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What do economists call the difference between how much a consumer is willing and able to pay for a good or service and the dollar amount that he or she actually pays for it? a. sunk cost b. consumer surplus c. negative externality d. adverse selection
Right now the Federal Debt is over 17 trillion dollars. Why has interest rates stayed low even though the Federal Government continues to borrow more and more? Should there not be a crowding out effect caused by this level of Federal Debt? Do not for..
Would integration between the following types of firms constitute a horizontal, a vertical, or a conglomerate merger?
Utility is given as: U(x, y) = min(x,y) (a) Graph a typical indifference curve for this function. (Hint: Choose a level of utility and draw various combinations of x, y that result in that level) (b) Give examples of goods that are well represented b..
what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what will happen to restore long-run equilibrium?
Relative to the no-regulation status quo, what is the efficiency gain that would result from this tax. Delineate and refer to relevant sections of the diagram. With reference to the diagram, explain why this tax fails to maximize the potential effici..
Health insurers are beginning to offer telemedicine services online that replace the common office visit. Well point provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments (Bloomberg Busi..
With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 5 units of land, 4 units of capital, and 1 unit of entrepre..
This change undermines the marketplace for the replacement which is about twice the size of the marketplace for T3MP.
Suppose that when the price of X goes up, you respond by consuming less Y . Illustrate the substitution and income effects of an increase in the price of X. How does your graph illustrate the information in italics above? Is Y a normal good or an inf..
What is the third world debt crises that was primarily attributed to the recycling of Petro dollars in 1970s and 1980s by International Banks in financing the development process of a several developing countries in Asia, Sub-Saharan Africa and Latin..
Suppose the demand for wheat increased dramatically between 1950 and 2000 but the equilibrium quantity increased only slightly. Absent any other changes, what could explain the small increase in the equilibrium? The equilibrium quantity of wheat coul..
Suppose the U.S. government was able to determine which industries would grow the most rapidly over the next 20 years. Explain why this doesn’t necessarily mean there should be a policy to support the growth of these industries. Analyze the disadvant..
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