Microeconomics Homeworks

Max has two options this weekend. He could work at his job and earn $8 per hour for three hours, or he could go to a concert for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event?

Suppose a state aims to make it easier for people to purchase school supplies for children by exempting these purchases from sales taxes. Such programs are often called "sales tax holidays." Identify which of the following would be considered an unintended consequence of this policy

List 3 positive incentives

List 3 negative incentives

Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $12,000 each year for tuition, $2,500 each year for textbooks, and $12,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year. Assume that if you decided not to go to college, your parents would not let you live at home. What is your opportunity cost for four years of college?

Mia spent 4 hours studying for an exam, and she received an A on the exam. Normally, she would have spent that time watching TV instead of studying. Mia figures she could have made a B after studying only 2 hours, but she really wanted an A. What is Mia's marginal cost in terms of TV viewing to move from a B to an A on the exam?

The opportunity cost of attending college is likely to be highest for a high school graduate who

Deltra was willing to purchase a dozen cookies for $40 that Deirdre was willing to sell for anything more than $22. If they agreed on a price of $26, how much total value was created in this exchange

The United States has the ability to produce more textiles and more semiconductors than Vietnam. However, the United States chooses to import textiles because the opportunity cost of producing textiles in ______ is ________ than in the United States.

List 3 Positive Statements

List 3 Normative Statements

Some statements are hypothetical. Which of the following hypotheticals is positive?

- There are wealthy people making more than $10 million in income annually in the United States who should pay more taxes

- If you graduate from college you will earn more money than someone who does not graduate from college

- If you are doing well in a class you should help your friends who are struggling

What is a point that is inside the production possibilities curve?

What is a point that is outside the production possibilities curve?

What is a point that is along the production possibilities curve?

What gives the PPF the bowed-outward shape?

Which of the following statements is true based on the production possibilities frontier (PPF) below?

Quantity of bicycles produced
Quantity of cars produced
point A higher on curve than point B

Which of the following statements regarding the PPF shown is correct?

Use the graph below to answer the following question.

Quantity of pizzas produced
Quantity of wings produced
Point A 100 pizza to 300 wing
Point B 120 pizza to 300 wing

The graph shows there is improved technology in which of the following?

You work for an architectural firm where your job involves designing buildings and writing computer code for the building plans. How does your decision to invest in specialized job skills affect your ability to do your job? Which of the graphs best represents the expected shift in your PPF if you make the investment in human capital?

What goods belong in a competitive market?

What goods belong in an imperfect market?

Suppose that at a local farmers' market there are a large number of vegetable sellers. Some sell zucchini, some sell broccoli, some sell Brussel sprouts, and so on. this week, the zucchini sellers decide to gang together and fix the price of zucchini at a price higher than they would sell otherwise. which of the following statements is most likely true?

Suppose that Sony decides to decrease the price of the Blu-ray player, for which there are many Blu-ray videos available. Based on Sony's decision, what can we infer?

A recent baby boom has caused an increase in population. What will happen to the price of a college education 18 years from now?

You publish a magazine for calculator collectors. To produce and distribute this magazine, you use a number of inputs:
- computers
- labor
- paper
- postage
- staplers

What is the impact on the market, if the price of labor goes up?

At lunch, two friends are engaged in a heated argument. Their exchange goes like this: The first friend begins, "The supply of hybrid cars and the demand for hybrid cars will both increase. I'm sure of it. I'm also sure the price of hybrids will go down." The second friend replies, "I agree with the first part of your statement, but I'm not sure about the price. In fact, I'm pretty sure that hybrid prices will rise."

Both friends agree that the demand and supply for hybrid cars will increase. for each of the following situations, determine whether the demand curve or the supply curve increases by dragging.

At lunch, two friends are engaged in a heated argument. Their exchange goes like this: The first friend begins, "The supply of hybrid cars and the demand for hybrid cars will both increase. I'm sure of it. I'm also sure the price of hybrids will go down." The second friend replies, "I agree with the first part of your statement, but I'm not sure about the price. In fact, I'm pretty sure that hybrid prices will rise."

suppose the second friend has said the following: "I agree that the demand for hybrid cars will increase, but the supply will decrease. I am pretty sure that ________

The table below provides information for the demand and supply of buckets of fried chicken.

Price - Quantity of buckets of fired chicken demanded - quantity of buckets of fried chicken supplied
$24 - 0 - 60
$20 - 20 - 5-
$16 - 40 - 40
$12 - 60 - 30
$8 - 80 - 20
$4 - 100 - 10

If the price of buckets of fried chicken is currently $20, there is a _____ of _____ buckets of fried chicken

If the price of buckets of fried chicken is currently $8, there is a _____ of _____ buckets of fried chicken

At the market equilibrium price _____ buckets of fried chicken are exchanged

suppose the cost to the firm of shipping cars falls. how will the drop in the cost of shipping cars affect the equilibrium price and equilibrium quantity of cars?

What types of goods are relatively elastic?

What types of goods are relatively inelastic?

describe a perfectly elastic demand curve

describe a relatively elastic demand curve

describe a relatively inelastic demand curve

describe a perfectly inelastic demand curve

Consider the market for coffee. for each of the following scenarios, what would happen to total revenue after the price increases?

Suppose that demand for automobiles increases by 20% when consumers' incomes increase by 15%. What is the income elasticity of demand for automobiles? Round your answer to two decimal places

The table below shows the highest price that Peter, Paul and Mary are willing to pay to see the popular Broadway musical Cats. How much is their total consumer surplus if the current ticket price is $575?

Table:
Peter - $1000
Paul - $775
Mary - $325

Andrew paid $25 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $55, and Andrew agrees. Javier is thrilled, because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon. And that total surplus generated from the resale.

Tonia and Emma are willing to pay $9.25 and $8.75, respectively, for a can opener. What is the total consumer surplus for both Tonia and Emma if the market price of a can opener is $7?

Leah decides to buy a used Dolce & Gabbana dress for $90.00. She was willing to pay $105.00. When her friend Becky sees the dress, she loves it and thinks it worth $190.00. So she offers Leah $145.00 for the dress, and Leah accepts. Leah and Becky are both thrilled with the exchange. What is the total surplus received by both Leah and Becky?

Suppose that Leah purchased the dress from Marie's Boutique. Marie and other boutique owners in town are upset that customers like Leah buy dresses at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Leah cannot sell the dress to Becky?