the supply?THINKING AND PROBLEM SOLVING
1.12. When oil companies expect the price of oil to be higher next year, what happens to the supply of oil today?
1.11. Imagine that a technological innovation reduces the costs of producing high-quality steel. What happens to the supply curve for steel?
1.10. When is a pharmaceutical business more likely to hire highly educated, cutting-edge workers and use new, experimental research methods:When the business expects the price of its new drug to be
1.9. If the price of cars falls, are carmakers likely to make more cars or fewer cars, according to the supply curve? (Notice that the "person on the street" often thinks the opposite is true!)
1.8. Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied? Why?
1.7.a. If everyone thinks that the price of tomatoes will go up next week, what is likely to happen to demand for tomatoes today?b. If everyone thinks that the price of gasoline will go up next week,
1.6.a. When the price of olive oil goes up, what probably happens to the demand for corn oil?b. When the price of petroleum goes up, what probably happens to the demand for natural gas? To the demand
1.5. When the price of Apple computers goes down, what probably happens to the demand for Windows-based computers?
1.4. What are three things that you'll buy less of once you graduate from college and get a good job? What kinds of goods are these called?
1.3. Your roommate just bought an iPod for $200.She would have been willing to pay $500 for a machine that could store and replay that much music. How much consumer surplus does your roommate enjoy
1.2. When will people search harder for substitutes for oil: When the price of oil is high or when the price of oil is low?
1.1. When the price of a good increases, the quantity demanded --· When the price of a good decreases, the quantity demanded --·
1.2. Go to www. Ted.com and watch Thomas Thwaites's talk, "How I built a toaster-from scratch." How much money and time do you think Thwaites spent building his toaster?How long do you think it would
1.1. In the computers and shirts example from the chapter, the United States traded one computer to Mexico in exchange for three shirts. This is not just an arbitrary ratio of shirts to computers,
1.7. Suppose the table below shows the number of labor hours needed to produce airplanes and automobile in the United States and South Korea, but one of the numbers is unknown.Number of Hours to
1.6. Many people talk about manufacturing jobs leaving the United States and going to other places, like China. Why isn't it possible for all jobs to leave the United States and go overseas(as some
1.5. Here's another specialization and exchange problem. This problem is wholly made-up, so that you won't be able to use your intuition about the names of countries or the products to figure out the
1.4. In this chapter, we've often emphasized how specialization and exchange can create more output. But sometimes the output from voluntary exchange is difficult to measure and doesn't show up in
1.3. The federal education reform law known as No Child Left Behind requires every state to create standardized tests that measure whether students have mastered key subjects. Since the same test is
1.2. Nobel laureate Paul Samuelson said that comparative advantage is one of the few ideas in economics that is both "true and not obvious." Since it's not obvious, we should practice with it a bit.
1.1. Fit each of the following examples into one of these reasons for trade:I.Division of knowledge II.Comparative advantagea. Two recently abandoned cats, Bingo and Tuppy, need to quickly learn how
1.6. Conan O'Brien has been a talk show host since 1993, but he began his career in comedy as a writer: first at the Harvard Lampoon while in college, then eventually at Saturday Night Live and The
1.5. According to the Wall Street Journal (August 30, 2007, "In the Balance"), it takes about 30 hours to assemble a vehicle in the United States. Let's use that fact plus a few invented numbers to
1.4.a. American workers are typically paid much more than Chinese workers. True or false:This is largely because American workers are typically more productive than Chinese workers.b. Julia Child, an
1.3. "Opportunity cost" is one of the tougher ideas in economics. Let's make it easier by starting with some simple examples. In the examples below, find the opportunity cost: Your answer should be a
1.2. In the Wealth of Nations, Adam Smith said that one reason specialization makes someone more productive is because "a man commonly saunters a little in turning his hand from one sort of
1.1. Use the idea ofthe "division ofknowledge" to answer the following questions:a. Which country has more knowledge:Utopia, where in the words ofKarl Marx, each person knows just enough about hunt
1.4. Economics is sometimes called "the dismal science." Of the big ideas in this chapter, which sound "dismal"-like bad news?
