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Which of the following statements best describes the concept of producer surplus?
“A store at a local shopping mall was having a sale on running shoes, so I bought a pair.”
“Even though I was willing to pay up to $90 for a pair of running shoes, I bought a pair for only $60.”
“I sold a digital camera for $100 even though I was willing to go as low as $70 in order to sell it.”
“I paid $300 for an airline ticket last week. This week the same airline is selling the same ticket for $280.”
Why might we not expect free trade to affect the general unemployment level in the economy, but it will affect some more than others?
In the US, realized capital gains are taxed at 15% if they are held for more than a year. Suppose instead that we include realized capital gains (those held for more than a year and less than a year) in income instead so that they are added to an ind..
Draw the industry supply and demand curves. Describe and graph what happens to the industry curves in response to the existence of economic profits. Show what happens to quantity and price
How do the five competitive forces in Porter’s model affect the average profitability of the industry? For example, in what way might weak forces increase industry profits, and in what way do strong forces reduce industry profits?
Suppose that a city mayor proposes to pay for the acquisition and construction of public parks by implementing a 7-year local sales tax. Someone argues that the financing mechanism should instead be something that is spread out over more time, noting..
A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
Scarecrow Manufacturing will need to begin paying a licensing fee of $7402 at the end of year 7. Scarecrow will have to pay the licensing fee for 8 years, but the fee will decrease each year by $124. How much does Scarecrow need to deposit each year ..
Suppose that the price of good X is $10, the price of good Y is $20, and our income is $100. a. What is the maximum amount of good X you can buy? What about good Y? b. Write down your budget constraint and solve it for Y. c. Sketch a graph of your bu..
Describe the Stolpher-Samuelson theory of trade. How does it differ from the factor endowment model? What are its predicted effects on wage-inequality in (a) industrialized countries that are capital-abundant and (b) developing countries that are lab..
The Clean Air Act, a federal statute, establishes national air pollution standards for fleet vehicles such as buses, taxicabs, and trucks. The South Coast Air Quality Management District (South Coast) is a political entity of the state of California...
Illustrate what established the permanent membership number in the House of Representatives.
Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period was 2%. If the housing bubble busting causes the share of output of invest..
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