曼昆微观经济学课后练习英文答案
曼昆微观经济学课后练习英文答案(第七章)
✍ how to define and measure consumer surplus.✍ the link between sellers’ costs of producing a good and the supply curve.✍ how to define and measure producer surplus.✍ that the equilibrium of supply and demand maximizes total surplus in a market. CONTEXT AND PURPOSE:Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then utilized in Chapters 8 and 9 to determine the winners and losers from taxation and restrictions on international trade.The purpose of Chapter 7 is to develop welfare economics—the study of how the allocation of resources affects economic well-being. Chapters 4 through 6 employed supply and demand in a positive framework, which focused on the question, “What is the equilibrium price and quantity in a market?” This chapter now addresses the normative question, “Is the equilibrium price and quantity in a market the best possible solution to the resource allocation problem, or is it simply the price and quantity that balance supply and demand?” Students will discover that under most circumstances the equilibrium price and quantity is also the one that maximizes welfare.KEY POINTS:? Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market.Consumer surplus can be computed by finding the area below the demand curve and above the price.? Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.? An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient. Policymakers are often concerned with the efficiency, as well as the equality, of economic outcomes.? The equilibrium of supply and demand maximizes the sum of consumer and producer surplus.That is, the invisible hand of the marketplace leads buyers and sellers to allocate resources efficiently.? Markets do not allocate resources efficiently in the presence of market failures such as market power or externalities.CHAPTER OUTLINE:I. Definition of welfare economics: the study of how the allocation of resources affects economic well-being.A. Willingness to Pay1. Definition of willingness to pay: the maximum amount that a buyer will pay for a good.2. Example: You are auctioning a mint-condition recording of Elvis Presley’s first album. Four buyers show up. Their willingness to pay is as follows:for John. Because John is willing to pay more than he has to for the album,he derives some benefit from participating in the market.3. Definition of consumer surplus: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.4. Note that if you had more than one copy of the album, the price in the auction would end up being lower (a little over $70 in the case of two albums) and both John and Paul would gain consumer surplus.B. Using the Demand Curve to Measure Consumer Surplus1. We can use the information on willingness to pay to derive a demand curve for the rare2. . Because the demand curve shows the buyers’ willingness to pay, we can use the demand curve to measure consumer surplus.C. How a Lower Price Raises Consumer Surplusare paying less for the product than before (area A on the graph).b. Because the price is now lower, some new buyers will enter the market and receive consumer surplus on these additional units of output purchased (area B on the graph).D. What Does Consumer Surplus Measure?1. Remember that consumer surplus is the difference between the amount that buyers are willing to pay for a good and the price that they actually pay.2. Thus, it measures the benefit that consumers receive from the good as the buyers themselves perceive it.III. Producer SurplusA. Cost and the Willingness to Sell1. Definition of cost: the value of everything a seller must give up to produce a good .2. Example: You want to hire someone to paint your house. You accept bids for the work from four sellers. Each painter is willing to work if the price you will pay exceeds her opportunity cost. (Note that this opportunity cost thus represents willingness to sell.) The costs are: ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price ceilings from Chapter 6. Redraw the market for two-bedroom apartments in your town. Draw in a price ceiling below the equilibriumprice.Then go through:✍ consumer surplus before the price ceiling is put into place.✍ consumer surplus after the price ceiling is put into place.You will need to take some time to explain the relationship between the producers’ willingness to sell and the cost of producing the good. The relationship between cost and the supply curve is not as apparent as the relationship between the demand curve and willingness to pay. It is important to stress that consumer surplus is measured in monetary terms. Consumer surplus gives us a way to place a monetary cost on inefficient market outcomes (due to government involvement or market failure).except for Grandma. Because Grandma receives more than she would require to paint the house, she derives some benefit from producing in the market.4.Definition of producer surplus: the amount a seller is paid for a good minus the seller’s cost of providing it.5. Note that if you had more than one house to paint, the price in the auction would end up being higher (a little under $800 in the case of two houses) and both Grandma and Georgia would gain producer surplus.B. Using the Supply Curve to Measure Producer Surplus1. We can use the information on cost (willingness to sell) to derive a supply curve for2. marginal seller . Because the supply curve shows the sellers’ cost (willingness to sell), we can use the supply curve to measure producer surplus.are receiving more for the product than before (area C on the graph).b. Because the price is now higher, some new sellers will enter the market and receive producer surplus on these additional units of output sold (area D on the graph).D. Producer surplus is used to measure the economic well-being of producers, much like consumer surplus is used to measure the economic well-being of consumers.ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price floors from Chapter 6. Redraw the market for anagricultural product such as corn. Draw in a price support above the equilibriumprice.Then go through:✍ producer surplus before the price support is put in place.✍ producer surplus after the price support is put in place.Make sure that you discuss the cost of the price support to taxpayers.IV.Market EfficiencyA. The Benevolent Social Planner1. The economic well-being of everyone in society can be measured by total surplus, which is the sum of consumer surplus and producer surplus:Total Surplus = Consumer Surplus + Producer SurplusTotal Surplus = (Value to Buyers – Amount Paid by Buyers) +(Amount Received by Sellers – Cost to Sellers)Because the Amount Paid by Buyers = Amount Received bySellers:2. Definition of efficiency: the property of a resource allocation of maximizing the total surplus received by all members of society .3. Definition of equality: the property of distributing economic prosperity uniformly the members of society .a. Buyers who value the product more than the equilibrium price will purchase the product; those who do not, will not purchase the product. In other words, the free market allocates the supply of a good to the buyers who value it most highly, as measured by their willingness to pay.b. Sellers whose costs are lower than the equilibrium price will produce the product; those whose costs are higher, will not produce the product. In other words, the free market allocates the demand for goods to the sellers who can produce it at the lowest cost.to the marginal buyer is greater than the cost to the marginal seller so total surplus would rise if output increases.b. At any quantity of output greater than the equilibrium quantity, the value of the product to the marginal buyer is less than the cost to the marginal seller so total surplus would rise if output decreases.3. Note that this is one of the reasons that economists believe Principle #6: Markets are usually a good way to organize economic activity.It would be a good idea to remind students that there are circumstances whenthe market process does not lead to the most efficient outcome. Examplesinclude situations such as when a firm (or buyer) has market power over priceor when there are externalities present. These situations will be discussed inlater chapters.Pretty Woman, Chapter 6. Vivien (Julia Roberts) and Edward (Richard Gere)negotiate a price. Afterward, Vivien reveals she would have accepted a lowerprice, while Edward admits he would have paid more. If you have done a goodjob of introducing consumer and producer surplus, you will see the light bulbsgo off above your students’ heads as they watch this clip.C. In the News: Ticket Scalping1. Ticket scalping is an example of how markets work to achieve an efficient outcome.2. This article from The Boston Globe describes economist Chip Case’s experience with ticket scalping.D. Case Study: Should There Be a Market in Organs?1. As a matter of public policy, people are not allowed to sell their organs.a. In essence, this means that there is a price ceiling on organs of $0.b. This has led to a shortage of organs.2. The creation of a market for organs would lead to a more efficient allocation of resources, but critics worry about the equity of a market system for organs.V. Market Efficiency and Market FailureA. To conclude that markets are efficient, we made several assumptions about how markets worked.1. Perfectly competitive markets.2. No externalities.B. When these assumptions do not hold, the market equilibrium may not be efficient.C. When markets fail, public policy can potentially remedy the situation. SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Figure 1 shows the demand curve for turkey. The price of turkey is P1 and the consumer surplus that results from that price is denoted CS. Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. It measures the benefit to buyers of participating in a market.Figure 1 Figure 22. Figure 2 shows the supply curve for turkey. The price of turkey is P1 and the producer surplus that results from that price is denoted PS. Producer surplus is the amount sellers are paid for a good minus the sellers’ cost of providing it (measured by the supply curve). It measures the benefit to sellers of participating in a market.Figure 33. Figure 3 shows the supply and demand for turkey. The price of turkey is P1, consumer surplus is CS, and producer surplus is PS. Producing more turkeys than the equilibrium quantity would lower total surplus because the value to the marginal buyer would be lower than the cost to the marginal seller on those additional units.Questions for Review1. The price a buyer is willing to pay, consumer surplus, and the demand curve are all closely related. The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus is the area below the demand curve and above the price, which equals the price that each buyer is willing to pay minus the price actually paid.2. Sellers' costs, producer surplus, and the supply curve are all closely related. The height of the supply curve represents the costs of the sellers. Producer surplus is the area below the price and above the supply curve, which equals the price received minus each seller's costs of producing the good.Figure 43. Figure 4 shows producer and consumer surplus in a supply-and-demand diagram.4. An allocation of resources is efficient if it maximizes total surplus, the sum of consumer surplus and producer surplus. But efficiency may not be the only goal of economic policymakers; they may also be concerned about equity the fairness of the distribution of well-being.5. The invisible hand of the marketplace guides the self-interest of buyers and sellers into promoting general economic well-being. Despite decentralized decision making and self-interested decision makers, free markets often lead to an efficient outcome.6. Two types of market failure are market power and externalities. Market power may cause market outcomes to be inefficient because firms may cause price and quantity to differ from the levels they would be under perfect competition, which keeps total surplus from being maximized. Externalities are side effects that are not taken into account by buyers and sellers. As a result, the free market does not maximize total surplus.Problems and Applications1. a. Consumer surplus is equal to willingness to pay minus the price paid. Therefore, Melissa’s willingness to pay must be $200 ($120 + $80).b. Her consumer surplus at a price of $90 would be $200 ? $90 = $110.c. If the price of an iPod was $250, Melissa would not have purchased one because the price is greater than her willingness to pay. Therefore, she would receive no consumer surplus.2. If an early freeze in California sours the lemon crop, the supply curve for lemons shifts to the left, as shown in Figure 5. The result is a rise in the price of lemons and a decline in consumer surplus from A + B + C to just A. So consumer surplus declines by the amount B + C.Figure 5 Figure 6In the market for lemonade, the higher cost of lemons reduces the supply of lemonade, as shown in Figure 6. The result is a rise in the price of lemonade and a decline in consumer surplus from D + E + F to just D, a loss of E + F. Note that an event that affects consumer surplus in one market often has effects on consumer surplus in other markets.3. A rise in the demand for French bread leads to an increase in producer surplus in the market for French bread, as shown in Figure 7. The shift of the demand curve leads to an increased price, which increases producer surplus from area A to area A + B + C.Figure 7The increased quantity of French bread being sold increases the demand for flour, as shown in Figure 8. As a result, the price of flour rises, increasing producer surplus from area Dto D + E + F. Note that an event that affects producer surplus in one market leads to effects on producer surplus in related markets.Figure 84. a.Figure 9b. When the price of a bottle of water is $4, Bert buys two bottles of water. His consumer surplus is shown as area A in the figure. He values his first bottle of water at $7, but pays only $4 for it, so has consumer surplus of $3. He values his second bottle of water at $5, but pays only $4for it, so has consumer surplus of $1. Thus Bert’s total consumer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water falls from $4 to $2, Bert buys three bottles of water, an increase of one. His consumer surplus consists of both areas A and B in the figure, an increase in the amount of area B. He gets consumer surplus of $5 from the first bottle ($7 value minus $2 price), $3 from the second bottle ($5 value minus $2 price), and $1 from the third bottle ($3 value minus $2 price), for a total consumer surplus of $9. Thus consumer surplus rises by $5 (which is the size of area B) when the price of a bottle of water falls from $4 to $2.5. a.Figure 10b. When the price of a bottle of water is $4, Ernie sells two bottles of water. His producer surplus is shown as area A in the figure. He receives $4 for his first bottle of water, but it costs only $1 to produce, so Ernie has producer surplus of $3. He also receives $4 for his second bottle of water, which costs $3 to produce, so he has producer surplus of $1. Thus Ernie’s total producer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water rises from $4 to $6, Ernie sells three bottles of water, an increase of one. His producer surplus consists of both areas A and B in the figure, an increase by the amount of area B. He gets producer surplus of $5 from the first bottle ($6 price minus $1 cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 price minus $5 price), for a total producer surplus of $9. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6.6. a. From Ernie’s supply schedule and Bert’s demand schedule, the quantityequilibrium quantity of two.b. At a price of $4, consumer surplus is $4 and producer surplus is $4, as shown in Problems 3 and 4 above. Total surplus is $4 + $4 = $8.c. If Ernie produced one less bottle, his producer surplus would decline to $3, as shown in Problem 4 above. If Bert consumed one less bottle, his consumer surplus would decline to $3, as shown in Problem 3 above. So total surplus would decline to $3 + $3 = $6.d. If Ernie produced one additional bottle of water, his cost would be $5, but the price is only $4, so his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total surplus declines by $1 + $1 = $2.7. a. The effect of falling production costs in the market for stereos results in a shift to the right in the supply curve, as shown in Figure 11. As a result, the equilibrium price of stereos declines and the equilibrium quantity increases.Figure 11b. The decline in the price of stereos increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D. Prior to the shift in supply, producer surplus was areas B + E (the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price reduces producer surplus. Because consumer surplus rises by B + C + D and producer surplus rises by F + G – B, total surplus rises by C + D + F + G.c. If the supply of stereos is very elastic, then the shift of the supply curve benefits consumers most. To take the most dramatic case, suppose the supply curve were horizontal, as shown in Figure 12. Then there is no producer surplus at all. Consumers capture all the benefits of falling production costs, with consumer surplus rising from area A to area A + B.Figure 128. Figure 13 shows supply and demand curves for haircuts. Supply equals demand at a quantity of three haircuts and a price between $4 and $5. Firms A, C, and D should cut the hair of Ellen, Jerry, and Phil. Oprah’s willingness to pay is too low and firm B’s costs are too high, so they do not participate. The maximum total surplus is the area between the demand and supply curves, which totals $11 ($8 value minus $2 cost for the first haircut, plus $7 value minus $3 cost for the second, plus $5 value minus $4 cost for the third).Figure 139. a. The effect of falling production costs in the market for computers results in a shift to the right in the supply curve, as shown in Figure 14. As a result, the equilibrium price of computers declines and the equilibrium quantity increases. The decline in the price of computers increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D.Figure 14 Figure 15Prior to the shift in supply, producer surplus was areas B + E (the area above thesupply curve and below the price). After the shift in supply, producer surplus isareas E + F + G. So producer surplus changes by the amount F + G – B, whichmay be positive or negative. The increase in quantity increases producer surplus,while the decline in the price reduces producer surplus. Because consumer surplusrises by B + C + D and producer surplus rises by F + G – B, total surplus rises byC +D + F + G.b. Because typewriters are substitutes for computers, the decline in the price of computers means that people substitute computers for typewriters, shifting the demand for typewriters to the left, as shown in Figure 15. The result is a decline in both the equilibrium price and equilibrium quantity of typewriters. Consumer surplus in the typewriter market changes from area A + B to A + C, a net change of C – B. Producer surplus changes from area C + D + E to area E, a net loss of C + D. Typewriter producers are sad about technological advances in computers because their producer surplus declines.c. Because software and computers are complements, the decline in the price and increase in the quantity of computers means that the demand for software increases, shifting the demand for software to the right, as shown in Figure 16. The result is an increase in both the price and quantity of software. Consumer surplus in the software market changes from B + C to A + B, anet change of A – C. Producer surplus changes from E to C + D + E, an increase of C + D, so software producers should be happy about the technological progress in computers.Figure 16d. Yes, this analysis helps explain why Bill Gates is one the world’s richest people, because his company produces a lot of software that is a complement with computers and there has been tremendous technological advance in computers.10. a. With Provider A, the cost of an extra minute is $0. With Provider B, the cost of anextra minute is $1.b. With Provider A, my friend will purchase 150 minutes [= 150 – (50)(0)]. WithProvider B, my friend would purchase 100 minutes [= 150 – (50)(1)].c. With Provider A, he would pay $120. The cost would be $100 with Provider B.Figure 17d. Figure 17 shows the friend’s demand. With Provider A, he buys 150 minutes andhis consumer surplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, hisconsumer surplus is equal to (1/2)(2)(100) = 100.e. I would recommend Provider A because he receives greater consumer surplus.11. a. Figure 18 illustrates the demand for medical care. If each procedure has a price of $100, quantity demanded will be Q1 procedures.Figure 18b. If consumers pay only $20 per procedure, the quantity demanded will be Q2 procedures. Because the cost to society is $100, the number of procedures performed is too large to maximize total surplus. The quantity that maximizes total surplus is Q1 procedures, which is less than Q2.c. The use of medical care is excessive in the sense that consumers get procedures whose value is less than the cost of producing them. As a result, the economy’s total surplus is reduced.d. To prevent this excessive use, the consumer must bear the marginal cost of the procedure. But this would require eliminating insurance. Another possibility would be that the insurance company, which pays most of the marginal cost of the procedure ($80, in this case) could decide whether the procedure should be performed. But the insurance company does not get the benefits of the procedure, so its decisions may not reflect the value to the consumer.。
曼昆经济学原理英文版习题答案35章THE SHORT-RUN TRADE-OFF BETWEEN INFLATION AND UNEMPLOYMENT
