Microeconomics 9th Edition Robert Pindyck, Daniel Rubinfeld - Solutions

Unlock the full potential of "Microeconomics 9th Edition" by Robert Pindyck and Daniel Rubinfeld with our comprehensive resources. Access online answers key and solutions manual that provide clear, step-by-step answers to textbook questions. Dive into solved problems and utilize the test bank for thorough preparation. Our chapter solutions and instructor manual ensure a deep understanding of microeconomic principles. Get a free download of solutions in PDF format and explore a variety of questions and answers tailored for your learning needs. Enhance your study experience with our expertly crafted content.

=+16. How is the market price of a good determined?
=+Indicate two goods that are substitutes for each other. Indicate two goods that are complements.
=+15. What is the difference between substitutes and com- plements?
=+ "Econo- mists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple ten-digit electronic calculator sold for $120. By 2000, the price of the same type of calculator had declined to less than $5. Yet
=+*14. What's wrong with this way of thinking?
=+What con- ditions are necessary for the invisible hand to work well? Why are these conditions important?
=+13. What is the invisible hand principle? Does it indicate that self-interested behavior within markets will re- sult in actions that are beneficial to others?
=+If a firm making losses goes out of business, is this bad? Why or why not? *
=+What happens to the value of re- sources when losses are present?
=+11. What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence the value of resources?
=+Is there a conflict between production for people and production for profit?
=+b. Are people helped more if production results in a loss than if it leads to profit?
=+a. If production is profitable, are people helped or harmed? Explain.
=+10. "Production should be for people and not for profit." Answer the following questions concerning this statement:
=+ Will producers continue to supply a good or service if consumers are unwilling to pay a price sufficient to cover the cost? *
=+9. What does the cost of a good or service reflect?
=+ How will it affect the cost of college for families who don't qualify for the tax deduction?
=+7. Recent tax reforms make college tuition partially tax deductible for certain families. This should mo- tivate more people to attend college. How will this higher demand for a college education affect tuition prices?
=+What is meant by economic efficiency, and how does it re- late to consumer and producer surplus?
=+6. Define consumer and producer surplus.
=+ Use this concept to explain why professional wrestlers earn more than nurses, de- spite the fact that nurses probably create more total value to society.
=+What's the difference? Can you think of a good that has high total value but low marginal value?
=+Are prices an accurate reflection of a good's marginal value?
=+4. Are prices an accurate reflection of a good's total value?
=+e. an increase in the price of beef
=+d. widespread outbreak of mad cow or foot-and- mouth disease
=+c. higher prices of feed grains used to feed cattle
=+*1. Which of the following do you think would lead to an increase in the current demand for beef?a. higher pork pricesb. higher consumer income
=+ How do they adjust to changes in supply?
=+How do markets adjust to changes in demand?
=+ What must a firm do to make a profit?
=+ What role do profits and losses play in an economy?
=+How do producers decide whether to supply it?
=+How do consumers decide whether to purchase a good?
=+ What would be a mutually agreeable rate of exchange between the countries? Italia Nire Guns Butter Guns Butter 12 0 8 4 0 01234 6284 0246 0 16 12
=+Which country has the compara- tive advantage in producing guns?
=+19. The tables below show the production possibilities for two hypothetical countries, Italia and Nire. Which country has the comparative advantage in producing butter?
=+ 18. Two centuries ago there were more buffalo than cat- tle in the United States. Even though millions of cattle are killed for beef consumption each year, the cattle population continues to grow while the buf- falo are virtually extinct. Why?
=+16. During the last three decades entrepreneurs like Michael Dell, Sam Walton, and Ted Turner earned bil- lions of dollars. Do you think the average American is better or worse off as the result of the economic activ- ities of these individuals? Explain your response. *
=+15. In the chapter it was stated that a private-property right also involves having the right to transfer or ex- change what you own with others. However, selling your organs is a violation of federal law, a felony pun- ishable by up to five years in prison or a $50,000 fine. In 1999 eBay
=+d. Do you think the total output of a nation will be influenced by whether or not there is a close link between the productive contribution of individu- als and their personal reward? Why or why not?
=+c. How would your study habits be influenced if everyone in the class were going to be given an A grade? How about if grades were based entirely on examinations composed of the multiple-choice questions in the course book for this textbook?
=+How would this influence your study habits?
=+14. Consider the questions below:a. Do you think that your work effort is influenced by whether there is a close link between personal out- put and personal compensation (reward)? Explain.b. Suppose the grades in your class were going to be determined by a random drawing at the end of the course.
=+Which of the two groups will bear a larger number of children on average? Explain your answers based on the concept of opportunity cost.
=+13. Consider the choices of two groups of women ages 30 to 50. All the women in one group have a college education. All the women in the other group have less than a high school education. Which of the two groups will participate more in the workforce?
=+ Do you think it would be a good idea to pro- hibit the resale of other things-automobiles, books, works of art, or stock shares at prices higher than the original purchase price? Why or why not?
=+How can owners who want to sell their tickets get around the prohibi- tion?
