Questions from General Economics

Q: “Majority voting ensures that government will produce only those public goods

“Majority voting ensures that government will produce only those public goods for which benefits exceed costs.” Why?

Q: “The problem with our democratic institutions is that they don’t correctly

“The problem with our democratic institutions is that they don’t correctly reflect the will of the people! If the people-rather than self-interested politicians or lobbyists-had control, we wouldn’t...

Q: Suppose that there are 1 million federal workers at the lowest level

Suppose that there are 1 million federal workers at the lowest level of the federal bureaucracy and that above them there are multiple layers of supervisors and supervisors-of-supervisors. Assume tha...

Q: Consider a specific example of the special-interest effect and the

Consider a specific example of the special-interest effect and the collective-action problem. In 2012, it was estimated that the total value of all corn‐production subsidies in the United States tota...

Q: Select all of the following that are true. To an economist

Select all of the following that are true. To an economist, a coercive government can be useful in order to: a. Reallocate resources in order to improve efficiency. b. Fight negative externalities....

Q: Look at the demand curve in Figure 6.2a. Use

Look at the demand curve in Figure 6.2a. Use the midpoint formula and points a and b to calculate the elasticity of demand for that range of the demand curve. Do the same for the demand curves in Fig...

Q: Investigate how demand elasticities are affected by increases in demand. Shift

Investigate how demand elasticities are affected by increases in demand. Shift each of the demand curves in Figures 6.2a, 6.2b, and 6.2c to the right by 10 units. For example, point a in Figure 6.2a w...

Q: Suppose that the total revenue received by a company selling basketballs is

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and $600 when the price is set at $20 per basketball. Without using the mi...

Q: Danny “Dimes” Donahue is a neighborhood’s 9-year-

Danny “Dimes” Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.50 each, he sells 100. At a price of $1...

Q: What is the formula for measuring the price elasticity of supply?

What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples instead...