WHAT’S NEW IN THE SEVENTH EDITION:The section on ”A Financial Crisis Takes Us for a Ride Along t he Phillips Curve” has been updated.LEARNING OBJECTIVES:By the end of this chapter, students should understand:why policymakers face a short-run trade-off between inflation and unemployment.why the inflation-unemployment trade-off disappears in the long run.how supply shocks can shift the inflation-unemployment trade-off.the short-run cost of reducing inflation.how policymakers’ credibility might affect the cost of reducing inflation.CONTEXT AND PURPOSE:Chapter 22 is the final chapter in a three-chapter sequence on the economy’s short-run fluctuations around its long-term trend. Chapter 20 introduced aggregate supply and aggregate demand. Chapter 21 developed how monetary and fiscal policies affect aggregate demand. Both Chapters 20 and 21 addressed the relationship between the price level and output. Chapter 22 will concentrate on a similar relationship between inflation and unemployment.The purpose of Chapter 22 is to trace the history of economists’ thinking about the relationship between inflation and unemployment. Students will see why there is a temporary trade-off between inflation and unemployment, and why there is no permanent trade-off. This result is an extension of the results produced by the model of aggregate supply and aggregate demand where a change in the price level induced by a change in aggregate demand temporarily alters output but has no permanent impact on output.389390❖Chapter 22/The Short-Run Trade-off between Inflation and UnemploymentKEY POINTS:∙ The Phillips curve describes a negative relationship between inflation and unemployment. By expanding aggregate demand, policymakers can choose a point on the Phillips curve with higher inflation and lower unemployment. By contracting aggregate demand, policymakers can choose apoint on the Phillips curve with lower inflation and higher unemployment.∙ The trade-off between inflation and unemployment described by the Phillips curve holds only in the short run. In the long run, expected inflation adjusts to changes in actual inflation, and the short-run Phillips curve shifts. As a result, the long-run Phillips curve is vertical at the natural rate ofunemployment.∙ The short-run Phillips curve also shifts because of shocks to aggregate supply. An adverse supply shock, such as an increase in world oil prices, gives policymakers a less favorable trade-off between inflation and unemployment. That is, after an adverse supply shock, policymakers have to accept a higher rate of inflation for any given rate of unemployment, or a higher rate of unemployment for any given rate of inflation.∙ When the Fed contracts growth in the money supply to reduce inflation, it moves the economy along the short-run Phillips curve, which results in temporarily high unemployment. The cost of disinflation depends on how quickly expectations of inflation fall. Some economists argue that a crediblecommitment to low inflation can reduce the cost of disinflation by inducing a quick adjustment of expectations.CHAPTER OUTLINE:I. The Phillips CurveA. Origins of the Phillips Curve1. In 1958, economist A. W. Phillips published an article discussing the negative correlationbetween inflation rates and unemployment rates in the United Kingdom.2. American economists Paul Samuelson and Robert Solow showed a similar relationshipbetween inflation and unemployment for the United States two years later.3. The belief was that low unemployment is related to high aggregate demand, and highaggregate demand puts upward pressure on prices. Likewise, high unemployment is relatedto low aggregate demand, and low aggregate demand pulls price levels down.4. Definition of Phillips curve: a curve that shows the short-run trade-off betweeninflation and unemployment.Chapter 22/The Short-Run Trade-off between Inflation and Unemployment❖ 3915. Samuelson and Solow believed that the Phillips curve offered policymakers a menu ofpossible economic outcomes. Policymakers could use monetary and fiscal policy to chooseany point on the curve.B. Aggregate Demand, Aggregate Supply, and the Phillips Curve1. The Phillips curve shows the combinations of inflation and unemployment that arise in theshort run as shifts in the aggregate-demand curve move the economy along the short-runaggregate-supply curve.2. The greater the aggregate demand for goods and services, the greater the economy’s outputand the higher the price level. Greater output means lower unemployment. The higher theprice level in the current year, the higher the rate of inflation.3. Example: The price level is 100 (measured by the Consumer Price Index) in the year 2020.There are two possible changes in the economy for the year 2021: a low level of aggregatedemand or a high level of aggregate demand.a. If the economy experiences a low level of aggregate demand, we would be at a short-run equilibrium like point A. This point also corresponds with point A on the Phillips curve.Note that when aggregate demand is low, the inflation rate is relatively low and theunemployment rate is relatively high.b. If the economy experiences a high level of aggregate demand, we would be at a short-run equilibrium like point B. This point also corresponds with point B on the Phillips curve.Note that when aggregate demand is high, the inflation rate is relatively high and theunemployment rate is relatively low.392❖Chapter 22/The Short-Run Trade-off between Inflation and Unemployment Figure 24. Because monetary and fiscal policies both shift the aggregate-demand curve, these policiescan move the economy along the Phillips curve.a. Increases in the money supply, increases in government spending, or decreases in taxesall increase aggregate demand and move the economy to a point on the Phillips curvewith lower unemployment and higher inflation.b. Decreases in the money supply, decreases in government spending, or increases in taxesall lower aggregate demand and move the economy to a point on the Phillips curve withhigher unemployment and lower inflation.II. Shifts in the Phillips Curve: The Role of ExpectationsA. The Long-Run Phillips Curve1. In 1968, economist Milton Friedman argued that monetary policy is only able to choose acombination of unemployment and inflation for a short period of time. At the same time,economist Edmund Phelps wrote a paper suggesting the same thing.2. In the long run, monetary growth has no real effects. This implies that it cannot affect thefactors that determine the economy’s long-run unemployment rate.Chapter 22/The Short-Run Trade-off between Inflation and Unemployment ❖ 3933. Thus, in the long run, we would not expect there to be a relationship between unemployment and inflation. This must mean that, in the long run, the Phillips curve is vertical.4. The vertical Phillips curve occurs because, in the long run, the aggregate supply curve is vertical as well. Thus, increases in aggregate demand lead only to changes in the price leveland have no effect on the economy’s level of output. Thus, in the long run, unemployment will not change when aggregate demand changes, but inflation will.5. The long-run aggregate-supply curve occurs at the economy’s natural level of output. Thismeans that the long-run Phillips curve occurs at the natural rate of unemployment.394❖Chapter 22/The Short-Run Trade-off between Inflation and UnemploymentB. The Meaning of “Natural”1. Friedman and Phelps considered the natural rate of unemployment to be the rate towardwhich the economy gravitates in the long run.2. The natural rate of unemployment may not be the socially desirable rate of unemployment.3. The natural rate of unemployment may change over time.C. Reconciling Theory and Evidence1. The conclusion of Friedman and Phelps that there is no long-run trade-off between inflationand unemployment was based on theory, while the correlation between inflation andunemployment found by Phillips, Samuelson, and Solow was based on actual evidence.2. Friedman and Phelps believed that an inverse relationship between inflation andunemployment exists in the short run.3. The long-run aggregate-supply curve is vertical, indicating that the price level does notinfluence output in the long run.4. But, the short-run aggregate-supply curve is upward sloping because of misperceptionsabout relative prices, sticky wages, and sticky prices. These perceptions, wages, and pricesadjust over time, so that the positive relationship between the price level and the quantity ofgoods and services supplied occurs only in the short run.5. This same logic applies to the Phillips curve. The trade-off between inflation andunemployment holds only in the short run.6. The expected level of inflation is an important factor in understanding the difference betweenthe long-run and the short-run Phillips curves. Expected inflation measures how much peopleexpect the overall price level to change.7. The expected rate of inflation is one variable that determines the position of the short-runaggregate-supply curve. This is true because the expected price level affects the perceptionsof relative prices that people form and the wages and prices that they set.8. In the short run, expectations are somewhat fixed. Thus, when the Fed increases the moneysupply, aggregate demand increases along the upward sloping short-run aggregate-supplycurve. Output grows (unemployment falls) and the price level rises (inflation increases).9. Eventually, however, people will respond by changing their expectations of the price level.Specifically, they will begin expecting a higher rate of inflation.Chapter 22/The Short-Run Trade-off between Inflation and Unemployment ❖ 395D. The Short-Run Phillips Curve1. We can relate the actual unemployment rate to the natural rate of unemployment, the actual inflation rate, and the expected inflation rate using the following equation:a. Because expected inflation is already given in the short run, higher actual inflation leadsto lower unemployment.b. How much unemployment changes in response to a change in inflation is determined by the variable a, which is related to the slope of the short-run aggregate-supply curve.2. If policymakers want to take advantage of the short-run trade-off between unemployment and inflation, it may lead to negative consequences.a. Suppose the economy is at point A and policymakers wish to lower the unemploymentrate. Expansionary monetary policy or fiscal policy is used to shift aggregate demand tothe right. The economy moves to point B, with a lower unemployment rate and a higherrate of inflation.b. Over time, people get used to this new level of inflation and raise their expectations ofinflation. This leads to an upward shift of the short-run Phillips curve. The economy ends up at point C, with a higher inflation rate than at point A, but the same level ofunemployment.396 ❖ Chapter 22/The Short-Run Trade-off between Inflation and UnemploymentE. The Natural Experiment for the Natural-Rate Hypothesis1. Definition of the natural-rate hypothesis: the claim that unemployment eventually returns to its normal, or natural rate, regardless of the rate of inflation .2. Figure 6 shows the unemployment and inflation rates from 1961 to 1968. It is easy to see the inverse relationship between these two variables.3. Beginning in the late 1960s, the government followed policies that increased aggregate demand.a. Government spending rose because of the Vietnam War.b. The Fed increased the money supply to try to keep interest rates down.4. As a result of these policies, the inflation rate remained fairly high. However, even thoughinflation remained high, unemployment did not remain low.a. Figure 7 shows the unemployment and inflation rates from 1961 to 1973. The simple inverse relationship between these two variables began to disappear around 1970.b. Inflation expectations adjusted to the higher rate of inflation and the unemployment rate returned to its natural rate of around 5% to 6%.III. Shifts in the Phillips Curve: The Role of Supply ShocksA. In 1974, OPEC increased the price of oil sharply. This increased the cost of producing many goods and services and therefore resulted in higher prices.1. Definition of supply shock : an event that directly alters firms’ costs and prices,shifting the economy’s aggregate -supply curve and thus the Phillips curve .2. Graphically, we could represent this supply shock as a shift in the short-run aggregate-supplycurve to the left.3. The decrease in equilibrium output and the increase in the price level left the economy with stagflation.Chapter 22/The Short-Run Trade-off between Inflation and Unemployment ❖ 397B. Given this turn of events, policymakers are left with a less favorable short-run trade-off between unemployment and inflation.1. If they increase aggregate demand to fight unemployment, they will raise inflation further.2. If they lower aggregate demand to fight inflation, they will raise unemployment further. C. This less favorable trade-off between unemployment and inflation can be shown by a shift of theshort-run Phillips curve. The shift may be permanent or temporary, depending on how people adjust their expectations of inflation.D. During the 1970s, the Fed decided to accommodate the supply shock by increasing the supply of money. This increased the level of expected inflation. Figure 9 shows inflation and unemploymentin the United States during the late 1970s and early 1980s.IV. The Cost of Reducing InflationA. The Sacrifice Ratio1. To reduce the inflation rate, the Fed must follow contractionary monetary policy.a. When the Fed slows the rate of growth of the money supply, aggregate demand falls.b. This reduces the level of output in the economy, increasing unemployment.c. The economy moves from point A along the short-run Phillips curve to point B, which hasa lower inflation rate but a higher unemployment rate.Price Unemployment Rate398❖Chapter 22/The Short-Run Trade-off between Inflation and Unemploymentd. Over time, people begin to adjust their inflation expectations downward and the short-run Phillips curve shifts. The economy moves from point B to point C, where inflation islower and the unemployment rate is back to its natural rate.2. Therefore, to reduce inflation, the economy must suffer through a period of highunemployment and low output.3. Definition of sacrifice ratio: the number of percentage points of annual output lostin the process of reducing inflation by one percentage point.4. A typical estimate of the sacrifice ratio is five. This implies that for each percentage pointinflation is decreased, output falls by 5%.B. Rational Expectations and the Possibility of Costless Disinflation1. Definition of rational expectations: the theory according to which people optimallyuse all the information they have, including information about governmentpolicies, when forecasting the future.2. Proponents of rational expectations believe that when government policies change, peoplealter their expectations about inflation.3. Therefore, if the government makes a credible commitment to a policy of low inflation,people would be rational enough to lower their expectations of inflation immediately. Thisimplies that the short-run Phillips curve would shift quickly without any extended period ofhigh unemployment.C. The Volcker Disinflation1. Figure 11 shows the inflation and unemployment rates that occurred while Paul Volckerworked at reducing the level of inflation during the 1980s.2. As inflation fell, unemployment rose. In fact, the United States experienced its deepest recession since the Great Depression.3. Some economists have offered this as proof that the idea of a costless disinflation suggested by rational-expectations theorists is not possible. However, there are two reasons why we might not want to reject the rational-expectations theory so quickly.a. The cost (in terms of lost output) of the Volcker disinflation was not as large as many economists had predicted.b. While Volcker promised that he would fight inflation, many people did not believe him.Few people thought that inflation would fall as quickly as it did; this likely kept the short-run Phillips curve from shifting quickly.D. The Greenspan Era1. Figure 12 shows the inflation and unemployment rate from 1984 to 2005, called the Greenspan era because Alan Greenspan became the chairman of the Federal Reserve in 1987.2. In 1986, OPEC’s agreement with its members b roke down and oil prices fell. The result of this favorable supply shock was a drop in both inflation and unemployment.3. The rest of the 1990s witnessed a period of economic prosperity. Inflation gradually dropped, approaching zero by the end of the decade. Unemployment also reached a low level, leadingmany people to believe that the natural rate of unemployment had fallen.4. The economy ran into problems in 2001 due to the end of the dot-com stock market bubble,the 9-11 terrorist attacks, and corporate accounting scandals that reduced aggregate demand. Unemployment rose as the economy experienced its first recession in a decade.5. But a combination of expansionary monetary and fiscal policies helped end the downturn,and by early 2005, the unemployment rate was close to the estimated natural rate.6. In 2005, President Bush nominated Ben Bernanke as the Fed chairman. E. A Financial Crisis Takes Us for a Ride Along the Phillips Curve1. In his first couple of years as Fed chairman, Bernanke faced some significant economicchallenges.a. One challenge arose from problems in the housing and financial markets.b. The resulting financial crisis led to a large drop in aggregate demand and high rates of unemployment.c. Figure 13 shows the implications of these events for inflation and unemployment.d. From 2007 to 2009, as the decline in aggregate demand raised unemployment, it alsoreduced the inflation rate from about 3 percent to about 1 percent.e. From 2010 to 2012, unemployment fell and the inflation rate rose from about 1 percentto about 2 percent.f. In essence, the economy first rode down the Phillips curve and then rode back up.g. Note that expected inflation and the position of the short-run Phillips curve wererelatively stable during this period.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The Phillips curve is shown in Figure 1.Figure 1To see how policy can move the economy from a point with high inflation to a point with lowinflation, suppose the economy begins at point A in Figure 2. If policy is used to reduceaggregate demand (such as a decrease in the money supply or a decrease in governmentpurchases), the aggregate-demand curve shifts from AD1 to AD2, and the economy movesfrom point A to point B with lower inflation, a reduction in real GDP, and an increase in theunemployment rate.Figure 22. Figure 3 shows the short-run Phillips curve and the long-run Phillips curve. The curves aredifferent because in the long run, monetary policy has no effect on unemployment, which tends toward its natural rate. However, in the short run, monetary policy can affect the unemployment rate. An increase in the growth rate of money raises actual inflation above expected inflation, causing firms to produce more since the short-run aggregate supply curve is positively sloped, which reduces unemployment temporarily.Figure 33. Examples of favorable shocks to aggregate supply include improved productivity and adecline in oil prices. Either shock shifts the aggregate-supply curve to the right, increasing output and reducing the price level, moving the economy from point A to point B in Figure 4.As a result, the Phillips curve shifts to the left, as the figure shows.Figure 44. The sacrifice ratio is the number of percentage points of annual output lost in the process ofreducing inflation by 1 percentage point. The credibility of the Fed’s commitment to reduceinflation might affect the sacrifice ratio because it affects the speed at which expectations ofinflati on adjust. If the Fed’s commitment to reduce inflation is credible, people will reducetheir expectations of inflation quickly, the short-run Phillips curve will shift downward, andthe cost of reducing inflation will be low in terms of lost output. But if the Fed is not credible,people will not reduce their expectations of inflation quickly, and the cost of reducinginflation will be high in terms of lost output.Questions for ReviewFigure 51. Figure 5 shows the short-run trade-off between inflation and unemployment. The Fed canmove the economy from one point on this curve to another by changing the money supply.An increase in the money supply reduces the unemployment rate and increases the inflation rate, while a decrease in the money supply increases the unemployment rate and decreases the inflation rate.Figure 62. Figure 6 shows the long-run trade-off between inflation and unemployment. In the long run,there is no trade-off, as the economy must return to the natural rate of unemployment on the long-run Phillips curve. In the short run, the economy can move along a short-run Phillips curve, like SRPC1 shown in the figure. But over time (as inflation expectations adjust) the short-run Phillips curve will shift to return the economy to the long-run Phillips curve, for example shifting from SRPC1 to SRPC2.3. The natural rate of unemployment is natural because it is beyond the influence of monetarypolicy. The rate of unemployment will move to its natural rate in the long run, regardless of the inflation rate.The natural rate of unemployment might differ across countries because countries havevarying degrees of union power, minimum-wage laws, collective-bargaining laws,unemployment insurance, job-training programs, and other factors that influence labor-market conditions.4. If a drought destroys farm crops and drives up the price of food, the short-run aggregate-supply curve shifts to the left and the short-run Phillips curve shifts to the right, because the costs of production have increased. The higher short-run Phillips curve means the inflation rate will be higher for any given unemployment rate.5. When the Fed decides to reduce inflation, the economy moves down along the short-runPhillips curve, as shown in Figure 7. Beginning at point A on short-run Phillips curve SRPC1, the economy moves down to point B as inflation declines. Once people's expectations adjust to the lower rate of inflation, the short-run Phillips curve shifts to SRPC2, and the economy moves to point C. The short-run costs of disinflation, which arise because the unemployment rate is temporarily above its natural rate, could be reduced if the Fed's action was credible, so that expectations would adjust more rapidly.Figure 7Quick Check Multiple Choice1. b2. d3. c4. a5. b6. dProblems and Applications1. Figure 8 shows two different short-run Phillips curves depicting these four points. Points aand d are on SRPC1 because both have expected inflation of 3%. Points b and c are onSRPC2 because both have expected inflation of 5%.Figure 82. a. A rise in the natural rate of unemployment shifts both the long-run Phillips curve and theshort-run Phillips curve to the right, as shown in Figure 9. The economy is initially onLRPC1 and SRPC1 at an inflation rate of 3%, which is also the expected rate of inflation.The increase in the natural rate of unemployment shifts the long-run Phillips curve toLRPC2 and the short-run Phillips curve to SRPC2, with the expected rate of inflationremaining equal to 3%.Figure 9b. A decline in the price of imported oil shifts the short-run Phillips curve to the left, asshown in Figure 10, from SRPC1 to SRPC2. For any given unemployment rate, theinflation rate is lower, because oil is such a significant aspect of production costs in the economy.Figure 10c. A rise in government spending represents an increase in aggregate demand, so it movesthe economy along the short-run Phillips curve, as shown in Figure 11. The economy moves from point A to point B, with a decline in the unemployment rate and an increase in the inflation rate.Figure 11d. A decline in expected inflation causes the short-run Phillips curve to shift to the left, asshown in Figure 12. The lower rate of expected inflation shifts the short-run Phillips curve from SRPC1 to SRPC2.Figure 12Figure 133. a. Figure 13 shows how a reduction in consumer spending causes a recession in both anaggregate-supply/aggregate-demand diagram and a Phillips-curve diagram. In bothdiagrams, the economy begins at full employment at point A. The decline in consumerspending reduces aggregate demand, shifting the aggregate-demand curve to the leftfrom AD1 to AD2. The economy initially remains on the short-run aggregate-supply curve AS1, so the new equilibrium occurs at point B. The movement of the aggregate-demand curve along the short-run aggregate-supply curve leads to a movement along short-run Phillips curve SRPC1, from point A to point B. The lower price level in the aggregate-supply/aggregate-demand diagram corresponds to the lower inflation rate in the Phillips-curve diagram. The lower level of output in the aggregate-supply/aggregate-demanddiagram corresponds to the higher unemployment rate in the Phillips-curve diagram.b. As expected inflation falls over time, the short-run aggregate-supply curve shifts to theright from AS1 to AS2, and the short-run Phillips curve shifts to the left from SRPC1 toSRPC2. In both diagrams, the economy eventually gets to point C, which is back on thelong-run aggregate-supply curve and long-run Phillips curve. After the recession is over, the economy faces a better set of inflation-unemployment combinations.Figure 144. a. Figure 14 shows the economy in long-run equilibrium at point a, which is on both thelong-run and short-run Phillips curves.b. A wave of business pessimism reduces aggregate demand, moving the economy to pointb in the figure. The unemployment rate increases and the inflation rate declines. If theFed undertakes expansionary monetary policy, it can increase aggregate demand,offsetting the pessimism and returning the economy to point a, with the initial inflationrate and unemployment rate.c. Figure 15 shows the effects on the economy if the price of imported oil rises. The higherprice of imported oil shifts the short-run Phillips curve to the right from SRPC1 to SRPC2.The economy moves from point a to point c, with a higher inflation rate and higherunemployment rate. If the Fed engages in expansionary monetary policy, it can returnthe economy to its original unemployment rate at point d, but the inflation rate will behigher. If the Fed engages in contractionary monetary policy, it can return the economy to its original inflation rate at point e, but the unemployment rate will be higher. Thissituation differs from that in part (b) because in part (b) the economy stayed on thesame short-run Phillips curve, but in part (c) the economy moved to a higher short-runPhillips curve, which gives policymakers a less favorable trade-off between inflation and unemployment.。
