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foundations of modern macroeconomics

Questions and Answers of Foundations Of Modern Macroeconomics

Explain what an anti-dumping tariff is. What argument might NewPage Corp. have used to get the government to raise the tariff to 99.65 percent?U.S. expands China paper anti-dumping tariff The United
A new Obama air pollution rule requires coal-fired power plants to reduce both smog and acid-rain causing pollutants. The coal industry says this rule is among the most expensive ever imposed by the
Despite the hard times, families will not be deprived of access to federal student loans. The real danger is a hike in tuition. Often in past recessions, states have cut funding for colleges and
Gridlock in Toronto already costs the region $6 billion a year, with average commute times of 80 minutes, among the highest in North America. By 2031, commute times will increase by 27 minutes. Civic
Explain how Seattle’s 20-cents charge will change the use of plastic bags and how the deadweight loss created by plastic bags will change.Plans to curtail use of plastic bags, but not much action
Explain why a complete ban on plastic bags would be inefficient.Plans to curtail use of plastic bags, but not much action Last summer, Seattle approved a 20-cents charge on plastic shopping bags,
The European Union requires any airline operating to or from an EU airport to participate in the EU cap-and-trade system under which 15 percent of pollution credits for airlines will be auctioned off
A carbon tax would raise the cost of producing goods and services that create large carbon emissions, but it would encourage Americans to use less carbon-intensive goods and services, which could
Read Eye on the U.S. Infrastructure on p. 276 and then explain why it might be efficient for Europeans to use the train and Americans to use the airplane.
a. What type of good is a high-speed rail network?b. Why might it be provided by government rather than privately?c. Can you think of parts of the United States that have a similar population density
In 2008, the U.S. states and Canadian provinces adjoining the lakes negotiated the Great Lakes Compact to prevent the region’s water from being shipped or piped to arid regions. The compact also
David Lesesne, Dean of Admissions at Sewanee, a Tennessee liberal arts college, said that students have become less authentic to themselves by trying to be what colleges want, but colleges have done
Toyota has developed a pre-collision system that helps lower speeds before rearend impacts and reduce injuries and vehicle damage.1. How could auto-insurance companies use the information in the news
The average health-care costs of American families who are insured through their jobs is $19,393, up 7.3 percent or $1,319 from last year. Of this increase, workers’ out-of-pocket costs rose 9.2
General Motors is recalling 6,800 pickups from the 2011 model year because a defective clip could allow the automatic transmission’s selector to appear to be in Park when it was not. A worker at
Phillies general manager Pat Gillick, who previously built winners in Toronto, Baltimore, and Seattle, is no fan of blanket no-trade clauses. Gillick is so averse to giving out complete no-trade
What are HMOs and what information problems do they help to deal with?
The lemons problem does not arise in markets in which ________.A. Buyers can separate reliable products and defective products B. Sellers offer more defective products than reliable products for
With the average gas price hitting $3.70 a gallon, many people cut back on other things, such as meals-to-go at the grocery store and shopping.Consider Robyn who buys only two goods: gasoline and
Surging wheat and corn prices could hit the items in your grocery basket soon.How does the rise in the price of food change the budget line and the quantity of food that Americans buy?
As the gas price hit $4 a gallon, commuters in New York and Boston switched from cars to public transit, with ridership rising 5 percent.Explain the effect of a rise in the price of gasoline on a
For a trip from Boston to Washington, compare the opportunity costs of taking Amtrak and United Airlines.As the time it takes to get through airports has increased, other means of travel have begun
Compare the marginal utility per dollar from train travel and from air travel.As the time it takes to get through airports has increased, other means of travel have begun to look more attractive.
GM will cut 500 jobs, or about 12% of its workforce, at its Australian plant because of a sharp fall in demand for its locally-made "Cruze" small car.As GM cuts its workforce, how will the marginal
The museum cut 74 jobs and 95 other workers retired. The museum also laid off 127 other employees in its retail shops. The cut in labor costs is $10 million, but the museum expects no change in the
Ford Motor Co. will hire 2,000 new workers and spend $1.1 billion to retool and refurbish its Kansas City plant.Explain the effects of the expansion plan on Ford’s total fixed cost, total variable
In May 2011, businesses cut hiring because the higher price of gas pushed up costs and higher food prices forced consumers to cut spending. Did businesses and consumers act in their self-interest or
Define economics and explain the kinds of questions that economists try to answer.
Explain the ideas that define the economic way of thinking.
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity.
What contribution does a movie like The Social Network make to coping with scarcity? When you buy a movie ticket, are you buying a good or a service?The Social Network had world-wide box office
Who decides whether a movie is going to be a blockbuster? How do you think the creation of a blockbuster movie influences what, how, and for whom goods and services are produced?The Social Network
What are some of the components of marginal cost and marginal benefit that the producer of a movie faces?The Social Network had world-wide box office receipts of $225 million. The movie had a
Suppose that Jesse Eisenberg had been offered a bigger and better part in another movie and that to hire him for The Social Network, the producer had to double Jesse’s pay. What incentives would
Label each of the entries in List 2 as a positive or a normative statement. LIST 2 Low-income people pay too much for housing. The number of U.S. farms has decreased over the past 50 years. Toyota
With tickets free and the show to be held in a 1,500-seat Detroit theater, what is free and what is scarce? Explain your answer.Hundreds line up for 5 p.m. Eminem ticket giveaway Eminem fans lined up
What do you think Eminem’s incentive is to give a free show? Was his decision made in self-interest or in the social interest? Explain your answer.Hundreds line up for 5 p.m. Eminem ticket giveaway
Is the marginal benefit from the concert zero? Explain your answer.Hundreds line up for 5 p.m. Eminem ticket giveaway Eminem fans lined up all day to get a free ticket to his secret concert at which
Read Eye on the Benefit and Cost of School on p. 15 and explain why both you and Alex Rodriguez made the right decision.Hundreds line up for 5 p.m. Eminem ticket giveaway Eminem fans lined up all day
Which of the following are components of the opportunity cost of being a full-time student? The cost of• Tuition and books• Residence and a meal plan• A subscription to the New Yorker
What are two benefits of the new miles-per-gallon requirements? Are these benefits in someone’s self-interest or in the social interest?Obama will drive up miles-per-gallon requirements Obama’s
What are two benefits of the new auto-emission standards?Obama will drive up miles-per-gallon requirements Obama’s revision of auto-emission and fuel-economy standards will require automakers to
What costs associated with the new miles-per-gallon requirements arise from decisions made in self-interest and in the social interest?Obama will drive up miles-per-gallon requirements Obama’s
What costs associated with the new auto-emission standards arise from decisions made in self-interest and in the social interest?Obama will drive up miles-per-gallon requirements Obama’s revision
A Job Creation through Entrepreneurship Act, debated in the House of Representatives in 2009, would award grants to small business owners, some of which would be aimed at women, Native Americans, and
For-profit colleges may face aid cuts The Obama Administration proposes a new rule: Federal aid to for-profit colleges will be cut if students in vocational programs graduate without a degree.
The global economy has three cell-phone users for every fixed line user. Two in every three cell-phone users live in a developing nation and the growth rate is fastest in Africa. In 2000, 1 African
China’s prosperity brings income gap The Asian Development Bank [ADB] reports that China has the largest gap between the rich and the poor in Asia. Ifzal Ali, the ADB’s chief economist, claims it
Which of the following statements about U.S. production is correct?A. Construction accounts for a larger percentage of total production than does manufacturing.B. Real estate services account for
What is human capital?A. Immigrant labor B. Someone who operates heavy equipment C. Your professor’s knowledge of the economy D. A car assembly line robot.

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