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
principles of economics

Questions and Answers of Principles Of Economics

Explain what will happen to the present value of money one year from now if the market interest rate falls? What if the market interest rate rises?
Consider the adjustment of the corn market in the United States to the federal mandate requiring refiners to use corn-based ethanol in the production of fuel. Up until January 2012, refiners were
For each of the following, state whether the statement, which describes changes in the tangerine market, is true, false, or uncertain. Explain your answer using graphs and the model of labor and
Suppose the economy of Kyrgyzstan has only four markets—energy, food, labor, and capital—and two types of households—rich and poor. In such an economy, explain why an excise tax on energy is
South African Airways (SAA) and Qantas Airlines held a duopoly on direct flights from Australia to South Africa. In 2014, Australia’s International Air Services Commission (IASC) indicated that the
The output of workers at a Porta Egypt factory depends on the number of supervisors hired. The factory sells each unit of its output for $0.50, hires 50 production workers at a wage of $100 per day,
In December 2018, tickets to a concert by Andy Lau, a Cantopop legend, that cost HK$980 had a resale price between HK$3,500 and HK$5,000, more than six times their face value. Scalpers usually buy
Which of the following are examples of Pareto-efficient changes? Explain your answers.a. The government of Estonia introduces e-governance for paying taxes so that citizens can file tax returns
In November 2018, Japan Airlines booked 400 people for a flight from Tokyo to Fukuoka that could take only 375 passengers. Suppose two alternatives are proposed to decide which 25 passengers would
Assume that there are two sectors in an economy: goods (G) and services (S). Both sectors are perfectly competitive, with large numbers of firms and constant returns to scale. As income rises,
Which of the following are actual Pareto-efficient changes? Explain briefly.a. You buy an air conditioner as it is hotter this summer due to climate change.b. You go salmon-fishing but you throw your
Each instance that follows is an example of one of the four types of market failure discussed in this chapter. In each case, identify the type of market failure and defend your choice briefly.a. Your
Briefly explain whether each of the following represents a public good.a. The Monaco Grand Prix (formerly the Formula One auto race) held at the Circuit de Monacob. The samba street parade held
Suppose EasyJet is the only airline that offers a flight on the route Manchester, United Kingdom, to Thessaloniki, Greece. Does the fact EasyJet offers the only flight on this route necessarily imply
Assume that Belgium has a large number of pharmaceutical stores in 2018 was competitively structured; however, certain chemists did supply illegal medical goods. Over the course of three years, one
Regnissik AG, a monopoly, holds exclusive rights to sell official superhero merchandise in Germany. It faces the following demand schedule for its T-shirts (sales in units per week):Calculate the
The following diagram illustrates the demand curve facing a monopoly in an industry with no economies or diseconomies of scale and no fixed costs. In the short and long run, MC = ATC. Copy the
The following diagram shows the cost structure of a monopoly firm as well as market demand. Identify on the graph and calculate the following:a. Profit-maximizing output levelb. Profit-maximizing
In many countries there is only one provider of freight services (transporting goods from A to B measured in kilometers). Nevertheless, this service provider is efficiently run and wishes to make a
The diagram below shows a firm (industry) that earns a normal return to capital if organized competitively. Price in the market place is Pc under competition. We assume at first that marginal cost is
The following diagram illustrates the demand and marginal revenue curves facing a monopoly in an industry with no economies or diseconomies of scale. In the short and long run, MC = ATC.a. Calculate
According to the United Airlines Website, their Basic Economy fare differs from their standard Economy fare as follows: complimentary seat selection and upgrades are not available, group and family
Which of the following industries would you classify as an oligopoly? Explain your answer. If you are not sure, what information do you need to know to decide?a. Clothingb. Cosmeticsc. Cell phonesd.
In a significant decision regarding patent eligibility, Alice Corp. v. CLS Bank International, the U.S Supreme Court in June 2004 effectively raised the bar for software patents by declining a patent
Which of the following markets are likely to be perfectly contestable? Explain your answers.a. Coal miningb. Insurancec. Wind Farmsd. Landscapinge. Advertising
Assume that you are in the business of providing medical insurance. You have analyzed the market carefully, and you know that at a price of $6,000 per year, you will sell 40,000 insurance policies
In 2018, the European Commission (EC) fined Asus, Philips, and Pioneer for interfering with the pricing of online retailers to maintain artificially high prices for their products.Research the
Explain whether you agree or disagree with the following statement. If all firms in an industry successfully engage in collusion, the resulting profit-maximizing price and output would be the same as
What is the Cournot model? How does the output decision in the Cournot model differ from the output decision in a monopoly?
T-Mobile is the third-largest wireless communication provider in the United States, behind Verizon and ATT, and ahead of Sprint. In an effort to differentiate themselves from their three primary
The matrix in Figure 1 shows payoffs based on the strategies chosen by two firms. If they collude and hold prices at $10, each firm will earn prof its of$5 million. If A cheats on the agreement,
The payoff matrices in Figure 2 at the top of the next column show the payoffs for two games. The payoffs are given in parentheses. The values on the left refer to the payoff to A; the values on the
Suppose only two airlines fly between London and New York. There are 100 flights between the two cities on a daily basis, of which 90 flights are operated by London Airways and the remaining 10 by
