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Rent control is an example of a price ceiling. Price ceilings keep prices low for consumers. We can clearly see that landlords are worse off. Consider if there is an argument to be made that consumers are worse off, too. After watching the Seinfeld video clip (rent control), discuss how some consumers are made better off and some are not in a rent-control situation.
A construction firm has purchased a crane that comes with a 3 year warranty. Repair costs are expected to average $4500 per year beginning Year 4 when the warranty expires. Determine the present worth of the crane's repair cost over its 15-year life...
Analyze graphically the AD-AS model, the Keynesian cross, and the IS-LM model. Identify all relevant curves and causes for shifts in the curves. Explain the evolution of the monetarist and new classical theories.
All brand differentiation strategies are meaningful and worthwhile. Which of the following statements is true about positioning strategies?
A foundry uses 3,600 tons of pig iron per year at a constant rate. The cost per ton delivered to the foundry is $145. It costs $92 to place an order and $18 per ton per year for storage. Find the minimum-cost purchase quantity.
Which industry is more highly concentrated: one with a Herfindahl index of 1,200 or one with a four-firm concentration ratio of 55 percent?
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
If the doctor wishes to maximize her profit, elucidate how many nose operations she should perform each month.
In the 1990's, helped by desktop publishing software that proliferated during that time, the number of vintage baseball card forgeries flooded the market for vintage baseball cards. Dealers left the market for fear of purchasing a phony. What was the..
Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infras..
Using the tools of supply and demand and the competitive market, demonstrate graphically and explain the difference between a "gas crisis," in which prices are rising, and a "gas shortage."
In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consum..
Welfare Economics: main economic goals of a political-economic system are to promote efficiency (static and dynamic), equity, and macroeconomic stability. Under what conditions will a free market meet these goals? Identify a violation of these condit..
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