1.3. As Nobel Prize winner and New York Times columnist Paul Krugman has noted, the field of economics is a lot like the field of medicine: They are fields where knowledge is limited (both are new as
1.2. Some problems that economists try to solve are easy as economic problems but hard as political problems. Medical doctors face similar kinds of situations: Preventing most deaths from obesity or
1.1. We claim that part of the reason the Great Depression was so destructive is because economists didn't understand how to use government policy very well in the 1930s. In your opinion, do you
1.5. According to the United Nations, there were roughly 300 million humans on the planet a thousand years ago. Essentially all of them were poor by modem standards: They lacked antibiotics, almost
1.4. Nobel Prize winner Milton Friedman said that a bad central banker is like a "fool in the shower." In a shower, of course, when you turn the faucet, water won't show up in the showerhead for a
1.3. Let's connect Big Ideas Six and Nine: Do you think that people in poor countries are poor because they don't have enough money? In other words, could a country get richer by printing more pieces
1.2. Some people worry that machines will take jobs away from people, making people permanently unemployed. In the United States, only 150 years ago most people were farmers. Now, machines do almost
1.1. In recent year , Zimbabwe has had hyperinflation, with prices tripling (or more!)every month. According to what you learned in this chapter, what do you think the government can do to end this
1.6. In the discussion ofBig Idea Five, the chapter says that "self-sufficiency is death" because most of us would not be able to produce for ourselves the food and shelter that we need to survive.
1.5. Who has a better incentive to work long hours in a laboratory researching new cures for diseases: a scienti t who earns a percentage of the profits from any new medicine she might invent, or a
1.4. The chapter lists four things that entrepreneurs save and invest in. Which of the four are actual objects, and which are more intangible, like concepts or ideas or plans? Feel free to use
1.3. How much did national output fall during the Great Depression? According to the chapter, which government agency might have helped to avoid much of the Great Depression had it acted more quickly
1.2. When bad weather in India destroys the crop harvest, does this sound like a fall in the total"supply" of crops or a fall in people's "demand"for crops? Keep your answer in mind a you learn about
1.1. A headline5 in the New York Times read: "Study Finds Enrollment Is Up at College Despite Recession." How would you rewrite this headline now that you understand the idea of opportunity cost?
How can we determine the effect of a change in one variable on another if many other variables are changing at the same time?
How confident are we in our results?
How can we best fit an economic relationship to actual data?
In the Application “Layoffs Versus Pay Cuts,” the firm either uses a pay cut or layoffs. Can you derive a superior approach that benefits both the firm and the workers? (Hint: Suppose that the
List some necessary conditions for a firm to be able to sort potential employees by providing them with a choice of contracts.6. Checks on Principals
Adrienne, a manager of a large firm, must decide whether to launch a new product or make a minor change to an existing product. The new product has a 30% chance of being a big success and generating
In 2012, Hewlett-Packard Co. announced that its new chief executive, Meg Whitman, would receive a salary of $1 and about $16.1 million in stock options, which are valuable if the stock does
When rental cars are sold on the used car market they are sold for lower prices than cars of the same model and year that were owned by individuals.Does this price difference reflect adverse
Starting in 2008, Medicare would not cover the cost of a surgeon leaving an instrument in a patient, giving a patient transfusions of the wrong blood type, certain types of hospital-acquired
In Exercise 4.2, suppose that, for each extra $1,000 of bonding the firm requires a worker to post, the firm must pay that worker $10 more per period to get the worker to work for the firm. What is
In Solved Problem 19.3, a firm calculates the optimal level of monitoring to prevent stealing. If G = $500 and θ = 20%, what is the minimum bond that deters stealing? M
Many law firms consist of partners who share profits. On being made a partner, a lawyer must post a bond, a large payment to the firm that will be forfeited on bad behavior. Why?
