Questions from Microeconomics


Q: According to a company news release, during the third quarter of

According to a company news release, during the third quarter of 2014, the Coca-Cola Company sold 1 percent less soda in North America while earning more revenue. a. Did Coke increase or decrease its...

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Q: Briefly explain whether you agree with the following statement: “The

Briefly explain whether you agree with the following statement: “The reluctance of healthy young adults to buy health insurance creates a moral hazard problem for insurance companies.”

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Q: Jay Ritter, a professor at the University of Florida, was

Jay Ritter, a professor at the University of Florida, was quoted in the Wall Street Journal as saying about Facebook: “It’s entirely possible for a company to have solid growth prospects while its sto...

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Q: An article in the New Yorker states, “the main burden

An article in the New Yorker states, “the main burden of trade-related job losses and wage declines has fallen on middle- and lower-income Americans. But … the very people who suffer most from free tr...

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Q: What is a monopsony?

What is a monopsony?

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Q: Thomas Kinnaman, an economist at Bucknell University, has analyzed the

Thomas Kinnaman, an economist at Bucknell University, has analyzed the pricing of garbage collection: Setting the appropriate fee for garbage collection can be tricky when there are both fixed and mar...

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Q: Suppose that Uber decides that its strategy of using surge pricing during

Suppose that Uber decides that its strategy of using surge pricing during times of high demand is causing the company to receive too much bad publicity. It decides that it will maintain its regular pr...

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Q: What is a circular-flow diagram, and what does it

What is a circular-flow diagram, and what does it demonstrate?

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Q: An article in the Wall Street Journal discussing Sanadu’s prospects for successfully

An article in the Wall Street Journal discussing Sanadu’s prospects for successfully selling its home medical devices observes, “Another challenge will be getting doctors on board with the idea of pat...

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Q: Evaluate the following argument: “Adam Smith’s analysis of the market

Evaluate the following argument: “Adam Smith’s analysis of the market system is based on a fundamental flaw: He assumes that people are motivated by self-interest. But this isn’t true. I’m not selfish...

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