Economic Principles And Problems A Pluralist Introduction 1st Edition Geoffrey Schneider - Solutions

List the assumptions and characteristics of the mainstream model of perfect competition.
Compare and contrast the mainstream economics theory of the firm with the political economy theory of the firm.
Apply the concepts of economies of scale and diseconomies of scale to particular industries using the long-run average total cost curve.
Given information for a firm on total fixed cost and total variable cost at various quantities, compute marginal cost, average variable cost, average fixed cost, and average total cost. Given price information for the same firm, determine the profit-maximizing level of output.
Derive the shape of the average total cost curve from the marginal cost, average variable cost, and average fixed cost curves.
Describe the relationship between the marginal cost curve and the average variable cost curve.
Explain the shape of the marginal cost curve and how it relates to the marginal product of labor and the laws of specialization and diminishing returns.
Analyze the impact of competition and concentration on industries and consumers.
Identify the most likely market structure for a particular industry based on its characteristics.
Compare and contrast the four different market structures using the eight key market characteristics described in this chapter.
Define above-normal (economic) profit, normal profit, and economic loss and explain the relevance of these terms in explaining industry behavior.
List the key characteristics of each of the four market structures—perfect competition, monopolistic competition, oligopoly, and monopoly—and describe how those key characteristics explain the dynamics of each market structure.
Describe how behavioral economists and political economists analyze supply decisions and apply the ideas of satisficing, competition for innovation and monopoly power, and countervailing power to supply decisions.
Explain the derivation of a firm’s supply curve in words and using a graph.
Use a table containing information on labor and output to compute the marginal product of labor, total variable cost, marginal cost, and average variable cost.
Define and illustrate the short-run production function and the laws of specialization and diminishing returns.
Describe the factors that lead consumers to make nonrational choices and apply these factors to real-world examples.
Evaluate how households, communities, and cultures shape consumer decisions.
Analyze how pecuniary emulation and herd behavior affect consumer decisions.
Explain and give examples of a Veblen good.
Utilize income elasticity of demand and cross-price elasticity of demand to analyze how the demand for a particular product is affected by changes in incomes and changes in the prices of substitute and complementary goods.
Compute the price elasticity of demand or supply and apply the concept of price elasticity to analyze supply and demand problems.
Explain the concepts of consumer surplus, producer surplus, and deadweight loss and how these concepts can be used to evaluate the impact of government policies.
Use the supply and demand model to analyze the impact of price floors, price ceilings, excise taxes, and subsidies on consumers, producers, and the government.
Use the supply and demand model to analyze the impact of changes in wages or advertising.
Analyze how changes in the determinants of demand and the determinants of supply shift demand and supply curves and affect equilibrium price and equilibrium quantity.
Explain the theory of demand and the theory of supply.
Using supply and demand curves, explain the concept of equilibrium and why markets tend toward an equilibrium price and quantity.
List and critically evaluate the assumptions upon which the supply and demand model rests.
Describe the key institutions that make markets work and analyze how those institutions support markets.
Define and give examples of a market and a market transaction.
Evaluate the strengths and weaknesses of a market capitalist approach (United States), a guided market approach (Nordic model), and a central planning approach (U.S.S.R.) to economic development.
Explain the difference between socialism, communism, and capitalism.
Analyze, compare, and contrast the characteristics and functioning of an MDE such as the United States, an SME such as the Nordic countries, and an SDE such as China.
Define and describe the characteristics of market-dominated economies, social market economies, and state-dominated economies.
Define and evaluate the effectiveness of an economic system of “regulated”or “mixed” market capitalism.
Describe and analyze the economic interventions made by the U.S.government from the New Deal to the present.
List, explain, and evaluate the major ideas of John Maynard Keynes, including the volatility of investment, sticky wages and prices, the macroeconomic problems created by wage and price deflation, the multiplier process, and stabilization policy.
List, explain, and evaluate the three core theoretical ideas that drove neoclassical economists of the early 1900s to advocate a handsoff, laissez-faire approach to the economy: The marginal productivity theory of distribution, markets always clear, and Say’s law.
Describe how the Roaring Twenties in the United States created the conditions for the Great Depression, and how the Great Depression created the conditions for a new approach to economics.