Explain whether you agree or disagree with the following statements:a. In all oligopoly models except the contestable-market model, market concentration leads to output below the efficient level, and
Suppose that the following table represents the market share percentage for each firm in the baby food market in Sweden.a. Calculate the three-firm concentration ratio for the baby food industry
After 17 months of negotiations, the Federal Communications Commission announced in July 2008 its approval of the merger between the world’s only satellite radio broadcasters, Sirius Satellite
One problem with using concentration ratios is that they can mask certain differences in concentration between markets. The table below presents the market shares of the four largest firms in two
In Game Theory, players who adopt the maximin strategy are said to be risk averse. Why is that a reasonable characterization?
Plaza Mayor, a historical landmark in the heart of Madrid, Spain, has several stores, cafés, and restaurants that attract tourists and locals. It is a place where different types of alliances and
Assume you are a student in a university town with a population of 200,000. Your parents will be visiting soon and you want to take them out for dinner. Name some of the local and chain restaurants
Recreational Equipment, Inc, commonly known as REI, is an outdoor recreational retail company whose product offerings include sporting goods, camping gear, and clothing. REI has over 150 retail
Write a brief essay explaining the accuracy of this statement:The Beatles were once a monopolistically competitive firm that became a monopolist.
In a market in which there is vertical differentiation, we always see price differences among the products.In markets with horizontal differentiation, sometimes the products differ but prices are
Often, products manufactured by the more well-known brands are sold for a lower price than those by the less well-known brands. Is this pattern always true? Explain your answer.
As cities go, Las Vegas is about as “over-the-top” as is imaginable. Where else in the world can you find a 350-foot tall glass pyramid, a half-scale replica of the Eiffel Tower, a fire-spewing
The table shows the relationship for a hypothetical firm between its advertising expenditure on various platforms and the quantity of its output that it expects to sell at a fixed price of €400 per
Research the Internet for olive oil from Greece, which is considered to be the third largest producer of olive oil in the world after Spain and Italy. How much variation does there seem to be in the
Professor Econsmart teaches a course in principles of economics at a large university. In the current semester the professor intends to add new techniques to the standard lecture format he employs.
The Economics in Practice discusses the increase in sales of books that have been endorsed by Oprah Winfrey’s book club. While Oprah receives no payment for her book club endorsements, many
Mariana is operating a studio house in Palma de Mallorca, Spain. Hundreds of hotels, motels, villas, apartments, and studio houses are offered as tourist accommodations in the area. Mariana opened
The following diagram shows the structure of cost and demand facing a monopolistically competitive firm in the short run.a. Identify the following on the graph and calculate each one.i.
Explain the relationship between price and marginal revenue for a perfectly competitive firm and for a monopolistically competitive firm. Why is the relationship different for these markets?
For each of the following, state whether you agree or disagree.Explain your answer.a. Monopolistically competitive firms generate economic profits because they are protected by barriers to entry.b.
Explain why the demand for a monopolistically competitive firm’s product variant is more elastic than the demand for the product overall.
Suppose that there are small, but nontrivial, barriers to entry into a monopolistically competitive market. How would this affect the long-run profitability of firms in the market?
With increased international concerns about the environment, the movement to ban plastic straws in the food and hospitality industry has gained traction. Major corporations, such as Starbucks,
The kingdom of Freedonia is divided into two countries: East Babalu and West Babalu. In an effort to reduce carbon dioxide emissions, the kingdom has enacted a carbon tax on all electricity
Many people are concerned with the problem of urban sprawl. As the development of new housing tracts and suburban shopping malls continues over time, metropolitan areas have become more congested and
A paper factory dumps polluting chemicals into the Snake River. Thousands of citizens live along the river, and they bring suit, claiming damages. You are asked by the judge to testify at the trial
Microsoft and Disney are just two of a growing number of organizations using internal carbon taxes in an attempt to reduce carbon emissions, and the carbon prices being used to set the internal taxes
The Coase theorem implies that we never need to worry about regulating externalities because the private individuals involved will reach the efficient outcome through negotiations. Is that statement
Economists often distinguish between short-run and longrun effects of policies or actions when adjusting to environmental disasters. Research a recent environmental disaster(such as the wildfires in
The following diagram represents the profit-maximizing price and output for a firm in a perfectly competitive industry with no externalities. Use this diagram to explainwhat will happen if the
Refer to the previous question but assume that the government has imposed a per-unit tax on this product that is exactly equal to the marginal damage costs. Use the diagram to show what will happen
Two firms, Vesuvius and Etna, are each emitting nine units of pollution, and the government wants to reduce the total level of pollution from the current level of 18 to six. To do this, the
Velma, a book editor for a local publishing company, and Daphne, an opera singer in a local opera company, share a townhouse in Miami. Velma enjoys reading and editing books at home, and Daphne
The existence of “public goods” is an example of potential market failure and suggests that a government or public sector can improve the outcome of completely free markets.Write a brief summary
