New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
economics of public issues
Economics 2nd Edition Daron Acemoglu - Solutions
Thailand is the world’s second-largest producer of Hard Drives after China. In 2011, there were severe floods in Thailand. Because the hard drive manufacturing factories had to shut down due to the flood, the cost of hard drives increased significantly.a. Draw and discuss a supply and demand
Sketch generic supply and demand curves for the housing market and label the equilibrium price and quantity.a. A booming economy increases the demand for housing. Show the shift in the demand curve on your graph. What does this do to the price and quantity in the market?b. You and a friend both
The following two incidents involve simultaneous shifts in the demand and the supply curves. Analyze the final effects on the equilibrium price and quantity after the changes. Explain your answers.a. Severe drought at the peak of summer reduces the production of watermelons. With even more people
Suppose your country has been doing really well since the end of the global financial crisis and, therefore, the wages have increased by 30 percent since 2008. In parallel, active workers represent 75 percent of the population. Using a generic supply curve and assuming steak is a normal commodity,
Suppose these three countries decide to form an economic union and integrate their markets. Use the data in the table to plot the market demand and supply curves in the newly formed economic union. What is the equilibrium price and quantity in the market?2 35 5 4 30 10 6 25 15 8 20 20 10 15 25 12
Suppose the following table shows the quantity of laundry detergent that is demanded and supplied at various prices in Country 1.Price ($)2 65 35 4 60 40 6 55 45 8 50 50 10 45 55 12 40 60 14 35 65a. Use the data in the table to draw the demand and supply curves in the market for laundry
Assume a shipping company is offering a Caribbean cruise for anyone who lives in your city at the fixed price of $200(the normal price is around $2,000). However, only a hundred people can take advantage of this offer. What would be the optimal way of distributing these tickets?
How do the following affect the equilibrium price in a market?a. A rightward shift in demandb. A leftward shift in supplyc. A leftward shift in supply and a rightward shift in demand of the same magnituded. A small rightward shift in supply and a large leftward shift in demand
Explain how the following factors will affect the supply curve for cars.a. An increase in the working-age population of a country.b. A restriction on the inflow of foreign labor employed in the automobile industry.c. More companies producing cars.
What is the difference between willingness to accept and willingness to pay? For a trade to take place, does the willingness to accept have to be lower, higher, or equal to the willingness to pay?
What does the Law of Demand state? What is the difference between an individual demand curve and a market demand curve?
In what ways do you think renewable energy is impacting on the demand curve of oil?
Explain how the following factors will affect the demand curve for houses in an economy.a. Commercial banks raise the housing loan rate.b. An increase in immigration results in a large increase in population in the economy.c. An increase in the income of people in the economy.
How is the market demand schedule derived from individual demand schedules? How does the market demand curve differ from an individual demand curve?
How would you define diminishing marginal benefits?Using the examples below, explain if it is possible to experience diminishing marginal benefits.a. You are an ardent fan of animated movies. Are you going to be as excited for the eighth animated movie released in a given year (such as Wonder Woman
How would you define a perfectly competitive market? Use an example to explain how you would apply the concept of ceteris paribus (holding all else equal) in such a market.
In the United Kingdom, the following tax rates have been implemented:Band Taxable Income Tax Rate Personal Allowance Up to £11,500 0%Basic Rate £11,501 to £45,000 20%Higher Rate £45,001 to £150,000 40%Additional Rate over £150,000 45%Someone who earns £60,000 would have a marginal tax rate
Scott is planning on buying a car. He can choose between six types of powering: petrol, diesel, gas, hybrid, electric, or hydrogen. Being environmentally conscious, his total benefit will reflect the amount of greenhouse gases a car releases. The total cost is the price and upkeep of the car.He has
Viktoria, a business consultant, has to travel quite frequently from Singapore to other parts of Asia. She has a frequent flyer card with Singapore Airlines and can choose from four different classes—First Class, Business Class, Premium Economy, and Economy. The following table provides the price
Richard has begun running to improve his health. The first column lists the distance he is jogging in meters, the second column the total benefits in U.S. dollars.Meters Ran Total Benefit 0 0 500 40 1,000 100 2,000 200 3,000 320 4,000 420 5,000 490 6,000 540 7,000 550a. Find the marginal benefit,
Pascal is taking three courses this semester: economics, calculus, and statistics. Pascal’s goal is to maximize his average grade on the three term exams. Using optimization in marginal analysis, help Pascal decide how much time to spend studying for each exam if he has only one day in total to
Determine if the following statements use optimization by total values or optimization by marginal analysis.a. Kelly is working as an administrator at a university. The university is now facing the decision whether to launch a new bachelor’s and a new master’s programme. The expected net
Suppose you applied to three jobs and are accepted for all three. Considering all factors:a. How would you make an optimal decision on which job to choose?b. The jobs that you have applied for only require a Bachelor’s degree; however, you may wish to pursue your Masters. How can you make an
Suppose you are making two different decisions: the first decision is to buy a financial stock. The second decision is to buy a good to consume. Identify how you would behave in each decision so as to optimize your choice. Does optimal choice always mean obtaining the highest values?