Define and apply the major concepts developed by Thorstein Veblen:Evolution, institutions, culture, pecuniary emulation, conspicuous consumption, making money vs. making goods, and the vested interests.
Explain the approach taken by neoclassical economists and what they were trying to achieve with their approach.
Describe the rise of U.S. monopoly capitalism and how this system was structured relative to owners, workers, the government, as well as race, gender, ethnicity, and imperialism.
Explain the forces in capitalism that Marx thought would result in a workers’ revolution and the factors that mitigated those pressures.
Evaluate Marx’s views on competition and commodification using specific examples from history and from modern capitalism.
Use the concept of surplus value to analyze the functioning of a capitalist economic system.
Explain the components of historical materialism and Marx’s method of analysis and apply this method to the evolution of economic systems.
Describe the conditions of workers in the 1800s, assess the implications of these conditions for the functioning of laissez-faire capitalism, and determine whether or not you think laissez-faire capitalism inevitably results in exploitation.
Define and give an example of an infant industry promotion strategy.
Define Karl Polanyi’s concept of the double movement and apply this concept to the modern world.
Explain and critically assess the arguments of laissez-faire economists against English Poor Laws, macroeconomic intervention, and trade protectionism.
Identify the major components of Smith’s analysis of capitalism and critically evaluate which of his ideas still hold true when applied to modern capitalism.
Describe the major economic concepts in Smith’s critique of mercantilism.
List and analyze the key institutions that supported the establishment of capitalism in England.
List and analyze the major forces that eroded each economic system and paved the way for the next economic system.
Describe the types of social classes and role of private property in the different economic systems.
Explain how cooperation, specialization, redistribution, and reciprocity were important to the survival of people living in hunter-gatherer societies and in other economic systems.
Analyze the role of tradition, authority, and markets, along with the specialization of labor and the use of the surplus product, in each of these four economic systems.
Outline the main characteristics of (1) traditional, hunter-gatherer societies; (2) slave-based empires (Rome); (3) feudalism; and (4) mercantilism, and describe the common threads and major differences of these human societies.
Critically analyze the strengths and limitations of the production possibilities curve model and the political economy approach to choices regarding the allocation of resources.
Explain why political economists find the mainstream approach to scarcity and cost–benefit analysis limited and how political economists would approach these topics differently using an analysis of the institutional factors that shape a society’s choices.
Identify and explain the difference between capital goods and consumer goods and analyze their impact on economic growth using a PPC.
Define and apply the concepts of scarcity, opportunity cost, efficiency, and cost–benefit analysis.
Understand how the ten different schools of economics match up with conservative, moderate, liberal, and radical political approaches to the economy.
Explain and begin to apply the methods of mainstream, PPE, and RPE economists to economic issues.
Describe the difference between mainstream economics, progressive political economics (PPE) and radical political economics (RPE), using their different definitions of economics and their different methods.
Briefly contrast unregulated market capitalism with mixed market capitalism.
Explain in your own words the importance of economics for you and for society as a whole.
Explain the causes of the Asian financial crisis. How might capital controls prevent such a crisis from happening in the future?
Suppose that the U.S. dollar is pegged to the euro at a rate of 1$ = 1€. Suppose also that the value of the dollar falls to 1$ = 0.8€. What policies can the U.S.government implement to return the value of the dollar to its pegged (fixed)rate of 1$ = 1€?
Describe the major perspectives on why trade deficits are problematic.Also explain why many economists do not consider trade deficits to be a problem.
Who benefits the most from a trade deficit? Who is harmed the most by a trade deficit?
Under what circumstances will a trade deficit lead to reductions in employment?Explain carefully.
Describe the relationship between current account deficits and financial account surpluses.
Suppose that the European Central Bank decides to sell euros in order to buy dollars. What effect will this have on the value of the euro relative to the U.S.dollar? Explain using a graph of the foreign exchange market for euros.
Suppose that U.S. interest rates rise relative to those in Europe. What effect will this have on the value of the U.S. dollar relative to the euro?
