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1. Suppose the government wants to increase farmers" incomes. Why do price supports or acreage-limitation programs cost society more than simply giving farmers money?
2. Suppose the government wants to limit imports of a certain good. Is it preferable to use an import quota or a tariff? Why?
3. The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the tax? Under what conditions will producers pay most of it? What determines the share of a subsidy that benefits consumers?
4. Why does a tax create a deadweight loss? What determines the size of this loss?
Which of the following is an example of a two-part tariff? Which of the following industries is most likely closest to achieving perfect price discrimination?
Hypothetically, if Apple and Samsung decided to collude, instead of suing and counter-suing each other, what would the equilibrium prices and quantities be? Assuming each firm keeps the profit from its own market, what are these profits?
The price of apple juice decreases, and the wage rate paid to orange grove workers increases-equilibrium price_________equilibrium quantity________
If the price in this market were $160, explain why this would not be the market equilibrium price and find the equilibrium price and equilibrium quantity exchanged for this market.
What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect..
Will fields with both oil and gas have greater difficulties in unitization, than the fields with oil or gas alone? Explain.
What level of output will these firms produce in the short run and are these firms operating under perfect or imperfect competition?
Now suppose there is another country called Lotech which has not seen the innovations in credit cards and ATMs that Hitech has. If the rate of money growth and the growth rate of real GDP were the same in Hitech and Lotech over this period, then h..
Harvard, Yale and Princeton all charge relatively high tuition. Still each uses ACT and SAT score as admission criteria. Are charging a relatively high tuition and using standardized test scores inconsistent
You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..
How might you determine whether compact discs and restaurant meals are in competition with each other and interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior;
Television channel operating profits vary from as high 45-55% at MTV and Nickelodeon down to 12-18 at NBC and ABC. Provide a Porter Five Forces analysis of each type of network.
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