A normative model answers optimization questions like what is the optimal way of solving things. Why do you think economists are being taught early on about normative models and optimization?
Define optimization in differences and optimization in levels. Do they yield the same result?
Economists like using marginal analysis to illustrate a point. Suppose you have been working very hard and are considering taking a vacation. Use marginal analysis to illustrate how you would approach taking (i) one additional day and (ii) one additional week of vacation.
There is a proverb that states, “anything worth doing is worth doing well.” Do you think an economist would agree with this proverb?
Suppose you are trying to open a store at a local shopping mall. There are two open spaces: one is on the ground floor near the entrance; the other is on the topmost floor.Both spaces are identical in size, but the rent for the ground floor space is almost twice the rent for the top floor space.
Why does a change in one’s opportunity cost of time imply a change in one’s optimal apartment location?
Suppose your workplace does not have a cafeteria. To grab a hot lunch you have to go out during your lunch break. You have two options: an expensive restaurant that is two minutes away or a cheaper one that is ten minutes away. Does picking the one that is ten minutes away necessarily imply that
How is optimization used to predict economic or business outcomes?
Are people, households, businesses, and governments always exercising their optimal choice when making decisions?
Suppose the following table shows the relationship between revenue that the Girl Scouts generate and the number of cookie boxes that they sell.a. Present the data in a scatter plot.b. Do the two variables have a positive relationship or do they have a negative relationship? Explain.c. What is the
Consider the following data that show the quantity of coffee produced in Brazil from 2004 to 2012.a. Plot the data in a time series graph.b. What is the mean quantity of coffee that Brazil produced from 2009 to 2011?c. In percentage terms, how much has the 2012 crop increased over the 2009–2011
How would you represent the following graphically?a. Income inequality in the United States has increased over the past 10 years.b. All the workers in the manufacturing sector in a particular country fit into one (and only one) of the following three categories: 31.5 percent are high school
The consumption function of a household can be expressed by the following equation: C = a + bI, where I is the income, a denotes a positive number, and b a percentage.a. Is this equation a model?b. How would you test it?
In 2016, a majority of British voters decided that the United Kingdom should exit the European Union (EU).This withdrawal is popularly known as Brexit. How can we use this to demonstrate the effects of EU membership?Is this a natural experiment? What kind of economic impact will this have on the
What is a dependent/independent variable? Let’s assume that ACT scores are our dependent variable.a. What kind of independent variables might we use in order to predict how a student might perform in secondary school?b. Assuming that in order to pass their calculus module students on average have
During the summer of 2015, the European Union (EU)experienced a record number of applications from asylum seekers. Some said they are economic migrants who just want to take advantage of the relatively good social protection system of the EU, whereas others pointed out that the majority of asylum
As the text explains, it can sometimes be very difficult to sort out the direction of causality.a. In Germany, for instance, in many places there are no speed limits on the motorway. This means that you can easily travel at 200 kilometers per hour. As opposed to the United States, which has
Some studies have found that people who owned guns were more likely to be killed with a gun. Do you think this study is strong evidence in favor of stricter gun control laws? Explain.
This chapter stressed the importance of using appropriate samples for empirical studies. Consider the following two problems in that light.a. Imagine you are a sociologist and your task is to find out the average wage in a small town in rural Europe.Due to time constraints, you travel to the city
The average score for a class of 30 students is 70. The top 20 students in the class averaged at 75. What is the average score of the remaining 10 students in the class?
Please calculate the mean and median values for the following populations. The median is the value separating the higher half of a data sample, from the lower half.a. Suppose firm A has five employees making annually€30,000; €32,000; €36,000; €40,000; and €50,000.What are the mean and
Suppose you had to find the effect of smoking on cancer. Would you choose to run a randomized experiment or would it make sense to use natural experiments here?Explain.
Why is it necessary to conduct experiments before releasing new drugs in a market? Why is randomization needed for experiments?
What is meant by data? Is data always numerical? How is data used in empirical analysis? Give an example.
Consider the following examples and state whether there is positive correlation, negative correlation, or zero correlation between the variables.a. A person’s gender and how well they drive a car.b. The number of sunglasses sold and the number of sunny days.c. The amount of gas (petrol) sold and
Explain why correlation does not equal causation. Give examples where the cause and effect relationship between events is not necessarily clear.
Why does the size of the sample matter in an empirical argument?
How is the mean calculated from a series of observations?Suppose a supermarket near you sells 4 types of fruit juice(apple, orange, lemon, and grape). The price of the apple juice is €3, the price of the orange is €5, the lemon juice is €6, and the grape juice is €4. What is the average
Are economic models detailed or simplified versions of reality? Could economists build perfect economic models? Why?
Explain how economists study the economic behavior of a society empirically. By using hypotheses, confirmed by empirical evidence, how do the economists and the empirical evidence contribute to the welfare of the society?
Why do economists use the scientific method? Explain your answer by arguing for and against the use of this method.
