Question: Consider the following demand schedule: / What

> Some people have argued: "Any gains made by unions in the form of higher wages will create lower wages for non-unionized workers." Leaving side whether this is actually the case or not, what is the economic logic behind such an argument?

> For each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed. a. An increase in the price of capital. b. A union is formed which uses collective bargaining to ob

> What is the principle strategy of an inclusive (industrial) union in order to increase wages of its members?

> What is the principle strategy of an exclusive (trade) union in order to increase wages of its members?

> How would one calculate the profit an employer earns from the employment of workers?

> Suppose you own a video game store. List some of the fixed inputs and variable inputs you would use in operating the store.

> Why does the supply curve slope upward?

> If males (whites) are paid more than females (blacks) is that proof of discrimination?

> What is the best way to combat poverty over time?

> What are the three major goals of any short-run poverty relief program?

> Typically, how long do those in poverty whom are receiving public assistance (welfare) remain on the welfare roles?

> Based on real-world evidence, what is the profile of a family in poverty?

> Describe how investment in human capital could help solve the poverty problem.

> Why does the demand for labor slope downward?

> What are some strategies that firms use to collude?

> In a non-collusive oligopoly if one firm increased its price what would the other firms likely do? What about a price decrease? How is this related to a kinked demand curve?

> What short-run effect might a decline in the demand for electronic components for automatic teller machines have on Computech’s average total cost curve?

> What effect would a successful advertising campaign differentiating a product from one's competitors have on a monopolistically competitive firm's demand and its elasticity of demand? What does this do to the firm's profits? You may have heard the slogan

> Which market structure do most real world markets approximate?

> What happens to employment opportunities and wages paid in all non-competitive product markets? Why?

> How are the professional sports leagues like a cartel?

> What kind of agreements may cartels work out to reduce competition among themselves?

> How can cartels sow the seeds of their own destruction?

> If a company charges different prices to different customers as a result of differences in providing the product to these different customers then is that price discrimination?

> Why don't monopolists charge the highest possible price market demand will bear?

> How can a monopoly maintain its single-seller status?

> What evidence suggests that some government regulation may reduce competition in practice?

> Charles loves Mello Yello and will spend $10 per week on the product no matter what the price. What is his price elasticity of demand for Mello Yello?

> Why does a monopolist produce less and charge a higher price compared to a competitive market?

> How long can a monopoly earn economic profits?

> If a monopoly is losing money then when should it shut down?

> Can a monopoly lose money?

> What are some relevant public policy questions when government considers breaking up a monopoly?

> If a firm has $20,000 in total fixed costs, is producing 100 units, has average total cost equal to $240, then what is its average variable cost of production?

> Why do marginal costs of production rise?

> Is the "best" quantity of workers to hire where the marginal productivity of the last worker employed is the greatest (which implies an output level in which the marginal cost of producing additional units is the cheapest)?

> Many people search out and purchase "bargains" at garage and yard sales. What are some implicit costs associated with this type of shopping?

> Some companies advertise: "We deal in high volume and pass our savings on to you in the form of lower prices." How could this be?

> Will each of the following changes in price cause total revenue to increase, decrease, or remain unchanged? a. Price falls, and demand is elastic. b. Price rises, and demand is elastic. c. Price falls, and demand is unitary elastic. d. Price rises, and d

> How can the extent to which economies or diseconomies of scale are experienced help us to predict the size and number of real-world firms in an industry?

> If a firm wished to minimize its cost of production then what output level should it produce?

> Why does the marginal cost curve intersect the average variable and average total cost curves at their respective minimum points?

> In each of the following situations, indicate who bears the biggest burden of a tax imposed on sellers, consumers or sellers? a. Given supply, demand is quite inelastic? b. Given supply, demand is quite elastic?

> If a firm wants to maximize its revenues then what price should it charge?

> If a firm wishes to increase its revenues and the product it is selling has an inelastic demand, then should the firm increase or decrease its price?

> Why are convenience stores able to charge higher prices than grocery stores for some items?

> What is the advantage of using the midpoints formula as opposed to the total revenue test in determining the degree of price elasticity?

> If good X has a price elasticity of demand equal to 2 and good Y has a coefficient equal to 2.5 which has a more elastic demand?

> If good X has a price elasticity of demand equal to 2 and the price increases by 10 percent then by what percent will the quantity demanded change?

> What are some additional examples of public goods and services?

> How would an economist answer the question: "What is the appropriate level of government involvement?"

> How does government attempt to correct for an inequitable distribution of income?

> How does government attempt to correct for a lack of competition?

> Why has government been involved in setting prices---price controls?

> Why has the price of most computers and other electronic product been falling over the past several years while the demand for these products has been rising at the same time?

> If demand and supply both increase, but demand increases more than supply increases, then what happens to the equilibrium price and quantity?