微观经济学曼昆第六版课后答案
微观经济学曼昆第六版课后答案【篇一：曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详解(第1章经济学十大原理)】class=txt>第1篇导言第1章经济学十大原理课后习题详解跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。
以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。
一、概念题1．稀缺性（scarcity）答：经济学研究的问题和经济物品都是以稀缺性为前提的。
稀缺性指在给定的时间内，相对于人的需求而言，经济资源的供给总是不足的，也就是资源的有用性与有限性。
人类消费各种物品的欲望是无限的，满足这种欲望的物品，有的可以不付出任何代价而随意取得，称之为自由物品，如阳光和空气；但绝大多数物品是不能自由取用的，因为世界上的资源（包括物质资源和人力资源）是有限的，这种有限的、为获取它必须付出某种代价的物品，称为“经济物品”。
正因为稀缺性的客观存在，地球上就存在着资源的有限性和人类的欲望与需求的无限性之间的矛盾。
经济学的一个重要研究任务就是：“研究人们如何进行抉择，以便使用稀缺的或有限的生产性资源（土地、劳动、资本品如机器、技术知识）来生产各种商品，并把它们分配给不同的社会成员进行消费。
”也就是从经济学角度来研究使用有限的资源来生产什么、如何生产和为谁生产的问题。
2．经济学（economics）答：经济学是研究如何将稀缺的资源有效地配置给相互竞争的用途，以使人类的欲望得到最大限度满足的科学。
时下经常见诸国内报刊文献的“现代西方经济学”一词，大多也都在这个意义上使用。
自从凯恩斯的名著《就业、利息和货币通论》于1936年发表之后，西方经济学界对经济学的研究便分为两个部分：微观经济学与宏观经济学。
曼昆微观经济学教材第六章练习英文答案
104WHAT’S NEW IN THE SIXTH EDITION:There is a new In the News feature on “Should Unpaid Internships Be Allowed ？”LEARNING OBJECTIVES ：By the end of this chapter ， students should understand:➢ the effects of government policies that place a ceiling on prices.➢ the effects of government policies that put a floor under prices 。
➢ how a tax on a good affects the price of the good and the quantity sold 。
➢ that taxes levied on sellers and taxes levied on buyers are equivalent 。
➢ how the burden of a tax is split between buyers and sellers.CONTEXT AND PURPOSE ：Chapter 6 is the third chapter in a three —chapter sequence that deals with supply and demand and how markets work 。
Chapter 4 developed the model of supply and demand 。
Chapter 5 added precision to the model of supply and demand by developing the concept of elasticity-the sensitivity of the quantity supplied and quantity demanded to changes in economic conditions 。
曼昆《经济学原理(微观经济学分册)》(第7版)课后习题详解
曼昆《经济学原理（微观经济学分册）》（第7版）课后习题详解第1章经济学十大原理一、概念题1．稀缺性（scarcity）答：经济学研究的问题和经济物品都是以稀缺性为前提的。
稀缺性指在给定的时间内，相对于人的需求而言，经济资源的供给总是不足的，也就是资源的有用性与有限性。
人类消费各种物品的欲望是无限的，满足这种欲望的物品，有的可以不付出任何代价而随意取得，称之为自由物品，如阳光和空气；但绝大多数物品是不能自由取用的，因为世界上的资源（包括物质资源和人力资源）是有限的，这种有限的、为获取它必须付出某种代价的物品，称为“经济物品”。
正因为稀缺性的客观存在，地球上就存在着资源的有限性和人类的欲望与需求的无限性之间的矛盾。
经济学的一个重要研究任务就是：“研究人们如何进行抉择，以便使用稀缺的或有限的生产性资源（土地、劳动、资本品如机器、技术知识）来生产各种商品，并把它们分配给不同的社会成员进行消费。
”也就是从经济学角度来研究使用有限的资源来生产什么、如何生产和为谁生产的问题。
2．经济学（economics）答：经济学是研究如何将稀缺的资源有效地配置给相互竞争的用途，以使人类的欲望得到最大限度满足的科学。
时下经常见诸国内报刊文献的“现代西方经济学”一词，大多也都在这个意义上使用。
自从凯恩斯的名著《就业、利息和货币通论》于1936年发表之后，西方经济学界对经济学的研究便分为两个部分：微观经济学与宏观经济学。
微观经济学是以单个经济主体（作为消费者的单个家庭或个人，作为生产者的单个厂商或企业，以及单个产品或生产要素市场）为研究对象，研究单个经济主体面对既定的资源约束时如何进行选择的科学。
宏观经济学则以整个国民经济为研究对象，主要着眼于对经济总量的研究。
3．效率（efficiency）答：效率指人们在实践活动中的产出与投入之比值，或者是效益与成本之比值，如果比值大，效率就高；反之，比值小，效率就低。
效率与产出或者收益的大小成正比，而与成本或投入成反比，也就是说，如果想提高效率，必须降低成本或投入，提高收益或产出。
曼昆经济学原理英文版教案加习题答案第4章THE MARKET FORCES OF SUPPLY AND DEMAND
51WHAT’S NEW IN THE S EVENTH EDITION:The In the News feature “Price Increases after Disasters” has been updated with a new article.LEARNING OBJECTIVES:By the end of this chapter, students should understand:➢ what a competitive market is.➢ what determines the demand for a good in a competitive market.➢ what determines the supply of a good in a competitive market.➢ how supply and demand together set the price of a good and the quantity sold.➢ the key role of prices in allocating scarce resources in market economies.CONTEXT AND PURPOSE:Chapter 4 is the first chapter in a three-chapter sequence that deals with supply and demand and how markets work. Chapter 4 shows how supply and demand for a good determines both the quantity produced and the price at which the good sells. Chapter 5 will add precision to the discussion of supply and demand by addressing the concept of elasticity —the sensitivity of the quantity supplied and quantity demanded to changes in economic variables. Chapter 6 will address the impact of government policies on prices and quantities in markets.The purpose of Chapter 4 is to establish the model of supply and demand. The model of supply and demand is the foundation for the discussion for the remainder of this text. For this reason, time spent studying the concepts in this chapter will return benefits to your students throughout their study of economics. Many instructors would argue that this chapter is the most important chapter in the text.THE MARKET FORCES OF SUPPLY AND DEMAND52 ❖Chapter 4/The Market Forces of Supply and DemandKEY POINTS:• Economists use the model of supply and demand to analyze competitive markets. In a competitive market, there are many buyers and sellers, each of whom has little or no influence on the market price.• The demand curve shows how the quantity of a good demanded depends on the price. According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward.• In addition to price, other determinants of how much consumers want to buy include income, the prices of substitutes and complements, tastes, expectations, and the number of buyers. If one of these factors changes, the demand curve shifts.• The supply curve shows how the quantity of a good supplied depends on the price. According to the law of supply, as the price of a good rises, the quantity supplied rises. Therefore, the supply curve slopes upward.• In addition to price, other determinants of how much producers want to sell include input prices, technology, expectations, and the number of sellers. If one of these factors changes, the supply curve shifts.• The intersection of the supply and demand curves determines the market equilibrium. At the equilibrium price, the quantity demanded equals the quantity supplied.• The behavior of buyers and sellers naturally drives markets toward their equilibrium. When the market price is above the equilibrium price, there is a surplus of the good, which causes the market price to fall. When the market price is below the equilibrium price, there is a shortage, which causes the market price to rise.• To analyze how any event influences a market, we use the supply-and-demand diagram to examine how the event affects equilibrium price and quantity. To do this we follow three steps. First, we decide whether the event shifts the supply curve or the demand curve (or both). Second, we decide which direction the curve shifts. Third, we compare the new equilibrium with the initial equilibrium.• In market economies, prices are the signals that guide economic decisions and thereby allocate scarce resources. For every good in the economy, the price ensures that supply and demand are in balance. The equilibrium price then determines how much of the good buyers choose to consume and how much sellers choose to produce.Chapter 4/The Market Forces of Supply and Demand ❖ 53CHAPTER OUTLINE: I. Markets and CompetitionA. What Is a Market?1. Definition of market: a group of buyers and sellers of a particular good or service.2. Markets can take many forms and may be organized (agricultural commodities) or lessorganized (ice creamB. What Is Competition?1. Definition of competitive market: a market in which there are so many buyers andso many sellers that each has a negligible impact on the market price.2. Each buyer knows that there are several sellers from which to choose. Sellers know that each buyer purchases only a small amount of the total amount sold.C. In this chapter, we will assume that markets are perfectly competitive.1. Characteristics of a perfectly competitive market:a. The goods being offered for sale are exactly the same.b. The buyers and sellers are so numerous that no single buyer or seller has any influence over the market price.2. Because buyers and sellers must accept the market price as given, they are often called "price takers."3. Not all goods are sold in a perfectly competitive market.a. A market with only one seller is called a monopoly market.b. Other markets fall between perfect competition and monopoly.54 ❖ Chapter 4/The Market Forces of Supply and DemandD. We will start by studying perfect competition.1. Perfectly competitive markets are the easiest to analyze because buyers and sellers take the price as a given.2. Because some degree of competition is present in most markets, many of the lessons that we learn by studying supply and demand under perfect competition apply in morecomplicated markets.II. DemandA. The Demand Curve: The Relationship between Price and Quantity Demanded1. Definition of quantity demanded: the amount of a good that buyers are willing andable to purchase.2. One important determinant of quantity demanded is the price of the product.a. Quantity demanded is negatively related to price. This implies that the demand curve isdownward sloping.b. Definition of law of demand: the claim that, other things being equal, thequantity demanded of a good falls when the price of the good rises .3. Definition of demand schedule: a table that shows the relationship between theprice of a good and the quantity demanded. Price of Ice-Cream ConeQuantity of Cones Demanded$0.0012 $0.5010 $1.008 $1.506 $2.004 $2.502 $3.00Figure 1Make sure that you explain that, when we discuss the relationship between quantity demanded and price, we hold all other variables constant. You will need toemphasize this more than once to ensure that students understand why a change inprice leads to a movement along the demand curve.Chapter 4/The Market Forces of Supply and Demand ❖ 554. Definition of demand curve: a graph of the relationship between the price of a good and the quantity demanded.a. Price is generally drawn on the vertical axis.b. Quantity demanded is represented on the horizontal axis. B. Market Demand versus Individual Demand1. The market demand is the sum of all of the individual demands for a particular good orservice.2. The demand curves are summed horizontally —meaning that the quantities demanded are added up for each level of price.3. The market demand curve shows how the total quantity demanded of a good varies with the price of the good, holding constant all other factors that affect how much consumers want to buy.C. Shifts in the Demand Curve1. Because the market demand curve holds other things constant, it need not be stable overtime.56 ❖ Chapter 4/The Market Forces of Supply and Demand2. If any of these other factors change, the demand curve will shift.a. An increase in demand is represented by a shift of the demand curve to the right.b. A decrease in demand is represented by a shift of the demand curve to the left.3. Incomea. The relationship between income and quantity demanded depends on what type of good the product is.b. Definition of normal good: a good for which, other things equal, an increase in income leads to an increase in demand.c. Definition of inferior good: a good for which, other things equal, an increase inincome leads to a decrease in demand.4. Prices of Related Goodsa. Definition of substitutes: two goods for which an increase in the price of one good leads to an increase in the demand for the other.b. Definition of complements: two goods for which an increase in the price of one good leads to a decrease in the demand for the other.5. Tastes6. Expectationsa. Future incomeb. Future prices7. Number of BuyersChapter 4/The Market Forces of Supply and Demand ❖57D. Case Study: Two Ways to Reduce the Quantity of Smoking Demanded1. Public service announcements, mandatory health warnings on cigarette packages, and theprohibition of cigarette advertising on television are policies designed to reduce the demandfor cigarettes (and shift the demand curve to the left).2. Raising the price of cigarettes (through tobacco taxes) lowers the quantity of cigarettesdemanded.a. The demand curve does not shift in this case, however.b. An increase in the price of cigarettes can be shown by a movement along the originaldemand curve.3. Studies have shown that a 10% increase in the price of cigarettes causes a 4% reduction inthe quantity of cigarettes demanded. For teens, a 10% increase in price leads to a 12% dropin quantity demanded.4. Studies have also shown that a decrease in the price of cigarettes is associated with greateruse of marijuana. Thus, it appears that tobacco and marijuana are complements.III. SupplyA. The Supply Curve: The Relationship between Price and Quantity Supplied1. Definition of quantity supplied: the amount of a good that sellers are willing andable to sell.a. Quantity supplied is positively related to price. This implies that the supply curve will beupward sloping.b. Definition of law of supply: the claim that, other things equal, the quantitysupplied of a good rises when the price of the good rises.2. Definition of supply schedule: a table that shows the relationship between the priceof a good and the quantity supplied.58 ❖ Chapter 4/The Market Forces of Supply and Demand3. Definition of supply curve: a graph of the relationship between the price of a good and the quantity supplied. Price of Ice-Cream ConeQuantity of Cones Supplied$0.000 $0.50 0 $1.001 $1.502 $2.003 $2.504 $3.005B. Market Supply versus Individual Supply1. The market supply curve can be found by summing individual supply curves.2. Individual supply curves are summed horizontally at every price.3. The market supply curve shows how the total quantity supplied varies as the price of thegood varies.C. Shifts in the Supply Curve1. Because the market supply curve holds other things constant, the supply curve will shift ifany of these factors changes.a. An increase in supply is represented by a shift of the supply curve to the right.b. A decrease in supply is represented by a shift of the supply curve to the left.Figure 5Figure 7Figure 6You will want to take time to emphasize the difference between a “change in supply” and a “change in quantity supplied.”Chapter 4/The Market Forces of Supply and Demand ❖ 592. Input Prices3. Technology4. Expectations5. Number of Sellers IV. Supply and Demand TogetherA. Equilibrium1. The point where the supply and demand curves intersect is called the market’s equilibrium.2. Definition of equilibrium: a situation in which the market price has reached thelevel at which quantity supplied equals quantity demanded.3. Definition of equilibrium price: the price that balances quantity supplied andquantity demanded.4. The equilibrium price is often called the "market-clearing" price because both buyers andsellers are satisfied at this price.Table 2Figure 8 Students will benefit from seeing equilibrium using both a graph and a supply-and-demand schedule. The schedule will also make it easier for students to understand concepts such as shortages and surpluses.60 ❖Chapter 4/The Market Forces of Supply and Demand5. Definition of equilibrium quantity: the quantity supplied and the quantitydemanded at the equilibrium price.6. If the actual market price is higher than the equilibrium price, there will be a surplus of thegood.Figure 9a. Definition of surplus: a situation in which quantity supplied is greater thanquantity demanded.b. To eliminate the surplus, producers will lower the price until the market reachesequilibrium.7. If the actual price is lower than the equilibrium price, there will be a shortage of the good.a. Definition of shortage: a situation in which quantity demanded is greater thanquantity supplied.b. Sellers will respond to the shortage by raising the price of the good until the marketreaches equilibrium.8. Definition of the law of supply and demand: the claim that the price of any goodadjusts to bring the supply and demand for that good into balance.B. Three Steps to Analyzing Changes in Equilibrium 1. Decide whether the event shifts the supply or demand curve (or perhaps both). 2. Determine the direction in which the curve shifts.3. Use the supply-and-demand diagram to see how the shift changes the equilibrium price andquantity. C. Example: A change in market equilibrium due to a shift in demand —the effect of hot weather onthe market for ice cream.D. Shifts in Curves versus Movements along Curves1. A shift in the demand curve is called a "change in demand." A shift in the supply curve iscalled a "change in supply."2. A movement along a fixed demand curve is called a "change in quantity demanded." Amovement along a fixed supply curve is called a "change in quantity supplied." E. Example: A change in market equilibrium due to a shift in supply —the effect of a hurricane thatdestroys part of the sugar-cane crop and drives up the price of sugar.F. Example: Shifts in both supply and demand —the effect of hot weather and a hurricane thatdestroys part of the sugar cane crop. G. Summary1. When an event shifts the supply or demand curve, we can examine the effects on theequilibrium price and quantity.ALTERNATIVE CLASSROOM EXAMPLE:Go through these examples of events that would shift either the demand or supply of #2 lead pencils:▪ an increase in the income of consumers▪ an increase in the use of standardized exams (using opscan forms) ▪ a decrease in the price of graphite (used in the production of pencils) ▪ a decrease in the price of ink pens ▪ the start of a school year▪ new technology that lowers the cost of producing pencils.2. Table 4 reports the end results of these shifts in supply and demand.H. In the News: Price Increases after Disasters1. When a disaster strikes a region, many good experience an increase in demand or a decreasein supply resulting in upward pressure on prices.2. This article from defends price increases following natural disasters as a naturalresult of market interactions.V. Conclusion: How Prices Allocate ResourcesA. The model of supply and demand is a powerful tool for analyzing markets.B. Supply and demand together determine the prices of the economy’s goods and services.1. These prices serve as signals that guide the allocation of scarce resources in the economy.2. Prices determine who produces each good and how much of each good is produced.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. A market is a group of buyers (who determine demand) and a group of sellers (whodetermine supply) of a particular good or service. A perfectly competitive market is one inwhich there are many buyers and many sellers of an identical product so that each has anegligible impact on the market price.2. Here is an example of a monthly demand schedule for pizza:Price of Pizza Slice Number of Pizza Slices Demanded$ 0.00 100.25 90.50 80.75 71.00 61.25 51.50 41.75 32.00 22.25 12.50 0The demand curve is graphed in Figure 1.Figure 1Examples of things that would shift the demand curve include changes in income, prices ofrelated goods like soda or hot dogs, tastes, expectations about future income or prices, andthe number of buyers.A change in the price of pizza would not shift this demand curve; it would only lead to amovement from one point to another along the same demand curve.3. Here is an example of a monthly supply schedule for pizza:Price of Pizza Slice Number of PizzaSlices Supplied$ 0.00 00.25 1000.50 2000.75 3001.00 4001.25 5001.50 6001.75 7002.00 8002.25 9002.50 1000The supply curve is graphed in Figure 2.Figure 2Figure 3Examples of things that would shift the supply curve include changes in prices of inputs like tomato sauce and cheese, changes in technology like more efficient pizza ovens or automatic dough makers, changes in expectations about the future price of pizza, or a change in the number of sellers.A change in the price of pizza would not shift this supply curve; it would only lead to amovement from one point to another along the same supply curve.4. If the price of tomatoes rises, the supply curve for pizza shifts to the left because there hasbeen an increase in the price of an input into pizza production, but there is no shift indemand. The shift to the left of the supply curve causes the equilibrium price to rise and the equilibrium quantity to decline, as Figure 3 shows.If the price of hamburgers falls, the demand curve for pizza shifts to the left because thelower price of hamburgers will lead consumers to buy more hamburgers and fewer pizzas,but there is no shift in supply. The shift to the left of the demand curve causes theequilibrium price to fall and the equilibrium quantity to decline, as Figure 4 shows.Figure 4Questions for Review1. A competitive market is a market in which there are many buyers and many sellers of anidentical product so that each has a negligible impact on the market price. Another type ofmarket is a monopoly, in which there is only one seller. There are also other markets that fallbetween perfect competition and monopoly.2. The demand schedule is a table that shows the relationship between the price of a good andthe quantity demanded. The demand curve is the downward-sloping line relating price andquantity demanded. The demand schedule and demand curve are related because thedemand curve is simply a graph showing the points in the demand schedule.The demand curve slopes downward because of the law of demand—other things beingequal, when the price of a good rises, the quantity demanded of the good falls. People buyless of a good when its price rises, both because they cannot afford to buy as much andbecause they switch to purchasing other goods.3. A change in consumers' tastes leads to a shift of the demand curve. If the change inconsumers' tastes leads to an increase in demand, consumers want to buy more of this goodat every price level. A change in price leads to a movement along the demand curve.Because price is measured on the vertical axis, a change in the price represents a movementalong the demand curve.4. Because Popeye buys more spinach when his income falls, spinach is an inferior good for him.His demand curve for spinach shifts out to the right as a result of the decrease in his income.5. A supply schedule is a table showing the relationship between the price of a good and thequantity a producer is willing and able to supply. The supply curve is the upward-sloping linerelating price and quantity supplied. The supply schedule and the supply curve are related because the supply curve is simply a graph showing the points in the supply schedule.The supply curve slopes upward because when the price is high, suppliers' profits increase, so they supply more output to the market. The result is the law of supply—other things being equal, when the price of a good rises, the quantity supplied of the good also rises.6. A change in producers' technology leads to a shift in the supply curve. A change in priceleads to a movement along the supply curve.7. The equilibrium of a market is the point at which the quantity demanded is equal to quantitysupplied. If the price is above the equilibrium price, sellers want to sell more than buyers want to buy, so there is a surplus. Sellers try to increase their sales by cutting prices. That continues until they reach the equilibrium price. If the price is below the equilibrium price, buyers want to buy more than sellers want to sell, so there is a shortage. Sellers can raise their price without losing customers. That continues until they reach the equilibrium price.8. When the price of beer rises, the demand for pizza declines, because beer and pizza arecomplements and people want to buy less beer. When we say the demand for pizza declines, we mean that the demand curve for pizza shifts to the left as in Figure 5. The supply curve for pizza is not affected. With a shift to the left in the demand curve, the equilibrium price and quantity both decline, as the figure shows. Thus, the quantity of pizza supplied anddemanded both fall. In sum, supply is unchanged, demand is decreased, quantity supplied declines, quantity demanded declines, and the price falls.Figure 59. Prices play a vital role in market economies because they bring markets into equilibrium. Ifthe price is different from its equilibrium level, quantity supplied and quantity demanded are not equal. The resulting surplus or shortage leads suppliers to adjust the price untilequilibrium is restored. Prices thus serve as signals that guide economic decisions andallocate scarce resources.Quick Check Multiple Choice1. b2. b3. d4. b5. a6. cProblems and Applications1. a. Cold weather damages the orange crop, reducing the supply of oranges and raising theprice of oranges. This leads to a decline in the supply of orange juice because orangesare an important input in the production of orange juice. This can be seen in Figure 6 asa shift to the left in the supply curve for orange juice. The new equilibrium price is higherthan the old equilibrium price.Figure 6b. People often travel to the Caribbean from New England to escape cold weather, so thedemand for Caribbean hotel rooms is