Questions from Microeconomics

Q: Currently, the social security payroll tax in the United States

Currently, the social security payroll tax in the United States is evenly divided between employers and employees.Employers must pay the government a tax of 6.2 percent of the wages they pay, and empl...

Q: Consider a competitive market for which the quantities demanded and supplied

Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows: a.Calculate the price elasticity of demand when the price is $80 and wh...

Q: Explain the difference between a positive and a negative network externality

Explain the difference between a positive and a negative network externality and give an example of each.

Q: Explain the difference between each of the following terms:

Explain the difference between each of the following terms: a.a price consumption curve and a demand curve b.an individual demand curve and a market demand curve c.an Engel curve and a demand curve d....

Q: Assume that the marginal cost of production is greater than the

Assume that the marginal cost of production is greater than the average variable cost.Can you determine whether the average variable cost is increasing or decreasing?Explain.

Q: Assume that a utility function is given by Min(X

Assume that a utility function is given by Min(X, Y), as in Exercise 1(c).What is the Slutsky equation that decomposes the change in the demand for X in response to a change in its price?What is the i...

Q: George has $5000 to invest in a mutual fund.

George has $5000 to invest in a mutual fund.The expected return on mutual fund A is 15 percent and the expected return on mutual fund B is 10 percent.Should George pick mutual fund A or fund B?

Q: Sharon has the following utility function: / where

Sharon has the following utility function: where X is her consumption of candy bars, with price PX = $1, and Y is her consumption of espressos, with PY = $3. a.Derive Sharon’s deman...

Q: About 100 million pounds of jelly beans are consumed in the

About 100 million pounds of jelly beans are consumed in the United States each year, and the price has been about 50 cents per pound.However, jelly bean producers feel that their incomes are too low a...

Q: An individual sets aside a certain amount of his income per

An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books.Given the information below, illustrate both the price-consumption c...