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

We have proven that the price elasticity of demand varies along a straight-line demand curve. Can you construct a demand curve along which the price elasticity of demand is constant?
Mortgage lenders often advise home buyers that their mortgage, real-estate taxes, and home insurance should be no more than 28 percent of their family income.a) If home buyers follow this advice,
True, False, or Uncertain: If the cross-price elasticity of demand between goods X and Y is positive, and the cross-price elasticity of demand between goods Y and Z is negative, then the cross-price
If the demand curve facing a price-taking supplier is horizontal (perfectly price elastic), what is the price elasticity of demand facing a supplier who has no current or potential competitors?
In the United States, the cross-price elasticity of demand for U.S.-trained engineers versus German-trained engineers is very high, whereas the cross-price elasticity of demand for U.S.-trained
Over the past few years, the U.S. government has pushed for the production of more ethanol-based fuels in lieu of fossil fuels. A major component of ethanol is corn. The result has been that the
Assume that the demand for cocaine is perfectly price inelastic and that users get the funds to pay for cocaine primarily by stealing. Suppose, too, that the U.S.Drug Enforcement Agency successfully
The dean of admissions at UZ State argues that increasing students’ tuition will reduce the university’s total revenue.a) What is she implying about the price elasticity of demand for course
Suppose that Norm, a college student, spends all of his income on two goods:gasoline and credit hours.a) If a $2 increase in the price of gasoline does not change the amount of credit hours the
Indicate whether the price elasticity of demand is perfectly inelastic, inelastic, unitary elastic, or elastic in the following situations:a) The price of babysitters goes up. Mary responds by hiring
Suppose the federal government imposes a tax on suppliers of soft drinks that contain sugar or corn syrup—soda, sports drinks, and so on—to discourage consumption and reduce obesity.a) Using
Describe at least one mechanism that can be used to allocate economic goods when price is below equilibrium and there is excess demand. Explain the rationale for the government keeping prices below
Assume that the demand for cocaine is totally unresponsive to price, and assume further that users get the funds to pay for cocaine by stealing. Suppose the government is successful in intercepting
Political leaders in Los Angeles are leading a campaign to raise the minimum wage in the city (for all employment in the city) to a higher, “living” wage.Using supply-and-demand analysis, show
In response to the rapid rise in the price of gasoline, some politicians have argued for a temporary or permanent suspension of the federal tax on gasoline(18.4 cents per gallon). Using supply and
Using supply and demand diagrams, show the impact of removing the price ceiling on natural gas on quantity and price in:a) the natural gas market.b) the electric-furnace market.c) the natural gas
To generate voting support from dairy producers, Congressional representatives from dairy-producing states have supported the use of price supports (floors) on milk and cheese. Using supply and
In response to recent corporate financial scandals, the Federal government has enacted laws that make accountants personally liable for inaccuracies reported in audited financial statements,
As a result of the Iraq War and rebuilding effort, the worldwide demand for U.S.raw materials such as lumber and steel has skyrocketed. Using supply and demand diagrams, show the impact of the war on
Suppose that U.S. lumber companies are successful in ending current limits on the amount of trees that can be harvested in our national forests. Using supply and demand diagrams, show the impact on
Using consumer demand curves, explain why it makes economic sense for a cell-phone company to virtually give away its phones to cell-phone users.True, false, uncertain. Explain: The price of cellular
Using supply and demand diagrams, show the impact of reductions in international supplies of crude oil on equilibrium price and quantity in:a) the U.S. gasoline market.b) the SUV market.c) the car
Using supply and demand diagrams, show the impact of an economic contraction on equilibrium price and quantity in the:a) jewelry market.b) used car market.c) new car market.d) store-brand toilet
Using supply and demand diagrams, show how cost-saving improvements in the production technology for plasma screens impact equilibrium price and quantity in:a) the plasma TV market.b) the
Using supply and demand curves, show the impact on the equilibrium quantity and the price of menu items when restaurants:a) introduce free delivery to homes and businesses.b) introduce the acceptance
U.S. residents have increasingly turned to Canada as a cheap source of prescription drugs. They are traveling across the border and using mail order Web sites to buy these drugs. Using supply and
A price ceiling only works when the market-clearing, equilibrium price is higher than the regulated price. Why?
A price floor only works when the market-clearing, equilibrium price is lower than the regulated price. Why?
Using supply-and-demand analysis, show what happens if the going price in a market is below the equilibrium price. Explain how pressures on price will lead the market to its equilibrium price and
When the United States eliminates tariffs on steel and chemical imports, more of the steel and chemicals that U.S. customers use are produced overseas. This means that the amount of pollution
At what wage rate would you consider working fewer hours each week? What types of considerations would factor into your answer? Explain.
Environmental-protection groups are delighted that plastic-bag manufacturers have become more attuned to environmental concerns and are now producing bags containing 40 percent recycled materials.
In the long run, how do owners of commercial property reduce the market supply of properties in response to a decline in lease rates? Explain your answer.
