Questions from General Economics

Q: Assume that a grower of flower bulbs sells its annual output of

Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers....

Q: Currently, at a price of $1 each, 100 popsicles

Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit ela...

Q: Lorena likes to play golf. The number of times per year

Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of...

Q: Consider a corrupt provincial government in which each housing inspector examines two

Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the builders in the province are unethical and want to increase their profi...

Q: Look back at Figures 1a and 1b, which show the costs

Look back at Figures 1a and 1b, which show the costs and benefits to voters Adams, Benson, and Conrad of two different public goods that the government will produce if a majority of Adams, Benson, and...

Q: Political advertising is often directed at winning over so-called swing

Political advertising is often directed at winning over so-called swing voters, whose votes might go either way. Suppose that two political parties-the Freedom Party and the Liberty Party-disagree on...

Q: Explain the paradox of voting through reference to the accompanying table,

Explain the paradox of voting through reference to the accompanying table, which shows the ranking of three public goods by voters Jay, Dave, and Conan:

Q: Suppose there are only five people in a society and each favors

Suppose there are only five people in a society and each favors one of the five highway construction options listed in Table 4.4 (“No new construction” is one of th...

Q: True or False. The median voter model explains why politicians so

True or False. The median voter model explains why politicians so often stake out fringe positions that appeal only to a small segment of the electorate. Why?

Q: Erin grows pecans. The number of bushels (B) that

Erin grows pecans. The number of bushels (B) that she can produce depends on the number of inches of rainfall (R) that her orchards get. The relationship is given algebraically as follows: B = 3,000 +...