high in the winter. In the summer, fewer peopletravel to the Caribbean, because northern climates are more pleasant. The result, asshown in Figure 7, is a shift to the left in the demand curve. The equilibrium price ofCaribbean hotel rooms is thus lower in the summer than in the winter, as the figureshows.Figure 7c. When a war breaks out in the Middle East, many markets are affected. Because a largeproportion of oil production takes place there, the war disrupts oil supplies, shifting thesupply curve for gasoline to the left, as shown in Figure 8. The result is a rise in theequilibrium price of gasoline. With a higher price for gasoline, the cost of operating agas-guzzling automobile like a Cadillac will increase. As a result, the demand for usedCadillacs will decline, as people in the market for cars will not find Cadillacs as attractive.In addition, some people who already own Cadillacs will try to sell them. The result isthat the demand curve for used Cadillacs shifts to the left, while the supply curve shifts to the right, as shown in Figure 9. The result is a decline in the equilibrium price of used Cadillacs.Figure 8 Figure 92. The statement is false. As Figure 10 shows, in equilibrium the increase in demand fornotebooks results in an increased quantity demanded and the quantity supplied.Figure 10 Figure 113. a. If people decide to have more children, they will want larger vehicles for hauling theirkids around, so the demand for minivans will increase. Supply will not be affected. The result is a rise in both the price and the quantity sold, as Figure 12 shows.Figure 12 Figure 13b. If a strike by steelworkers raises steel prices, the cost of producing a minivan rises andthe supply of minivans decreases. Demand will not be affected. The result is a rise in the price of minivans and a decline in the quantity sold, as Figure 13 shows.c. The development of new automated machinery for the production of minivans is animprovement in technology. This reduction in firms' costs will result in an increase in supply. Demand is not affected. The result is a decline in the price of minivans and an increase in the quantity sold, as Figure 14 shows.Figure 14d. The rise in the price of sport utility vehicles affects minivan demand because sport utilityvehicles are substitutes for minivans. The result is an increase in demand for minivans.Supply is not affected. The equilibrium price and quantity of minivans both rise, as Figure12 shows.e. The reduction in peoples' wealth caused by a stock-market crash reduces their income,leading to a reduction in the demand for minivans, because minivans are likely a normal good. Supply is not affected. As a result, both the equilibrium price and the equilibrium quantity decline, as Figure 15 shows.Figure 154. a. DVDs and TV screens are likely to be complements because you cannot watch a DVDwithout a television. DVDs and movie tickets are likely to be substitutes because a movie can be watched at a theater or at home. TV screens and movie tickets are likely to besubstitutes for the same reason.b. The technological improvement would reduce the cost of producing a TV screen, shiftingthe supply curve to the right. The demand curve would not be affected. The result is that the equilibrium price will fall, while the equilibrium quantity will rise. This is shown inFigure 16.Figure 16c. The reduction in the price of TV screens would lead to an increase in the demand forDVDs because TV screens and DVDs are complements. The effect of this increase in the demand for DVDs is an increase in both the equilibrium price and quantity, as shown inFigure 17.Figure 17The reduction in the price of TV screens would cause a decline in the demand for movie tickets because TV screens and movie tickets are substitute goods. The decline in thedemand for movie tickets would lead to a decline in the equilibrium price and quantitysold. This is shown in Figure 18.Figure 185. Technological advances that reduce the cost of producing computer chips represent a declinein an input price for producing a computer. The result is a shift to the right in the supply of computers, as shown in Figure 19. The equilibrium price falls and the equilibrium quantity rises, as the figure shows.Figure 19Because computer software is a complement to computers, the lower equilibrium price of computers increases the demand for software. As Figure 20 shows, the result is a rise in both the equilibrium price and quantity of software.Figure 20Because typewriters are substitutes for computers, the lower equilibrium price of computers reduces the demand for typewriters. As Figure 21 shows, the result is a decline in both the equilibrium price and quantity of typewriters.Figure 216. a. When a hurricane in South Carolina damages the cotton crop, it raises input prices forproducing sweatshirts. As a result, the supply of sweatshirts shifts to the left, as shownin Figure 22. The new equilibrium price is higher and the new equilibrium quantity ofsweatshirts is lower.。
曼昆经济学原理英文第六版答案
曼昆经济学原理英文第六版答案【篇一：曼昆经济学原理英文版文案加习题答案8章】ation a new in the news box on ―the tax debate‖ has been added.by the end of this chapter, students should understand:? how taxes reduce consumer and producer surplus.? the meaning and causes of the deadweight loss from a tax. ? why some taxes have larger deadweight losses than others. ? how tax revenue and deadweight loss vary with the size of a tax.chapter 8 is the second chapter in a three-chapter sequence dealing with welfare economics. in theprevious section on supply and demand, chapter 6 introduced taxes and demonstrated how a tax affects the price and quantity sold in a market. chapter 6 also described the factors that determine how the burden of the tax is divided between the buyers and sellers in a market. chapter 7 developed welfare economics—the study of how the allocation of resources affects economic well-being. chapter 8 combines the lessons learned in chapters 6 and 7 and addresses the effects of taxation on welfare. chapter 9 will address the effects of trade restrictions on welfare. the purpose of chapter 8 is to apply the lessons learned about welfare economics in chapter 7 to the issue of taxation that was addressed in chapter 6. students will learn that the cost of a tax to buyers and sellers in a market exceeds the revenue collected by the government. students will also learn about the factors that determine the degree by which the cost of a tax exceeds the revenue collected by the government.144? a tax on a good reduces the welfare of buyers and sellers of the good, and the reduction in consumer and producer surplus usually exceeds the revenue raised by the government. the fall in total surplus—the sum of consumer surplus, producer surplus, and tax revenue—is called thedeadweight loss of the tax.taxes have deadweight losses because they cause buyers to consume less and sellers to produce less, and these changesin behavior shrink the size of the market below the level that maximizes total surplus. because the elasticities of supply and demand measure how much market participants respond to market conditions, larger elasticities imply larger deadweight losses.as a tax grows larger, it distorts incentives more, and its deadweight loss grows larger. because a tax reduces the size of a market, however, tax revenue does not continually increase. it first rises with the size of a tax, but if the tax gets large enough, tax revenue starts to fall. ? ?i. the deadweight loss of taxationa. remember that it does not matter who a tax is levied on; buyers and sellers will likely share inthe burden of the tax.b. if there is a tax on a product, the price that a buyer pays will be greater than the price the sellerreceives. thus, there is a tax wedge between the two prices and the quantity sold will be smaller if there was no tax.c. how a tax affects market participants1. we can measure the effects of a tax on consumers by examining the change in consumersurplus. similarly, we can measure the effects of the tax on producers by looking at the change in producer surplus.then the benefit from the tax revenue must not be ignored.3. welfare without a taxa. consumer surplus is equal to: a + b + c.b. producer surplus is equal to: d + e + f.c. total surplus is equal to: a + b + c + d + e + f. 4. welfare with a tax a. consumer surplus is equal to: a.b. producer surplus is equal to: f.5. changes in welfare a. consumer surplus changes by: –(b +c). b. producer surplus changes by: –(d + e). c. tax revenue changes by: +(b + d). d. total surplus changes by: –(c + e). 6. definition of distortion, such as a tax. d. deadweight losses and the gains from tradec. tax revenue is equal to: b +d. d. total surplus is equal to: a +b + d + f.1. taxes cause deadweight losses because they prevent buyers and sellers from benefiting fromtrade.2. this occurs because the quantity of output declines; trades that would be beneficial to both the buyer and seller will nottake place because of the tax.3. the deadweight loss is equal to areas c and e (the drop intotal surplus).4. note that output levels between the equilibrium quantity without the tax and the quantitywith the tax will not be produced, yet the value of these unitsto consumers (represented by the demand curve) is larger than the cost of these units to producers (represented by the supply curve).ii. the determinants of the deadweight lossa. the price elasticities of supply and demand will determinethe size of the deadweight loss that occurs from a tax. 1. givena stable demand curve, the deadweight loss is larger when supply is relatively elastic.2. given a stable supply curve, the deadweight loss is larger when demand is relatively elastic. b. case study: the deadweight loss debate1. social security tax and federal income tax are taxes onlabor earnings. a labor tax places a tax wedge between thewage the firm pays and the wage that workers receive.2. there is considerable debate among economists concerning the size of the deadweight lossfrom this wage tax.3. the size of the deadweight loss depends on the elasticity of labor supply and demand, andthere is disagreement about the magnitude of the elasticity of supply.【篇二：曼昆经济学原理英文版文案加习题答案31章】basic conceptsthere is a new in the news feature on the changing nature of u.s. exports and an updated presentation of the u.s. trade deficit.by the end of this chapter, students should understand:??how net exports measure the international flow of goodsand services.??how net capital outflow measures the international flow of capital.??why net exports must always equal net foreign investment.??how saving, domestic investment, and net capital outflow are related.??the meaning of the nominal exchange rate and the real exchange rate.??purchasing-power parity as a theory of how exchange rates are determined.chapter 18 is the first chapter in a two-chapter sequence dealing with open-economy macroeconomics. chapter 18 develops the basic concepts and vocabulary associated with macroeconomics in an international setting: net exports, net capital outflow, real and nominal exchange rates, and purchasing-power parity. the next chapter, chapter 19, builds an open-economy macroeconomic model that shows how these variables are determined simultaneously.the purpose of chapter 18 is to develop the basic concepts macroeconomists use to study open economies. it addresses why a nation’s net exports must equal its net capital outflow. it also addresses the concepts of the real and nominal exchange rate and develops a theory of exchange ratedetermination known as purchasing-power parity.298??net exports are the value of domestic goods and services sold abroad (exports) minus the value offoreign goods and services sold domestically (imports). net capital outflow is the acquisition of foreign assets by domestic residents (capital outflow) minus the acquisition of domestic assets by foreigners (capital inflow). because every international transaction involves an exchange of an asset for a good or service, an economy’s net capital outflow always equals its net exports.an economy’s saving can be used to finance investment at home or buy assets abroad. thus, national saving equals domestic investment plus net capital outflow.the nominal exchange rate is the relative price of the currency of two countries, and the real exchange rate is the relative price of the goods and services of two countries. when the nominal exchange rate changes so that each dollar buys more foreign currency, the dollar is said to appreciate or strengthen. when the nominal exchange rate changes so that each dollarbuys less foreign currency, the dollar is said to depreciate or weaken.according to the theory of purchasing-power parity, a dollar (or a unit of any other currency) should be able to buy the same quantity of goods in all countries. this theory implies that the nominal exchange rate between the currencies of two countries should reflect the price levels in those countries. as a result, countries with relatively high inflation should have depreciating currencies, and countries with relatively low inflation should have appreciating currencies. ?? ?? ??i. we will no longer be assuming that the economy is a closed economy.a. definition of in the world.b. definition of around the world.ii. the international flows of goods and capitala. the flow of goods: exports, imports, and net exports1. definition of abroad.2. definition of domestically.imports, also called the trade balance.4. definition of : the value of a nation’s exports minus the value of its imports, also called net exports.5. definition of .6. definition of .7. definition of .8. there are several factors that influence a country’s exports, imports, and net exports:a. the tastes of consumers for domestic and foreign goods.b. the prices of goods at home and abroad.c. the exchange rates at which people can use domestic currency to buy foreign currencies.d. the incomes of consumers at home and abroad.e. the cost of transporting goods from country to country.f. government policies toward international trade.9. case study: the increasing openness of the u.s. economy a. figure 1 shows the total value of exports and imports (expressed as a percentage of gdp) for the united states since 1950. b. advances in transportation, telecommunications, and technological progress are some of the reasons why international trade has increased over time. c. policymakers around the world have also become more accepting of freetrade over time. 10. in the news: the changing nature of u.s. exports a. growing u.s. exports include entertainment royalties, tourism, travel, and services. b. this article from the wall street journal describes the growth in new exports. b. the flow of financial resources: net capital outflow1. definition of residents minus the purchase of domestic assets by foreigners.2. the flow of capital abroad takes two forms. a. foreign direct investment occurs when a capital investment is owned and operated by a foreign entity.b. foreign portfolio investment involves an investment that is financed with foreign money but operated by domestic residents.3. net capital outflow can be positive or negative.a. when net capital outflow is positive, domestic residents are buying more foreign assets than foreigners are buying domestic assets. capital is flowing out of the country.b. when net capital outflow is negative, domestic residents are buying fewer foreign assets than foreigners are buying domestic assets. the country is experiencing a capital inflow. 4. there are several factors that influence a country’s net capital outflow:a. the real interest rates being paid on foreign assets.b. the real interest rates being paid on domestic assets.c. the perceived economic and political risks of holding assets abroad.d. the government policies that affect foreign ownership of domestic assets.c. the equality of net exports and net capital outflow1. net exports and net capital outflow each measure a type of imbalance in a world market.a. net exports measure the imbalance between a country’s exports and imports in world markets for goods and services.b. net capital outflow measures the imbalance between the amount of foreign assets bought by domestic residents andthe amount of domestic assets bought by foreigners inworld financial markets.2. for an economy, net exports must be equal to net capital outflow.3. example: you are a computer programmer who sells some software to a japanese consumer for 10,000 yen. a. thesale is an export of the united states so u.s. net exports increase.b. there are several things you could do with the 10,000 yenc. you could hold the yen (which is a japanese asset) or use it to purchase another japanese asset. either way, u.s. net capital outflow rises.d. alternatively, you could use the yen to purchase a japanese good. thus, u.s. imports will rise so the net effect on net exports will be zero.e. one final possibility is that you could exchange the yen for dollars at a bank. this doesnot change the situation though, because the bank then must use the yen for something.alternative classroom example: assume that u.s. residents do not want to buy any foreign assets, but foreign residents want to purchase some stock in a u.s. firm (such as microsoft). how are the foreigners going to get the dollars to purchase the stock? they would do it the same way u.s. residents would purchase the stock—they would have to earn more than they spend. in other words, foreigners must sell the united states more goods and services than they purchase from the united states. this leads to negative net exports for the united states. the extra dollars spent by u.s. residents on foreign-produced goods and services would be used to purchase the stock in microsoft. 4. this example can be generalized to the economy as a whole.a. when a nation is running a trade surplus (nx 0), it must be using the foreign currencyto purchase foreign assets. thus, capital is flowing out of the country (nco 0).b. when a nation is running a trade deficit (nx 0), it must be financing the net purchase of these goods by selling assets abroad. thus, capital is flowing into the country (nco0).5. every international transaction involves exchange. when a seller country transfers a good orservice to a buyer country, the buyer country gives up some asset to pay for the good or service.6. thus, the net value of the goods and services sold by a country (net exports) must equal thenet value of the assets acquired (net capital outflow).d. saving, investment, and their relationship to the international flows1. recall that gdp (y ) is the sum of four components: consumption (c ), investment (i ),government purchases (g ) and net exports (nx ).【篇三：曼昆宏观经济学课后答案(英文版)】quizzes:1. gross domestic product measures two things at once: (1) the total income of everyonein the economy; and (2) the total expenditure on the economy’s output of goods and services. it can measure both of these things at once because income must equal expenditure for the economy as a whole.2. the production of a pound of caviar contributes more to gdp than the production of apound of hamburger because the contribution to gdp is measured by market value and the price of a pound of caviar is much higher than the price of a pound of hamburger.3. the four components of expenditure are: (1) consumption;(2) investment; (3)government purchases; and (4) net exports. the largest component is consumption, which accounts for more thantwo-thirds of total expenditure.4. nominal gdp is the production of goods and services valued at current prices. realgdp is the production of goods and services valued at constant prices. real gdp is a better measure of economicwell-being because it reflects the eco nomy’s ability to satisfy people’s needs and desires. thus a rise in real gdp means people have produced more goods and services, but a rise in nominal gdp could occur either because of increased production or because of higher prices.5. although gdp is not a perfect measure of well-being, policymakers should care about itbecause a larger gdp means that a nation can afford better health care, better educational systems, and more of the material necessities of life.questions for review:1.2.3.4. an economys income must equal its expenditure, since every transaction has a buyer and a seller. thus, expenditure by buyers must equal income by sellers. the production of a luxury car contributes more to gdp than the production of an economy car because the luxury car has a higher market value. the contribution to gdp is $3, the market value of the bread, which is the final good that is sold. the sale of used records does not affect gdp at all because it involves no current production.5. the four components of gdp are consumption, such as the purchase of a music cd;investment, such as the purchase of a computer by a business; government purchases, such as an order for military aircraft; and net exports, such as the sale of american wheat to russia.6. economists use real gdp rather than nominal gdp to gauge economic well-beingbecause real gdp is not affected by changes in prices, so it reflects only changes in the amounts being produced. if nominal gdp rises, you do not know if that is because of increased production or higher prices.7.the percentage change in nominal gdp is (600-200)/200 x 100 = 200%. the percentage change in real gdp is (400-200)/200 x 100 = 100%. the percentage change in the deflator is (150-100)/100 x 100 = 50%.8. it is desirable for a country to have a large gdp because people could enjoy more goodsand services. but gdp is not the only important measure of well-being. for example, laws that restrict pollution cause gdp to be lower. if laws against pollution were eliminated, gdp would be higher but the pollution might make us worse off. or, for example, an earthquake would raise gdp, as expenditures on cleanup, repair, and rebuilding increase. but an earthquake is an undesirable event that lowers our welfare.problems and applications:1. a. consumption increases because a refrigerator is a good purchased by ahousehold.b. investment increases because a house is an investment good.c. consumption increases because a car is a good purchased by a household, butinvestment decreases because the car in ford’s inventory had been counted as aninvestment good until it was sold.d. consumption increases because pizza is a good purchased by a household.e. government purchases increase because the government spent money to providea good to the public.f. consumption increases because the bottle is a good purchased by a household,but net exports decrease because the bottle was imported.g. investment increases because new structures and equipment were built.2.3. with transfer payments, nothing is produced, so there is no contribution to gdp. purchases of new housing are included in the investment portion of gdp because housingprovides services for a long time. for the same reason, purchases of new cars could be thought of as investment, but by convention, they are not. the logic could apply to any durable good, such as household appliances.if gdp included goods that are resold, it would be counting output of that particular year, plus sales of goods produced ina previous year. it would double-count goods that were sold more than once and would count goods in gdp for severalyears if they were produced in one year and resold in another. 4.5. a. 2001: ($1 per qt. of milk ? 100 qts. milk) + ($2 per qt. of honey ? 50 qts. honey)= $2002002: ($1 per qt. of milk ? 200 qts. milk) + ($2 per qt. of honey ? 100 qts.honey) = $4002003: ($2 per qt. of milk ? 200 qts. milk) + ($4 per qt. of honey ? 100 qts.honey) = $8002001: ($1 per qt. of milk ? 100 qts. milk) + ($2 per qt. ofhoney ? 50 qts. honey)= $2002002: ($1 per qt. of milk ? 200 qts. milk) + ($2 per qt. of honey ? 100 qts.honey) = $4002003: ($1 per qt. of milk ? 200 qts. milk) + ($2 per qt. of honey ? 100 qts.honey) = $4002001: ($200/$200) ? 100 = 1002002: ($400/$400) ? 100 = 1002003: ($800/$400) ? 100 = 200b. percentage change in nominal gdp in 2002 = [($400 - $200)/$200] ? 100 =100%.percentage change in nominal gdp in 2003 = [($800 -$400)/$400] ? 100 =100%.percentage change in real gdp in 2002 = [($400 - $200)/$200] ? 100 = 100%.percentage change in real gdp in 2003 = [($400 - $400)/$400] ? 100 = 0%.percentage change in the gdp deflator in 2002 = [(100 -100)/100] ? 100 = 0%.percentage change in the gdp deflator in 2003 = [(200 -100)/100] ? 100 =100%.prices did not change from 2001 to 2002. thus, thepercentage change in thegdp deflator is zero. likewise, output levels did not change from 2002 to 2003.this means that the percentage change in real gdp is zero.c. economic well-being rose more in 2002 than in 2003, since real gdp rose in2002 but not in 2003. in 2002, real gdp rose and prices didn’t. in 2003, realgdp didn’t rise and prices did.6.a.b.c.d.e.f.7. the growth rate of nominal gdp is higher than the growth rate of real gdp because of inflation. the growth rate of real gdp is ($8,367 - $8,203)/$8,203 ? 100% = 2.0%. real gdp in 2000 (in 1996 dollars) is $9,873/(118/100) = $8,367. real gdp in 1999 (in 1996 dollars) is $9,269/(113/100) = $8,203. the growth rate ofthe deflator is (118 - 113)/113 ? 100% = 4.4%. the growth rate of nominal gdp is ($9,873 - $9,269)/$9,269 ? 100% = 6.5%. economists ignore the rise in peoples incomes that is caused by higher prices becausealthough incomes are higher, the prices of the goods and services that people buy are also higher. therefore, they will not necessarily be able to purchase more goods and services. for this reason, economists prefer to look at real gdp instead of nominal gdp.many answers are possible.a. gdp equals the dollar amount barry collects, which is $400.8. 9.c.d.e.10. national income = nnp - sales taxes = $350 - $30 = $320. personal income = national income - retained earnings = $320 - $100 = $220. disposable personal income = personal income - personal income tax = $220 - $70 = $150. in countries like india, people produce and consume a fair amount of food at home that isnot included in gdp. so gdp per person in india and the united states will differ by more than their comparative economicwell-being.if the government cares about the total income of americans,it will emphasize gnp, since that measure includes the income of americans that is earned abroad and excludes the income of foreigners. if the government cares about the total amount ofeconomic activity occurring in the united states, it will emphasize gdp, which measures the level of production in the country, whether produced by domestic citizens or foreigners.a. the increased labor-force participation of women has increased gdp in theunited states, since it means more people are working and production hasincreased.if our measure of well-being included time spent working in the home and takingleisure, it wouldnt rise as much as gdp, since the rise in womens labor-forceparticipation has reduced time spent working in the home and taking leisure.other aspects of well-being that are associated with the rise in womens increasedlabor-force participation include increased self-esteem and prestige for women inthe workforce, especially at managerial levels, but decreased quality time spentwith children, whose parents have less time to spend with them. such aspectswould be quite difficult to measure. 11. 12. b. c.24章quick quizzes1. the consumer price index tries to measure the overall cost of the goods and servicesbought by a typical consumer. it is constructed by surveying consumers to fix a basket of goods and services that the typical consumer buys, finding the prices of the goods and。
