Questions from General Economics

Q: Suppose independent truckers operate in a perfectly competitive constant-cost industry

Suppose independent truckers operate in a perfectly competitive constant-cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: the price o...

Q: Does a Kansas wheat farmer operate in a perfectly competitive market structure

Does a Kansas wheat farmer operate in a perfectly competitive market structure? Explain.

Q: Assuming the market equilibrium price for wheat is $5 per bushel

Assuming the market equilibrium price for wheat is $5 per bushel, draw the total revenue and the marginal revenue curves for the typical wheat farmer in the same graph. Explain how marginal revenue an...

Q: Consider this statement: “A firm should increase output when it

Consider this statement: “A firm should increase output when it makes a profit.” Do you agree or disagree? Explain.

Q: Consider Exhibit 12, which shows the graph of a perfectly competitive

Consider Exhibit 12, which shows the graph of a perfectly competitive firm in the short run. a. If the firm’s demand curve is MR3, does the firm earn an economic profit or loss? b. Which demand curve(...

Q: Following are real GDP figures for 10 quarters: /

Following are real GDP figures for 10 quarters: Plot these data points, and identify the four phases of the business cycle. Give a theory that may explain the cause of the observed business cycle. W...

Q: Draw graphs to illustrate the difference between a decrease in the quantity

Draw graphs to illustrate the difference between a decrease in the quantity demanded and a decrease in demand for Mickey Mantle baseball cards. Give a possible reason for change in each graph.

Q: Describe the relevant criteria that government statisticians use to determine whether a

Describe the relevant criteria that government statisticians use to determine whether a person is “unemployed.”

Q: Explain the importance of the ceteris paribus assumption for an economic model

Explain the importance of the ceteris paribus assumption for an economic model.

Q: Draw graphs to illustrate the difference between a decrease in quantity supplied

Draw graphs to illustrate the difference between a decrease in quantity supplied and a decrease in supply for condominiums. Give a possible reason for change in each graph.