Microeconomics 2nd Canadian Edition R Glenn Hubbard; Anthony Patrick O’Brien; Apostolos Serletis; Jason Childs - Solutions

Unlock the knowledge within "Microeconomics 2nd Canadian Edition" by accessing our comprehensive online solutions manual. Our expertly crafted answers key provides detailed, step-by-step answers to a wide array of solved problems, allowing students to fully grasp complex concepts. Whether you’re seeking chapter solutions, a robust test bank, or an instructor manual, our resources include everything you need to excel. Dive into the questions and answers with our textbook solutions, available for free download in a convenient PDF format. Transform your learning experience today with our reliable solutions.

[Related to the Making the Connection on page 43]Suppose that the federal government is deciding which of two cancer treatment therapies it will allow Medicare to pay for (assuming that only one treatment therapy will be funded): Therapy A, which will prolong the average life span of patients
[Related to the Making the Connection on page 43]Uwe Reinhardt, an economist at Princeton University, wrote the following in a column in the New York Times:[Cost-effectiveness analysis] seeks to establish which of several alternative strategies capable of achieving a given therapeutic goal is the
[Related to the Making the Connection on page 43]Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for heart disease. He asks you, one of his economic advisors, to prepare a report discussing the relevant factors he should
You have exams in economics and chemistry coming up, and you have five hours available for studying. The following table shows the trade-offs you face in allocating the time you will spend in studying each subject:a. Use the data in the table to draw a production possibilities frontier graph. Label
Use the following production possibilities frontier for a country to answer the questions.a. Which point or points are unattainable? Briefly explain why.b. Which point or points are efficient? Briefly explain why.c. Which point or points are inefficient? Briefly explain why.d. At which point is the
Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods.Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods.a. Use a production possibilities frontier graph to illustrate the trade-off to an economy
[Related to the Chapter Opener on page 39] One of the trade-offs BMW faces is between safety and gas mileage.For example, adding steel to a car makes it safer but also heavier, which results in lower gas mileage. Draw a hypothetical production possibilities frontier that BMW engineers face that
Draw a production possibilities frontier that shows the trade-off between the production of cotton and the production of soybeans.a. Show the effect that a prolonged drought would have on the initial production possibilities frontier.b. Suppose genetic modification makes soybeans resistant to
What do economists mean by scarcity? Can you think of anything that is not scarce according to the economic definition?
Calculate the slope of the total cost curve at point A and at point B in the following figure. Total cost of production (millions of dollars) $900 700 A 300 175 0 B Total cost 5 12 14 Quantity produced (millions per month)
Assume that the demand curve for Pepsi passes through the following two points:a. Draw a graph with a linear demand curve that passes through these two points.b. Show on the graph the areas representing total revenue at each price. Give the value for total revenue at each price. Price per Bottle of
Using the information in Figure 1A.2 on page 28, calculate the percentage change in auto sales from one year to the next. Between which years did sales fall at the fastest rate?
The following table gives information on the quantity of glasses of lemonade demanded on sunny and overcast days:Plot the data from the table on a graph similar to Figure 1A.5 on page 31. Draw two straight lines representing the two demand curves—one for sunny days and one for overcast days.