Louisa is an avid cyclist who is currently working on her business degree. She normally rides an$800 bike to class. If Louisa locks her bike carefully—locks both wheels—the chance of theft for
Fourteen states have laws that limit whether a franchisor (such as McDonald’s) can terminate a franchise agreement. Franchisees (such as firms that run individual McDonald’s outlets) typically
Padma has the rights to any treasure on the sunken ship the Golden Calf. Aaron is a diver who specializes in marine salvage. If Padma is risk averse and Aaron is risk neutral, does paying Aaron a
Book retailers can return unsold copies to publishers. Effectively, retailers pay for the books they order only after they sell them. Dowell’s Books believes that it will sell, with 1 2 probability
In the National Basketball Association (NBA), the owners share revenue but not costs. Suppose that one team, the L.A. Clippers, sells only generaladmission seats to a home game with the visiting
John manages Rachel’s used CD music store. To provide John with the incentive to sell CDs, Rachel offers him 50% of the store’s profit. John has the opportunity to misrepresent sales by
Suppose now that the publisher in Exercise 2.6 faces a downward-sloping demand curve. The revenue is R(Q), and the publisher’s cost of printing and distributing the book is C(Q). Compare the
In the duck-carving example with limited information (summarized in the third and fourth columns of Table 19.1), is a fixed-fee contract efficient? If so, why? If not, are there additional steps that
In the duck-carving example with full information(summarized in the second column of Table 19.1), is a contract efficient if it requires Paula to give Arthur a fixed-fee salary of $168 and leaves all
Zhihua and Pu are partners in a store in which they do all the work. They split the store’s business profit equally (ignoring the opportunity cost of their own time in calculating this profit).
In 2012, a California environmental group found that 14 plum and ginger candies imported from Asia contained 4 to 96 times the level of lead allowed under California law (Lee, Stephanie M., “Lead
A study by Jean Mitchell found that urologists in group practices that profit from tests for prostate cancer order more of them than doctors who send samples to independent laboratories.
A promoter arranges for various restaurants to set up booths to sell Cajun-Creole food at a fair. Appropriate music and other entertainment are provided.Customers can buy food using only “Cajun
California provides earthquake insurance. Because the state agency in charge has few staff members, it pays private insurance carriers to handle claims for earthquake damage. These insurance firms
What is the minimum fine that the government could levy on firms that do not invest in safety that would lead to a Nash equilibrium in which both firms invest?
When is statistical discrimination privately inefficient? When is it socially inefficient? Does it always harm members of the discriminated-against group?Explain.6. Challenge
In Exercises 5.5 and 5.6, describe the equilibrium if cl … ch. (Hint: See Solved Problem 18.4.) M
In Exercise 5.5, under what conditions is a pooling equilibrium possible? (Hint: See Solved Problem 18.4.) M
Education is a continuous variable, where eh is the years of schooling of a high-ability worker and el is the years of schooling of a low-ability worker.The cost per period of education for these
Suppose that you are given wh, wl, and θ in the education signaling model. For what value of c are both a pooling equilibrium and a separating equilibrium possible? For what value of c are both
Sometimes a firm sells the same product under two brand names. For example, the Chevy Tahoe and the GMC Yukon are virtually twins (although the Yukon sells for $490 more than the Tahoe). Give an
Many wineries in the Napa Valley region of California enjoy strong reputations for producing highquality wines and want to protect those reputations.Fred T. Franzia, the owner of Bronco Wine Co.,
In the world of French haute cuisine, a three-star rating from the Michelin Red Guide is a widely accepted indicator of gastronomic excellence.French consumers consider Gault Milleau, another
It costs $12 to produce a low-quality electric stapler and $16 to produce a high-quality stapler. Consumers cannot distinguish good staplers from poor staplers when they make their purchases. Four
Suppose that everyone in the used-car example in the text is risk neutral, potential car buyers value lemons at $2,000 and good used cars at $10,000, the reservation price of lemon owners is $1,500,
Many potential buyers value high-quality used cars at the full-information market price of p1 and lemons at p2. A limited number of potential sellers value high-quality cars at v1 … p1 and lemons
If you buy a new car and try to sell it in the first year—indeed, in the first few days after you buy it—the price that you get is substantially less than the original price. Use your knowledge
According to Edelman (2011), the widely used online “trust” authorities issue certifications without adequate verification, giving rise to adverse selection. Edelman finds that TRUSTe certified
You want to determine whether there is a lemons problem in the market for single-engine airplanes.Can you use any of the following information to help answer this question? If so, how?a. Repair rates
While self-employed workers have the option to purchase private health insurance, many—especially younger—workers do not, due to adverse selection. Suppose that half the population is healthy and
California set up its own earthquake insurance program for homeowners. The rates vary by zip code, depending on the proximity of the nearest fault line.However, critics claim that the people who set
million U.S. consumers were victims of weight-loss fraud, ranging from a tea that promised to help people shed pounds to fraudulent clinical trials and fat-dissolving injections. Do these frauds
According to a 2007 study by the Federal Trade Commission,

Showing 1000 - 1100 of 3636

First
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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