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

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
microeconomics principles applications

Microeconomics 3rd Canadian Edition Hubbard, Glenn & O'Brien, Anthony Patrick & Serletis, Apostolos & Childs, Jason - Solutions

[Related to Solved Problem 7.1] Suppose that Canada currently both produces kumquats and imports them. The Canadian government then decides to restrict international trade in kumquats by imposing a quota that allows imports of only 6 million kilograms of kumquats into Canada each year.The figure
Suppose China decides to pay large subsidies to any Chinese company that exports goods or services to Canada. As a result, these companies are able to sell products in Canada at far below their cost of production. In addition, China decides to bar all imports from Canada. The dollars that Canada
A student makes the following argument:Tariffs on imports of foreign goods into Canada will cause the foreign companies to add the amount of the tariff to the prices they charge in Canada for those goods. Instead of putting a tariff on imported goods, we should ban importing them. Banning imported
[Related to the Chapter Opener ] Which Canadian firms(or industries) are most likely to be unfavourably affected by the USMCA? Why?
Canada produces beef and also imports beef from other countries.a. Draw a graph showing the demand and supply of beef in Canada. Assume that Canada can import as much as it wants at the world price of beef without causing the world price of beef to increase. Be sure to indicate on the graph the
Since 2016 the world has seen an increase in the number of high-profile politicians around the world arguing for populist policies, including protectionism. Examples include Donald Trump and Bernie Sanders in the US; Jeremy Corbin (Labour Party leader) and proponents of Brexit in the UK; and Marine
Public opinion on “free trade” is always divided, particularly when it involves countries with much lower standards of living than Canada. What is “free trade”? Do you believe a free trade agreement with China would help or hurt Canada? (Be sure you define what you mean by “help” and
Ottawa, Ontario, is often seen as the centre of Canada’s technology sector. A large number of technology firms have become established In Ottawa over the past 10 to 15 years.Ottawa now has a lot of people with experience designing, building, and programming high-tech products. Lenders know the
Suppose that the following graph shows Tanzania’s production possibilities frontier (PPF) for cashew nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels of mangoes and that Tanzania has 1000 hours of labour. Without trade, Tanzania evenly splits its
An article in the New Yorker stated, “The main burden of trade-related job losses and wage declines has fallen on middleand lower-income Americans. But . . . the very people who suffer most from free trade are often, paradoxically, among its biggest beneficiaries.” Explain how it is possible
The following data summarize the trade between Canada and the United States in 2015 and 2016.Exports from the United States to Canada (billions of US dollars)Exports from Canada to the United States(billions of US dollars)2015 280.6 296.2 201 266.8 278.1 In both years, the value of Canada’s
[Related to Don’t Let This Happen to You ] Proponents of the–or any new trade agreement often promote such deals as“win–win” for both (or all) countries involved. Is everyone in both countries likely to win from a trade agreement that reduces tariffs and increases international trade?
Economist Hal Varian has made two observations about international trade:a. Trade allows a country “to produce more with less.”b. There is little doubt who wins [from trade] in the long run: consumers.Briefly explain whether you agree with either or both of these observations.Based on Hal R.
Briefly explain whether you agree with the following statement: “Most countries exhaust their comparative advantage in producing a good or service before they reach complete specialization.”
A political commentator makes the following statement:The idea that international trade should be based on the comparative advantage of each country is fine for rich countries like Canada and Japan. Rich countries have educated workers and large quantities of machinery and equipment. These
The following table shows the hourly output per worker in two industries in Chile and Argentina.Output per Hour of Work Hats Beer Chile 8 6 Argentina 1 2a. Explain which country has an absolute advantage in the production of hats and which country has an absolute advantage in the production of
[Related to the Apply the Concept: Bombardier Depends on International Trade ] When measures to protect Canadian firms from foreign competition are discussed, the strongest opposition often comes from Canadian firms. Why would firms like Bombardier or Magna International (an auto parts maker based
What is meant by a country “specializing in the production of a good”? Is it typical for countries to be completely specialized? Briefly explain.
