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Suppose alcohol generates a negative externality in consumption. If so, then
1) the marginal social benefit of alcohol is less than the marginal private benefit
2) the marginal social cost of alcohol equals the marginal social benefit
3) the marginal social benefit of alcohol equals the marginal private benefit
4) the marginal social benefit of alcohol is greater than the marginal private benefit
Find a newspaper or magazine article that highlights when the political process works poorly (not too hard). Write a 1-page paper on the economic reasons for this performance
Analyze the impact of an increase in the minimum wage from the current level to $15 per hours. How would the following be affected? employment of people previously earning less than $15 per hour
Which of the following industries is most likely to exhibit the characteristic of free entry? cable television , t-shirt silkscreening
4. The manufacture of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows: TC = 500,000 + 0.85Q + 0.015Q2 and Q =14,166 - 16.6..
The rate of growth in the productivity of capital is one percent, the rate of growth of capital is two percent, the rate of growth of labor is one percent, and the rate of growth in the productivity of labor is three percent from this we know that
Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?
A supply schedule (or function or curve) defined analogously shows the total quantities (Q) that sellers are willing to sell at various prices (P) in a given period of time. One very special case is that of a fixed supply, where the quantity supplied..
If average product is increasing, marginal product must be less than average product. If marginal product is negative, average product must be negative.
Suppose the supply curve is completely inelastic if the government imposed a price ceiling bellow the market clearing level, would a deadweight loss result? explain
Suppose that Julie always spends $40 per month on wine (good X) and the remainder of her income on everything else (the composite commodity, good Y). Let the price of the composite commodity be $1 per unit of Y (this means that Y represents the $ spe..
How does a budget deficit lead to an appreciating currency and a trade dificit? Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, e..
1. the demand function for a cola-type soft drink in general is q 20 - 2p where q stands for quantity and p stands for
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