The federal government has passed a number of regulations in recent years that impact the way in which medical practices operate. Among these regulations are requirements that (1) medical records are
Several states are considering legislation that would give children with sperm donor “daddies” the right to contact these fathers when they reach the age of 21.If these new laws pass, what, if
A California court ruled that a dentist was liable for a car accident involving a patient who was given “laughing gas” (nitrous oxide) earlier in the day. Show how the market supply curve for
Medical technology has advanced to the point where organs such as the liver can be split, with pieces transplanted into two patients rather than one. Show the impact of this technological change on
Suppose that accounting firms can now either send accounting work to accountants in India via data-transmission technologies or import accountants from India to do the work. Explain carefully what
Opponents to free-trade agreements such as NAFTA argue that they don’t lower the true costs of supply because many countries—including the United States—heavily subsidize many of their domestic
Suppose the government imposes a quota on each fisherman to prevent overharvesting of fish. Show what the fisherman’s supply curve looks like after the quota is imposed. What does the market supply
a) Draw the supply curves for two individual suppliers of lettuce, one who produces lettuce in California and the other who produces lettuce in Mexico.Assume that the suppliers are identical; that
Maura goes to school full-time and moonlights as a security guard nights and weekends. When her hourly wage increased from $10 per hour to $12 per hour, she requested a cut in her scheduled hours.
What would the indifference curves look like for a drug addict who is choosing between cocaine and food? Explain.
Could a budget constraint ever be curved? Explain.
What does a straight-line indifference curve tell you about a person’s preferences in terms of the two goods, X and Y? Explain. If the indifference curve was a straight line, what would this mean
What would a person’s indifference curve look like if she were choosing between two “perfect” complements that had to be used together in a specific combination—say, athletic shoes and
What would a consumer’s indifference curve look like if she were choosing between a “good” and a “bad”—say, going to movies and sitting in traffic? Explain.
In 2011, California Governor Jerry Brown signed into law the Renewable Energy Act, which requires that at least one-third of the state’s electricity come from renewable sources, such as wind and
During the Great Recession of 2007, consumers cut back on their purchases of environmentally friendly “green” products, such as recycled-paper products and biodegradable cleaning supplies. What,
Many negative externalities—such as secondhand smoke or air pollution—jeopardize people’s health and increase their risk of dying at an early age. Discuss how you would put a dollar value on
You are quietly sitting under a tree at a local park, enjoying the newest novel by your favorite mystery writer. All of a sudden, a large family with noisy kids spreads its picnic blanket a stone’s
An interesting type of property right is an “air right,” which permits real-estate owners to buy control over the use of airspace above or next to their structures.Discuss how a market in these
Suppose a group of home owners files a lawsuit against a neighborhood pig farm, claiming that the smells are overwhelming and are reducing the value of their homes. If you were the judge in this
When do you think it makes sense to totally ban an economic good or activity?Illustrate your answer using MBprivate and MBsocial curves and MCprivate and MCsocial curves.
The federal government’s Pell Grant program reduces the private cost of attending college for many students.a) What spillover benefits do you think are created by having more collegeeducated people
In most Western countries, there is a law in place requiring that children be vaccinated against such communicable diseases as polio and smallpox. If, in fact, each person benefits from getting
Several years ago, in an effort to reduce acid rain, the EPA allocated “pollution allowances” to manufacturers emitting sulfur dioxide and nitrogen oxide. These pollution permits capped each
A classic example of a positive externality relates to the neighborhood beekeeper, whose bees pollinate the nearby apple orchard for free as they fly around looking for nectar to make honey. The
Suppose that environmentalists are successful in their effort to ban fishing off the eastern shores of the United States. Using MB and MC curves, show the resulting impact on an individual’s
Opponents of convenience “wipes” argue that these disposables are detrimental to the environment. Using MB and MC curves, show the impact on an individual’s quantity of wipes consumed each year
Which of the following choices creates a negative or positive externality? Explain your answer.a) Driving without your seat belt fastenedb) Opening a kiosk in the mall to sell jewelry, right outside
The Swiss are considering new banking rules that will make it harder for residents of neighboring countries to “hide” money in Swiss banks to avoid taxes.Using MB and MC curves, show how this
Some of the most important discoveries that have improved the well-being of mankind have arisen without any enforceable private intellectual property rights.Two examples are the wheel and fire. Can
If people can free-ride on television and radio signals, why do you think that some contribute voluntarily to the support of stations such as Public Broadcasting (PBS) and National Public Radio
Suppose that a restaurant smoking ban is enacted in your town. Using MB and MC curves, show the impact on the volume of take-out food orders (1) for smokers; (2) for nonsmokers.
