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Draw a demand and supply diagram for the unskilled labor market, and discuss the effects of a minimum wage. Who is helped and who is hurt by the minimum wage?
Explicit and Implicit Costs Amos McCoy is currently raising corn on his 100-acre farm. Is he currently earning an economic profit? Why or why not?
Indicate Chris's consumption level of A and B. Explain why this is a consumer equilibrium. What can you say about Chris's total utility at this equilibrium?
Consumer Preferences The absolute value of the slope of the indifference curve equals the marginal rate. What would the indifference curves look like? Explain.
Global Economic Watch and Case Study: The Marginal Value of Free Medical Care. Describe the consumer surplus of the average citizen in each category of country.
What can you say about the marginal valuation that consumers place on the 300th shirt, the 700th shirt, and the 1,200th shirt they might buy each year?
Role of Time in Demand In many amusement parks, you pay an admission fee to the park but you do not need to pay. How do people choose which rides to go on?
What would be the impact of a reduction in co-payments? What is the impact on consumer surplus of offering some coverage for prescription medication?
What must be true about the equilibrium relationship between the marginal utility levels of the last unit consumed of each good?
Assuming that the consumer is in equilibrium and is consuming both X and Y, what must the marginal utility of Y be?
Utility-Maximizing Conditions For a particular consumer, marginal utility of cookies equals marginal utility. what should the consumer do to attain equilibrium?
Government Often it is said that government is necessary when private markets fail to work effectively and fairly. Discuss how private markets might break down.
Household Production What factors does a householder consider when deciding whether to produce a good or service at home or buy it in the marketplace?
Under what circumstances would your personal PPF shift outward? Do you think the shift would be a parallel one? Why, or why not?
If the supply of capital falls by 10 percent and the supply of labor increases by 10 percent, how will the PPF for wheat and cloth change?
What is the cost of producing an additional car when 50 cars are being produced? What do your answers tell you about opportunity costs?
Specialization Provide some examples of specialized markets or retail outlets. What makes the Web so conducive to specialization?
Which country has a comparative advantage in producing wheat? In producing cloth? Which country should specialize in producing wheat? In producing cloth?
If you go to Florida, the airfare, hotel, food, and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?
What kinds of changes in underlying conditions can cause the supply curve to shift? Give some examples and explain the direction in which the curve shifts.
Supply What is the law of supply? What is the relationship between the law of supply and the supply curve?
What variables influence the demand for a normal good? Explain why a reduction in the price of a normal good does not increase the demand for that good.
Law of Demand What is the law of demand? Give two examples of how you have observed the law of demand. How is the law of demand related to the demand curve?
Find resources that are no more than three years old that describe tax rates in two foreign countries. Write an analysis of these tax rates in your own words.
Is the tax rate progressive, proportional, or regressive? What percentage of income is paid in taxes at each level?