曼昆微观经济学课后标准答案
曼昆微观经济学课后答案————————————————————————————————作者：————————————————————————————————日期：21.Consider the market for DVD movies,TV screens,and ticket at movie theaters. A．对每一对物品，确定它们是互补品还是替代品·DVD 和电视·DVD 和电影票·电视和电影票As: complements substitutes substitutesB．假设技术进步降低了制造电视机的成本。
画一个图说明电视机市场会发生什么变动。
As: demand curve不变supply curve向右移。
技术进步降低了制造电视机的成本，使电视机的供给曲线向右移动。
电视机的需求曲线不变。
电视机的均衡价格下降，均衡价格上升。
C．再画两个图说明电视机市场的变动如何影响DVD 市场和电影票市场。
答：DVD：demand curve不变supply curve向右移。
由于电视机和DVD 是互补品，电视机价格的下降使DVD 的需求增加。
需求增加引起DVD 均衡价格上升，均衡数量增加。
Movie tickets：supply curve不变demand curve向左移。
由于电视机和电影票是替代品，电视机价格的下降使电影票需求减少。
需求的减少使电影票的均衡价格下降，均衡数量减少。
2.Over the past 20 years,technological advance reduces the cost of computer chips.How do you think this affected the market for computers?For computer software?For typewriters?As: computer : supply curve向右移price 下降computer software: supply curve向右移price 下降typewriters : demand curve向左移3.Consider total cost and total revenue given in the following table:A．计算每种产量时的利润。
曼昆微观经济学英文答案ch01
1WHAT’S NEW:The discussions of Principle #4, “People respond to incentives,” Principle #7, “Governments cansometimes improve market outcomes,” and Principle #10, “Society faces a s hort-run tradeoff between inflation and unemployment” have been shortened. A definition for the term “business cycle” has been added. A new FYI box on “How to Read This Book” has been added and provides students with tips on studying.LEARNING OBJECTIVES: By the end of this chapter, students should understand:➢ that economics is about the allocation of scarce resources.➢ that individuals face tradeoffs.➢ the meaning of opportunity cost.➢ how to use marginal reasoning when making decisions.➢ how incent ives affect people’s behavior.➢ why trade among people or nations can be good for everyone.➢ why markets are a good, but not perfect, way to allocate resources.➢ what determines some trends in the overall economy.CONTEXT AND PURPOSE:Chapter 1 is the first chapter in a three-chapter section that serves as the introduction to the text. Chapter 1 introduces ten fundamental principles on which the study of economics is based. In a broad sense, the rest of the text is an elaboration on these ten principles. Chapter 2 will develop how economists approach problems while Chapter 3 will explain how individuals and countries gain from trade. The purpose of Chapter 1 is to lay out ten economic principles that will serve as building blocks for the rest of the text. The ten principles can be grouped into three categories: how people makedecisions, how people interact, and how the economy works as a whole. Throughout the text, references1 TEN PRINCIPLES OF ECONOMICS2 Chapter 1/Ten Principles of Economicswill be made repeatedly to these ten principles.KEY POINTS:1. The fundamental lessons about individual decisionmaking are that people face tradeoffs among alternative goals, that the cost of any action is measured in terms of forgone opportunities, thatrational people make decisions by comparing marginal costs and marginal benefits, and that people change their behavior in response to the incentives they face.2. The fundamental lessons about interactions among people are that trade can be mutually beneficial,that markets are usually a good way of coordinating trades among people, and that the government can potentially improve market outcomes if there is some sort of market failure or if the market outcome is inequitable.3. The fundamental lessons about the economy as a whole are that productivity is the ultimate sourceof living standards, that money growth is the ultimate source of inflation, and that society faces a short-run tradeoff between inflation and unemployment.CHAPTER OUTLINE:A. The word “economy” comes from the Greek word meaning “one who mana ges a household.”B. This makes some sense since in the economy we are faced with many decisions (just as a household is).C.Fundamental economic problem: resources are scarce. D. Definition of scarcity : the limited nature of society’s resources.E. Definition of economics: the study of how society manages its scarce resources.Chapter 1/Ten Principles of Economics 3A. Principle #1: People Face Tradeoffs1. “There is no such thing as a free lunch.” Making decisions requires trading of fone goal for another.2. Examples include how a student spends her time, how a family decides to spendits income, how the U.S. government spends tax dollars, how regulations mayprotect the environment at a cost to firm owners.3. A special example of a tradeoff is the tradeoff between efficiency and equity.a. Definition of efficiency: the property of society getting the most itcan from its scarce resources.b. Definition of equity: the property of distributing economicprosperity fairly among the members of society.c. For example, tax dollars paid by wealthy Americans and then distributedto those less fortunate may improve equity but lower the return to hardwork and therefore reduce the level of output produced by our resources.d.This implies that the cost of this increased equity is a reduction in theefficient use of our resources.4. Recognizing that tradeoffs exist does not indicate what decisions should be made.B. Principle #2: The Cost of Something Is What You Give Up to Get It1. Making decisions requires individuals to consider the benefits and costs of someaction.2. What are the costs of going to college?a. We cannot count room and board (at least all of the cost) because theperson would have to pay for food and shelter even if he was not inschool.b. We would want to count the value of the student’s time since he couldbe working for pay instead of attending classes and studying.4 Chapter 1/Ten Principles of Economics3. Definition of opportunity cost: whatever must be given up to obtainsome item.C. Principle #3: Rational People Think at the Margin1. Many decisions in life involve incremental decisions: Should I remain in schoolthis semester? Should I take another course this semester? Should I study anadditional hour for tomorrow’s exam?2. Definition of marginal changes: small incremental adjustments to a planof action.3. Example: You are trying to decide how many years you should stay in school.Comparing the lifestyle of an individual with a Ph.D. to that of an individual whohas dropped out of grade school would be inappropriate. You are likely decidingwhether or not to remain in school for an additional year or two. Thus, you needto compare the additional benefits of another year in school (the marginalbenefit) with the additional cost of staying in school for another year (themarginal cost).4. Another example: Suppose that flying a 200-seat plane across the country coststhe airline $100,000, which means that the average cost of each seat is $500.Suppose that the plane is minutes from departure and a passenger is willing topay $300 for a seat. Should the airline sell the seat for $300? In this case, themarginal cost of an additional passenger is very small.D. Principle #4: People Respond to Incentives1. Because people make decisions by weighing costs and benefits, their decisionsmay change in response to changes in costs and benefits.a. When the price of a good rises, consumers will buy less of it because itscost has risen.b. When the price of a good rises, producers will allocate more resources tothe production of the good because the benefit from producing the goodhas risen.2. Sometimes policymakers fail to understand how policies may alter incentives andbehavior.3. Example: Seat belt laws increase use of seat belts and lower the incentives ofindividuals to drive safely. This leads to an increase in the number of caraccidents. This also leads to an increased risk for pedestrians.If you include any incentive-based criteria on your syllabus, discuss it now. Forexample, if you reward class attendance (or penalize students who do not attendclass), explain to students how this change in the marginal benefit of attending classcan be expected to alter their behavior.Chapter 1/Ten Principles of Economics 5III. How People InteractA. Principle #5: Trade Can Make Everyone Better Off1. Trade is not like a sports competition where one side gains and the other sideloses.2. Consider trade that takes place inside your home. Certainly the family isinvolved in trade with other families on a daily basis. Most families do not buildtheir own homes, make their own clothes, or grow their own food.3. Just like families benefit from trading with one another so do countries.4. This occurs because it allows for specialization in areas that countries (or families)can do best.6 Chapter 1/Ten Principles of EconomicsB. Principle #6: Markets Are Usually a Good Way to Organize Economic Activity1. Many countries that once had centrally planned economies have abandoned thissystem and are trying to develop market economies.2. Definition of market economy: an economy that allocates resourcesthrough the decentralized decisions of many firms and households asthey interact in markets for goods and services.Chapter 1/Ten Principles of Economics 73. Market prices reflect both the value of a product to consumers and the cost ofthe resources used to produce it. Therefore, decisions to buy or produce goodsand services are made based on the cost to society of providing them.4. When a government interferes in a market and restricts price from adjustingdecisions that households and firms make are not based on the properinformation. Thus, these decisions may be inefficient.5. Centrally planned economies have failed because they did not allow the marketto work.6. FYI: Adam Smith and the Invisible Handa. Adam Smith’s 1776 work suggested that although individuals aremotivated by self-interest, an invisible hand guides this self- interest intopromoting society’s economic well-being.b. Smith’s astute perceptions will be discussed more fully in the chap ters tocome.C. Principle #7: Governments Can Sometimes Improve Market Outcomes1. There are two broad reasons for the government to interfere with the economy:the promotion of efficiency and equity.2. Government policy can be most useful when there is market failure.a. Definition of market failure: a situation in which a market left onits own fails to allocate resources efficiently.3. Examples of Market Failurea. Definition of externality: the impact of one person’s actions onthe well-being of a bystander.b. Definition of market power: the ability of a single economic actor(or small group of actors) to have a substantial influence onmarket prices.c. Because a market economy rewards people for their ability to producethings that other people are willing to pay for, there will be an unequaldistribution of economic prosperity.8 Chapter 1/Ten Principles of Economics4. Note that the principle states that the government can improve market outcomes.This is not saying that the government always does improve market outcomes. IV. How the Economy as a Whole WorksA. Principle #8: A Country’s Standard of Living Depends on Its Ability to Produce Goods andServices1. Differences in living standards from one country to another are quite large.2. Changes in living standards over time are also great.3. The explanation for differences in living standards lies in differences inproductivity.4. Definition of productivity: the quantity of goods and services producedfrom each hour of a worker’s time.5. High productivity implies a high standard of living.6. Thus, policymakers must understand the impact of any policy on our ability toproduce goods and services.B. Principle #9: Prices Rise When the Government Prints Too Much Money1. Definition of inflation: an increase in the overall level of prices in theeconomy.2. When the government creates a large amount of money, the value of moneyfalls.3. Examples: Germany after World War I (in the early 1920s), the United States inthe 1970s.C. Principle #10: Society Faces a Short-Run Tradeoff between Inflation and Unemployment1. Definition of Phillips curve: a curve that shows the short-run tradeoffbetween inflation and unemployment.2. This is a controversial topic among economists.3. This tradeoff is only temporary but it can last for several years.4. The Phillips curve is important for understanding the business cycle.5. Definition of business cycle: fluctuations in economic activity, such asemployment and production.Chapter 1/Ten Principles of Economics 96. Policymakers can exploit this tradeoff by using various policy instruments, butthe extent and desirability of these interventions is of continuing debate.D. FYI: How to Read this Book1. Economics is very useful to understand, but it can be a difficult subject to grasp.2. There are five tips to make reading and understanding the material inthe book easier.a. Summarize, don’t highlight.b. Test yourself.c. Practice, practice, practice.d. Study in groups.e. Don’t forget the real world.10 Chapter 1/Ten Principles of EconomicsSOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The four principles of economic decisionmaking are: (1) people face tradeoffs; (2) the cost ofsomething is what you give up to get it; (3) rational people think at the margin; and (4) peoplerespond to incentives. People face tradeoffs because to get one thing that they like, they usually have to give up another thing that they like. The cost of something is what you give up to get it, not just in terms of monetary costs but all opportunity costs. Rational people think at the margin by taking an action if and only if the marginal benefits exceed the marginal costs. Peoplerespond to incentives because as they compare benefits to costs, a change in incentives maycause their behavior to change.2. The three principles concerning economic interactions are: (1) trade can make everyone betteroff; (2) markets are usually a good way to organize economic activity; and (3) governments can sometimes improve market outcomes. Trade can make everyone better off because it allowscountries to specialize in what they do best and to enjoy a wider variety of goods and services.Markets are usually a good way to organize economic activity because the invisible hand leadsmarkets to desirable outcomes. Governments can sometimes improve market outcomes because sometimes markets fail to allocate resources efficiently because of an externality or market power.3. The three principles that describe how the economy as a whole works are: (1) a country’sstandard of living depends on its ability to produce goods and services; (2) prices rise when thegovernment prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. A country’s standard of living depends on its ability to produce goods andservices, which in turn depends on its productivity, which is a function of the education ofworkers and the access workers have to the necessary tools and technology. Prices rise whenthe government prints too much money because more money in circulation reduces the value of money, causing inflation. Society faces a short-run tradeoff between inflation and unemployment that is only temporary and policymakers have some ability to exploit this relationship usingvarious policy instruments.Questions for Review1. Examples of tradeoffs include time tradeoffs (such as studying one subject over another, orstudying at all compared to engaging in social activities) and spending tradeoffs (such as whether to use your last ten dollars on pizza or on a study guide for that tough economics course).2. The opportunity cost of seeing a movie includes the monetary cost of admission plus the timecost of going to the theater and attending the show. The time cost depends on what else youmight do with that time; if it's staying home and watching TV, the time cost may be small, but if it's working an extra three hours at your job, the time cost is the money you could have earned.3. The marginal benefit of a glass of water depends on your circumstances. If you've just run amarathon, or you've been walking in the desert sun for three hours, the marginal benefit is very high. But if you've been drinking a lot of liquids recently, the marginal benefit is quite low. The point is that even the necessities of life, like water, don't always have large marginal benefits.4. Policymakers need to think about incentives so they can understand how people will respond tothe policies they put in place. The text's example of seat belts shows that policy actions canhave quite unintended consequences. If incentives matter a lot, they may lead to a verydifferent type of policy; for example, some economists have suggested putting knives in steering columns so that people will drive much more carefully! While this suggestion is silly, it highlights the importance of incentives.5. Trade among countries isn't a game with some losers and some winners because trade can makeeveryone better off. By allowing specialization, trade between people and trade betweencountries can improve everyone's welfare.6. The "invisible hand" of the marketplace represents the idea that even though individuals andfirms are all acting in their own self-interest, prices and the marketplace guide them to do what is good for society as a whole.7. The two main causes of market failure are externalities and market power. An externality is theimpact of one person’s actions on the well-being of a bystander, such as from pollution or thecreation of knowledge. Market power refers to the ability of a single person (or small group ofpeople) to unduly influence market prices, such as in a town with only one well or only one cable television company. In addition, a market economy also leads to an unequal distribution ofincome.8. Productivity is important because a country's standard of living depends on its ability to producegoods and services. The greater a country's productivity (the amount of goods and servicesproduced from each hour of a worker's time), the greater will be its standard of living.9. Inflation is an increase in the overall level of prices in the economy. Inflation is caused byincreases in the quantity of a nation's money.10. Inflation and unemployment are negatively related in the short run. Reducing inflation entailscosts to society in the form of higher unemployment in the short run.Problems and Applications1. a. A family deciding whether to buy a new car faces a tradeoff between the cost of the carand other things they might want to buy. For example, buying the car might mean theymust give up going on vacation for the next two years. So the real cost of the car is thefamily's opportunity cost in terms of what they must give up.b. For a member of Congress deciding whether to increase spending on national parks, thetradeoff is between parks and other spending items or tax cuts. If more money goesinto the park system, that may mean less spending on national defense or on the policeforce. Or, instead of spending more money on the park system, taxes could be reduced.c. When a company president decides whether to open a new factory, the decision is basedon whether the new factory will increase the firm's profits compared to other alternatives.For example, the company could upgrade existing equipment or expand existing factories.The bottom line is: Which method of expanding production will increase profit the most?d. In deciding how much to prepare for class, a professor faces a tradeoff between thevalue of improving the quality of the lecture compared to other things she could do withher time, such as working on additional research.2. When the benefits of something are psychological, such as going on a vacation, it isn't easy tocompare benefits to costs to determine if it's worth doing. But there are two ways to think aboutthe benefits. One is to compare the vacation with what you would do in its place. If you didn'tgo on vacation, would you buy something like a new set of golf clubs? Then you can decide ifyou'd rather have the new clubs or the vacation. A second way is to think about how much work you had to do to earn the money to pay for the vacation; then you can decide if thepsychological benefits of the vacation were worth the psychological cost of working.3. If you are thinking of going skiing instead of working at your part-time job, the cost of skiingincludes its monetary and time costs, which includes the opportunity cost of the wages you aregiving up by not working. If the choice is between skiing and going to the library to study, then the cost of skiing is its monetary and time costs including the cost to you of getting a lower grade in your course.4. If you spend $100 now instead of saving it for a year and earning 5 percent interest, you aregiving up the opportunity to spend $105 a year from now. The idea that money has a time value is the basis for the field of finance, the subfield of economics that has to do with prices offinancial instruments like stocks and bonds.5. The fact that you've already sunk $5 million isn't relevant to your decision anymore, since thatmoney is gone. What matters now is the chance to earn profits at the margin. If you spendanother $1 million and can generate sales of $3 million, you'll earn $2 million in marginal profit,so you should do so. You are right to think that the project has lost a total of $3 million ($6million in costs and