For each question below, draw a graph of the foreign exchange market for U.S. dollars in British pounds, and show how each of the following events will affect the price of the dollar and the quantity of dollars exchanged for British pounds. Explain your answer briefly.a. Incomes in the United
Write an essay in which you assess the strongest arguments in favor of unregulated trade and the strongest arguments in favor of protectionism. Determine what approach you think your country should utilize when it comes to trade and exchange rates and support your arguments with examples from the
Describe the experiences of the E.U. and the United States with economic integration via trade agreements. What are the benefits of economic integration?What are the costs? Do you think the United States should continue to pursue the economic integration of North America? Why or why not?
Describe U.S. trade patterns. Compare these trade patterns with the predictions of the theory of comparative advantage and political economy trade theories regarding the products that countries should specialize in producing and export. Which ideas do you find most accurately capture the realities
In 2018, the Trump administration imposed 25% tariffs on imports of steel into the United States. Using a graph, show how that tariff would affect the equilibrium price and quantity of imported steel. Assume that the initial price of steel is $2000 per ton. What impact would these tariffs have on
The graphs in Figure 34.7 show production possibilities curves for the United States and Japan, using an identical amount of resources for one day. Determine which country has a comparative advantage in beef and which in automobiles using the PPCs. Show your work. Copy the graphs onto a sheet of
The theory of comparative advantage demonstrates that, in theory, all countries can benefit through specialization and trade.a. The graphs in Figure 34.6 show production possibilities curves for the United States and Kuwait, using an identical amount of resources for one month. Copy the graphs onto
Protectionism has long been utilized as a tool for economic development.a. What are the major policies used in protectionism?b. What are the main arguments for protectionism?c. What are the main costs generated by protectionism?
(a) Explain the theory of comparative advantage and why most mainstream economists believe that unregulated trade increases the welfare of citizens on average. (b) List and briefly explain the main problems with the theory of comparative advantage.
Suppose that you are appointed the chair of the U.S. president’s council of economic advisors and you are asked to suggest a set of policies to promote economic growth while preserving sustainability. What policies would you prioritize and why?
Explain the environmental Kuznets curve. Does the evidence support this theory? Why or why not?
Compare and contrast the approaches to innovation and growth taken by (a)New Keynesian economists, (b) supply-side economists, and (c) political economists.Which approach do you find most compelling? Explain and support your answer.
What are the key elements of the political economy approach to economic growth?
What are the key elements of the supply-side approach to economic growth?
According to the New Keynesian approach, what are the major factors that contribute to economic growth? What policies do New Keynesian economists advocate in order to stimulate growth? Which of these policies do you find most compelling? Why?
Using the graph in Figure 33.7, show what will happen to the U.S. economy if (a) there is a major breakthrough in robotics that improves productivity and(b) the number of workers in the United States declines significantly due to immigration restrictions. Real GDP (Y) L1 Labor hours TPL (AK)
Explain the convergence hypothesis in your own words. Does evidence indicate that the convergence hypothesis accurately explains growth patterns?
Vietnam’s real GDP per capita has been growing by 5% per year, whereas Switzerland’s has been growing at 1% per year. Using the rule of 70 and assuming that these growth rates stay the same, if Vietnam’s real GDP per capita is currently $3000 and Switzerland’s real GDP per capita is
What is an inverted yield curve? Why do many economists see this as a precursor to a recession?
What are the essential features of the financial crisis of 2007–2008? Who was primarily to blame? How did economic theory promoting deregulation contribute to the financial crisis? Given the major causes of the financial crisis, how do you think the government should approach regulating financial
What is a CLO (collateralized loan obligation)? What is a CDS (credit default swap)? Explain briefly in your own words. How did these derivatives feature in the financial crisis of 2007–2008?
What is an asset bubble? How does this concept help us understand the recessions of 2000–2001 and 2007–2009?
Describe the different laissez-faire theories of the business cycle. What are the main differences between laissez-faire approaches to recessions and those of new Keynesian and political economists?
Explain the key ideas in Minsky’s financial instability hypothesis in your own words. In your answer, describe each phase of the business cycle carefully.

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Economic Principles And Problems A Pluralist Introduction 1st Edition Geoffrey Schneider - Solutions

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