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
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Hire a Tutor
AI Study Help
New
Search
Search
Sign In
Register
study help
business
economics today the macro view
Questions and Answers of
Economics Today The Macro View
1.7 Name at least five government-provided goods that are not nonexcludable public goods.
1.6 Some individuals argue that with increased population growth, negative externalities will become more common, and there will be more instances of market failure and more need for government to
1.5 Give an example of each of the following: (a) a good rivalrous in consumption and excludable; (b) a good nonrivalrous in consumption and excludable; (c) a good rivalrous in consumption and
1.4 Identify three activities that generate negative externalities and three activities that generate positive externalities.Explain why each activity you identified generates the type of externality
1.3 People have a demand for sweaters, and the market provides sweaters.There is evidence that people also have a demand for national defense, yet the market does not provide national defense.What is
1.2 Consider two types of divorce laws. Law A allows either the husband or the wife to obtain a divorce without the other person’s consent. Law B permits a divorce only if both parties agree to the
1.1 Give an example that illustrates the difference between private costs and social costs.
1.Does it matter if Frank’s meal is spicier than he thought it was going to be?
1.Is there a right amount of pollution?
1.Why doesn’t Bob Nelson contribute to the homeless?
1.Why does the professor in the School of Education argue the way she does?
1.Can there be too little as well as too much dog barking?
1.3. Give an example (not discussed in the text) that illustrates moral hazard.
1.2. Adverse selection has the potential to eliminate some markets. How is this possible?
1.1. Give an example that illustrates how asymmetric information can lead to more of a good being consumed than if there is symmetric information.
1.3. Give an example, other than a movie in a movie theater or a play in a theater, of a good that is nonrivalrous and excludable.
1.2 Identify each of the following goods as a nonexcludable public good, an excludable public good, or a private good: (a) composition notebook used for writing, (b) Shakespearean play performed in a
1.1. Why does the market fail to produce nonexcludable public goods?
1.3. Under market environmentalism, the dollar amount firm Z has to pay to buy the pollution permits from firms X and Y is not counted as a cost to society. Why not?
1.2. Why does reducing pollution cost less by using market environmentalism than by setting standards?
1.1. The layperson finds it odd that economists often prefer some pollution to no pollution.Explain how the economist reaches this conclusion.
1.What about the $660 that firm Z paid to buy the two pollution permits?This was not included in the cost of reducing pollution in the second method. Why not?
1.4. What condition must be satisfied for a tax to correctly adjust for a negative externality?
1.3. Does the property rights assignment a court makes matter to the resource allocative outcome?
1.2. Are the transaction costs of buying a house higher or lower than the transaction costs of buying a hamburger at a fast-food restaurant? Explain your answer.
1.1. What does it mean to internalize an externality?
1.Is there any one best way of dealing with externalities? It is not clear whether it is better to use persuasion, to use, say, taxes and subsidies, or to use regulation.
1.2. For an economist, is the socially optimal output preferred to the market output?
1.1. What is the major difference between the market output and the socially optimal output?
1.Under what condition will the market output and the socially optimal output be the same?
1.Suppose there is an activity for which there are no marginal external benefits(no MEB). Does it follow that MSB MPB?
1.• Does it matter if Frank’s meal is spicier than he thought it was going to be?
1.• Is there a right amount of pollution?
1.• Why doesn’t Bob Nelson contribute to the homeless?
1.• Why does the professor in the School of Education argue the way she does?
1.• Can there be too little as well as too much dog barking?
3 Diagrammatically represent pure economic rent.
2 Bobby is a baseball player who earns $1 million a year playing for team X. If he weren’t playing baseball for team X, he would be playing baseball for team Y and earning $800,000 a year. If he
1 Compute the following:a The present value of $25,000 each year for 4 years at a 7 percent interest rate.b The present value of $152,000 each year for 5 years at a 6 percent interest rate.c The
9 “As the interest rate falls, firms are more inclined to buy capital goods.” Do you agree or disagree? Explain your answer.
8 Describe the effect of each of the following events on individuals’ rate of time preference and thus on interest rates: (a) a technological advance that increases longevity;(b) an increased
7 Make an attempt to calculate the present value of your future income.
6 It has been said that a society with a high savings rate is a society with a high standard of living.What is the link(if any) between saving and a relatively high standard of living?
5 “The more economic rent a person receives in his job, the less likely he is to leave the job and the more content he will be on the job.” Do you agree or disagree?Explain your answer.
4 What is the overall economic function of profits?
3 In what ways are a baseball star who can do nothing but play baseball and a parcel of land similar?
2 Some people have argued that in a moneyless (or barter) economy, interest would not exist. Is this true?Explain your answer.
1 What type of person is most willing to pay high interest rates?
3. What are the social consequences of firms competing for artificial rents as opposed to competing for real rents (where there are no barriers to competing for real rents)?
2. Nick’s salary is pure economic rent. What does this imply about Nick’s “next best alternative salary”?
1. Give an example to illustrate that economic rent differs depending on the perspective from which the factor is viewed.
