Questions from Macroeconomics


Q: The New York Times reported (Feb. 17, 1996)

The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of...

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Q: If a fixed quantity of a good is available, and no

If a fixed quantity of a good is available, and no more can be made, what is the price elasticity of supply?

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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...

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Q: There are four consumers willing to pay the following amounts for haircuts

There are four consumers willing to pay the following amounts for haircuts: Gloria: $35 Jay: $10 Claire: $40 Phil: $25 There are four haircutting businesses with the following costs: Firm A: $15 Firm...

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Q: This chapter analyzed the welfare effects of a tax on a good

This chapter analyzed the welfare effects of a tax on a good. Now consider the opposite policy. Suppose that the government subsidizes a good: For each unit of the good sold, the government pays $2 to...

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Q: Having rejected a tariff on textiles (a tax on imports),

Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same- sized tax on textile consumption (including both imported and domestically produced texti...

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Q: Why is it desirable for a country to have a large GDP

Why is it desirable for a country to have a large GDP? Give an example of something that would raise GDP and yet be undesirable.

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Q: The chapter explains that Social Security benefits are increased each year in

The chapter explains that Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation. a. If...

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Q: International data show a positive correlation between income per person and the

International data show a positive correlation between income per person and the health of the population. a. Explain how higher income might cause better health outcomes. b. Explain how better health...

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Q: The market for pizza is characterized by a downward-sloping demand

The market for pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve. a. Draw the competitive market equilibrium. Label the price, quantity, consumer surplus, an...

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