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Why do coal miners get paid more than other workers with similar amounts of education 2. In what sense is education a type of capital 3. How might education raise a worker's wage without raising the worker's productivity 4. What conditions lead to economic superstars Would you expect to see superstars in dentistry In music Explain. 5. Give three reasons why a worker's wage might be above the level that balances supply and demand. 6. What difficulties arise in deciding whether a group of...

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The New York Times Nov. 30, 1993 reported that the inability of OPEC to agree last week to cut production has sent the oil market into turmoil . . . leading to the lowest price for domestic crude oil since June 1990. a. Why were the members of OPEC trying to agree to cut production b. Why do you suppose OPEC was unable to agree on cutting production Why did the oil market go into turmoil as a result c. The newspaper also noted OPEC's view that producing nations outside the organization, like...

Johnny Rockabilly Has Just Finished Recording His Latest Cd. His Record Company S Marketing Department Determines That

If the author were paid 3 million instead of 2 million to write the book, how would this affect the publisher's decision regarding the price to charge Explain. f. Suppose the publisher were not profit-maximizing but were concerned with maximizing economic efficiency. What price would it charge for the book How much profit would it make at this price 2. Suppose that a natural monopolist were required by law to charge average total cost. On a diagram, label the price charged and the deadweight...

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Government spending in the United States has grown as a share of national income over time. What changes in our economy and our society might explain this trend Do you expect the trend to continue 2. In a published source or on the Internet, find out whether the U.S. federal government had a budget deficit or surplus last year. What do policymakers expect to happen over the next few years Hint The Web site of the Congressional Budget Office is www.cbo.gov. 3. The information in many of the...

Income Effects On Labor Supply Historical Trends Lottery Winners And The Carnegie Conjecture

The idea of a backward-sloping labor supply curve might at first seem like a mere theoretical curiosity, but in fact it is not. Evidence indicates that the labor supply curve, considered over long periods of time, does in fact slope backward. A hundred years ago many people worked six days a week. Today five-day workweeks are the norm. At the same time that the length of the workweek has been falling, the wage of the typical worker adjusted for inflation has been rising. Here is how economists...

Opportunity Cost And Comparative Advantage

There is another way to look at the cost of producing potatoes. Rather than comparing inputs required, we can compare the opportunity costs. Recall from Chapter 1 that the opportunity cost of some item is what we give up to get that item. In our example, we assumed that the farmer and the rancher each spend 40 hours a week working. Time spent producing potatoes, therefore, takes away from time available for producing meat. As the rancher and farmer change their allocations of time between...

Calculate Marginal Revenue And Marginal Cost For Each Quantity. Graph Them. Hint Put The Points Between Whole Numbers.

How much should the firm produce to maximize profit b. Calculate marginal revenue and marginal cost for each quantity. Graph them. Hint Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2 1 2. At what quantity do these curves cross How does this relate to your answer to part a c. Can you tell whether this firm is in a competitive industry If so, can you tell whether the industry is in a long-run...

In The N Ews

In competitive markets, strong demand leads to high prices and high profits, which then lead to increased entry, falling prices, and falling profits. To economists, these market forces are one reflection of the invisible hand at work. To the business managers, however, new entry and falling profits can seem like a problem of overinvestment. In Some Industries, Executives Foresee Tough Times Ahead By Bernard Wysocki, Jr. MONTEREY, CALIF. About 20 executives are huddled in a conference room with...

Market Demand Versus Individual Demand

Supplycurve For Ice Cream Company

So far we have talked about an individual's demand for a product. To analyze how markets work, we need to determine the market demand, which is the sum of all the individual demands for a particular good or service. Catherine's Demand T Nicholas's Demand Ice-Cream Cones Ice-Cream Cones Ice-Cream Cones Ice-Cream Cones a graph of the relationship between the price of a good and the quantity demanded a Latin phrase, translated as other things being equal, used as a reminder that all variables...

Suppose That Congress Imposes A Tariff On Imported Autos

The United States represents a small part of the world orange market. a. Draw a diagram depicting the equilibrium in the U.S. orange market without international trade. Identify the equilibrium price, equilibrium quantity, consumer surplus, and producer surplus. b. Suppose that the world orange price is below the U.S. price before trade, and that the U.S. orange market is now opened to trade. Identify the new equilibrium price, quantity consumed, quantity produced domestically, and quantity...

Should Tiger Woods Mow His Own Lawn

Tiger Woods spends a lot of time walking around on grass. One of the most talented golfers of all time, he can hit a drive and sink a putt in a way that most casual golfers only dream of doing. Most likely, he is talented at other activities too. For example, let's imagine that Woods can mow his lawn faster than anyone else. But just because he can mow his lawn fast, does this mean he should To answer this question, we can use the concepts of opportunity cost and comparative advantage. Let's...

Show The Effect Of A 0.50 Per Cone Subsidy On The Demand Curve For Ice Cream Cones The Effective Price Paid By Consumers

What are the equilibrium price and quantity of Frisbees b. Frisbee manufacturers persuade the government that Frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor 2 above the equilibrium price. What is the new market price How many Frisbees are sold c. Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes...

Ketchup Is A Complement For Hot Dogs. If The Price Of Hot Dogs Rises What Happens To The Market For Ketchup For

Explain each of the following statements using supply- a. When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country. b. When the weather turns warm in New England every summer, the prices of hotel rooms in Caribbean resorts plummet. c. When a war breaks out in the Middle East, the price of gasoline rises, while the price of a used Cadillac falls. 2. An increase in the demand for notebooks raises the quantity of notebooks demanded, but not the...

Case Study Rent Control In The Short Run And Long

Rent Control Short Run And Long Run

One common example of a price ceiling is rent control. In some cities, the local government places a ceiling on rents that landlords may charge their tenants. The goal of this policy is to help the poor by making housing more affordable. Economists often criticize rent control, arguing that it is a highly inefficient way to help the poor raise their standard of living. One economist called rent control the best way to destroy a city, other than bombing. The adverse effects of rent control are...