4. A business firm is thinking of buying a capital good. The capital good will earn $2,000 a year for the next 4 years, and it will cost $7,000. The interest rate is 8 percent. Should the firm buy
3. What is the present value of $1,000 two years from today if the interest rate is 5 percent?
2. Why does the real interest rate, and not the nominal interest rate, matter to borrowers and lenders?
1. Why does the price for loanable funds tend to equal the return on capital goods?
1.If a lender charges one borrower a higher interest rate for a $1,000 loan than he or she charges another borrower, isn’t this a form of “price discrimination”?
1.I’ve heard that interest is the price of money. Is this true?
1.• Is interest sinful?
1.• How would things change today if everyone knew the world would end next week?
1.• Does high rent cause high prices?
1.3 Is it possible for real income for everyone in society to rise even though the income distribution has become more unequal? Prove your answer with a numerical example.
1.2 In Exhibit 7, using Lorenz curve 2, approximately what percentage of income goes to the second highest 20 percent of households?
1.1 The lowest fifth of income earners have a 10 percent income share, the second fifth a 17 percent income share, the third fifth a 22 percent income share, the fourth fifth a 24 percent income
1.10 How would you determine whether or not the wage difference between two individuals is due to wage discrimination?
1.9 Can luck partly explain income inequality? Explain your answer.
1.8 Can more people live in poverty at the same time that a smaller percentage of people live in poverty? Explain your answer.
1.7 What is the effect of age on the income distribution?
1.6 Welfare recipients would rather receive cash benefits than in-kind benefits, but much of the welfare system provides in-kind benefits. Is there any reason for not giving recipients their welfare
1.5 In what ways does the Rawlsian technique of hypothesizing individuals behind a veil of ignorance help or not help us decide whether we should have a 65 mph speed limit or a higher one, a larger
1.4 What is a major criticism of the absolute income equality normative standard?
1.3 Has U.S. income inequality increased or decreased (if we compare the income distribution in 1967 with the income distribution in 2004)? What percentage of total money income did the top fifth of
1.2 Would you expect greater income inequality in country A, where there is great disparity in age, or in country B, where there is little disparity in age? Explain your answer.
1.1 The Gini coefficient for country A is 0.35, and for country B, it is 0.22. From this, it follows that the bottom 10 percent of income recipients in country B have a greater percentage of the
1.3. What is the general description of a disproportionate percentage of the poor?
1.2. What percentage of the U.S. population was living in poverty in 2004?
1.1. ”Poor people will always exist.” Comment.
1.What state has the highest poverty rate? the lowest poverty rate? What state has the largest number of people living in poverty?
1.2. A person decides to assume a lot of risk in earning an income. How could this affect his or her income?
1.1. Jack and Harry work for the same company, but Jack earns more than Harry. Is this evidence of wage discrimination? Explain your answer.
1.2. Country A has a Gini coefficient of 0.45. What does this mean?
1.1. Starting with the top fifth of income earners and proceeding to the lowest fifth, suppose the income share of each group is 40 percent, 30 percent, 20 percent, 10 percent, and 5 percent. Can
1.What is the Gini coefficient of various countries?
1.3. Smith and Jones have the same income this year, $40,000. Does it follow that their income came from the same sources? Explain your answer.
1.2. Income inequality at one point in time is sometimes consistent with income equality over time. Comment.
1.1. How can government change the distribution of income?
1.Are there some data that show that people, once poor, do not always stay poor?
1.What was the median household income in the United States in 2004?
1.• Can everyone become better off as the income distribution becomes more unequal?
1.3 Diagrammatically explain how changes in supply conditions and wage rates in the unionized sector can cause changes in supply and wage rates in the nonunionized sector.
1.2 Which demand curve for labor in the following figure exhibits the most pronounced wage-employment tradeoff?Explain your answer. Wage Rate 0 D3 D D2 Quantity of Labor
1.1 Determine the appropriate numbers for the lettered spaces: (2) (1) Wage (3) Total (4) Marginal Workers Rate Labor Cost Factor Cost 1 A $12.00 $12.00 23+ 2 $12.10 24.20 E 12.20 C F 4 B D 12.60
1.9 What forces may lead to the breakup of an employer(monopsony) cartel?
1.8 A discussion of labor unions usually evokes strong feelings.Some people argue vigorously against labor unions;others argue with equal vigor for labor unions. Some people see labor unions as the
1.7 Some persons argue that a monopsony firm exploits its workers if it pays them less than their marginal revenue products. Others disagree. They say that as long as the firm pays the workers their
1.6 What is the effect of labor unions on nonunion wage rates?
1.5 It has been suggested that organizing labor unions is easier in some industries than in others. What industry characteristics make unionization easier?
1.4 Explain why the monopsonist pays labor a wage rate less than labor’s marginal revenue product.
1.3 Most actions or practices of labor unions are attempts to affect one of three factors. What are these three factors?
1.2 What view is a labor union likely to hold on each of the following issues? (a) easing of the immigration laws;(b) a quota on imported products; (c) free trade; (d) a decrease in the minimum wage.
1.1 What is the difference between a craft (trade) union and an industrial union?
Showing 500 - 600
of 1465
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15