Questions from Microeconomics

Q: Suppose that you are the economic advisor to a local government that

Suppose that you are the economic advisor to a local government that has to deal with a politically embarrassing surplus that was caused by a price floor that the government recently imposed. Your fir...

Q: Table 2.1 contains information on three techniques for producing $

Table 2.1 contains information on three techniques for producing $15 worth of bar soap. Assume “$15 worth of bar soap” means the selling price of soap is $3 per bar...

Q: What divergences arise between equilibrium output and efficient output when a

What divergences arise between equilibrium output and efficient output when a. negative externalities and b. positive externalities are present? How might government correct these divergences? Cite...

Q: Assume the following values for Figures 4.4a and 4.

Assume the following values for Figures 4.4a and 4.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per ba...

Q: What are the key elements of the scientific method and how does

What are the key elements of the scientific method and how does this method relate to economic principles and laws?

Q: Below is a production possibilities table for consumer goods (automobiles)

Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specific assumptions is this production possibilitie...

Q: For each of the following situations involving marginal cost (MC)

For each of the following situations involving marginal cost (MC) and marginal benefit (MB), indicate whether it would be best to produce more, fewer, or the current number of units. a. 3,000 units a...

Q: Suppose that when the interest rate on loans is 16 percent,

Suppose that when the interest rate on loans is 16 percent, businesses find it unprofitable to invest in machinery and equipment. However, when the interest rate is 14 percent, $5 billion worth of inv...

Q: Use the table below to answer the questions that follow:

Use the table below to answer the questions that follow: a. If this table reflects the supply of and demand for tickets to a particular World Cup soccer game, what is the stadium capacity? b. If the...

Q: What problem does barter entail? Indicate the economic significance of money

What problem does barter entail? Indicate the economic significance of money as a medium of exchange. What is meant by the statement “We want money only to part with it”?