Using the numbers in the following table, explain which country has a comparative advantage in producing smartphones.Output per Hour of Work Smartphones Fitness Bracelets Switzerland 8 10 Canada 5 3
An article in the New York Times quoted an economist as arguing that “global free trade and the European single market .. . encourage countries to specialize in sectors where they enjoy comparative advantage. Germany’s [comparative advantage] is in cars and machine tools.” For the author’s
A book on the Roman Empire made the following -observation: “Romans bought their pots from professional potters, and bought their defence from professional soldiers.From both they got a quality product—much better than if they had had to do their soldiering and potting themselves.” Briefly
Some of those arguing against the Canadian government’s efforts to increase trade ties with other regions and countries state that removing trade barriers will mean losing jobs in Canada. What do you think people mean by “losing jobs in Canada”? Using the economic concept of comparative
The following table shows for Greece and Italy the hourly output per worker measured as quarts of olive oil and pounds of pasta.Output per Hour of Work Olive Oil Pasta Greece 4 2 Italy 4 8 Calculate the opportunity cost of producing olive oil and pasta in both Greece and in Italy.
Briefly explain whether you agree with the following argument: “Unfortunately, Bolivia does not have a comparative advantage with respect to Canada in the production of any good or service.” (HINT: You do not need any specific information about the economies of Bolivia and Canada to be able to
Why do the goods that countries import and export change over time? Use the concept of comparative advantage in your answer.
A WTO publication calls comparative advantage “arguably the single most powerful insight in economics.” What is comparative advantage? What makes it such a powerful insight?
What is the difference between absolute advantage and comparative advantage? Will a country always be an exporter of a good for which it has an absolute advantage in production?Briefly explain.
Why might a smaller country, such as the Netherlands, be more likely to import and export larger fractions of its GDP than a larger country, such as China or the United States?
If Canada were to stop trading goods and services with other countries, which Canadian industries would be likely to see their sales decline the most? Briefly explain.
Briefly explain whether you agree with the following statement: “International trade is more important to the Canadian economy than to most other economies.”
Briefly explain whether the value of Canadian exports is typically larger or smaller than the value of Canadian imports.
Use the graph of the market for basketball tickets at State University to answer the questions.a. What is the price elasticity of supply in this case?b. Suppose the basketball team at State University goes undefeated in the first half of the season, and the demand for basketball tickets increases.
Suppose that on most days, the price of a rose is $1 and 8000 roses are purchased. On Valentine’s Day, the price of a rose jumps to $2 and 30 000 roses are purchased.a. Draw a demand and supply graph that shows why the price jumps.b. Based on this information, what do we know about the price
An article in the Wall Street Journal described the production of cocoa beans used to make chocolate in African countries such as Ghana and Ivory Coast. The article explained that when prices of cocoa beans rise, it can take two to four years for new trees to produce the pods in which the beans are
[Related to Apply the Concept: Why Are Oil Prices So Unstable? ] Suppose that instead of being highly inelastic, the demand for oil is highly elastic.a. Given the situation illustrated by the first graph in the Apply the Concept would the resulting price change be larger, smaller, or the same as
[Related to Apply the Concept: Why Are Oil Prices So Unstable? ] An article in the Wall Street Journal notes that although US oil production has increased rapidly in recent years, the increase has still amounted to only 5 percent of world production. Still, that increase has been “enough to help
Write the formula for the price elasticity of supply. If an increase of 10 percent in the price of frozen pizzas results in a 9 percent increase in the quantity of frozen pizzas supplied, what is the price elasticity of supply for frozen pizzas? Is the supply of pizzas elastic or inelastic?
Review the concept of economic efficiency from Chapter 4 before answering the following question: Will there be a greater loss of economic efficiency from a price ceiling when demand is elastic or inelastic? Illustrate your answer with a demand and supply graph.
The head of the United Kumquat Growers Association makes the following statement:The federal government is considering implementing a price floor in the market for kumquats. The government will not be able to buy any surplus kumquats produced at the price floor or to pay us any other subsidy.
Corruption has been a significant problem in Iraq. Opening and running a business in Iraq usually requires paying multiple bribes to government officials. We can think of there being a demand and supply for bribes, with the curves having the usual shapes: The demand for bribes will be downward
.
