Questions from Macroeconomics

Q: Assume that the product depicted below generates external costs in consumption of

Assume that the product depicted below generates external costs in consumption of $4 per unit. (a) What is the market price (market value) of the product? (b) Draw the social demand curve. (c) What i...

Q: If the average adult produces $90,000 of output per

If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?

Q: (a) Assuming a 10 percent sales tax levied on all

(a) Assuming a 10 percent sales tax levied on all consumption, complete the following table: (b) Is the sales tax (A) progressive or (B) regressive?

Q: Suppose the following data represent the market demand for college education:

Suppose the following data represent the market demand for college education: Tuition (per year) $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Enrollment demanded 8 7 6 5...

Q: What government actions might cause failures like points G1, G2,

What government actions might cause failures like points G1, G2, and G3 in Figure 4.6? Can you give examples? Figure 4.6:

Q: Assume the market demand for cigarettes is Price per pack $

Assume the market demand for cigarettes is Price per pack $10 $9 $8 $7 $6 $5 $4 $3 Quantity demanded 2 4 6 8...

Q: Suppose that furniture production encompasses the following stages: Stage 1

Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $ 8,000 Stage 2: Lumber is sold to furniture company. $17,000 Stage 3: Furniture c...

Q: 1. Using the following data, what is the value of

1. Using the following data, what is the value of (a) total output (GDP)? (b) total income? Consumer goods and services $10,000 Wages and salaries 9,000 Corporate profits 1,000 Investment...

Q: If real GDP increases by 2 percent next year and the price

If real GDP increases by 2 percent next year and the price level goes up by 4 percent, what will happen to nominal GDP?

Q: Based on the following figures, Consumption ………………….. $200

Based on the following figures, Consumption ………………….. $200 billion Depreciation ………………….. 20 Retained earnings ….…………….12 Gross investment ………………….30 Imports ……………………………… 40 Exports ……………………………….5...