Questions from General Economics

Q: There are economies of scale in ranching, especially with regard to

There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up. How much would it cost to fence a single property w...

Q: First, graphically illustrate a doubling of income without price changes in

First, graphically illustrate a doubling of income without price changes in the indifference curve model. Next, on the same graph, show a situation in which the person whose indifference curves you ar...

Q: Provide three examples of each: consumer durable goods, consumer nondurable

Provide three examples of each: consumer durable goods, consumer nondurable goods, and services.

Q: Distinguish between explicit and implicit costs, giving examples of each.

Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college?

Q: Compare and contrast the Bretton Woods system of exchange rates with that

Compare and contrast the Bretton Woods system of exchange rates with that of the gold standard. What caused the collapse of the gold standard? What caused the demise of the Bretton Woods system?

Q: Distinguish between accounting profit, economic profit, and normal profit.

Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures...

Q: Suppose an economy’s real GDP is $30,000 in year

Suppose an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP? Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of...

Q: What annual growth rate is needed for a country to double its

What annual growth rate is needed for a country to double its output in 7 years? In 35 years? In 70 years? In 140 years?

Q: Assume that a “leader country” has real GDP per capita

Assume that a “leader country” has real GDP per capita of $40,000, whereas a “follower country” has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero pe...

Q: Refer to Figure 28.2 and assume that the values for

Refer to Figure 28.2 and assume that the values for points a, b, and c are $10 billion, $20 billion, and $18 billion respectively. If the economy moves from point a to point b over a 10-year period, w...