[Related to Solved Problem 6.3] Suppose that the longrun price elasticity of demand for gasoline is Assume that the price of gasoline is currently $1.15 per litre, the quantity of gasoline is 140 billion litres per year, and the federal government decides to increase the excise tax on gasoline by
The demand for agricultural products is inelastic, and the income elasticity of demand for agricultural products is low.How do these facts help explain the decline of the family farm?
Consider firms selling three goods. One firm sells a good with an income elasticity of demand less than zero, one firm sells a good with an income elasticity of demand greater than zero but less than 1, and one firm sells a good with an income elasticity of demand greater than 1. In a recession,
[Related to Apply the Concept: Price Elasticity, Cross-Price Elasticity, and Income Elasticity in the Market for Alcoholic Beverages ] The elasticities reported in one Apply the Concept were calculated using price data for many brands of beer. Why might price elasticity estimates for a product be
In the graph below, the demand for hot-dog buns has shifted outward because the price of hot dogs has fallen from$2.20 to $1.80 per package. Calculate the cross-price elasticity of demand between hot dogs and hot-dog buns.
[Related to the Chapter Opener ] A study of consumers in Mexico found that the cross-price elasticity of demand between pop and milk was 0.11, while the cross-price elasticity of demand between pop and candy was –0.32. Is pop a substitute or a complement for milk? Is pop a substitute or a
Define the income elasticity of demand. How does the income elasticity of a normal good differ from the income elasticity of an inferior good? Is it possible to tell from the income elasticity of demand whether a product is a luxury good or a necessity good?
[Related to Apply the Concept: Why Doesn’t Amazon Care about Price Elasticity? ] Amazon allows authors who selfpublish their ebooks to set the prices they charge. One author was quoted as saying, “I am able to drop prices and, by sheer volume of sales, increase my income.” Was the demand for
] According to an article in the Wall Street Journal reporting on Coca-Cola’s results for the fourth quarter of 2016, “Higher pricing . . . drove revenue growth of 8%.” Based on this information, is the demand for the beverages Coke sells price elastic or price inelastic? Briefly explain.
[Related to Solved Problem
When San Francisco and other cities in California adopted soft drink taxes, an opinion column in the New York Times observed, “Often, the taxes don’t even pinch the budgets of low-income families, because they respond by drinking less soda.” What does the columnist mean when he writes that
Economists’ estimates of price elasticities can differ somewhat, depending on the time period and on the markets in which the price and quantity data used in the estimates were gathered. An article in the New York Times contained the following statement from the Centers for Disease Control and
Use the following graph for Yolanda’s Frozen Yogurt Stand to answer the questions.a. Use the midpoint formula to calculate the price elasticity of demand for between point A and point C and the price elasticity of demand for between point A and point B. Which demand curve is more elastic, or ?
The price elasticity of demand for crude oil in the United States has been estimated to be −0.06 in the short run and−0.45 in the long run. Why would the demand for crude oil be more price elastic in the long run than in the short run?
The entrance fee into Yellowstone National Park in northwestern Wyoming is “$30 for a private, noncommercial vehicle; $25 for a motorcycle; or $15 for each visitor 16 and older entering by foot, bike, ski, etc.” The fee provides the visitor with a seven-day entrance permit into Yellowstone and
The publisher one study found that the price elasticity of demand for soda is −0.78 while the price elasticity of demand for Coca-Cola is −1.22 Coca-Cola is a type of soda, so why isn’t its price elasticity the same as the price elasticity for soda as a product?Based on Kelly D. Brownell and
Is the demand for most agricultural products elastic or inelastic? Why?
[Related to Don’t Let This Happen to You ] The publisher of a magazine gives his staff the following information:Current price $2.00 per issue Current sales 150 000 copies per month Current total costs $450 000 per month The publisher tells the staff, “Our costs are currently $150 000 more than
In 1916, in the United States, the Ford Motor Company sold 500 000 Model T Fords at a price of $440 each. Henry Ford believed that he could increase sales of the Model T by 1000 cars for every dollar he cut the price. Use this information to calculate the price elasticity of demand for Model T
[Related to Solved Problem 6.1] You own a hot-dog stand that you set up outside the student union every day at lunchtime. Currently, you are selling hot dogs for a price of $3 each, and you sell 30 hot dogs a day. You are considering cutting the price to $2. The following graph shows two possible
Suppose that the following table gives data on the price of rye and the number of bushels of rye sold in 2018 and 2019.Year Price (dollars per bushel) Quantity (bushels)2018 $3.00 8 million 2019 2.00 12 milliona. Calculate the change in the quantity of rye demanded divided by the change in the
[Related to the Chapter Opener ] A study of the consumption of beverages in Mexico found that “overall, for soft drinks a 10% price increase decreases the quantity consumed by 10.6%.” Given this information, calculate the price elasticity of demand for soft drinks in Mexico. Is demand price
What is the midpoint method for calculating price elasticity of demand? How else can you calculate the price elasticity of demand? What is the advantage of the midpoint formula?