For each of the following goods, state whether it is a private good, mixed good, or public good. Discuss your rationale in terms of exclusivity and rivalry.a. Tap waterb. Fish caught from a riverc. A
Explain why you agree or disagree with each of the following statements:a. The government should be involved in providing health care for all citizens because health care is a “public good.”b.
Bonnie and Clyde take the same route on their way to their home. They want to improve the security on one particular street by installing more street lamps.Data from figure 1Bonnie’s demand for
Government involvement in general scientific research has been justified on the grounds that advances in knowledge are public goods—once produced, information can be shared at virtually no cost. A
The recent economic growth resulting from government policies of newly industrializing nations such as India and China has increased environmental strains on global air and water systems. The
Overfishing in Iceland led to the cod and herring populations to almost disappear in the 1960s and 1970s.The overuse of a common resource like fish is often referred to as the tragedy of the
Congested highways are congested specifically because they are a common resource. Identify a public policy or pricing mechanism that could solve this problem.
The following function shows the attitude towards risk for Anna, Bill, and Joe, respectively, where U is level of utility and I is the level of income.Using graphs, show utility versus income for
At the beginning of 2019, you rented a brand new Nissan GT-R for a road trip and bought the most expensive insurance with maximum coverage for it. A week later, you return the car safely and without
There is a saying in gambling that “the house always wins.” Using the concept of expected value, explain why gambling is biased against gamblers.
The “marriage market” involves an arrangement by which couples meet, get to know each other, and eventually may decide to enter into a matrimonial contract.a. Explain the nature and role of
An interview is an integral part of any hiring process.Explain the nature of asymmetric information in this setting. Use the concepts of adverse selection and moral hazard to explain why an interview
Signals are also used in social settings. In a new place, what signals do you look for to find people who share your interests?
Find a product advertisement in a magazine, in a newspaper, or on a Web site, for which the missing information tells you something important about this product. Explain what information is missing,
Do you think companies that issue health insurance should be allowed to inquire about family medical history and the results of genetic testing before deciding to issue insurance policies? Why or why
Valentino wants to purchase a classic motorcycle and sees a 1974 Triumph Bonneville T140 listed on Cycletrader.com for $5,950. He is willing to pay $7,500 if the motorcycle is reliable, but only
One way insurance companies reduce adverse selection problems is by offering group medical coverage to large firms and requiring all employees to participate in the coverage. Explain how this reduces
Included in the Tax Cuts and Jobs Act of 2017 was the elimination of the individual mandate penalty for not having health insurance. Starting in 2019, individuals who do not have health insurance
The five busiest airports in the United States are in Atlanta, Chicago, Los Angeles, Dallas-Ft. Worth, and New York City. At these airports there are more than 450 food outlets, with each airport
The issue of asymmetric information in news reporting has acquired greater importance in the age of the Internet.In 2013, the Oxford Internet Survey reported that traditional media like TV and the
Simon likes to watch movies and his Internet service provider offers streaming movies on a pay-per-view basis for $3 each. The provider also offers a service for unlimited streaming of movies for $15
People engaged in the hospitality sector usually receive lower wages, and tips make up a certain percentage of their income. However, some occupations in a hotel may provide considerably lower daily
Some economists argue that people who buy fire insurance should never buy lottery tickets, and that people who buy lottery tickets should never buy fire insurance. Why would these economists make
Economists worry that salaried employees who work more or less independently do not have a strong incentive to work hard at their jobs. Their level of effort is not easily observed by their employer,
Identify which of the three basic sources of income is represented by each of the following:a. George receives free accommodation from his employer while he is on a deputation.b. Andrew earns $1,000
By using the data in the following table, create two graphs. The first graph should plot the Lorenz curves for left-handed people and right-handed people. The second graph should plot the Lorenz
Refer to the following Lorenz curve to answer the questions.a. Explain whether the distribution of income was more equal in 2017 or 2018.b. If area A = 2,450 and area B = 450, what is the value of
The tiny Kingdom of Arugula has five residents, and the following table lists the annual income of each of these people. Fill in the table and draw a Lorenz curve showing the distribution of income
Some employers offer tuition reimbursement for their employees who wish to further their education. Do a Web search to find a list of companies that contribute to tuition for their employees. Do you
Economists call education “an investment in human capital.” Define capital. In what sense is education capital?Investments are undertaken to earn a rate of return. Describe the return to an
Following is a list of establishment categories and average weekly earnings for nonsupervisory employees in a recent year. Using the concepts of “human capital” and “compensating
New PhDs in economics entering the job market find that academic jobs (jobs teaching at colleges and universities) pay about 30 percent less than nonacademic jobs such as working at a bank or a
Should welfare benefits be higher in Sweden and Denmark than in Romania? Defend your answer.

Showing 4600 - 4700 of 5354

First
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

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