=+12. In many states. ticket scalping, or reselling tickets to entertainment events at prices above the original purchase price. is prohibited. Who is helped and who is hurt by such prohibitions?
=+ How does trade influence the quantity of output that trading partners are able to produce? In a market economy, will there be a tendency for both resources and prod- ucts to be supplied by low-cost producers? Why or why not? Does this matter? Explain. *
=+Why is exchange important to a nation's prosperity?
=+ 10. What are the major sources of gains from trade?
=+What forms does it prohibit?
=+ 9. What forms of competition does a private-property, market-directed economy authorize?
=+How will in- ternational trade influence people's production levels and living standards? Explain. "
=+ What should be the distinguishing charac- teristics of the goods a nation imports?
=+According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation produces?
=+7. What is the law of comparative advantage?
=+How does private ownership influence the incentive of individuals to (a) take care of things, (b) conserve resources for the future, and (c) develop and modify things in ways that are beneficial to others? Explain.
=+ Does private ownership give you the right to do anything you want with the things that you own? Explain.
=+ 6. If you have a private-ownership right to something, what does this mean?
=+For someone whose opportunity cost is $10 per hour? $14 per hour? "
=+3. It takes one hour to travel from New York City to Washington, D.C., by air, but it takes five hours by bus. If the airfare is $110 and the bus fare is $70, which would be cheaper for someone whose opportu- nity cost of travel time is $6 per hour?
=+Can you explain why the wages of painters have risen substantially even though their productivity has changed so little?
=+2. Economists often argue that wage rates reflect produc- tivity. Yet, the wages of house painters have increased nearly as rapidly as the national average, even though these workers use approximately the same production methods as they did 50 years ago.
=+ How does trade influence our modern living standards?
=+What are the sources of gains from trade?
=+ Will private owners pay any attention to the desires of others?
=+How does private ownership affect the use of resources?
=+ Why do economists place so much emphasis on it?
=+Do you economize when you shop at the mall? Why or why not?
=+13. Do individuals "economize"? If so, what are they trying to do?
=+d. Higher taxes on alcohol result in less drinking and driving. 1 "Economics is about trade-offs. If more scarce re- sources are used to produce one thing, fewer will be available to produce others." Evaluate this statement.
=+c. A comparison of costs and benefits should not be used to assess environmental regulations.
=+b. Higher gasoline prices cause the quantity of gaso- line that consumers buy to increase.
=+a. The speed limit should be lowered to 55 miles per hour on interstate highways.
=+11. Which of the following are positive economic state- ments and which are normative?
=+Do you think the millions of dollars spent by consumers on air bags each year could be better spent elsewhere to save even more lives? *
=+ What incentives do you see changing for drivers as the re- sult of making cars safer?
=+These rules do indeed provide added safety for buy- ers, although they also add to the cost of making and price of buying the new vehicles. What sec- ondary effects can you see happening as the result of mandating that automobiles have airbags?
=+7. Congress and government agencies often make laws to help protect the safety of consumers. New cars, for example. are required to have many safety fea- tures before they can be sold in the United States.
=+Suppose the highest grades were ra- tioned to those whom the teacher liked best. How would this method of rationing influence student behavior? *
=+How does this rationing method influence student behavior?
=+b. How are grades rationed in your economics class?
=+ How does this rationing method influ- ence the incentive of individuals to supply goods, services, and resources to others?
=+3.a. What method is used to ration goods in a market economy?
=+e. An increase in the rental rates of apartments on one's decision to build additional rental housing units *
=+d. An increase in the price of beef on one's decision to buy steak
=+c. A reduction in the number of exam questions that relate directly to the text on the student's decision to read the text
=+1. Indicate how each of the following changes would influence the incentive of a decision maker to un- dertake the action described.
=+ What is different about the way economists look at choices and human decision making?
=+Why does scarcity necessitate rationing and cause competition?
=+ How does scarcity differ from poverty?
=+Can you use your knowledge of behavioral economics to explain the empirical phenomenon that organ donation rates are substantially higher in opt-out countries than in opt-in countries?
=+8. In the U.S. and a number of other countries, individuals wishing to make organ donations at the end of their life have to “opt-in,” i.e., to affirmatively agree to be a donor. In contrast, a host of other countries have an “optout” policy, whereby you have to explicitly state that
=+companies for a portion of the cost of clearing attics of unwanted items. Using your understanding of behavioral economics and public policy, analyze the pros and cons of the attic clearing program.
=+made to install additional insulation in the attic, but the tax credit program has had only limited success.It has been asked to consider subsidizing insulation
=+7. Suppose that you are advising the Department of Energy on the best way to reduce energy consumption through home insulation. It has offered individuals a tax credit based on the magnitude of the payments
=+6. Using your knowledge of behavioral economics, explain why many people choose to have low deductibles on their automobile insurance policies.
=+for those workers whose effort is deemed to be extraordinary. Using insights from behavioral economics, which policy do you believe will be the more effective?

Showing 500 - 600 of 7548

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Microeconomics 9th Edition Robert Pindyck, Daniel Rubinfeld - Solutions

Step by Step Answers