If a 10 percent increase in the price of Cheerios causes a 25 percent reduction in the number of boxes of Cheerios demanded, what is the price elasticity of demand for Cheerios?Is the demand for Cheerios elastic or inelastic?
William Easterly, in The White Man’s Burden, shares the following account by New York University Professor Leonard Wantchekon of how Professor Wantchekon’s village in Benin, Africa, managed the local fishing pond when he was growing up.To open the fishing season, elders performed ritual tests
In the early 1800s, more than 60 million American bison(commonly known as buffalo) roamed the Great Plains. By the late 1800s, the buffalo was nearly extinct. Considering the four categories of goods discussed in the chapter, why might it be that hunters nearly killed buffalo to extinction but not
Put each of these goods or services into one of the boxes in Figure 5.7. That is, categorize them as private goods, public goods, quasi-public goods, or common resources.a. A television broadcast of the Stanley Cup playoff gameb. Home mail deliveryc. Hiking in a park not surrounded by a fenced. An
The more frequently bacteria are exposed to antibiotics, the more quickly the bacteria will develop resistance to the antibiotics. Health Canada states:Antibiotic resistance is a public health concern around the world. The number of bacteria that are resistant to antibiotics is increasing. The
[Related to Solved Problem 5.2] Suppose that Jill and Joe are the only two people in the small town of Andover. Andover has land available to build a park of no more than 9 hectares.Jill and Joe’s demand schedules for the park are as follows:a. Draw a graph showing the optimal size of the park.
What is a public good? What is free riding? How is free riding related to the tendency of a public good to create market failure?
[Related to Apply the Concept: Can a Cap-and-Trade System Reduce Global Warming? ] An economics student made the following comment about a proposed carbon tax:I read that a tax on carbon would have a greater negative effect on low-income consumers than on high-income consumers, but I disagree.
[Related to Apply the Concept: Can a Cap-and-Trade System Reduce Global Warming? ] An economist for the Brookings Institution argued that “a price on carbon would minimize the cost of steering economic activity away from the greenhouse gas emissions that threaten the climate.”a. In what sense
[Related to the Chapter Opener ] In a letter to the New York Times, Suzanne McCarron, an executive at ExxonMobil, argued that a carbon tax would “allow market forces to drive solutions.”a. According to McCarron, what problem would a carbon tax solve?b. How would a carbon tax allow market forces
It wouldn’t be uncommon to hear an economist say, “Of course, the government actually collects the tax from sellers rather than from consumers, but we get the same result whether the government imposes a tax on the buyers of a good or on the sellers.” Demonstrate that this statement is
An article in The Economist noted that Uber, the ridehailing app, “is said to worsen traffic problems” and observed that the result is a negative externality.a. Explain the reasoning behind the argument that using Uber might generate a negative externality.b. If Uber generates a negative
A column in the New York Times has the headline “Should We Tax People for Being Annoying?”a. Do annoying people cause a negative externality?Should they be taxed? Do crying babies on a bus or plane cause a negative externality? Should the babies(or their parents) be taxed?b. Do people who plant
[Related to the Chapter Opener ] Every province in Canada now has either a tax on carbon dioxide emissions or a price established through a cap-and-trade program. In many provinces, including those under the federal government’s backstop plan, the majority of the funds generated by carbon taxes
Draw a graph for the market for soft drinks and assume that consumption of sugary soda causes a negative externality by raising medical costs. Draw both the actual demand curve representing the marginal private benefits and the demand curve representing the marginal social benefit. Show the
[Related to Apply the Concept: Taxation and the Battle of the Bulge ] Assume the private marginal benefit from a good can be represented by the inverse demand equation. Assume the private marginal cost of producing the good can be represented by the supply equation . If consuming the good generates
[Related to Solved Problem 5.1] Draw a graph showing the deadweight loss from a negative externality in production and illustrate how a Pigovian tax eliminates the deadweight loss. Draw another graph showing the deadweight loss from a positive externality in consumption and illustrate how a
Many antibiotics that once were effective in eliminating infections no longer are because bacteria have evolved to become resistant to them. Some bacteria are now resistant to all but one or two existing antibiotics. Some policymakers have argued that pharmaceutical companies should receive
Health Canada’s nutrition guidelines urge adults to eat at least five servings of fruits and vegetables each day. Does consuming fruits and vegetables have a positive externality?Should the government subsidize the consumption of fruits and vegetables? Briefly explain.
