经济学作业

EconomicsChapter 14. [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, etc.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 soldb. The effect of higher income taxed on the total amount of consumer spendingc. The reason for the economics of East Asian countries growing faster than the economics of sub -Saharan African countriesd. The reasons for low rates of profit in the airline industry.a. and d. are microeconomic questions because they relate to specific industries;b. andc. are macroeconomic questions because they relate to economy-wide issues.Chapter 211. Using the same amount of resources, the United States and Canada can both produce lumber jack shirts and lumberjack boots as shown in the following production possibilities frontiers:a. Who has a comparative advantage in producing lumberjack boots? Who has a comparative ad vantage in producing lumberjack shirts? Explain your reasoning.b. Does either country have an absolute advantage in producing both goods? Explain.c. Suppose that both countries are currently producing three pairs of boots and three shirts. Sho w that both can be better off if they specialize in producing one good and then engage in trade.a. Canada has the comparative advantage in making boots. Canada’s opportunity cost of makin g 1 boot is giving up 1 shirt. In the United States, the opportunity cost of making 1 boot is giv ing up 3 shirts. The United States has the comparative advantage in making shirts. In the Uni ted States, the opportunity cost of making one shirt is giving up 1/3 boot, but Canada’s oppo rtunity cost of making 1 shirt is 1 boot.b. Neither country has an absolute advantage in making both goods. The United States has the absolute advantage in making shirts, but Canada has the absolute advantage in making boot s. Remember, both countries have the same amount of resources. If each country puts all of its resources into making shirts, then the United States makes 12 shirts, but Canada makes o nly 6 shirts. If each country puts all of its resources into making boots, then Canada makes 6 boots, but the United States makes only 4 boots.c. If each country specializes in the production of the good in which it has a comparative advan tage and then trades with the other country, both will be better off. Let’s use the case in whi ch each country trades half of what it makes for half of what the other makes. The United St ates will specialize by making 12 shirts and Canada will specialize by making 6 boots. Becaus e each gets half of the other’s production, they both end up with 6 shirts and 3 boots. They a re better off than before trading because they end up with the same number of boots, but t wice as many shirts. Other trades will also make them better off.15. Identify whether each of the following transactions will take place in the factors market or in the product market, or service, or demanding the good or service:a. George buys a BMW X5 SUVb. BMW increase employment at its Spartanburg plant.c. George works 20 hours per week at McDonald’sd. George sells land he owns to McDonald’s so it can build a new restaurant.a. An auto purchase takes place in the product market. The household (George) demands the g ood, and the firm (Tesla Motors) supplies the good.b. The labor market is a factor market. Households supply labor, and the firm demands labor.c. The labor market is a factor market. The household (George) supplies the factor of productio n (labor), while the firm (McDonald’s) demands it.d. The land market is a factor market. The household (George) supplies the factor of productio n (land), and the firm (McDonald’s) demands it.16. In The Wealth of Nations, Adam Smith wrote the following (Book I, Chapter II):It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our diner, but from their regard to their own interest.Briefly discuss what he meant by his.Adam Smith realized—as economists today realize—that people’s motives can be complex. But in analyzing people in the act of buying and selling, economists have concluded that in mo st instances, the motivation of financial reward provides the best explanation for the actions p eople take. Moreover, being self-interested—looking out for your own well-being and happine ss—and being selfish—caring only about yourself—are not exactly the same thing. Many succe ssful business people are, in fact, generous: Donating to charity, volunteering for activities, and otherwise acting in a generous way. These actions are not inconsistent with making business d ecisions that maximize profits for their companies.Chapter 32. For each of the following pairs of products, state which are compliments, which are substitute s, and which are unrelated.a. Pepsi and Cokeb. Oscar Mayer hot dogs and Wonder hot dog bunsc. Jiffy peanut butter and Smucker’s strawberry jamd. Hewlett-Packard printers and Texas Instruments hand calculatorsa. Substitutesb. Complementsc. Complementsd. Unrelated3. State