only $3 million in revenue) and you shouldn't have started it. That's true, but if you don't spend the additional $1 million, you won't have any sales and your losses will be $5million. So what matters is not the total profit, but the profit you can earn at the margin. In fact, you'd pay up to $3 million to complete development; any more than that, and you won't beincreasing profit at the margin.6. Harry suggests looking at whether productivity would rise or fall. Productivity is certainlyimportant, since the more productive workers are, the lower the cost per gallon of potion. Ronwants to look at average cost. But both Harry and Ron are missing the other side of theequation−revenue. A firm wants to maximize its profits, so it needs to examine both costs andrevenues. Thus, Hermione is right−it’s best to examine whether the extra revenue wouldexceed the extra costs. Hermione is the only one who is thinking at the margin.7. a. The provision of Social Security benefits lowers an individual’s incentive to save forretirement. The benefits provide some level of income to the individual when he or sheretires. This means that the individual is not entirely dependent on savings to supportconsumption through the years in retirement.b. Since a person gets fewer after-tax Social Security benefits the greater is his or herearnings, there is an incentive not to work (or not work as much) after age 65. Themore you work, the lower your after-tax Social Security benefits will be. Thus thetaxation of Social Security benefits discourages work effort after age 65.8. a. When welfare recipients who are able to work have their benefits cut off after two years,they have greater incentive to find jobs than if their benefits were to last forever.b. The loss of benefits means that someone who can't find a job will get no income at all,so the distribution of income will become less equal. But the economy will be moreefficient, since welfare recipients have a greater incentive to find jobs. Thus the changein the law is one that increases efficiency but reduces equity.9. By specializing in each task, you and your roommate can finish the chores more quickly. If youdivided each task equally, it would take you more time to cook than it would take your roommate, and it would take him more time to clean than it would take you. By specializing, you reduce the total time spent on chores.Similarly, countries can specialize and trade, making both better off. For example, suppose ittakes Spanish workers less time to make clothes than French workers, and French workers canmake wine more efficiently than Spanish workers. Then Spain and France can both benefit ifSpanish workers produce all the clothes and French workers produce all the wine, and theyexchange some wine for some clothes.10. a. Being a central planner is tough! To produce the right number of CDs by the right artistsand deliver them to the right people requires an enormous amount of information. Youneed to know about production techniques and costs in the CD industry. You need toknow each person's musical tastes and which artists they want to hear. If you make thewrong decisions, you'll be producing too many CDs by artists that people don't want tohear, and not enough by others.b. Your decisions about how many CDs to produce carry over to other decisions. You haveto make the right number of CD players for people to use. If you make too many CDsand not enough cassette tapes, people with cassette players will be stuck with CDs theycan't play. The probability of making mistakes is very high. You will also be faced withtough choices about the music industry compared to other parts of the economy. If youproduce more sports equipment, you'll have fewer resources for making CDs. So alldecisions about the economy influence your decisions about CD production.11. a. Efficiency: The market failure comes from the monopoly by the cable TV firm.b. Equityc. Efficiency: An externality arises because secondhand smoke harms nonsmokers.d. Efficiency: The market failure occurs because of Standard Oil's monopoly power.e. Equityf. Efficiency: There is an externality because of accidents caused by drunk drivers.12. a. If everyone were guaranteed the best health care possible, much more of our nation'soutput would be devoted to medical care than is now the case. Would that be efficient?If you think that currently doctors form a monopoly and restrict health care to keep theirincomes high, you might think efficiency would increase by providing more health care.But more likely, if the government mandated increased spending on health care, theeconomy would be less efficient because it would give people more health care than theywould choose to pay for. From the point of view of equity, if poor people are less likelyto have adequate health care, providing more health care would represent animprovement. Each person would have a more even slice of the economic pie, thoughthe pie would consist of more health care and less of other goods.b. When workers are laid off, equity considerations argue for the unemployment benefitssystem to provide them with some income until they can find new jobs. After all, no oneplans to be laid off, so unemployment benefits are a form of insurance. But there’s anefficiency problem why work if you can get income for doing nothing? The economyisn’t operating efficiently if people remain unemployed for a long time, andunemployment benefits encourage unemployment. Thus, there’s a tradeoff betweenequity and efficiency. The more generous are unemployment benefits, the less income islost by an unemployed person, but the more that person is encouraged to remainunemployed. So greater equity reduces efficiency.13. Since average income in the United States has roughly doubled every 35 years, we are likely tohave a better standard of living than our parents, and a much better standard of living than our grandparents. This is mainly the result of increased productivity, so that an hour of workproduces more goods and services than it used to. Thus incomes have continuously risen overtime, as has the standard of living.14. If Americans save more and it leads to more spending on factories, there will be an increase inproduction and productivity, since the same number of workers will have more equipment towork with. The benefits from higher productivity will go to both the workers, who will get paidmore since they're producing more, and the factory owners, who will get a return on theirinvestments. There is no such thing as a free lunch, however, because when people save more, they are giving up spending. They get higher incomes at the cost of buying fewer goods.15. a. If people have more money, they are probably going to spend more on goods andservices.b. If prices are sticky, and people spend more on goods and services, then output mayincrease, as producers increase output to meet the higher demand rather than raisingprices.c. If prices can adjust, then the higher spending of consumers will be matched withincreased prices and output won't rise.16. To make an intelligent decision about whether to reduce inflation, a policymaker would need toknow what causes inflation and unemployment, as well as what determines the tradeoff between them. Any attempt to reduce inflation will likely lead to higher unemployment in the short run. A policymaker thus faces a tradeoff between the benefits of lower inflation compared to the cost of higher unemployment.。
曼昆经济学原理英文版文案加习题答案22章
22FRONTIERS OFMICROECONOMICSWHAT’S NEW IN THE S EVENTH EDITION:A new Case Study on Left-Digit Bias has been added and a new In the News feature on "Can Brain Science Improve Economics" has been added.LEARNING OBJECTIVES:By the end of this chapter, students should understand:how to examine problems caused by asymmetric information.the market solutions to asymmetric information.why democratic voting systems may not represent the preferences of society.why people may not always behave as rational maximizers.CONTEXT AND PURPOSE:Chapter 22 is the last chapter in the microeconomics portion of the text. It is the second of two unrelated chapters that introduce students to advanced topics in microeconomics. These two chapters are intended to whet their appetites for further study in economics.The purpose of Chapter 22 is to give students a taste of three topics on the frontier of microeconomic research. The first topic addressed is asymmetric information, a situation when one person in an economic relationship has more relevant knowledge than the other person does. The second topic is political economy, the application of economic tools to the understanding of the functioning of government. The third topic addressed is behavioral economics, the introduction of psychology into the study of economic issues.KEY POINTS:In many economic transactions, information is asymmetric. When there are hidden actions, principals may be concerned that agents suffer from the problem of moral hazard. When there are hidden characteristics, buyers may be concerned about the problem of adverse selection among the sellers. Private markets sometimes deal with asymmetric information with signaling and screening.Although government policy can sometimes improve market outcomes, governments arethemselves imperfect institutions. The Condorcet paradox shows that the majority rulefails to produce transitive preferences for society, and Arrow's impossibility theorem shows that no voting system will be perfect. In many situations, democratic institutions will produce the outcome desired by the median voter, regardless of the preferences of the rest of the electorate. Moreover, the individuals who set government policy may bemotivated by self-interest rather than national interest.The study of psychology and economics reveals that human decision making is more complex than is assumed in conventional economic theory. People are not always rational, they care about the fairness of economic outcomes (even to their own detriment), and they can be inconsistent over time.CHAPTER OUTLINE:I. Asymmetric InformationA. Many times in life, one person holds more knowledge about what is going on thananother. Such a difference in access to relevant information is known as aninformation asymmetry.B. Examples1. A worker knows more than his employer about the level of his work effort. This isan example of a hidden action.2. A seller of a used car knows more than the buyer does about the car's condition.This is an example of a hidden characteristic.C. When there is asymmetric information, the party without the relevant knowledge wouldlike to have such knowledge, but the other party may have an incentive to conceal it.D. Hidden Actions: Principals, Agents, and Moral Hazard1. Important Definitionsa. Definition of moral hazard: the tendency of a person who is imperfectlymonitored to engage in dishonest or otherwise undesirable behavior.b. Definition of agent: a person who is performing an act for another person,called the principal.c. Definition of principal: a person for whom another person, called the agent, isperforming some act.2. The employment relationship is the classic example.a. Workers (agents) may be tempted to shirk their work-related responsibilitiesbecause their employers (the principals) do not monitor their behavior closely.b. Employers can respond by providing better monitoring, paying higher wages, ordelaying part of the worker's pay until later in the worker's life.3. FYI: Corporate Managementa. From an economic standpoint, the most important feature of the corporate formof organization is the separation of ownership and control.b. This creates a principal–agent problem where the shareholders are theprincipals and the managers are the agents.c. Managers’ goals may not always coincide with shareholders' goal of profitmaximization.d. As a result, many managers are provided compensation packages that provideincentives to act in the best interest of corporate profits.E. Hidden Characteristics: Adverse Selection and the Lemons Problem1. Definition of adverse selection: the tendency for the mix of unobserved attributesto become undesirable from the standpoint of an uninformed party.2. Examples include the used car market, the labor market, and the market forinsurance.3. When markets suffer from adverse selection, the invisible hand does notnecessarily work well.a. In the used car market, owners of "cherry" or "plum" cars may choose to keepthem rather than sell them at a low price.b. In the labor market, wages may be stuck at a level above the equilibrium wage,resulting in unemployment.c. In insurance markets, buyers with low risk may decline to purchase insurancebecause the price is too high.F. Signaling to Convey Private Information1. Definition of signaling: an action taken by an informed party to reveal privateinformation to an uninformed party.2. Examples of Signalinga. Firms may spend money on advertising to signal the high quality of theirproducts.b. Students may spend time in school to signal that they are high-abilityindividuals.3. For a signal to be effective, it must be costly. However, it must be less costly(or more beneficial) to the person or firm with the higher-quality product.4. Case Study: Gifts as Signalsa. Because people know their own preferences better than anyone else, we wouldexpect that they would prefer cash gifts.b. However, the ability to choose the right gift for someone may serve as a signalof an individual's love.c. Note that choosing the right gift is costly and the cost depends on how wellthe giver knows the recipient (which may be determined as a measure of thegiver's level of interest in the recipient).G. Screening to Uncover Private Information1. Definition of screening: an action taken by an uninformed party to induce aninformed party to reveal information.2. Examples of Screeninga. A buyer of a used car may ask to have the car examined by a mechanic prior topurchase.b. An insurance company may offer different policies that would lead safe or riskydrivers to reveal themselves. Safe drivers are likely to prefer policies withlow premiums and high deductibles. Risky drivers are more likely to preferpolicies with higher premiums and low deductibles.H. Asymmetric Information and Public Policy1. Market failures such as externalities, public goods, imperfect competition, andpoverty show that governments can sometimes improve market outcomes.2. Asymmetric information is another reason why market outcomes may be inefficient.3. However, three factors make it difficult for the government to improve the outcomein some cases.a. The private market can sometimes deal with information asymmetries on its ownusing a combination of signaling and screening.b. The government rarely has more information than the private parties do.c. The government is itself an imperfect institution.II. Political EconomyA. Definition of political economy: the study of government using the analytic methods ofeconomics.B. The Condorcet Voting Paradox1. Most advanced societies rely on democratic principles, allowing the majority toset government policy.2. For most policy issues, the number of possible outcomes exceeds two.3. Example: Three possible outcomes (A, B, and C) and three voter types (Type 1, Type2, and Type 3). The mayor of a town wishes to aggregate the individual preferences into preferences for society as a whole.a. In pairwise majority voting, A would beat B, B would beat C, and C would beat A.b. This violates transitivity. We generally expect that if A is preferred to B andB is preferred to C, then A would be preferred to C.c. Definition of Condorcet paradox: the failure of majority rule to producetransitive preferences for society.d. This implies that the order on which things are voted can determine the result.C. Arrow's Impossibility Theorem1. In a 1951 book, economist Kenneth Arrow examined if a perfect voting system exists.2. He assumes that society wants a voting scheme that satisfies social properties.a. Unanimity.b. Transitivity.c. Independence of irrelevant alternatives.d. No dictators.3. Arrow proved that no voting system could have all of these properties.4. Definition of Arrow impossibility theorem: a mathematical result showing that,under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferences.5. Arrow’s impossibility theorem implies that no matter what voting scheme societyadopts for aggregating the preferences of its members, in some way it will be flawed as a mechanism for social choice.D. The Median Voter Is King1. Example: A society is deciding how much money to spend on a public good. Eachvoter has a most-preferred budget and prefers outcomes closer to his preferredbudget.Figure 12. Definition of median voter theorem: a mathematical result showing that if votersare choosing a point along a line and each voter wants the point closest to his preferred point, then majority rule will pick the most preferred point of themedian voter.a. The median voter is the voter exactly in the middle of the distribution.b. On Figure 1, the median voter wants a budget of $10 billion.3. One implication of the median voter theorem is that if two political candidatesare each trying to maximize their chance of election, they will both move their positions toward the median voter.4. Another implication of the median voter theorem is that minority views are notgiven much weight.E. Politicians Are People Too1. Politicians may be self-interested.2. Some politicians may be motivated by desire for reelection and others may bemotivated by greed.III. Behavioral EconomicsA. Definition of behavioral economics: the subfield of economics that integrates theinsights of psychology..B. Behavioral economics is a relatively new field in economics where economists make useof basic psychological insights into human behavior.C. People Aren’t Always Rational1. Economists assume that human beings are always rational.a. Firm owners maximize profit.b. Consumers maximize utility.c. Given constraints that they face, these individuals make decisions byrationally weighing all costs and benefits.2. Real people are often more complex than economists assume.a. They can be forgetful, impulsive, confused, emotional, and shortsighted.b. These imperfections suggest that humans should not be viewed as rationalmaximizers but as “satisficers,” where they choose options that are simply“good enough.”3. Studies of human decision making have found several systematic mistakes thatpeople make.a. People are overconfident.b. People give too much weight to a small number of vivid observations.c. People are reluctant to change their minds.4. Case Study: Left-Digit Biasa. Studies suggest that buyers are excessively sensitive to a price's left-mostdigit.b. An irrational focus on the left-most digit is called left-digit bias.D. People Care about Fairness1. Example: the ultimatum game.a. Two volunteers are told they are going to play a game and could win a total of$100.b. The game begins with a coin toss, which is used to assign the volunteers to theroles of Player A and Player B.c. Player A’s job is to propose a division of the prize between himself and theother player.d. After Player A makes his proposal, Player B decides whether to accept or rejectit.e. If Player B accepts the proposal, both players are paid according to theproposal. If Player B rejects the proposal, both players receive nothing.2. Conventional economic theory suggests that Player A should know that if he offers$1 to Player B and keeps $99 for himself, Player B should accept it ($1 is greater than $0).3. In reality, when the offer made to Player B is small, Player B often rejects it.4. Knowing this, people in the role of Player A often offer a more substantialportion of the money to Player B.5. This implies that people may be driven by a sense of fairness.E. People Are Inconsistent over Time1. Many times in life, people make plans for themselves but then fail to followthrough.2. The desire for instant gratification can induce a decisionmaker to abandon hispast plan.3. An important implication is that people will try to find ways to commit theirfuture selves to following through on their plans.F. In the News: Can Brain Science Improve Economics1. A new branch of economics examines the biology of the brain to understand economicbehavior.2. This article from Project Syndicate discusses neuroeconomics, the study of how thephysical structures that underlie brain functioning affect economic decision-making.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Buyers of life insurance will likely have higher than the average death rates.Two reasons for this are moral hazard and adverse selection.Moral hazard is the tendency of a person who is imperfectly monitored to engage indishonest or otherwise undesirable behavior. After purchasing insurance, aninsured person may engage in riskier behavior than do people who are not insured.Adverse selection is the tendency for the mix of unobserved attributes to becomeundesirable from the standpoint of an uninformed party. In this case, those withhigher risk of death are more likely to want to buy insurance. As a result, theprice of life insurance will reflect the costs of a riskier-than-average person.Buyers with low risk of death may find the price of life insurance too high andmay choose not to purchase it.A life insurance company can mitigate moral hazard by trying to monitor behaviorbetter and charging higher rates to those who engage in risky behavior (such assmoking). It can mitigate adverse selection by trying to collect betterinformation on applicants; for example, it may require that all applicants submitto a medical examination before issuing insurance.2. According to the median voter theorem, if each voter chooses a point closest tohis preferred point, the district vote will reflect the preferences of the medianvoter. Therefore, the district will end up with a student-teacher ratio of 11:1.3. Human decision making can differ from the rational human being of conventionaleconomic theory in three important ways: (1) people aren’t always rational, (2)people care about fairness, and (3) people are inconsistent over time.Questions for Review1. Moral hazard is the tendency of a person who is imperfectly monitored to engage indishonest or otherwise undesirable behavior. To reduce the severity of thisproblem, an employer may respond with (1) better monitoring, (2) paying efficiencywages, or (3) delaying part of a worker’s compensation to later in his work life.2. Adverse selection is the tendency for the mix of unobserved attributes to becomeundesirable from the standpoint of an uninformed party. Examples of markets inwhich adverse selection might be a problem include the market for used cars andthe market for insurance.3. Signaling is an action taken by an informed party to reveal private information toan uninformed party. Job applicants may use a college diploma as a signal ofability. Screening is an action taken by an uninformed party to induce an informedparty to reveal information. A life insurance company may require applicants tosubmit to a health examination so that the company will have more information onthe person’s risk of death.4. Condorcet noticed that the majority rule will fail to produce transitiveproperties for society.5. The median voter’s preferences will beat out any other proposal in a two-way racebecause the median voter will have more than half of the voters on his side.6. Two volunteers are chosen and a coin toss determines which volunteer is Player Aand which is Player B. Player A proposes a split of a sum of money and then PlayerB decides whether to accept or reject the proposal. If Player B accepts, the sumof money is divided as outlined in the proposal. If Player B rejects the proposal,each player gets nothing.Conventional economic theory predicts that Player A will offer only $1 to Player Band keep the remainder for himself. This is predicted to occur because Player Aknows that Player B will be better off with $1 than with $0. However, in reality,Player B generally rejects small proposals that he considers unfair. If Player Aconsiders this, he will likely offer Player B a more substantial amount.Quick Check Multiple Choice1. b2. a3. d4. b5. a6. cProblems and Applications1. a. The landlord is the principal and the tenant is the agent. There is asymmetricinformation because the landlord does not know how well the tenant will takecare of the property. Having a