The following table shows the relationship between the price of custard pies and the number of pies Jacob buys per week:a. Is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship?b. Plot the data from the table on a graph
Briefly explain whether you agree with the following assertion:“Microeconomics is concerned with things that happen in one particular place, such as the unemployment rate in one city. In contrast, macroeconomics is concerned with things that affect the country as a whole, such as how the rate of
Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue.a. The effect of higher cigarette taxes on the quantity of cigarettes soldb. The effect of higher income taxes on the total amount of consumer spendingc. The reasons for the economies of East
In the United States, to receive a medical license, a doctor must complete a residency program at a hospital. Hospitals are not free to expand their residency programs in a particular medical specialty without approval from a Residency Review Committee (RRC), which is made up of physicians in that
[Related to the Don’t Let This Happen to You on page 15]Explain which of the following statements represent positive analysis and which represent normative analysis.a. A 50-cent-per-pack tax on cigarettes will lead to a 12 percent reduction in smoking by teenagers.b. The federal government should
[Related to the Chapter Opener on page 3] In recent years, many doctors have decided to give up running their practices as small businesses and have become salaried employees of hospitals.a. What important differences exist between doctors’practices and other small businesses, such as restaurants
[Related to the Making the Connection on page 15] The Making the Connection explains that there are both positive and normative elements to the debate over whether medical schools should charge tuition and whether hospitals should continue to pay residents who pursue primary care but not residents
Dr. Strangelove’s theory is that the price of mushrooms is determined by the activity of subatomic particles that exist in another universe parallel to ours. When the subatomic particles are emitted in profusion, the price of mushrooms is high. When subatomic particle emissions are low, the price
Suppose that your local police department recovers 100 tickets to a big NASCAR race in a drug raid. Police decide to distribute the tickets to residents and announces that tickets will be given away at 10 a.m. Monday at City Hall.a. What groups of people will be most likely to try to get the
Leonard Fleck, a philosophy professor at Michigan State University, has written:When it comes to health care in America, we have limited resources for unlimited health care needs. We want everything contemporary medical technology can offer that will improve the length or quality of our lives as we
Relative to a market economy, would you expect a centrally planned economy to be better at productive efficiency or allocative efficiency? Briefly explain.
In a market economy, why does a firm have a strong incentive to be productively efficient and allocatively efficient?What does the firm earn if it is productively and allocatively efficient, and what happens if it is not?
In a paper written by Bentley College economists Patricia M. Flynn and Michael A. Quinn, the authors state:We find evidence that Economics is a good choice of major for those aspiring to become a CEO [chief executive officer]. When adjusting for size of the pool of graduates, those with
Late in the semester, a friend tells you, “I was going to drop my psychology course so I could concentrate on my other courses, but I had already put so much time into the course that I decided not to drop it.” What do you think of your friend’s reasoning? Would it make a difference to your
Two students are discussing Solved Problem 1.1:Joe: “I think the key additional information you need to know in deciding whether the doctor should keep the medical practice open 9 hours per day rather than 8 hours is the amount of profit she is currently making while being open 8 hours. Then she
[Related to Solved Problem 1.1 on page 8] During 2009, movie studios began to release a substantial number of films in 3-D format. To show films in this format, theater owners have to invest in 3-D equipment that costs $75,000 for each projector. Typically, theater owners can charge about $3 more
[Related to the Making the Connection on page 5] Jay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have employer-provided health insurance receive lower wages than people working at those firms who are not obese. At
[Related to the Making the Connection on page 5]Many universities and corporations offer a health wellness program that helps their employees improve or maintain their health and get paid (a relatively small amount)for doing so. The programs vary but typically consist of employees completing a
The grading system is a powerful resource for teachers. In their book Effective Grading: A Tool for Learning and Assessment, Barbara Walvoord and Virginia Anderson state that “teachers must manage the power and complexity of the grading system” and that “teachers must consider grading in
Bank robberies are on the rise in New Jersey, and according to the FBI, this increase has little to do with the economic downturn. The FBI claims that banks have allowed themselves to become easy targets by refusing to install clear acrylic partitions, called “bandit barriers,” which separate
Suppose that, in Canada, we found a number of households below the low income cut-off that not only owned their own homes, but also had such amenities as air conditioning, cable or satellite television, and high speed Internet, and owned cars. Given that many of these things were rare even for
If everyone had the same income, would everyone have the same level of well-being?
Suppose that Parliament decides on a policy of bringing about a perfectly equal distribution of income. W hat factors might make this policy difficult to achieve? If it were possible to achieve the goal of this policy, would doing so be desirable?
W hy do economists often use a lower poverty threshold for low-income countries than for high-income countries such as Canada? Is there a difference between relative poverty and absolute poverty? Briefly explain.