whether each of the following events will result in a movement along the demand curve for McDonald’s Big Mac hamburgers or whether it will cause the curve to shift. If the demand cur ve shifts, indicate whether it will shift to the left or to the right and draw a graph to illustrate the shift.a. The price of Burger King’s Whopper hamburger declines.b. McDonald’s distributes coupons for $1.00 off on a purchase of a Big Mac.c. Because of a shortage of potatoes, the price of French fries increases.d. Kentucky Fried Chicken raises the price of a bucket of fried chicken.a. Because the price of a substitute good has declined, the demand curve for Big Macs will shift to the left from D1 to D2.b. The coupon results in a cut in the price of Big Macs, so there will be a movement down the d emand curve for Big Macs.c. Because for most people Big Macs and fries are complements, the demand curve for Big Mac s will shift to the left from D1 to D2.d. The demand curve for Big Mac’s will shift. If the Big Mac is a n inferior good, the demand cur ve will shift to the left from D1 to D2. If the Big Mac is a normal good, the demand curve will sh ift to the right.21. Briefly explain whether each of the following statements is true or false.a. If the demand and supply for a product both increase, the equilibrium quantity of the product must also increase.b. If the demand and supply for a product both increase, the equilibrium price of the product mu st also increase.c. If the demand for a product decreases and the supply of the product may increase of decrease, depending upon whether supply or demand has shifted by more.An increase in demand increases the equilibrium price and equilibrium quantity.A decrease in demand decreases the equilibrium price and equilibrium quantity.An increase in supply decreases equilibrium price and increases the equilibrium quantity.A decrease in supply increases equilibrium price and decreases the equilibrium quantity.a.Trueb.Falsec.False22. According to an article in the Wall Street Journal, “Online auctioneers like eBay are having a h uge impact on the price of fame. After Cal Ripken Jr. announced his retirement from baseball… d ozen of Ripken-autographed game jerseys, baseball cards and Wheaties boxes flooded the online bazaar.” Use a demand and supply graph to illustrate the impact of eBay on the equilibrium pric e of Cal Ripken memorabilia.Chapter 41. The figure below illustrates the market for apples in which the government has imposed a price floor of $10 per crate.a. How many crates of apples will be sold after the price floor has been imposed?b. Will there be a shortage or a surplus? If there is a shortage or surplus, how large will it be?c. Will apple producers benefit from the price floor? If so, explain how they will benefit.a. 28 million cratesb. A surplus of 6 million crates (QD = 28, QS = 34, Surplus = QS – QD = 34 – 28 = 6 million crates)c. The apple producers will benefit. Their revenue will increase from $8 × 30,000,000 = $240,000,000 to $10 × 28,000,000 = $280,000,000.4. Suppose that the government restricts the number of dairy farmers, which results in the suppl y curve for milk shifting to the left. Briefly explain whether each of the following will increase or decrease.a. Consumer surplusb. Producer surplusc. Economic surplusUsing a demand and supply graph, illustrate your answer in each case.a.Decreaseb.Decreasec.Decrease9. The following is from an article in the New York Times:Imagine finding the perfect apartment, only to learn that the landlord is denying you the place because you are on a blacklist of supposedly high-risk renters. Nothing is wrong with your credit r ating, but your name showed up on the list because a private screening service found it in housin g court records about a dispute you had with a previous landlord----a dispute that was resolved i n your favor.Is it more likely that a “blacklist” of “high-risk” tenants will exist in a city with rent control, one wi thout rent control? Briefly explain.19. The competitive equilibrium rent in the city of Lowell is currently $1,000 per month. The gove rnment decides to enact rent control and to establish a price ceiling for apartments of $750 per month. Briefly explain whether rent control is likely to make you personally better or worse off if you are:a. someone currently renting an apartment in Lowell.b. someone who will be moving to Lowell next year and who intends to rent an apartment.c. a landlord who intends to abide by the rent control law.d. a landlord who intends to ignore the law and illegally charge the highest rent you can for your apartments.a. If someone is currently a renter, the law will probably make him or her better off, unless the landlord decides to remove the apartment from the market.b. Probably worse off because the person will likely have difficulty finding a vacant apartment.c. Worse off because the landlord will