Questions from Microeconomics

Q: Evaluate the following statement: “Policies to redistribute income are desperately

Evaluate the following statement: “Policies to redistribute income are desperately needed in the United States. Without such policies, the roughly 15 percent of the population that is currently poor h...

Q: Why do economists often use a lower poverty threshold for low-

Why do economists often use a lower poverty threshold for low-income countries than for high-income countries such as the United States? Is there a difference between relative poverty and absolute pov...

Q: One of the trade-offs Tesla faces is between safety and

One of the trade-offs Tesla faces is between safety and the maximum range someone can drive an all-electric car before having to recharge it. For example, adding steel to a car makes it safer but also...

Q: Suppose that a country has 20 million households. Ten million are

Suppose that a country has 20 million households. Ten million are poor households that each have labor market earnings of $20,000 per year, and 10 million are rich households that each have labor mark...

Q: An article in the Economist notes that about 10 percent of people

An article in the Economist notes that about 10 percent of people in the United States work in health care and that “these workers have the crucial job of making American health care more efficient, p...

Q: What is odd pricing?

What is odd pricing?

Q: Warren Buffet is the chief executive officer of the investment firm Berkshire

Warren Buffet is the chief executive officer of the investment firm Berkshire Hathaway and one of the wealthiest people in the world. In an editorial in the Wall Street Journal, Buffet argued that eco...

Q: Investors use the bond ratings from Moody’s, S&P,

Investors use the bond ratings from Moody’s, S&P, and Fitch to determine which bonds they will buy and the prices they are willing to pay for them. The rating services charge the firms and governments...

Q: While running for president, Barack Obama made the following statement:

While running for president, Barack Obama made the following statement: “Well, look, people don’t want a cheaper T-shirt if they’re losing a job in the process.” What did Obama mean by the phrase “los...

Q: In studying the consumption of very poor families in China, Robert

In studying the consumption of very poor families in China, Robert Jensen and Nolan Miller found that in both Hunan and Gansu, “Giffen behavior is most likely to be found among a range of households t...