Draw a Lorenz curve showing the distribution of income for the five people in the following table. N am e A n n u a l E arnings Lena $70 000 David 60 000 Steve 50 000 Jerome 40 000 Lori 30 000
Use the follow ing Lorenz curve graph to answer the questions.a. D id the distribution become more equal in 2016 than it was in 2015, or did it becom e less equal? Briefly explain.b. Estimate the value of the Gini coefficient for 2015 and for 2016.
Evaluate the following statement: “Policies to redistribute income are desperately needed in Canada. W ithout such policies, the more than 10 percent o f the population that is currently poor has no hope o f ever climbing out of poverty.” Based on
Governments often have multiple objectives in imposing a tax. In each part of this question, use a demand and supply graph to illustrate your answer.a. If the government wants to minimize the excess burden from excise taxes, should these taxes be imposed on goods whose demand is elastic or goods
[Related to the Making the Connection on page 408] Use a demand and supply model for the labour market to show the effect o f the corporate income tax on workers. What factors would make the deadweight loss or excess burden from the tax larger or smaller?
Explain w hether you agree with the following statement: “For a given demand curve, the excess burden o f a tax will be greater when supply is less price elastic than when it is more elastic.” Illustrate your answer with a demand and supply graph. Hint: This is a lot easier if you go to
Many advocates for lower business taxes argue that only people can pay taxes and that businesses cannot pay taxes. Do you agree that businesses cannot pay taxes? D on’t businesses pay federal and provincial corporate income taxes? Briefly explain.
[Related to Don’t Let This Happen to You on page 408] Many economists have been known to argue that there is a difference between who actually pays a tax and who is responsible for w riting the cheque to the government. Briefly explain what they mean and discuss whether or not you agree with it.
Suppose the government eliminates the income tax and replaces it with an increased GST. Think about the effect of this on the market for automobiles. Can you necessarily tell what will happen to the price and quantity o f automobiles? Briefly explain.
[Related to the Making the Connection on page 401 ] Statistics Canada calculates the Gini coefficient for market incomes and after-tax incomes. Given the data in the table below, do you think the Canadian system o f taxes (and transfers) is becoming more or less progressive over time? Y ea r 1988
Use the inform ation in Table 15.2 to calculate the total federal income tax paid, the marginal tax rate, and the average tax rate for people with the following incomes. (For simplicity, assume that these people have no exemptions or deductions from their incomes.)a. $25 000b. $125 000c. $ 3 0 0 0
Provincial governments use lotteries to raise revenue. If we think of a lottery as a type of tax, is a lottery likely to be progressive or regressive? W hat data would you need to determine whether the burden of a lottery is progressive or regressive?
According to a World Bank report on the Economics of Tobacco, “ [t|here is concern that, as taxes are raised, poor consumers will spend more and more o f their income on cigarettes,” in countries such as Canada, the US, and the UK. Assuming that the above is true, are these taxes progressive
W hy does the federal government raise more tax revenue from taxes on individuals than from taxes on businesses?
Is the typical person likely to gather more inform ation when buying a new car or when voting for a member o f their provincial legislative assembly? Briefly explain.
An article in T h e E conom ist magazine made the following observation: “In fact, as public choice theory shows, government has a whole set of special decision-making problems that can make the normal human mistakes of those decision-makers even worse.” W hat “special decisionmaking
Briefly explain w hether you agree w ith the following argument. The median voter theorem will be an accurate predictor of the outcomes o f elections when a majority o f voters have preferences very similar to those o f the median voter. W hen the majority of voters have preferences very
Many political observers have noted that, when running for their party’s leadership, Conservative candidates for prime m inister tend to emphasize their right-w ing positions and Liberal candidates tend to emphasize their left-wing positions. In the general election, however, Conservative
Will the preferences shown in the following table lead to a voting paradox? Briefly explain. P o licy Lena D avid K a th le e n Cancer research 1st 2nd 3rd Mass transit 2nd 1st 1st Climate change 3rd 3rd 2nd
Describe the trend in the global poverty rate.
in 2012, w ould incom e inequality in the country have increased or decreased?
