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Critical thinking is one of the most important skills to learn in any course. One of several questions economists should ask themselves is how variables are defined. Which of the following is an example that illustrates the importance of questioning how economic variables are defined?
A New Jersey study shows that when the minimum wage increases, the unemployment rate decreases. The study concludes that an increase in the minimum wage benefits the overall economy.
The city of Washington D.C. raises the tax on gasoline because it needs to raise tax revenues and decrease its budget deficit. After the tax raise the city discovers that overall tax revenues have declined.
Data show that average wages in the economy have declined. The study concludes that the average person in the economy is worse off financially.
The production possibilities curve shifts out. This means that unemployment has decreased.
Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
Walmart and Sears have announced hundreds of closings of their brick-and-mortar stores. Will online marketing replace all brick-and-mortar stores?
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below.
What are the characteristics of a manufacturing process? How are manufacturing processes organized and evaluated?
Explain why firms should not shut down in the short run until price falls below average variable cost. 3. Suppose your economics professor publicly states that she grades on a curve
Explain the difference between market justice and social justice and provide an example of each within the current U.S. healthcare delivery system.
The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?
Suppose that you are bargaining against a robot that is programmed to choose a strategy that maximizes its own profit against rational opponents. If two alternative options are equally profitable for the robot, it will toss a fair coin to decide what..
Suppose the growth rate of the firm's profits is 5%, the interest rate is 6%, and the current profits of the firm are $100 million dollars.
Prepare depreciation schedule to be used for tax purposes for a $998,400 asset with no salvage value and a 10-year recovery period using the 200%.
Do you think aggregate supply and aggregate demand are accurate representations of performance or do you think there is a better way to measure economic perform
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 80-Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = Q1 and MC2 = 8. How much output should be pro..
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