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Is GDP a Good Measure of Economic Well-Being? If GDP is a good measure of well-being, why is Switzerland’s GDP so much lower than India’s GDP or China’s GDP? What measures would be better to compare the well-being of different countries? How do you expect these direct measures to correlate with per capita GDP?
How do the Minsky and Austrian explanations for the causes of the Great Recession differ? Explain how the proponents of government stimulus believe that it will affect aggregate demand and employment (be specific!). How might government stimulus poss..
Suppose the employees of Starbucks in China are paid 8 yuan per hour and a cup of coffee is priced at 8 Yuan. If Starbucks is maximising its profit, What is the value of marginal product of labour (VMPL) per hour of the last worker employed by Starbu..
Queen Elizabeth has decided to auction off the crown jewels, and there are two bidders: Sultan Hassanal Bolkian of Brunei and Sheikh Zayed Al Nahyan of Abu Dhabi. The auction format is as follows: The Sultan and the Sheikh simultaneously submit a wri..
Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise ..
The Chancellor and Board of Trustees of the State System of Higher Education want to raise tuition to increase total revenue earned. As an astute economics student, you know that there is a relationship between total revenue and the price elasticity ..
A firm uses labor and capital (L, K), to produce an output. The hourly cost of labor is $10 and the hourly cost of capital is $50. Which combinations of labor and capital hours of use represent points on the firm's $100,000 Isocost line? Please show ..
What is the greatest advantage to business owners of a corporation vs. other business entities? Which business entities require permission from the state to become created? What is the basic governing document of the modern corporation?
Draw the Hick's income and substitution effects for c1,c2 in c1,c2 space if the interest rate decreases to .05.
This chapter uses the analogy of a “leaky bucket” to explain one constraint on the redistribution of income. What elements of the U.S. system for redistributing income create the leaks in the bucket? Be specific.
Marginal Cost What is the difference between fixed cost and variable cost? Does each type of cost affect short-run marginal cost? If yes, explain how catch affects marginal cost. If no, explain why each does or does not affect marginal cost.
What are “health disparities”? Why are they important? What makes them worse? What makes them better? What can we do to address them?
Would you argue that large scale operations are more or less efficient or that they have too much market power? Do they reduce consumer choice? What is your position?
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