Questions from Microeconomics

Q: What is the difference between direct finance and indirect finance? If

What is the difference between direct finance and indirect finance? If you borrow money from a bank to buy a new car, are you using direct finance or indirect finance?

Q: What is the difference between absolute advantage and comparative advantage? Will

What is the difference between absolute advantage and comparative advantage? Will a country always be an exporter of a good in the production of which it has an absolute advantage? Briefly explain.

Q: Explain how a downward-sloping demand curve results from consumers adjusting

Explain how a downward-sloping demand curve results from consumers adjusting their consumption choices to changes in price.

Q: Why does scarcity imply that every society and every individual face trade

Why does scarcity imply that every society and every individual face trade-offs?

Q: What is economic efficiency? Why do economists define efficiency in this

What is economic efficiency? Why do economists define efficiency in this way?

Q: What is the Coase theorem? Why do the parties involved in

What is the Coase theorem? Why do the parties involved in an externality have an incentive to reach an efficient solution?

Q: Is the demand for most agricultural products elastic or inelastic? Briefly

Is the demand for most agricultural products elastic or inelastic? Briefly explain.

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

Briefly explain whether you agree with the following statement: “When there is a shortage of a good, consumers eventually give up trying to buy it, so the demand for the good declines, and the price f...

Q: What are the main sources of health insurance in the United States

What are the main sources of health insurance in the United States?

Q: Why is a bond considered to be a loan but a share

Why is a bond considered to be a loan but a share of stock is not? Why do corporations issue both bonds and shares of stock?