not be able to charge the competitive rent for apartmen ts.d. Probably better off because the landlord will be able to charge a higher rent than he or she would have been able to before the rent control law was passed. But the landlord may end up worse off if he or she gets caught and the penalty for breaking the law is large.Chapter 52. The chapter discusses the cases of consumption generating a positive externality and producti on generating a negative externality. Is it possible for consumption to generate a negative extern ality? If so, give an example. Is it possible for production to generate a positive externality? If so, give an example.An externality is a benefit or cost that affects someone who is not directly involved in the prod uction or consumption of a good or service. Examples of positive externalities include (1) the b enefits received by a passerby who enjoys a beautiful garden, and (2) the benefit you receive o f a reduced likelihood of catching influenza resulting from other people being vaccinated. Exam ples of negative externalities include (1) the noise from a loud party or from a jetliner, and (2) t he pollution emitted by a factory.3. Why does the government subsidize the purchase of college educations but not the purchase of hamburgers?5. Is it ever possible for an increase in pollution to make society better off? Briefly explain using a graph like Figure 5-3.An increase in pollution could make society better off if the current level of pollution is below t he efficient quantity. For example, government regulations could be so strict that they require pollution reductions to level A in the figure below. The marginal cost of the last unit of pollutio n reduction exceed the marginal benefit, so society would be better off if pollution reduction w as only level B—the efficient quantity.6. If the marginal cost of reducing a certain type of pollution is zero, should all of that pollution be eliminated? Briefly explain.The economically efficient level of pollution is the quantity at which the marginal cost of elimin ating another unit of pollution just equals the marginal benefit from eliminating it. The econo mically efficient quantity of pollution isn’t zero in most cases. Eliminating all pollution would in cur costs that are greater than the benefits.Chapter 62. A newspaper story on the effect of higher milk prices on the market for ice cream contained the following:As a result [of the increase in milk prices], retail prices for ice cream are up 4 percent from last year…. And ice cream consumption is down 3 percent.Given this information, compute the price elasticity of demand for ice cream. Will the revenue re ceived by ice cream suppliers have increased or decreased following the price increase? Briefly e xplain.Price elasticity of demand= Percentage change in quantity demanded/Percentage change in pri ce= 3%/4%= 3/4<1The absolute value of price elasticity less than 1, the demand of ice cream is inelastic.If demand is inelastic, then an increase in price increases revenue, because the decrease in qua ntity demanded is proportionally smaller than the increase in price.3. [Related to Solved Problem 6-3] According to a study by the federal Centers for Disease Contro l and Prevention, the price elasticity of demand for cigarettes is -0.25. Americans purchase about 480 million cigarettes each year.a. If the federal tax on cigarettes were increased enough to raise the price of cigarettes by 50 per cent, what would be the effect on the quantity of cigarettes demanded?b. Is raising the tax on cigarettes a more effective way to reduce smoking if the demand for cigar ettes is elastic or if it is inelastic? Briefly explain.a. (Percentage change in price) × (price elasticity of demand) = percentage change in quantity: 50% × −0.25 = −12.5%. So, the quantity of cigarettes demanded should decline 12.5% from its current level of 360 billion per year. 12.5% of 360 billion is 45 billion.b. Raising the tax on cigarettes is a more effective way to reduce smoking if the demand for cig arettes is elastic. With elastic demand, an increase in price resulting from a tax increase would result in a greater reduction in the quantity demanded of cigarettes than if the demand were i nelastic.5. A study of the price elasticities of products sold in supermarkets contained the following data: PRICE ELASTICITYPRODUCT OF DEMANDSoft Drinks -3.18Canned Soup -1.62Cheese -0.72Toothpaste -0.45a. The demand for which products is inelastic? Discuss reasons why the demand for each product is either elastic or inelastic.b. Use the information in the table to predict the change in the quantity demanded for each prod uct following a 10 percent price increase.a. The absolute value of price elasticity of demand for cheese is 0.72, less than 1, so it is inelasti c.The absolute value of price elasticity of demand for toothpaste is 0.45, less than 1, so it is ine lastic.When the absolute value of price elasticity of demand greater than 1, the product is elastic. When the absolute value of price elasticity of demand less than 1, the product is inelastic. When the absolute value of price elasticity of demand equal to 1, the product is unit-elastic. Meanwhile, the soft drinks and canned soup are not necessary as cheese and toothpaste, an d they may also have available close substitutes.b．