tenant pay a security deposit increases thelikelihood that the tenant will take care of the property in order to receivehis deposit back when he vacates the property.b. The stockholders of the firm (the owners) are the principals and the topexecutives are the agents. The firm’s owners do not know in advance how wellthe top executives will perform their duties. Tying some of the executives’compensation to the value of the firm provides incentive for the executives towork hard to increase the value of the firm.c. The insurance company is the principal and the customer is the agent. Insurancecompanies do not know whether the car owner is likely to leave the vehicleparked with the keys in it or park it in a high crime area. Individuals whowill go to the trouble of installing anti-theft equipment are more likely totake good care of their vehicles. Offering a discount on insurance premiumswill induce car owners to install such devices.2. Individuals who are relatively healthy may decide to forgo purchasing the policyif the premium rises. Thus, the insurance company is left with only thosepolicyholders who are relatively unhealthy. This means that the firm’s revenue smay in fact fall, but its costs could remain the same. Therefore, the firm’sprofits could fall.3. Saying "I love you" is likely not a good signal. To be an effective signal, thesignal must be costly. In fact, the signal must be less costly, or more beneficial, to the person with the higher-quality product. Simply professing one's love does not meet this requirement.4. If insurance companies were not allowed to determine if applicants are HIV-positive, more individuals who are HIV-positive would be able to purchaseinsurance, but that insurance would be very expensive. Covering these individuals would raise the cost of providing health insurance and the company would have to raise premiums for all. Thus, individuals who are not HIV-positive would be forced to pay more for health insurance and may drop coverage. Insurance companies would be left insuring only those who are ill (including those who are HIV-positive), increasing the adverse selection problem. The number of individuals without health insurance would likely rise as a result.5. Ken is violating the property of independence of irrelevant alternatives. Adding achoice of strawberry after he chooses vanilla over chocolate should not induce him to change his mind and prefer chocolate.6. a. If the three friends use a Borda count, the Chinese restaurant gets the mostvotes (10); the Italian restaurant gets 9 votes; the Mexican restaurant gets 7votes; and the French restaurant gets 4 votes.b. In this scenario, the Italian restaurant gets 5 votes and the Chineserestaurant gets 4 votes. Thus, they will choose to eat at the Italianrestaurant.c. This voting violates the assumption of independence of irrelevant alternatives.The presence of the Mexican and French restaurants should not alter thegroup’s preferences between the Italian and Chinese restaurants.7. a. There would be a tie between the three television shows, with 6 votes each.b. In a vote between NCIS and Glee, NCIS would win. In a vote between NCIS andHomeland, Homeland would wi n. Thus, Monica’s first choice (Homeland) would win.c. No. He will want to vote between Glee and Homeland first, with the winner thencompeting in a second vote with NCIS. That way, his preferred choice (NCIS)would win.d. If Chandler says he prefers Glee over NCIS, Glee will then compete in a voteagainst Homeland (which it will win). This way, Chandler will not have to watch his least preferred show (Homeland).8. a. The efficient number of DVDs is three. Total surplus would be the sum of theroommat es’ willingness to pay (38 + 26 + 18 = 82) minus the cost of the DVDs(15 + 15 + 15 = 45) which is 37.b. Quentin would want 4 DVDs; Spike would prefer 3; Ridley wants 2; Martin wants 1;and Steven does not want to buy a DVD.c. The preference of the median roommate (Ridley) is 2 DVDs.d. Quentin and Spike would vote for 3 DVDs, but the other three roommates wouldvote for 2 DVDs.e. No. Any other option besides 2 DVDs would get fewer votes.f. No. The provision of the public good will likely be determined by thepreferences of the median voter. This may or may not be the efficient outcome.9. More than likely, the two stands will locate at the center of the beach. Thus,they will always be closest for at least half of the beach goers. This is related to the median voter theorem.10. a. Assuming the needy person is a rational consumer, he would use the cash tomaximize his utility and purchase what he needs most.b. The soup kitchen may be better than the cash handout if the government does nothave complete information about how the needy person will spend the cash. That is, rather than the possibility of the needy person spending the cash on drugs or alcohol, the government can be certain the needy person is getting food from the soup kitchen.c. The soup kitchen may be better than the cash handout based on behavioraleconomics because people aren't always rational and the needy person may spend the cash on something he doesn't need as much as food.。
曼昆微观经济学课后标准答案
曼昆微观经济学课后答案作者: 日期:1 .C on sider the market for DVD movies,TV scree ns,a nd ticket at movie theaters.A •对每一对物品，确定它们是互补品还是替代品・DVD和电视・DVD和电影票・电视和电影票As: compleme nts substitutes substitutesB •假设技术进步降低了制造电视机的成本。
画一个图说明电视机市场会发生什么变动。
As: dema nd curve不娈supply curve向右移:技术进步降低了制造电视机的成本，使电视机的供给曲线向右移动。
电视机的需求曲线不变。
电视机的均衡价格下降，均衡价格上升。
C .再画两个图说明电视机市场的变动如何影响DVD市场和电影票市场。
答：DVD : dema nd curve不变supply curve向右移。
由于电视机和DVD是互补品，电视机价格的下降使DVD的需求增加。
需求增加引起DVD均衡价格上升，均衡数量增加。
Movie tickets : supply curve不变dema nd curve向左移。
由于电视机和电影票是替代品，电视机价格的下降使电影票需求减少。
需求的减少使电影票的均衡价格下降，均衡数量减少。
2.Over the past 20 years,tech no logical adva nee reduces the cost of computer chips.How do you think this affected the market for computers?For computer software?For typewriters?As: computer: supply curve 向右彳多price 卜降3.Consider total cost and total revenue given in the following table:产量01234567总成本89101113192737总收益08162432404856computer software: supply curve 向右彳多price 卜•降软件厂、・i) o _—八j IX2I uWhen MR=MC profit maximum 即Q=6 TC=27B・计算每种产量时的边际收益和边际成本。
曼昆微观经济学课后练习英文答案
✍ how to define and measure consumer surplus.✍ the link between sellers’ costs of producing a good and the supply curve.✍ how to define and measure producer surplus.✍ that the equilibrium of supply and demand maximizes total surplus in a market. CONTEXT AND PURPOSE:Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then utilized in Chapters 8 and 9 to determine the winners and losers from taxation and restrictions on international trade.The purpose of Chapter 7 is to develop welfare economics—the study of how the allocation of resources affects economic well-being. Chapters 4 through 6 employed supply and demand in a positive framework, which focused on the question, “What is the equilibrium price and quantity in a market?” This chapter now addresses the normative question, “Is the equilibrium price and quantity in a market the best possible solution to the resource allocation problem, or is it simply the price and quantity that balance supply and demand?” Students will discover that under most circumstances the equilibrium price and quantity is also the one that maximizes welfare.KEY POINTS:? Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market.Consumer surplus can be computed by finding the area below the demand curve and above the price.? Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.? An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient. Policymakers are often concerned with the efficiency, as well as the equality, of economic outcomes.? The equilibrium of supply and demand maximizes the sum of consumer and producer surplus.That is, the invisible hand of the marketplace leads buyers and sellers to allocate resources efficiently.? Markets do not allocate resources efficiently in the presence of market failures such as market power or externalities.CHAPTER OUTLINE:I. Definition of welfare economics: the study of how the allocation of resources affects economic well-being.A. Willingness to Pay1. Definition of willingness to pay: the maximum amount that a buyer will pay for a good.2. Example: You are auctioning a mint-condition recording of Elvis Presley’s first album. Four buyers show up. Their willingness to pay is as follows:for John. Because John is willing to pay more than he has to for the album,he derives some benefit from participating in the market.3. Definition of consumer surplus: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.4. Note that if you had more than one copy of the album, the price in the auction would end up being lower (a little over $70 in the case of two albums) and both John and Paul would gain consumer surplus.B. Using the Demand Curve to Measure Consumer Surplus1. We can use the information on willingness to pay to derive a demand curve for the rare2. . Because the demand curve shows the buyers’ willingness to pay, we can use the demand curve to measure consumer surplus.C. How a Lower Price Raises Consumer Surplusare paying less for the product than before (area A on the graph).b. Because the price is now lower, some new buyers will enter the market and receive consumer surplus on these additional units of output purchased (area B on the graph).D. What Does Consumer Surplus Measure?1. Remember that consumer surplus is the difference between the amount that buyers are willing to pay for a good and the price that they actually pay.2. Thus, it measures the benefit that consumers receive from the good as the buyers themselves perceive it.III. Producer SurplusA. Cost and the Willingness to Sell1. Definition of cost: the value of everything a seller must give up to produce a good .2. Example: You want to hire someone to paint your house. You accept bids for the work from four sellers. Each painter is willing to work if the price you will pay exceeds her opportunity cost. (Note that this opportunity cost thus represents willingness to sell.) The costs are: ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price ceilings from Chapter 6. Redraw the market for two-bedroom apartments in your town. Draw in a price ceiling below the equilibriumprice.Then go through:✍ consumer surplus before the price ceiling is put into place.✍ consumer surplus after the price ceiling is put into place.You will need to take some time to explain the relationship between the producers’ willingness to sell and the cost of producing the good. The relationship between cost and the supply curve is not as apparent as the relationship between the demand curve and willingness to pay. It is important to stress that consumer surplus is measured in monetary terms. Consumer surplus gives us a way to place a monetary cost on inefficient market outcomes (due to government involvement or market failure).except for Grandma. Because Grandma receives more than she would require to paint the house, she derives some benefit from producing in the market.4.Definition of producer surplus: the amount a seller is paid for a good minus the seller’s cost of providing it.5. Note that if you had more than one house to paint, the price in the auction would end up being higher (a little under $800 in the case of two houses) and both Grandma and Georgia would gain producer surplus.B. Using the Supply Curve to Measure Producer Surplus1. We can use the information on cost (willingness to sell) to derive a supply curve for2. marginal seller . Because the supply curve shows the sellers’ cost (willingness to sell), we can use the supply curve to measure producer surplus.are receiving more for the product than before (area C on the graph).b. Because the price is now higher, some new sellers will enter the market and receive producer surplus on these additional units of output sold (area D on the graph).D. Producer surplus is used to measure the economic well-being of producers, much like consumer surplus is used to measure the economic well-being of consumers.ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price floors from Chapter 6. Redraw the market for anagricultural product such as corn. Draw in a price support above the equilibriumprice.Then go through:✍ producer surplus before the price support is put in place.✍ producer surplus after the price support is put in place.Make sure that you discuss the cost of the price support to taxpayers.IV.Market EfficiencyA. The Benevolent Social Planner1. The economic well-being of everyone in society can be measured by total surplus, which is the sum of consumer surplus and producer surplus:Total Surplus = Consumer Surplus + Producer SurplusTotal Surplus = (Value to Buyers – Amount Paid by Buyers) +(Amount Received by Sellers – Cost to Sellers)Because the Amount Paid by Buyers = Amount Received bySellers:2. Definition of efficiency: the property of a resource allocation of maximizing the total surplus received by all members of society .3. Definition of equality: the property of distributing economic prosperity uniformly the members of society .a. Buyers who value the product more than the equilibrium price will purchase the product; those who do not, will not purchase the product. In other words, the free market allocates the supply of a good to the buyers who value it most highly, as measured by their willingness to pay.b. Sellers whose costs are lower than the equilibrium price will produce the product; those whose costs are higher, will not produce the product. In other words, the free market allocates the demand for goods to the sellers who can produce it at the lowest cost.to the marginal buyer is greater than the cost to the marginal seller so total surplus would rise if output increases.b. At any quantity of output greater than the equilibrium quantity, the value of the product to the marginal buyer is less than the cost to the marginal seller so total surplus would rise if output decreases.3. Note that this is one of the reasons that economists believe Principle #6: Markets are usually a good way to organize economic activity.It would be a good idea to remind students that there are circumstances whenthe market process does not lead to the most efficient outcome. Examplesinclude situations such as when a firm (or buyer) has market power over priceor when there are externalities present. These situations will be discussed inlater chapters.Pretty Woman, Chapter 6. Vivien (Julia Roberts) and Edward (Richard Gere)negotiate a price. Afterward, Vivien reveals she would have accepted a lowerprice, while Edward admits he would have paid more. If you have done a goodjob of introducing consumer and producer surplus, you will see the light bulbsgo off above your students’ heads as they watch this clip.C. In the News: Ticket Scalping1. Ticket scalping is an example of how markets work to achieve an efficient outcome.2. This article from The Boston Globe de scribes economist Chip Case’s experience with ticket scalping.D. Case Study: Should There Be a Market in Organs?1. As a matter of public policy, people are not allowed to sell their organs.a. In essence, this means that there is a price ceiling on organs of $0.b. This has led to a shortage of organs.2. The creation of a market for organs would lead to a more efficient allocation of resources, but critics worry about the equity of a market system for organs.V. Market Efficiency and Market FailureA. To conclude that markets are efficient, we made several assumptions about how markets worked.1. Perfectly competitive markets.2. No externalities.B. When these assumptions do not hold, the market equilibrium may not be efficient.C. When markets fail, public policy can potentially remedy the situation. SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Figure 1 shows the demand curve for turkey. The price of turkey is P1 and the consumer surplus that results from that price is denoted CS. Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. It measures the benefit to buyers of participating in a market.Figure 1 Figure 22. Figure 2 shows the supply curve for turkey. The price of turkey is P1 and the producer surplus that results from that price is denoted PS. Producer surplus is the amount sellers are paid for a good minus the sellers’ cost of providing it (measured by the supply curve). It measures the benefit to sellers of participating in a market.Figure 33. Figure 3 shows the supply and demand for turkey. The price of turkey is P1, consumer surplus is CS, and producer surplus is PS. Producing more turkeys than the equilibrium quantity would lower total surplus because the value to the marginal buyer would be lower than the cost to the marginal seller on those additional units.Questions for Review1. The price a buyer is willing to pay, consumer surplus, and the demand curve are all closely related. The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus is the area below the demand curve and above the price, which equals the price that each buyer is willing to pay minus the price actually paid.2. Sellers' costs, producer surplus, and the supply curve are all closely related. The height of the supply curve represents the costs of the sellers. Producer surplus is the area below the price and above the supply curve, which equals the price received minus each seller's costs of producing the good.Figure 43. Figure 4 shows producer and consumer surplus in a supply-and-demand diagram.4. An allocation of resources is efficient if it maximizes total surplus, the sum of consumer surplus and producer surplus. But efficiency may not be the only goal of economic policymakers; they may also be concerned about equity the fairness of the distribution of well-being.5. The invisible hand of the marketplace guides the self-interest of buyers and sellers into promoting general economic well-being. Despite decentralized decision making and self-interested decision makers, free markets often lead to an efficient outcome.6. Two types of market failure are market power and externalities. Market power may cause market outcomes to be inefficient because firms may cause price and quantity to differ from the levels they would be under perfect competition, which keeps total surplus from being maximized. Externalities are side effects that are not taken into account by buyers and sellers. As a result, the free market does not maximize total surplus.Problems and Applications1. a. Consumer surplus is equal to willingness to pay minus the price paid. Therefore, Melissa’s willingness to pay must be $200 ($120 + $80).b. Her consumer surplus at a price of $90 would be $200 ? $90 = $110.c. If the price of an iPod was $250, Melissa would not have purchased one because the price is greater than her willingness to pay. Therefore, she would receive no consumer surplus.2. If an early freeze in California sours the lemon crop, the supply curve for lemons shifts to the left, as shown in Figure 5. The result is a rise in the price of lemons and a decline in consumer surplus from A + B + C to just A. So consumer surplus declines by the amount B + C.Figure 5 Figure 6In the market for lemonade, the higher cost of lemons reduces the supply of lemonade, as shown in Figure 6. The result is a rise in the price of lemonade and a decline in consumer surplus from D + E + F to just D, a loss of E + F. Note that an event that affects consumer surplus in one market often has effects on consumer surplus in other markets.3. A rise in the demand for French bread leads to an increase in producer surplus in the market for French bread, as shown in Figure 7. The shift of the demand curve leads to an increased price, which increases producer surplus from area A to area A + B + C.Figure 7The increased quantity of French bread being sold increases the demand for flour, as shown in Figure 8. As a result, the price of flour rises, increasing producer surplus from area Dto D + E + F. Note that an event that affects producer surplus in one market leads to effects on producer surplus in related markets.Figure 84. a.Figure 9b. When the price of a bottle of water is $4, Bert buys two bottles of water. His consumer surplus is shown as area A in the figure. He values his first bottle of water at $7, but pays only $4 for it, so has consumer surplus of $3. He values his second bottle of water at $5, but pays only $4for it, so has consumer surplus of $1. Thus Bert’s total consumer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water falls from $4 to $2, Bert buys three bottles of water, an increase of one. His consumer surplus consists of both areas A and B in the figure, an increase in the amount of area B. He gets consumer surplus of $5 from the first bottle ($7 value minus $2 price), $3 from the second bottle ($5 value minus $2 price), and $1 from the third bottle ($3 value minus $2 price), for a total consumer surplus of $9. Thus consumer surplus rises by $5 (which is the size of area B) when the price of a bottle of water falls from $4 to $2.5. a.Figure 10b. When the price of a bottle of water is $4, Ernie sells two bottles of water. His producer surplus is shown as area A in the figure. He receives $4 for his first bottle of water, but it costs only $1 to produce, so Ernie has producer surplus of $3. He also receives $4 for his second bottle of water, which costs $3 to produce, so he has producer surplus of $1. Thus Ernie’s total producer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water rises from $4 to $6, Ernie sells three bottles of water, an increase of one. His producer surplus consists of both areas A and B in the figure, an increase by the amount of area B. He gets producer surplus of $5 from the first bottle ($6 price minus $1 cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 price minus $5 price), for a total producer surplus of $9. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6.6. a. From Ernie’s supply schedule and Bert’s demand schedule, the quantityequilibrium quantity of two.b. At a price of $4, consumer surplus is $4 and producer surplus is $4, as shown in Problems 3 and 4 above. Total surplus is $4 + $4 = $8.c. If Ernie produced one less bottle, his producer surplus would decline to $3, as shown in Problem 4 above. If Bert consumed one less bottle, his consumer surplus would decline to $3, as shown in Problem 3 above. So total surplus would decline to $3 + $3 = $6.d. If Ernie produced one additional bottle of water, his cost would be $5, but the price is only $4, so his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total surplus declines by $1 + $1 = $2.7. a. The effect of falling production costs in the market for stereos results in a shift to the right in the supply curve, as shown in Figure 11. As a result, the equilibrium price of stereos declines and the equilibrium quantity increases.Figure 11b. The decline in the price of stereos increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D. Prior to the shift in supply, producer surplus was areas B + E (the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price reduces producer surplus. Because consumer surplus rises by B + C + D and producer surplus rises by F + G – B, total surplus rises by C + D + F + G.c. If the supply of stereos is very elastic, then the shift of the supply curve benefits consumers most. To take the most dramatic case, suppose the supply curve were horizontal, as shown in Figure 12. Then there is no producer surplus at all. Consumers capture all the benefits of falling production costs, with consumer surplus rising from area A to area A + B.Figure 128. Figure 13 shows supply and demand curves for haircuts. Supply equals demand at a quantity of three haircuts and a price between $4 and $5. Firms A, C, and D should cut the hair of Ellen, Jerry, and Phil. Oprah’s willingness to pay is too low and firm B’s costs are too high, so they do not participate. The maximum total surplus is the area between the demand and supply curves, which totals $11 ($8 value minus $2 cost for the first haircut, plus $7 value minus $3 cost for the second, plus $5 value minus $4 cost for the third).Figure 139. a. The effect of falling production costs in the market for computers results in a shift to the right in the supply curve, as shown in Figure 14. As a result, the equilibrium price of computers declines and the equilibrium quantity increases. The decline in the price of computers increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D.Figure 14 Figure 15Prior to the shift in supply, producer surplus was areas B + E (the area above thesupply curve and below the price). After the shift in supply, producer surplus isareas E + F + G. So producer surplus changes by the amount F + G – B, whichmay be positive or negative. The increase in quantity increases producer surplus,while the decline in the price reduces producer surplus. Because consumer surplusrises by B + C + D and producer surplus rises by F + G – B, total surplus rises byC +D + F + G.b. Because typewriters are substitutes for computers, the decline in the price of computers means that people substitute computers for typewriters, shifting the demand for typewriters to the left, as shown in Figure 15. The result is a decline in both the equilibrium price and equilibrium quantity of typewriters. Consumer surplus in the typewriter market changes from area A + B to A + C, a net change of C – B. Producer surplus changes from area C + D + E to area E, a net loss of C + D. Typewriter producers are sad about technological advances in computers because their producer surplus declines.c. Because software and computers are complements, the decline in the price and increase in the quantity of computers means that the demand for software increases, shifting the demand for software to the right, as shown in Figure 16. The result is an increase in both the price and quantity of software. Consumer surplus in the software market changes from B + C to A + B, anet change of A – C. Producer surplus changes from E to C + D + E, an increase of C + D, so software producers should be happy about the technological progress in computers.Figure 16d. Yes, this analysis helps explain why Bill Gates is one the world’s richest people, because his company produces a lot of software that is a complement with computers and there has been tremendous technological advance in computers.10. a. With Provider A, the cost of an extra minute is $0. With Provider B, the cost of anextra minute is $1.b. With Provider A, my friend will purchase 150 minutes [= 150 – (50)(0)]. WithProvider B, my friend would purchase 100 minutes [= 150 – (50)(1)].c. With Provider A, he would pay $120. The cost would be $100 with Provider B.Figure 17d. Figure 17 shows the friend’s demand. With Provider A, he buys 150 minutes andhis consumer surplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, hisconsumer surplus is equal to (1/2)(2)(100) = 100.e. I would recommend Provider A because he receives greater consumer surplus.11. a. Figure 18 illustrates the demand for medical care. If each procedure has a price of $100, quantity demanded will be Q1 procedures.Figure 18b. If consumers pay only $20 per procedure, the quantity demanded will be Q2 procedures. Because the cost to society is $100, the number of procedures performed is too large to maximize total surplus. The quantity that maximizes total surplus is Q1 procedures, which is less than Q2.c. The use of medical care is excessive in the sense that consumers get procedures whose value is less than the cost of producing them. As a result, the economy’s total surplus is reduced.d. To prevent this excessive use, the consumer must bear the marginal cost of the procedure. But this would require eliminating insurance. Another possibility would be that the insurance company, which pays most of the marginal cost of the procedure ($80, in this case) could decide whether the procedure should be performed. But the insurance company does not get the benefits of the procedure, so its decisions may not reflect the value to the consumer.。
