Questions from Microeconomics

Q: Why is a quota more detrimental to an economy than a tariff

Why is a quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quota for the world economy?

Q: Suppose that the opportunity-cost ratio for watches and cheese is

Suppose that the opportunity-cost ratio for watches and cheese is 1C ≡1W in Switzerland but 1C ≡4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland a...

Q: Suppose that a Swiss watchmaker imports watch components from Sweden and exports

Suppose that a Swiss watchmaker imports watch components from Sweden and exports watches to the United States. Also suppose the dollar depreciates, and the Swedish krona appreciates, relative to the S...

Q: Diagram a market in which the equilibrium dollar price of 1 unit

Diagram a market in which the equilibrium dollar price of 1 unit of fictitious currency zee (Z) is $5 (the exchange rate is $5 =Z1). Then show on your diagram a decline in the demand for zee. a. Refe...

Q: Because real capital is supposed to earn a higher return where it

Because real capital is supposed to earn a higher return where it is scarce, how do you explain the fact that most international investment flows to the IACs (where capital is relatively abundant) rat...

Q: Which of the following policies would economists consider to be actions that

Which of the following policies would economists consider to be actions that a DVC government might take that would improve growth prospects? Select one or more of the following: a. Helping to extend...

Q: Suppose that the price elasticity for hip replacement surgeries is 0.

Suppose that the price elasticity for hip replacement surgeries is 0.2. Further suppose that hip replacement surgeries are originally not covered by health insurance and that at a price of $50,000 eac...

Q: Why is there so much advertising in monopolistic competition and oligopoly?

Why is there so much advertising in monopolistic competition and oligopoly? How does such advertising help consumers and promote efficiency? Why might it be excessive at times?

Q: True or false. Potential rivals may be more likely to collude

True or false. Potential rivals may be more likely to collude if they view themselves as playing a repeated game rather than a one-time game.

Q: Why might a firm making a large economic profit from its existing

Why might a firm making a large economic profit from its existing product employ a fast-second strategy in relationship to new or improved products? What risks does it run in pursuing this strategy? W...