Why do most economists prefer tradable emissions allowances to the command-and-control approach to pollution?
What is a Pigovian tax? At what level must a Pigovian tax be set to achieve efficiency?
Ira Goldman invented the Knee Defender, which keeps the airline seat in front of a passenger from reclining. He argues that airlines have sold the space between two seats to the person occupying the seat but also to the person in the seat in front of that seat by allowing the occupant of that seat
Mabel is an advocate for a “zero tolerance” policy regarding all illegal street drugs, including cocaine, marijuana, and heroin. Mabel has witnessed high crime and violence in her neighbourhood and believes that only if police arrest and prosecute anyone who sells or uses illegal drugs will she
Discuss the factors that you think might influence the marginal cost of reducing crime. Discuss the factors you think need to be considered in determining the benefits of reducing crime. Would it be economically efficient to reduce the amount of crime in your community to zero? Briefly explain.
[Related to the Apply the Concept: The Fable of the Bees ]We know that owners of apple orchards and owners of beehives are able to negotiate private agreements. Is it likely that as a result of these private agreements, the market supplies the efficient quantities of apple trees and beehives? Are
According to the Coase theorem, why would a steel plant that creates air pollution agree to curtail production (and therefore pollution) if it were not legally liable for the damage the pollution was causing? Must the property right to clean air be assigned to the victims of air pollution to get
[Related to Apply the Concept: The Montreal Protocol ]Even though governments around the world have eliminated or drastically reduced the amount of CFCs released into the atmosphere, the excess risk of skin cancer due to depleted ozone has not fallen to zero. Should the government take further
[Related to Don’t Let This Happen to You ] If the marginal cost of reducing a certain type of pollution is zero, should all of that type of pollution be eliminated? Briefly explain.
Is it ever possible for an increase in pollution to make society better off? Briefly explain, using a graph like Figure 5.3.
In an article in the agriculture magazine Choices, economist JunJie Wu made the following observation about the conversion of farmland to urban development:Land use provides many economic and social benefits, but often comes at a substantial cost to the environment. Although most economic costs are
In a study at a large American university, students were randomly assigned roommates. Researchers found that, on average, males assigned to roommates who reported drinking alcohol in the year before entering university earned GPAs one-quarter point lower than those assigned to nondrinking
Every year at the beginning of flu season, many people, including the elderly, get a flu shot to reduce their chances of contracting the flu. One result is that people who do not get a flu shot are less likely to contract the flu.a. What type of externality (negative or positive) arises from
The Canadian Radio-television and Telecommunications Commission (CRTC) decided in 2012 that people should be able to subscribe to individual channels rather than being forced to purchase bundles or packages of channels, which is the practice for many cable TV providers. However, the fewer channels
The Rocky Mountains are bear country. Parks Canada states the following about camping and fishing in bear country:“Dispose of fish offal in fast moving streams or the deep part of a lake, never along stream sides or lake shores.” What negative externality does disposing of fish remains near
A neighbour’s barking dog can be both a positive externality and a negative externality. Under what circumstances would the barking dog serve as a positive externality? Under what circumstances would the barking dog be a negative externality?
The chapter states that your consuming a Tim Hortons coffee does not create an externality. But suppose you arrive at your favourite Tim’s and get in a long line to be served. By the time you reach the counter, there are 10 people in line behind you. Because you decided to have a decaf

Showing 2000 - 2100 of 6303

First
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved