Questions from Microeconomics

Q: In market economies, firms rarely worry about the availability of inputs

In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the difference?

Q: Suppose that, on the basis of a nation’s production possibilities curve

Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get th...

Q: Distinguish between the resource market and the product market in the circular

Distinguish between the resource market and the product market in the circular flow model. In what way are businesses and households both sellers and buyers in this model? What are the flows in the ci...

Q: Studies indicate that married men on average earn more income than unmarried

Studies indicate that married men on average earn more income than unmarried men of the same age and education level. Why must we be cautious in concluding that marriage is the cause and higher income...

Q: Demand and supply often shift in the retail market for gasoline.

Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data...

Q: How does shielding employees and suppliers from business risk help to improve

How does shielding employees and suppliers from business risk help to improve economic outcomes?  Who is responsible for managing business risks in the market system?

Q: What explains why millions of economic resources tend to get arranged logically

What explains why millions of economic resources tend to get arranged logically and productively rather than haphazardly and unproductively?

Q: Will the the equilibrium price of orange juice increase or decrease in

Will the the equilibrium price of orange juice increase or decrease in each of the following situations? a. A medical study reporting that orange juice reduces cancer is released at the same time tha...

Q: Explain the two causes of market failures. Given their definitions,

Explain the two causes of market failures. Given their definitions, could a market be affected by both types of market failures simultaneously?

Q: Refer to Table 4.1 below. If the six people

Refer to Table 4.1 below. If the six people listed in the table are the only consumers in the market and the equilibrium price is $11 (not the $8 shown), how much consumer surplus will the market gene...