W hat is a Lorenz curve? W hat is a Gini coefficient? If a country had a Gini coefficient o f 0.48 in 1960 and
Define low income cut-off and poverty rate. How has the poverty rate changed in Canada since 1990?
Discuss the extent o f incom e inequality in Canada. Has inequality in the distribution o f income in Canada increased or decreased over time?
Briefly discuss the effect of price elasticity o f supply and demand on tax incidence.
W hat is meant by tax incidence?
Briefly discuss each of the five goals and principles governments consider when deciding which taxes to use.
W hat is the difference between a marginal tax rate and an average tax rate? W hich is more important in determining the effect of a change in taxes on economic behaviour?
W hat is a progressive tax system? W hat is a regressive tax system?
W hat is rent seeking, and how is it related to regulatory capture?
W hat is the difference between the voting paradox and the Arrow impossibility theorem?
W hat is the public choice model?
In a com petitive labour market, im posing a minimum wage should reduce the equilibrium level o f employment. Will this also be true if the labour market is a monopsony? Briefly explain.
The total amount o f oil in the earth is not increasing. Does this mean that in the market for oil, the supply curve is perfectly inelastic? Briefly explain.
In 1879, economist Henry George published Progress and Poverty, which became one of the best-selling books of the nineteenth century. In this book, George argued that all existing taxes should be replaced with a single tax on land. Tax incidence is the actual division of the burden of a tax
Many people have predicted, using a model like the one in panel (b) o f Figure 14.12, that the price of natural resources should rise consistently over time in comparison with the prices o f other goods because the demand curve for natural resources is continually shifting to the right, while the
Adam operates a pin factory. Suppose Adam faces the situation shown in the following table and the cost of renting a machine is $550 per week. Additional Profit O u tp u t Product M arg in al from o f Pins M a rg in a l Price Revenue Renting N u m b er (boxes Product (dollars Product R ental One o
When the contact lens firm implemented a new compensation plan, who benefited from the change? Is it likely that there were any losers from the change? Briefly explain.
For years, the Goodyear Tire & Rubber Company compensated its sales force by paying a salesperson a salary plus a bonus, based on the number of tires he or she sold. Eventually, Goodyear made two changes to this policy: (1) The basis for the bonus was changed from the quantity of tires sold to
In most jobs, the harder you work, the more you earn. Some workers would rather work harder and earn more; others would rather work less hard, even though as a result they earn less. Suppose, though, that all workers at a company fall into the “work harder and earn m ore” group. Suppose also
Many companies that pay workers an hourly wage require some minimum level o f acceptable output. Suppose a company that has been using this system decides to switch to a piece-rate system under which workers are compensated on the basis o f how much output they produce. Is it likely that workers
According to a study, the number of jobs in which firms used bonuses, commissions, or piece rates to tie w orkers’ pay to their performance increased from an estimated 30 percent o f all jobs in the 1970s to 40 percent in the 1990s. W hy would systems that tie workers’ pay to how much they
[Related to the Making the Connection on page 380] W hy might employers be more likely to interview a job applicant with a w hite-sounding name than an applicant with an ethnic m inority—sounding name? Leaving aside legal penalties, will employers who follow this practice incur an economic
Use the following graphs to answer the questions.a. W hat is the equilibrium quantity o f trash collectors hired, and what is the equilibrium wage?b. W hat is the equilibrium quantity of receptionists hired, and what is the equilibrium wage?c. Briefly discuss why trash collectors might earn a
A news story on the use of driverless trucks at Rio Tinto’s Australian mines observes that: “The new equipment cut many driving jobs ... But the reductions will be partly offset by new types o f work. The company now needs more network technicians ... a hybrid of electrical and mechanical
According to economist Alan Krueger, the share o f concert ticket revenue received by the top 1 percent o f all acts rose from 26 percent in 1982 to 56 percent in 2003. Does this inform ation indicate that the top acts in 2003 must have been much better performers relative to other acts than was
