经济学作业

Economics

Chapter 1

4. [Related to Solved Problem 1-1] Suppose Dell is currently selling 250,000 Pentium 4 laptops pe r month. A manager at Dell argues, “The last 10,000 laptops we produced increased our revenue by 8.5 million and our costs by 8.9 million. However, because we are making a substantial total p rofit of $25 million from producing 250,000 laptops, I think we are producing the optimal numbe r of laptops.” Briefly explain whether you agree with the manger’s reasoning.

Optimal decisions are made at the margin. For the optimal number, MB=MC, 8.5m not equal 8. 9m, so I’m not agree with the manager’s reasoning.

8. In 1838, the U.S. Army was given the job of moving the Cherokees, Creeks, Choctaws, and Sem inoles from the eastern United States to Oklahoma. Contractors were given $65 per person (abo ut $1,270 in today’s money) to provide food and medicine for the Indians during the 1,000- mile f orced march. Many of the contractors provided scanty food portions, bad meat, and no medicine. As a result, approximately one-quarter of these Indians perished along the way. How could the i ncentives have been changed so that the death rates would have been lower?

Human beings act from a variety of motives, the contractors’ immoral acts were droved by mas sive benefit. So the incentives have to be changed, the wage or salary should not be decided fir st and paid in advance, the paid make a relationship with the alive people, the more alive peop le, the more paid the contractors get. While the more death, the lower paid and even the pena lty. This act may make the death rates would be lower.

15. Many large firms have begun outsourcing work to China.

a. Why have they done this?

b. Is outsourcing work to low-wage Chinese workers a risk-free proposition for large firms?

a. Most economists/corporates believe that international trade, including the trade that result s when firms move production offshore, increases economic efficiency and raises incomes. Larg e firms have begun outsourcing work to China because of the lower production and labor costs, closeness to the Chinese market and Chinese customers, as well as shorter delivery times and global presence.

b. No, there are also risks for outsourcing work to China, such as quality standard issues, difficu lty to keep the Chinese staff, IPR problems, and unemployment in the original industries, et

c.

17. Briefly explain whether each of the following is primarily a microeconomic issue or a macroec onomic issue:

a. The effect of higher cigarette taxes on the quantity of cigarette sold

b. The effect of higher income taxed on the total amount of consumer spending

c. The reason for the economics of East Asian countries growing faster than the economics of sub -Saharan African countries

d. The reasons for low rates of profit in the airline industry.

a. and d. are microeconomic questions because they relate to specific industries;

b. and

c. are macroeconomic questions because they relate to economy-wide issues.