How did George Soros make $1 billion?
Are companies like Nike harming workers in Vietnam?
How much does government spending stimulate GDP?
What caused the recession of 2007–2009?
What caused the German hyperinflation of 1922–1923?
How often do banks fail?
What happens to employment and unemployment if local employers go out of business?
Are tropical and semitropical areas condemned to poverty by their geographies?
Why are you so much more prosperous than your great-greatgrandparents were?
Why is the average American so much richer than the average Indian?
In the United States, what is the total market value of annual economic production?
Do people care about fairness?
How should you bid in an eBay auction? Who determines how the household spends its money?
Why do new cars lose considerable value the minute they are driven off the lot? Why is private health insurance so expensive?
Do people exhibit a preference for immediate gratification?
How many firms are necessary to make a market competitive?
Is there value in putting yourself into someone else’s shoes?
Can a monopoly ever be good for society?
Is there discrimination in the labor market?
What is the optimal size of government?
How can the Queen of England lower her commute time to Wembley Stadium?
Will free trade cause you to lose your job? What can the government do to lower the number of earthquakes in Oklahoma?
Can markets composed of only self-interested people maximize the overall well-being of society? Do companies like Uber make use of the invisible hand?
How would an ethanol subsidy affect ethanol producers?
Would a smoker quit the habit for $100 a month?
How much more gasoline would people buy if its price were lower?
How does location affect the rental cost of housing?
How much more do workers with a college education earn? How much do wages increase when mandatory schooling laws force people to get an extra year of schooling?
It is the night before your economics final exam and you must decide how many hours to study. The total benefits in the following table shows how many more points you will earn because of increased knowledge. The total cost column shows how many points you will lose because of careless errors due
Use the concepts discussed in this chapter to answer the following problems:a. Oskar is about to join a new factory where he has the option of joining a trade union. Being a part of the trade union means that he will have to pay 5 percent of his wages to the union. Why do you think some workers
In 2014, California was in its third year of a major drought. With water supplies dwindling, Governor Brown issued a plea for a voluntary 20 percent reduction in water use. This target was not reached. In early 2015 Governor Brown issued an executive order requiring local water agencies to reduce
Consider the following three statements:a. Your friends are coming over for lunch and you realize you have forgotten to get groceries. You go to the local market, where there are about 50 stalls. You are in a hurry, so you decide to do all of your shopping at the first two stalls.b. You find a
Consider the following three statements:a. You are planning a conference in St. Petersburg, Russia, and your closing gala will be on a cruise boat in November. Do you think hosting the event on a boat is a rational choice?b. You have to reach the airport during rush hour to catch your flight to St.
By taking the train, Alain can travel from Paris to Lille in one hour. The same trip takes 5 hours by bus. The train costs €80 and the bus €20. When Alain is not traveling he can work and earn €25 per hour.a. What is the opportunity cost of Alain for traveling by bus and by train?b. What will
Your local coffee shop used to be the best in the neighborhood; however, due to a recent change in ownership the quality of the service and products offered has been steadily decreasing. Nevertheless you have some fond memories of the place and it is also quite conveniently located—on the way to
You are thinking about buying a house in London. You find one you like that costs £1,000,000. You learn that, based on the value of the house and your wages, your bank will give you a mortgage for 20 years in the region of £600,000. This means that you have to make a down payment of £400,000.
You have already purchased (non-refundable and unsellable) tickets to a concert on Friday night. A friend also invites you to her birthday party on Friday. While you like your friend, you politely decline because you really want to go to the concert.a. You learn that your friend is serving flank
Identify the cause and the effect in the following phenomena in a hypothetical country:a. A surge in the price of goods and an increase in the workers’ income.b. A rise in GDP and an increase in the number of university graduates.
“Scarcity exists because people have unlimited wants in a world of limited resources.” Explain this statement by giving a real-life example.
The problem of free-riding has interested economists for a considerable time. Suppose you are living in a housing project that has 100 apartments. The housing project has its own garden, swimming pool, library, and community center. To be able to utilize the available amenities, residents have to
Suppose the market price of the latest model of iPhone is €759 in Germany. What are the three conditions that will need to be satisfied for the iPhone market to be in equilibrium at this price?
Suppose you wish to take a mortgage to buy a new house for your family. However, the houses you like exceed your budget. You are considering three options: choose a neighborhood that is less fashionable and, therefore, the prices are lower; take up a mortgage with a longer maturity period; or
This chapter introduced the idea of opportunity cost.a. What is meant by opportunity cost?b. What is the opportunity cost of taking a year after graduating from high school and backpacking across Europe? Are people who do this being irrational?
Why do economic agents have to make trade-offs on any given day of their lives? What kind of non-monetary budget constraints do agents face?
How does microeconomics differ from macroeconomics? Would the supply of iPhones in the United States be studied under microeconomics or macroeconomics?What about the growth rate of total economic output in the national economy?
Showing 1200 - 1300
of 1798
First
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Step by Step Answers
Get 50% OFF
Claim Now
