Changes

Jump to navigation Jump to search

Economics Lecture Six (view source)

Revision as of 20:51, March 17, 2013

657 bytes added ,  20:51, March 17, 2013
carry over problems from last time
Line 194: Line 194:  
===Honors===
 
===Honors===
   −
Provide brief answers to '''''any four of the following five questions''':
+
Provide brief answers to '''''any four of the following questions''':
    
9.  Suppose there is a sudden increase in the market price for a firm's widget.  The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________.  [Hint: the answer is NOT simply "marginal cost"].
 
9.  Suppose there is a sudden increase in the market price for a firm's widget.  The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________.  [Hint: the answer is NOT simply "marginal cost"].
Line 210: Line 210:     
13.  Charity, revisited:  Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors).  Is this just by chance, or are there reasons why charity lasts longer than business?  Feel free to revisit the issue of the interplay between the free market and charity.
 
13.  Charity, revisited:  Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors).  Is this just by chance, or are there reasons why charity lasts longer than business?  Feel free to revisit the issue of the interplay between the free market and charity.
 +
 +
14.  The greater the number of substitutes for a good, is it more or less price elastic?  Explain briefly.
 +
 +
15.  The smaller the proportion of income consumed by the purchase of a good, is it more or less income elastic?  Explain briefly.
 +
 +
16.  Would government prefer taxing a good that is price elastic or price inelastic?  Explain briefly.
 +
 +
17.  Suppose french fries cost $1 and ketchup 10 cents.  When the price of ketchup goes up to 20 cents, the quantity demanded for french fries falls by 10%.  What is the cross elasticity of demand for french fries with respect to ketchup?  Show your work and state whether these goods are complements or substitutes.
    
=== Extra Credit for Anyone ===
 
=== Extra Credit for Anyone ===
Aschlafly
Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
126,527

edits

Retrieved from "https://www.conservapedia.com/Special:MobileDiff/1041245"

Navigation menu