[Related to the Chapter Opener on page 363] Sam Goldwyn, a movie producer during Elollywood’s Golden Age in the 1930s and 1940s, once remarked about one of his stars: “We’re overpaying him, but he’s worth it.”a. In what sense did Goldwyn mean that he was overpaying this star?b. If he was
In 541 c e , an outbreak o f bubonic plague hit the Byzantine Empire. Because the plague was spread by flea-infested rats that often lived on ships, ports were hit particularly hard. In some ports, more than 40 percent of the population died. The emperor, Justinian, was concerned that the wages o
Sean Astin, who played Sam in the Lord o f the R ings movies, wrote the following about an earlier film he had appeared in: “N ow I was in a movie I didn’t respect, making obscene amounts of money (five times what a teacher makes, and teachers do infinitely more important work).” Are salaries
D uring the same period that robots and other new technologies have been affecting the labour market, there has been an increase in imports to Canada o f manufactured goods— including shoes, clothing, and automobiles— from countries in which workers receive lower wages. In addition, some
Over time, the gap between the wages o f workers with college or university degrees and the wages o f workers w ithout college or university degrees has been increasing. Shouldn’t this gap have increased the incentive for workers to earn college or university degrees, thereby increasing the
State w hether each of the following events will result in a movement along the market supply curve o f agricultural labour in Canada or w hether it will cause the market supply curve of agricultural labour to shift. If the supply curve shifts, indicate w hether it will shift to the left or to the
The fraction o f the Canadian population older than age 65 is increasing. W hat is the likely effect of the aging of the Canadian population on the supply curve for labour?
Most labour economists believe that many adult males are on the vertical section o f their labour supply curves. Use the concepts o f income and substitution effects to explain under w hat circumstances an individual’s labour supply curve would be vertical. Based on R obert Whaples, “Is There
Daniel was earning $65 per hour and working 45 hours per week. Then Daniel’s wage rose to $75 per hour, and as a result, he now works 40 hours per week. W hat can we conclude from this information about the income effect and the substitution effect of a wage change for Daniel?
State whether each o f the following events will result in a movement along the market demand curve for labour in electronics factories in China or w hether it will cause the market demand curve for labour to shift. If the demand curve shifts, indicate w hether it will shift to the left or to the
Complete the following table for Terrell’s Televisions.A d d itio n al M arg in al P rofit Product M a rg in a l fro m o f Labour Revenue Hiring N u m b er O u tp u t o f (television Product W a g e O n e M o re o f Televisions sets per Product o f Labour (dollars W o rk e r W orkers per W e e k
Frank G u n ter owns an apple orchard. H e em ploys 87 apple pickers and pays them each $8 per hour to pick apples, which he sells for $1.60 per box. If Frank is maximizing profits, what is the marginal revenue product of the last worker he hired? W hat is that w orker’s marginal product?
What is an economic rent? What is a monopsony?
In equilibrium, what determines the price of capital? What determines the price of natural resources? What is the marginal productivity theory of income distribution?
Is the fraction of Canadian workers in labour unions larger or smaller than in other countries?
According to a column in the New York Times, the French National Assembly approved a bill: ...that would require Apple Computer to crack open the software codes of its iTunes music store and let the files work on players other than the iPod. . . .If the French gave away the codes, Apple would lose
The following table gives the approximate market shares of the companies in the Canadian brewing industry for 2015. Company Market Share (%) Anheuser-Busch Inbev (Labatts) 41.5 Molson Coors 33.3 Others 25.2 Use the information in the section “The Competition Bureau and Merger Guidelines” to

Showing 800 - 900 of 6303

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Last

Microeconomics 2nd Canadian Edition R Glenn Hubbard; Anthony Patrick O’Brien; Apostolos Serletis; Jason Childs - Solutions

Step by Step Answers