> If the price of televisions has increased over the last year and people are buying more televisions, is this an exception to the law of demand, or has there been a change in demand or supply which could account for this?

> Macroeconomic instability can also be viewed as a "market failure." This is because the market system (capitalism) is permissive of the problems of unemployment, inflation and slow rates of economic growth associated with macroeconomic instability. How h

> Is there a "free-rider" problem associated with public goods and services? How does government address this free-rider problem?

> Suppose the price elasticity of demand for farm products is inelastic. If the federal government wants to follow a policy of increasing income for farmers, what type of programs will the government enact?

> Why money isn’t considered capital in economics?

> If the government banned the sale and purchase of a good or service (for example, cigarettes, or abortion services), then what impact would this have on the market for this item.

> What are the necessary ingredients for a nation to experience greater rates of economic growth, higher average standards of living, and a greater ability to compete in the global economy? That is, what could the U.S. do to achieve all this?

> Under what conditions would a nation be able to currently produce more of both consumer and capital products?

> What is the profit-maximizing quantity of output for a firm to produce?

> What is the cost of a new car?

> What is the opportunity cost of attending college?

> How does government affect the answer to the "For Whom" fundamental economic question?

> How does government affect the answer to the "How" fundamental economic question?

> How does government affect the answer to the "What" fundamental economic question?

> What are some problems associated with economic growth?

> Opponents of increasing the tax on gasoline argue that the big oil companies just pass the tax along to the consumers. Do you agree or disagree? Explain your answer.

> What is the relationship between tuition and student enrollment at a university. How would this relationship be graphed?

> What is the relationship between a student's grade point average and the number of hours spent studying per week. How would this relationship be graphed?

> What is the relationship between the annual sale of umbrellas and the annual amount of rainfall received in inches? How would this relationship be graphed?

> Why do leaders of less developed countries often run very large deficits and print entirely too much money creating excessive inflation, even though they are aware of the consequences of their policies? How might these inflationary policies damage these

> What are two major institutions which are taken for granted in developed countries but are lacking in the less developed countries of the world?

> It is often said the less developed countries are characterized by a "dual economy." What do these people mean by a "dual economy?"

> What is the difference between growth and development?

> To what extent do you think the study of developing nations and the economic recommendations for these countries is analogous to regional economic development within depressed areas of developed nations? What about poor individuals?

> The "Four Tigers of the Pacific Rim" offer an example of developmental success. What seems to be the key elements necessary for developing countries to offer their citizens higher standards of living?

> Why is economic growth and development a goal of virtually all nations?

> The Energizer Bunny that “keeps going and going” has been a very successful ad campaign for batteries. Explain the relationship between this slogan and the firm’s price elasticity of demand and total revenue.

> All modern industrial states in the world have a socialized medical system, except South Africa and the United States. Why do you think that is? Should the United States adopt a socialized medical system? Why, or why not?

> It has been suggested that different nation's conception of what constitutes an equitable, fair or just distribution of income is what primarily differentiates the degree to which government is involved in their economies. Do you agree or disagree? Why?

> We know that all real-world economies are mixed. However, is it always true that capitalist-dominated nations, as opposed to socialist-dominated nations, enjoy a higher average standard of living?

> What are some examples of "socialism" in the United States economy?

> How did Karl Marx argue that capitalism would "sow the seeds of its own destruction"? What has helped keep Marx's predictions from coming true?

> What are some of the problems associated with capitalism which the American people have called upon government to address? What are some examples of ways in which government has attempted to alleviate each of these problems?

> What are the benefits and the costs to a nation of higher trade barriers? Which are greater: the benefits or the costs?

> Suppose the U.S. government increases trade barriers on Japanese cars coming into the United States. a. What impact would this have on the American car market? What about the impact on American automotive workers? (Hint: think in terms of demand and sup

> Which type of trade barrier is most advantageous from the government's perspective?

> What impact will an appreciation of the dollar have on the relative price of foreign goods to Americans, and the relative price of American-made products to foreigners? What will likely happen to America's trade deficit?

> Explain the impact of external costs and external benefits on resource allocation.

> What will likely happen to a nation's balance of payments if its GDP and income levels increase?

> How could an increase in a nation's fiscal deficit increase its trade deficit?

> What is the Keynesian approach to inflation?

> The discussion of low-investment country Alpha versus high investment country Beta explained that sacrificing production of consumer goods for an increase in capital goods output can result in economic growth and a higher standard of living. Stated diffe

> Frederick W. Smith is a classic entrepreneurial success story. Young Fred went to Yale University, had a good new idea, secured venture capital, worked like crazy, and made a fortune, and the Smithsonian Institution rendered its ultimate accolade. It sna

> Minimum wages exist in more than 100 countries. In 1938, Congress enacted the federal Fair Labor Standards Act, commonly known as the “minimum-wage law.” Today, a minimum wage worker who works full-time still earns a d