Price elasticity of demand= Percentage change in quantity demanded/ Percentage change i n price, so that percentage change in quantity demanded=price elasticity of demand* percenta ge change in priceSoft drinks：-3.18*10%=31.8%, the quantity demanded of soft drinks would have a 31.8% fall. Canned soup: -1.62*10%=16.2%, the quantity demanded of canned soup have a 16.2% fall. Cheese: -0.72*10%=7.2%, the quantity demanded of cheese have a 7.2% fall.Toothpaste: -0.45*10%=4.5%, the quantity demanded of toothpaste have a 4.5% fall.6. On most days the price of a rose is $1 and 8,000 roses are purchased. On Valentine’s Day, the price of a rose jumps to $2 and 30,000 roses are purchased.a. Draw a supply and demand diagram showing why the prices jumps.b. Based on this information, what do we know about the price elasticity of demand for roses? W hat do we know about the price elasticity of supply for roses? Calculate values for the price elasti city of demand and the price elasticity of supply, or explain why you can’t calculate values.a. The increase in demand for roses on Valentine’s Day causes the price to increase from $1 to $2.b. Based on this information, we don’t know much about the price elasticity of demand for ros es. The demand curve has shifted, so the rise in the quantity of roses demanded is not caused by the rise in their price—and we can’t calculate the price elasticity of demand. We have a mov ement along the supply curve, so we can calculate the price elasticity of supply for roses.The price elasticity of supply elasticity = (percentage change in quantity supplied)/(per centage change in price). So, using the midpoint formula:Percentage change in the quantity supplied = 30,000-8,00019,000´100=115.8%Percentage change in the price = $2.00-$1.00$1.50´100=66.7%Therefore, the price elasticity of supply = 115.8%66.7%=1.74.The fact that the elasticity doesn’t have a negative sign is a reminder that with an upward-sloping supply curve, increases in price to lead to increases in the quantity supplied, so the price elasticity of supply must be positive. The supply of roses is price elastic given the elas ticity is greater than one.Chapter 71. Suppose that shortly after graduating from college you decide to start your own business. Will you organize the business as a sole proprietorship, a partnership, or a corporation? Explain your r easoning.It depends on the type of business you are entering. Incorporation has the advantage of limite d liability but the disadvantage of additional taxes. If you choose not to form a corporation, the n your choice between a sole proprietorship and a partnership will depend on whether you will gain enough by bringing in a partner or partners and sharing control and profits with them. Th e first firm founded by a young entrepreneur is often a sole proprietorship.3. Suppose that a firm in which you have invested in a firm when it was small and unprofitable. N ow the firm has grown considerably and is large and profitable. Would you be better off if you ha d bought the firm’s stock or the firm’s bonds? Explain.You would be better off if you had bought the stock because it will have increased in value, wh ile the interest the firm pays on the bonds will have remained the same.9. If you deposit $20,000 in a savings account at a bank, you might earn 3 percent interest per ye ar. Someone who borrows $20,000 from a bank to buy a new car might have to pay an interest ra te o f 8 percent per year on the loan. Knowing this, why don’t you just lend your money directly t o the car buyer, cutting on the bank?Finding someone to borrow your money may be difficult. You would then need to check that p erson’s credit, write a loan agreem ent, and repossess the car if the borrower fails to pay back t he loan. Banks specialize in these activities, so they can do them more efficiently than you can.11. The following listing for a corporate bond issued by Sara Lee Corporation appeared in the Wa ll Street Journal on May 4, 2005:a. If you bought this bond, what is the total coupon payment you would receive during the next y ear (in dollars)?b. For what price did this bond sell at the close of trading on May 3?c. What was the yield on a 30-year U.S. Treasury bond on May 3?a. 3.875%*1000=38.75 dollarsb. 91.047%*1000=910.47 dollarsc. 