Question
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$10.00 Homework
- From Economics: General-Economics
- Closed, but you can still post tutorials
- Due on Jul. 31, 2008
- Asked on Jul 29, 2008 at 3:59:55PM
Q:
1. What is the fundamental economic problem of human beings?
2. What is the best welfare measure when you compare two countries?
3. What does a bow-shaped PPC imply as oppose to a straight-line PPC?
4. How do you derive MP from TP?
5. How do you derive AP from TP?
6. MSC of refining petroleum = MPC + external costs of cleaning up the pollution
7. Does a minimum wage have a price ceiling or a price floor? How about rent controls?
8. Review the major characteristics of a purely competitive market.
9. If there is a rent control, what does the market experience (surplus or shortage)?
Can you calculate it in a demand-supply diagram?
10. If the demand function is given as P = 10 – 2P and the supply function is P = 3Q, what is the equilibrium price and quantity?
11. Unintended consequences of rent control?
Unintended consequences of minimum wage?
12. The factors that increase/decrease demand for gasoline?
13. What is the socially optimal level of education?
14. Think about some examples that create positive externalities of consumption.
And negative externalities of consumption.
15. Think about some examples that generate positive/negative externalities of production.
16. Cost-benefit analysis: Review Table 4.1 on page 101, and understand how the socially (community) optimal pollution control level is derived.
17. Review Lorenz curve and the Gini Coefficient. How are they associated?
18. If marijuana is legalized, what effects will that have?
19. How does a pure command economy make resource-allocation decisions?
20. Can minimum wage create surplus or shortage of labor?
21. What do we call provision of national defense, crime prevention, parks, community center recreational services, and such collectively-consumed goods or services?
22. The pros and cons of voucher programs?
23. Explain increasing opportunity costs in a typical (bow-shaped) PPC.
24. Define law of diminishing returns in labor input and product output relationship.
25. What are some of the positive externalities of education?
26. Why would a government not attempt to reduce pollution to zero level?
(The answer is in the marginal principle and not in the understanding of total cost or benefit.)
27. Again, review the unintended consequences of rent controls and minimum wage.
Attachments:
ECO405[1].doc (23K)
