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Sketch a plausible set of indifference curves (that is, draw at least two curves, and indicate the direction of higher utility).
Why Does th report confirm the manufacturer's claim at an alpha (significance level) of 0.05?
Using this explanation of economic efficiency, explain why a tax creates a deadweight loss.
Suppose the current equilibrium price of a quarter-pound hamburger is $5, and 10 million. Illustrate this situation with a demand and supply graph.
Why does the government usually collect a tax from sellers rather than from consumers?
Suppose the government imposes a payroll tax of $1 per hour of work and collects. By how much does the new equilibrium wage that employers pay workers fall?
Similarly, what economic information is conveyed by the intercept on the price axis in a linear supply equation?
Suppose you were assigned the task of choosing a price that maximizes economic surplus in a market. What price would you choose? Why?
Consumer surplus is used as a measure of a consumer's net benefit from purchasing a good or service. Explain why consumer surplus is a measure of net benefit.
Why would economists use the term deadweight loss to describe the impact on consumer surplus and producer surplus from a price control?
How would the supply of these engineers respond in the short run and in the long run? Conversely, consider a decrease in demand for lawyers.
In what sense does insurance involve sharing risks? How does the problem of adverse selection affect ability of insurance to provide benefit of sharing risk?
Draw a graph that shows a monopolist earning a profit. Be sure your graph includes the monopolist's demand, average total cost, and marginal cost curves.
In 1914, Henry Ford increased the wage he paid workers in his car factory in Dearborn. How can paying an above-market wage result in a firm cutting its costs?
If this analyst is correct, can we conclude that Costco is paying efficiency wages and Wal-Mart is not? Briefly explain.
What happens to the equilibrium real interest rate and the equilibrium quantity of loanable funds? What happens to the level of saving and investment?
What is the relationship among the current account, the financial account, and the balance of payments?
Suppose that in the French compound of a POW? camp the price of cheese is 88 cigarettes per cheese ration. Why Is there an opportunity for beneficial? exchange?
Discuss why governments aim to reduce income distribution inequality and using evidence based approach, assess effectiveness of Australian government policies.
What is an exchange rate system? What is the difference between a fixed exchange rate system and a managed float exchange rate system?
What does the article mean that Argentina's peg collapsed? Why was this collapse catastrophic for borrowers in Argentina who had taken out dollar loans?
Predict the effect of this law on the competitive equilibrium rent in Peabody, which does not have a rent control law.
Draw a graph to illustrate this situation. On your graph, be sure to indicate the areas representing consumer surplus, producer surplus, and deadweight loss.
What is the company's marginal cost? A customer is willing to pay $60 for the 701th calculator. Should the company produce and sell it? Explain.
What is the company's average cost? What is the company's marginal cost? A customer is willing to pay $60 for the 701th calculator.