5.244%-1.05%=4.194% or 5.244%-1.08%=4.162%（unsure）Chapter 83. [Related to Solved Problem 8-1] The following table shows the hourly output per worker in tw o industries in Chile and Argentina:OUTPUT PER HOUR OF WORKHATS BEERChile 8 6Argentina 1 2a, Explain which country has an absolute advantage in the production of hats and which country has an absolute advantage in the production of beer.b. Explain which country has a comparative advantage in the production of hats and which count ry has a comparative advantage in the production of beer.c. Suppose that Chile and Argentina currently do not trade with each other. Each has 1,000 hoursof labor to use producing hats and beer, and the countries are currently producing the amounts of each good shown in the following table:HATS BEERChile 7,200 600Argentina 600 800Using this information, give a numerical example of how Chile and Argentina can both gain trade. Assume that after trading begins, one hat can be exchanged for one barrel of beer.4. Demonstrate how the opportunity costs of producing cell phones and MP3 players in Japan and the United States in Table 8-2 were calculated.Chapter 95. [Related to Solved Problem 9-1] Joe has $55 to spend on apples and oranges. Given the inform ation in the following table, is Joe maximizing utility? Briefly explain.PRODUCT PRICE QUANTITY TOTAL UTILITY MARGINAL UTILITY OF LAST UNITApples $0.50 50 1,000 20Oranges $0.75 40 500 307. [Related to Don’t Let This Happen To You!] Mary is buying corn chips and soda. She has 4 bags of corn chips and 5 bottle of soda in her shopping cart. The marginal utility of the fourth bag of c orn chips is 10, and the marginal utility of the sixth bottle of soda is also 10. Is Mary maximizing u tility? Briefly explain.10. Which of the following products are most likely to have significant network externalities? Exp lain.a. Fax machinesb. Dog foodc. Board gamesd. Conventional (CRT) television setse. Plasma television sets14. An article in the New York Times published during the 2002 Winter Olympics held in Utah indi cated that many businesses raised prices during the two-week event. The article described one in cident as follows:Susanne and Heather McDonald, sister from the northwest Wyoming town of Moose, said a fri end was having sushi at restaurant in Park City, where skiing events are held, and the waiter was adding $3 for every side dish until the man identified himself as a local resident. “Then he got the m for free,” S usanne McDonald said.Chapter 101, Which of the following are examples of a firm experiencing positive technological change?a, The firm is able to cut each worker’s wage rate by 10 percent and still produce the same levelof output.b. A training progra m makes the firm’s workers more productive.c. An exercise program makes the firm’s workers more healthy and productive.d. The firm cuts its workforce and is able to maintain its initial level of output.e. The firm rearranges the layout of its factory and finds that by using its initial set of inputs it can produce exactly as much as before.4. Suppose the total cost of producing 10,000 tennis balls is $30,000 and the fixed cost is $10,000.a. What is the variable cost?b. when output is 10,000, what are the average variable cost and the average fixed cost?c. Assuming that the cost curves have the usual shape, is the dollar difference between the avera ge total cost and the average variable cost greater when the output is 10,000 tennis balls or whe n the output is 30,000 tennis balls? Explain.5. A student looks at the data in Table 10-3 and draws this conclusion:” The marginal product of l abor is increasing for the first 3 workers hired, then it declines for the next 3 workers. I guess eac h of the first 3 workers must have been hard workers. Then Jill must have had to settle for increa singly poor workers. ” Do you agree with the student’s analysis? Briefly explain.6. Sally looks at her college transcript and says to Sam, “How is this possible? My grade point ave rage for this semester’s courses is higher than my grade point average for last semester’s courses, but my cumulative grade point average still went down from last semester to this semester.” Ex plain to Sally how this is possible.17. [Related to Solved Problem 10-1] Explain how the listed events (a-d) would affect the followi ng at the Ford Motor Company:i. marginal costii. average variable costiii. average fixed costiv. average total costa, Ford signs a new contract with the United Automobile Workers Union that requires the compa ny to pay higher wages.b. The federal government starts to levy a $1,500 per vehicle tax on sport utility vehiclesc. The company decides to gives its senior executives a one-time $100,000 bonus.d. Ford decides to increase the amount it spends on designing new car models.22. [Related to the chapter Opener] Review the discussion at the beginning of the chapter of Aki o Morita selling transistor radios in the United States. Suppose that Morita became convinced th at Sony would be able to sell more than 75,000 transistor radios each year in the United States. What steps would be he have taken?。