Questions from Microeconomics

Q: What are the two characteristics of public goods? Explain the significance

What are the two characteristics of public goods? Explain the significance of each for public provision as opposed to private provision. What is the free-rider problem as it relates to public goods? I...

Q: Critically evaluate: “In comparing the two equilibrium positions in Figure

Critically evaluate: “In comparing the two equilibrium positions in Figure 3.7b , I note that a smaller amount is actually demanded at a lower price. This refutes the law of demand.”

Q: Assume that both the supply of bottled water and the demand for

Assume that both the supply of bottled water and the demand for bottled water rise during the summer but that supply increases more rapidly than demand. What can you conclude about the directions of t...

Q: Governments can use subsidies to increase demand. For instance, the

Governments can use subsidies to increase demand. For instance, the government can pay farmers to use organic fertilizers rather than traditional fertilizers. That subsidy increases the demand for org...

Q: An apple grower’s orchard provides nectar to a neighbor’s bees, while

An apple grower’s orchard provides nectar to a neighbor’s bees, while the beekeeper’s bees help the apple grower by pollinating his apple blossoms. Use Figure 4.6b to explain why this situation of dua...

Q: Use your demand schedule for a public good, determined in problem

Use your demand schedule for a public good, determined in problem 5, and the following supply schedule to ascertain the optimal quantity of this public good.

Q: Match each of the following characteristics or scenarios with either the term

Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality. a. Overallocation of resources. b. Tammy installs a very nice fron...

Q: Look at Tables 4.1 and 4.2 together

Look at Tables 4.1 and 4.2 together. What is the total surplus if Bob buys a unit from Carlos? If Barb buys a unit from Courtney? If Bob buys a unit from Chad? If you match up pairs of buyers and sel...

Q: Choose the correct option Efficiency losses ____________________________. a. Are

Choose the correct option Efficiency losses ____________________________. a. Are not possible if suppliers are willing to produce and sell a product. b. Can only result from underproduction. c. Can o...

Q: Place an “M” beside the items in the following list

Place an “M” beside the items in the following list that describe a moral hazard problem and an “A” beside those that describe an adverse selection problem. a. A person with a terminal illness buys s...