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1. If a market for a product has no environmental impacts, consumer surplus is:
A.the area above the demand curve and below the equilibrium price. B. the area under the demand curve and above the equilibrium price. C. the area above the supply curve and below the equilibrium price. D.the area below the supply curve and above the equilibrium price.
2. Which of the following is NOT a correct criticism of the Lorenz curve?
a. It refers to money income after taxes. b. It does not deal with differences in family size. c. It ignores the impact of age distribution on income distribution. d. It does not include payments in kind.
Using a graph explain the welfare impact of export subsidy on domestic consumers, producers, government, and national welfare in a) a small country b) a large country
Behavioral economists suggest that brand-loyalty, which can be a source of monopoly power for the producer, may be explained by consumers' tendency to have the:
Assume that there are only two goods in the economy: video games and water. The total amount of these goods are given, there is no production. The world is inhabited by two people: Ann and Bob.
Considering what you have learned about “comparative advantage” and relative “marginal opportunity costs,” discuss the advantages and disadvantages to all involved parties (American workers, American consumers, foreign workers, and foreign consumers)..
Consider a monopolist in a market with linear inverse demand p(q) = 4 - q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.
Illustrate what is the source of IKEA's success today. Can you see any weaknesses in the company. What might it do to correct these.
A parking lot in Hong Kong is choosing between incandescent lamps or the newly developed LED light bulbs to renovate its lighting system of a total of 1,000 lamps for use of 12 hours daily. Discuss the financial feasibility of using either lighting t..
English is becoming the usual language for international transactions, even if the language of neither country is English.
A manufacturing company is planning to set aside $75,000 now and $120,000 one year from now for possible maintenance for a certain type of machine. If the maintenance won't be needed for 4 years, how much will the company have in the account, if it e..
Look at the JAL FX loss scenario in the Additional Text Readings where JAL lost as much or more in FX than the $800 million value of the planes it was purchasing. Then calculate JAL’s cost if it had used a different type of hedge, borrowing US $ to b..
If Congress took steps to consolidate banks, thereby reducing total number to 2500, what would you expect to happen to costs within banking industry.
Complete an in-depth analysis of a current labor event in one of the following countries: China, Hong Kong, France, England/UK, Germany, or Mexico. Pick a single specific topic of labor relations to evaluate, such as strikes, formation, impasse resol..
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