Some countries, such as Spain and Austria, have adopted property-rights systems stating that when a person dies, his organs are available for transplant unless he opts out of donating his organs
Consider two neighboring states: Missouri and Illinois. Missouri has one of the lowest tax rates in the country and, as a result, one of the lowest funding levels for higher education. By contrast,
By 2009, the Federal Communications Commission (FCC) had mandated that all analog television broadcast signals were to be converted to digital signals.Using MB and MC curves, show the impact of this
Suppose that you authored a book or wrote a song. If you knew that it would be prohibitively costly to enforce your ownership rights to the material after it was published, would this affect the
One approach to the “tragedy of the commons” is to allocate quotas to individual users of the common property. (1) How would you integrate such a quota into your marginal benefit–marginal cost
AMC theaters recently established a new rule that prohibits babies under the age of two from attending movies shown after 8 p.m. Using MB and MC curves, show the impact of this rule on (1) evening
In the late 1960s, the Catholic Church eliminated the requirement that observant Catholics eat fish on Fridays. Using MB and MC curves, show the effect of this change on the (1) consumption of fish,
Several years ago, the federal government enacted the Family and Medical Leave Act (FMLA), which allows employees to take an unpaid leave of absence to tend to family crises without any risk of
What if the U.S. Supreme Court ruled that a birth father had the same rights as a birth mother to reclaim his child within 180 days of adoption. Using MB and MC curves, show the impact of this ruling
If it’s true that ownership in stars or land on the Moon is not enforceable, then why do people actually pay for these rights? What property right is actually being acquired here?
Suppose that you have been hired as a consultant to advise a country on how to make the transition from communism (property held in common) to a system of private property. Propose at least two ways
Suppose the government bans the use of a pesticide and is able to catch anyone who violates the law. If this is the case, what is the opportunity cost that a farmer bears if he continues to use this
What is the opportunity cost that an employer bears when he discriminates against women or African Americans in the hiring process? In answering this question, first assume that such discrimination
McDonald’s restaurants in Japan, India, and Israel offer a menu that is substantially different from the one offered in the United States. Coca-Cola uses a different formulation in different
Your sister Tania, currently a junior in college, has completed all but a few requirements to earn a degree in accounting. Suppose that she calls you and tells you that she is taking her first
Mrs. Teeples recently received a letter notifying her that her credit card company was changing from a fixed interest rate for unpaid balances to a variable interest rate.She calculates that she will
Suppose that you are shopping for a new digital camera and can buy it online or in an electronics store such as Best Buy. Explain carefully the economic benefits and costs that would contribute to
Identify three habits in your daily life that you think are informationeconomizing habits. Is there any other reason that habits form and persist over time? Explain your answer.
What is the opportunity cost of investing $5,000 to open a new cupcake shop?Explain your answer.
Suppose that people volunteer to staff a town’s local fire department. Should the value of their time be included in calculating the economic cost of providing fire protection to the town? Explain
The owner of a record store paid $62,000 for tenant improvements to the space he is renting. Last year, he earned $190,000 in (economic) profits in this space. A friend suggests that he move to a
True, false, uncertain. Explain your answers.a) Accounting profits will always be less than economic profits.b) Accounting costs will always be less than economic costs.c) Sunk costs are included in
Using MB and MC curves, show how a teenager’s decision to have one or more children is affected when (1) she is paid $100 each month to remain in school and not become pregnant; (2) she is paid
Using marginal benefit (MB) and marginal cost (MC) curves, show what happened to people’s consumption of liquor when Prohibition—the federal government’s ban on liquor consumption—was
The total benefit that Professor Allison gets from consuming the first beer at a Red Sox game is (in money terms) $25; it goes up to $40 for two beers, $50 for three beers, $58 for four beers, and
Using MB and MC curves to depict the food consumption decision of a typical low-income family, show why agri-business companies lobby politicians so hard for the continuation of the food-stamp
In the late 1800s and first part of the 1900s, many people living in rural areas ordered their clothes, tools, and even ready-to-assemble homes from mail-order catalogs such as the Sears, Roebuck and
Given the rise in Internet shopping, what would you predict about the amount of time spent shopping in 2011? Do you think the time saved is used to earn more income or to pursue additional leisure
Using MB and MC curves, predict how the increasing use of robots in a manufacturing plant changes the optimal number of employees hired by the owner of the plant.
Predict, using MB and MC curves, how the number of TripTiks travel itineraries prepared by the Automobile Association of America (AAA) for its members changes as Internet mapping technologies such as
Some retailers offer a discount when people buy more of a particular product—for example, buy one medium pizza for $7.95 and three medium pizzas for$5 each.a) How would you reconcile this pricing
Show, using separate MB and MC curves for each group, why people tend to go out to more movies in their teens and twenties than in their thirties and forties.Which group do you think better reflects
Water companies have a variety of ways to reduce water use during droughts.One way is to increase the price of water. Another way is to prohibit consumers from watering their lawns. Which approach do
It is often said that higher education does better—in terms of enrollments—during bad economic times and worse during good economic times. Can you substantiate this prediction using MB and MC
Show, using MB and MC curves, that you can reduce population growth in poorer countries by either (1) educating women and giving them greater employment opportunities; or (2) prohibiting the

Showing 2300 - 2400 of 4204

First
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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