Questions from General Economics

Q: Congress and the president decide that the United States should reduce air

Congress and the president decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.50 tax on each gallon of gasoline sold. a. Should they impose thi...

Q: A case study in this chapter discusses the federal minimum-wage

A case study in this chapter discusses the federal minimum-wage law. a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of t...

Q: At Fenway Park, home of the Boston Red Sox, seating

At Fenway Park, home of the Boston Red Sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the City of Boston...

Q: Using supply-and-demand diagrams, show the effect of

Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets falls...

Q: Explain why economists usually oppose controls on prices.

Explain why economists usually oppose controls on prices.

Q: Suppose the government removes a tax on buyers of a good and

Suppose the government removes a tax on buyers of a good and levies a tax of the same size on sellers of the good. How does this change in tax policy affect the price that buyers pay sellers for this...

Q: What determines how the burden of a tax is divided between buyers

What determines how the burden of a tax is divided between buyers and sellers? Why?

Q: Classify the following markets as perfectly competitive, monopolistic, or monopolistically

Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers. a. wooden no. 2 pencils b. copper c. local electricity service d. pean...

Q: Among monopoly, oligopoly, monopolistic competition, and perfect competition,

Among monopoly, oligopoly, monopolistic competition, and perfect competition, how would you classify the markets for each of the following drinks? a. tap water b. bottled water c. cola d. beer

Q: What is the free-rider problem? Why does the free

What is the free-rider problem? Why does the free-rider problem induce the government to provide public goods? How should the government decide whether to provide a public good?