曼昆《经济学原理(微观经济学分册)》(第7版)课后习题详解
曼昆《经济学原理（微观经济学分册）》（第7版）课后习题详解第1章经济学十大原理一、概念题1．稀缺性（scarcity）答：经济学研究的问题和经济物品都是以稀缺性为前提的。
稀缺性指在给定的时间内，相对于人的需求而言，经济资源的供给总是不足的，也就是资源的有用性与有限性。
人类消费各种物品的欲望是无限的，满足这种欲望的物品，有的可以不付出任何代价而随意取得，称之为自由物品，如阳光和空气；但绝大多数物品是不能自由取用的，因为世界上的资源（包括物质资源和人力资源）是有限的，这种有限的、为获取它必须付出某种代价的物品，称为“经济物品”。
正因为稀缺性的客观存在，地球上就存在着资源的有限性和人类的欲望与需求的无限性之间的矛盾。
经济学的一个重要研究任务就是：“研究人们如何进行抉择，以便使用稀缺的或有限的生产性资源（土地、劳动、资本品如机器、技术知识）来生产各种商品，并把它们分配给不同的社会成员进行消费。
”也就是从经济学角度来研究使用有限的资源来生产什么、如何生产和为谁生产的问题。
2．经济学（economics）答：经济学是研究如何将稀缺的资源有效地配置给相互竞争的用途，以使人类的欲望得到最大限度满足的科学。
时下经常见诸国内报刊文献的“现代西方经济学”一词，大多也都在这个意义上使用。
自从凯恩斯的名著《就业、利息和货币通论》于1936年发表之后，西方经济学界对经济学的研究便分为两个部分：微观经济学与宏观经济学。
微观经济学是以单个经济主体（作为消费者的单个家庭或个人，作为生产者的单个厂商或企业，以及单个产品或生产要素市场）为研究对象，研究单个经济主体面对既定的资源约束时如何进行选择的科学。
宏观经济学则以整个国民经济为研究对象，主要着眼于对经济总量的研究。
3．效率（efficiency）答：效率指人们在实践活动中的产出与投入之比值，或者是效益与成本之比值，如果比值大，效率就高；反之，比值小，效率就低。
效率与产出或者收益的大小成正比，而与成本或投入成反比，也就是说，如果想提高效率，必须降低成本或投入，提高收益或产出。
曼昆经济学原理英文版文案加习题答案5章ELASTICITY AND ITS APPLICATION
5ELASTICITY AND ITS APPLICATION WHAT’S NEW IN THE S EVENTH EDITION:There are no major changes to this chapter.LEARNING OBJECTIVES:By the end of this chapter, students should understand:the meaning of the elasticity of demand.what determines the elasticity of demand.the meaning of the elasticity of supply.what determines the elasticity of supply.the concept of elasticity in three very different markets (the market for wheat, the market for oil, and the market for illegal drugs).CONTEXT AND PURPOSE:Chapter 5 is the second chapter of a three-chapter sequence that deals with supply and demand and how markets work. Chapter 4 introduced supply and demand. Chapter 5 shows how much buyersand sellers respond to changes in market conditions. Chapter 6 will address the impact of government polices on competitive markets.The purpose of Chapter 5 is to add precision to the supply-and-demand model. We introduce the concept of elasticity, which measures the responsiveness of buyers and sellers to changes in economic variables such as prices and income. The concept of elasticity allows us to make quantitative observations about the impact of changes in supply and demand on equilibrium prices and quantities.KEY POINTS:The price elasticity of demand measures how much the quantity demanded responds to changes in the price. Demand tends to be more elastic if close substitutes are available, if the good is a luxury rather than a necessity, if the market is narrowly defined, or if buyers have substantial time to react to a price change.The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. If quantity demanded moves proportionately less than the price, then the elasticity is less than one, and demand is said to be inelastic.If quantity demanded moves proportionately more than the price, then the elasticity is greater than one, and demand is said to be elastic.Total revenue, the total amount paid for a good, equals the price of the good times the quantity sold. For inelastic demand curves, total revenue moves in the same direction as the price. For elastic demand curves, total revenue moves in the opposite direction as the price.The income elasticity of demand measures how much the quantity demanded responds tochanges in consumers’ income. The cross-price elasticity of demand measures how much the quantity demanded of one good responds to the price of another good.The price elasticity of supply measures how much the quantity supplied responds to changes in the price. This elasticity often depends on the time horizon under consideration. In most markets, supply is more elastic in the long run than in the short run.The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. If quantity supplied moves proportionately less than the price, then the elasticity is less than one, and supply is said to be inelastic.If quantity supplied moves proportionately more than the price, then the elasticity is greater than one, and supply is said to be elastic.The tools of supply and demand can be applied in many different kinds of markets. This chapter uses them to analyze the market for wheat, the market for oil, and the market for illegal drugs.CHAPTER OUTLINE:I. The Elasticity of DemandA. Definition of elasticity: a measure of the responsiveness of quantity demanded orquantity supplied to one of its determinants.B. The Price Elasticity of Demand and Its Determinants1. Definition of price elasticity of demand: a measure of how much the quantitydemanded of a good responds to a change in the price of that good, computed as thepercentage change in quantity demanded divided by the percentage change in price.2. Determinants of the Price Elasticity of Demanda. Availability of Close Substitutes: the more substitutes a good has, the moreelastic its demand.b. Necessities versus Luxuries: necessities are more price inelastic.c. Definition of the market: narrowly defined markets (ice cream) have moreelastic demand than broadly defined markets (food).d. Time Horizon: goods tend to have more elastic demand over longer time horizons.C. Computing the Price Elasticity of Demand1. Formula2. Example: the price of ice cream rises by 10% and quantity demanded falls by 20%.Price elasticity of demand = (20%)/(10%) = 23. Because there is an inverse relationship between price and quantity demanded (theprice of ice cream rose by 10% and the quantity demanded fell by 20%), the price elasticity of demand is sometimes reported as a negative number. We will ignorethe minus sign and concentrate on the absolute value of the elasticity.D. The Midpoint Method: A Better Way to Calculate Percentage Changes and Elasticities1. Because we use percentage changes in calculating the price elasticity of demand,the elasticity calculated by going from one point to another on a demand curvewill be different from an elasticity calculated by going from the second point tothe first. This difference arises because the percentage changes are calculatedusing a different base.a. A way around this problem is to use the midpoint method.b. Using the midpoint method involves calculating the percentage change in eitherprice or quantity demanded by dividing the change in the variable by themidpoint between the initial and final levels rather than by the initial levelitself.c. Example: the price rises from $4 to $6 and quantity demanded falls from 120 to80.% change in price = (6 −4)/5 × 100 = 40%% change in quantity demanded = (120 − 80)/100 x 100 = 40%price elasticity of demand = 40/40 = 1E. The Variety of Demand Curves1. Classification of Elasticitya. When the price elasticity of demand is greater than one, demand is defined tobe elastic.b. When the price elasticity of demand is less than one, the demand is defined tobe inelastic.c. When the price elasticity of demand is equal to one, the demand is said to haveunit elasticity.2. In general, the flatter the demand curve that passes through a given point, themore elastic the demand.3. Extreme Casesa. When the price elasticity of demand is equal to zero, the demand is perfectlyinelastic and is a vertical line.b. When the price elasticity of demand is infinite, the demand is perfectlyelastic and is a horizontal line.4. FYI: A Few Elasticities from the Real WorldF. Total Revenue and the Price Elasticity of Demand1. Definition of total revenue: the amount paid by buyers and received by sellers ofa good, computed as the price of the good times the quantity sold.2. If demand is inelastic, the percentage change in price will be greater than thepercentage change in quantity demanded.a. If price rises, quantity demanded falls, and total revenue will rise (becausethe increase in price will be larger than the decrease in quantity demanded).b. If price falls, quantity demanded rises, and total revenue will fall (becausethe fall in price will be larger than the increase in quantity demanded).3. If demand is elastic, the percentage change in quantity demanded will be greaterthan the percentage change in price.a. If price rises, quantity demanded falls, and total revenue will fall (becausethe increase in price will be smaller than the decrease in quantity demanded).b. If price falls, quantity demanded rises, and total revenue will rise (becausethe fall in price will be smaller than the increase in quantity demanded).4. If demand is unit elastic, the percentage change in price will be equal to thepercentage change in quantity demanded.a. If price rises, quantity demanded falls, and total revenue will remain the same(because the increase in price will be equal to the decrease in quantitydemanded).b. If price falls, quantity demanded rises, and total revenue will remain the same(because the fall in price will be equal to the increase in quantity demanded).G. Elasticity and Total Revenue along a Linear Demand Curve1. The slope of a linear demand curve is constant, but the elasticity is not.a. At points with a low price and a high quantity demanded, demand is inelastic.b. At points with a high price and a low quantity demanded, demand is elastic.2. Total revenue also varies at each point along the demand curve.H. Other Demand Elasticities1. Definition of income elasticity of demand: a measure of how much the quantitydemanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income.a. FormulaFigure 4Note that when demand is elastic and price falls, total revenue rises. Also point out that once demand is inelastic, any further decrease in price% change in quantity demandedIncome elasticity of demand =% change in incomeb. Normal goods have positive income elasticities, while inferior goods havenegative income elasticities.ALTERNATIVE CLASSROOM EXAMPLE:John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buyseach week falls from 2 pounds to 1 pound.% change in quantity demanded = (1−2)/ x 100 = %% change in income = (22,000 −20,000)/21,000 x 100 = %c. Necessities tend to have small income elasticities, while luxuries tend to havelarge income elasticities.2. Definition of cross-price elasticity of demand: a measure of how much the quantitydemanded of one good responds to a change in the price of another good, computedas the percentage change in the quantity demanded of the first good divided by the percentage change in the price of the second good.a. Formulab. Substitutes have positive cross-price elasticities, while complements havenegative cross-price elasticities.ALTERNATIVE CLASSROOM EXAMPLE:The price of apples rises from $ per pound to $ per pound. As a result, thequantity of oranges demanded rises from 8,000 per week to 9,500.% change in quantity of oranges demanded = (9,500 − 8,000)/8,750 x 100 = %% change in price of apples = − / x 100 = 40%II. The Elasticity of SupplyA. The Price Elasticity of Supply and Its Determinants1. Definition of price elasticity of supply: a measure of how much the quantitysupplied of a good responds to a change in the price of that good, computed as thepercentage change in quantity supplied divided by the percentage change in price.2. Determinants of the Price Elasticity of Supplya. Flexibility of sellers: goods that are somewhat fixed in supply (beachfrontproperty) have inelastic supplies.b. Time horizon: supply is usually more inelastic in the short run than in thelong run.B. Computing the Price Elasticity of Supply1. Formula2. Example: the price of milk increases from $ per gallon to $ per gallon and thequantity supplied rises from 9,000 to 11,000 gallons per month.% change in price = –/ × 100 = 10%% change in quantity supplied = (11,000 –9,000)/10,000 × 100 = 20%Price elasticity of supply = (20%)/(10%) = 2C. The Variety of Supply Curves1. In general, the flatter the supply curve that passes through a given point, themore elastic the supply.2. Extreme Casesa. When the elasticity is equal to zero, the supply is said to be perfectlyinelastic and is a vertical line.b. When the elasticity is infinite, the supply is said to be perfectly elastic andis a horizontal line.3. Because firms often have a maximum capacity for production, the elasticity ofsupply may be very high at low levels of quantity supplied and very low at highlevels of quantity supplied.III. Three Applications of Supply, Demand, and ElasticityA. Can Good News for Farming Be Bad News for Farmers1. A new hybrid of wheat is developed that is more productive than those used in thepast. What happens2. Supply increases, price falls, and quantity demanded rises.3. If demand is inelastic, the fall in price is greater than the increase in quantitydemanded and total revenue falls.4. If demand is elastic, the fall in price is smaller than the rise in quantitydemanded and total revenue rises.5. In practice, the demand for basic foodstuffs (like wheat) is usually inelastic.a. This means less revenue for farmers.b. Because farmers are price takers, they still have the incentive to adopt thenew hybrid so that they can produce and sell more wheat.c. This may help explain why the number of farms has declined so dramatically overthe past two centuries.d. This may also explain why some government policies encourage farmers todecrease the amount of crops planted.B. Why Did OPEC Fail to Keep the Price of Oil HighFigure 8Short Run Long Run1. In the 1970s and 1980s, OPEC reduced the amount of oil it was willing to supply toworld markets. The decrease in supply led to an increase in the price of oil and a decrease in quantity demanded. The increase in price was much larger in the short run than the long run. Why2. The demand and supply of oil are much more inelastic in the short run than thelong run. The demand is more elastic in the long run because consumers can adjust to the higher price of oil by carpooling or buying a vehicle that gets bettermileage. The supply is more elastic in the long run because non-OPEC producerswill respond to the higher price of oil by producing more.C. Does Drug Interdiction Increase or Decrease Drug-Related Crime1. The federal government increases the number of federal agents devoted to the waron drugs. What happensa. The supply of drugs decreases, which raises the price and leads to a reductionin quantity demanded. If demand is inelastic, total expenditure on drugs (equalto total revenue) will increase. If demand is elastic, total expenditure willfall.b. Thus, because the demand for drugs is likely to be inelastic, drug-relatedcrime may rise.2. What happens if the government instead pursued a policy of drug educationa. The demand for drugs decreases, which lowers price and quantity supplied. Totalexpenditure must fall (because both price and quantity fall).b. Thus, drug education should not increase drug-related crime.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The price elasticity of demand is a measure of how much the quantity demanded of agood responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.When demand is inelastic (a price elasticity less than 1), a price increase raisestotal revenue, and a price decrease reduces total revenue. When demand is elastic (a price elasticity greater than 1), a price increase reduces total revenue, and a price decrease increases total revenue. When demand is unit elastic (a price elasticity equal to 1), a change in price does not affect total revenue.2. The price elasticity of supply is a measure of how much the quantity supplied of agood responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.The price elasticity of supply might be different in the long run than in theshort run because over short periods of time, firms cannot easily change the sizes Figure 9(a) Drug Interdiction (b) Drug Educationof their factories to make more or less of a good. Thus, in the short run, thequantity supplied is not very responsive to the price. However, over longerperiods, firms can build new factories, expand existing factories, close oldfactories, or they can enter or exit a market. So, in the long run, the quantitysupplied can respond substantially to a change in price.3. A drought that destroys half of all farm crops could be good for farmers (at leastthose unaffected by the drought) if the demand for the crops is inelastic. Theshift to the left of the supply curve leads to a price increase that will raisetotal revenue if the price elasticity of demand is less than 1.No one farmer would have an incentive to destroy her crops in the absence of adrought because she takes the market price as given. Only if all farmersdestroyed a portion of their crops together, for example through a governmentprogram, would this plan work to make farmers better off.Questions for Review1. The price elasticity of demand measures how much quantity demanded responds to achange in price. The income elasticity of demand measures how much quantitydemanded responds to changes in consumers' income.2. The determinants of the price elasticity of demand include the availability ofclose substitutes, whether the good is a necessity or a luxury, the breadth of thedefinition of the market, and the time horizon. Goods with close substitutes havegreater elasticities, luxury goods have greater price elasticities thannecessities, goods in more narrowly defined markets have greater elasticities, andthe elasticity of demand is greater the longer the time horizon.3. An elasticity greater than one means that demand is elastic. When the elasticityis greater than one, the percentage change in quantity demanded exceeds thepercentage change in price. When the elasticity equals zero, demand is perfectly inelastic. There is no change in quantity demanded when there is a change in price.4. Figure 1 presents a supply-and-demand diagram, showing the equilibrium price, P,the equilibrium quantity, Q, and the total revenue received by producers. Total revenue equals the equilibrium price times the equilibrium quantity, which is the area of the rectangle shown in the figure.Figure 15. If demand is elastic, an increase in price reduces total revenue. With elasticdemand, the quantity demanded falls by a greater percentage than the price rises.As a result, total revenue moves in the opposite direction as the price. Thus, if price rises, total revenue falls.6. A good with income elasticity less than zero is called an inferior good because asincome rises, the quantity demanded declines.7. The price elasticity of supply is calculated as the percentage change in quantitysupplied divided by the percentage change in price. It measures how much quantity supplied responds to changes in price.8. If a fixed quantity of a good is available and no more can be made, the priceelasticity of supply is zero. Regardless of the percentage change in price, therewill be no change in the quantity supplied.9. Destruction of half of the fava bean crop is more likely to hurt fava bean farmersif the demand for fava beans is very elastic. Destruction of half of the cropcauses the supply curve to shift to the left resulting in a higher price of favabeans. When demand is very elastic, an increase in price leads to a decrease intotal revenue because the decrease in quantity demanded outweighs the increase inprice.Quick Check Multiple Choice1. a2. b3. d4. c5. a6. cProblems and Applications1. a. Mystery novels have more elastic demand than required textbooks because mysterynovels have close substitutes and are a luxury good, while required textbooksare a necessity with no close substitutes. If the price of mystery novels wereto rise, readers could substitute other types of novels, or buy fewer novelsaltogether. But if the price of required textbooks were to rise, students wouldhave little choice but to pay the higher price. Thus, the quantity demanded ofrequired textbooks is less responsive to price than the quantity demanded ofmystery novels.b. Beethoven recordings have more elastic demand than classical music recordingsin general. Beethoven recordings are a narrower market than classical musicrecordings, so it is easier to find close substitutes for them. If the price of Beethoven recordings were to rise, people could substitute other classicalrecordings, like Mozart. But if the price of all classical recordings were torise, substitution would be more difficult. (A transition from classical musicto rap is unlikely!) Thus, the quantity demanded of classical recordings isless responsive to price than the quantity demanded of Beethoven recordings.c. Subway rides during the next five years have more elastic demand than subwayrides during the next six months. Goods have a more elastic demand over longertime horizons. If the fare for a subway ride was to rise temporarily, consumers could not switch to other forms of transportation without great expense orgreat inconvenience. But if the fare for a subway ride was to remain high for a long time, people would gradually switch to alternative forms of transportation.As a result, the quantity demanded of subway rides during the next six monthswill be less responsive to changes in the price than the quantity demanded ofsubway rides during the next five years.d. Root beer has more elastic demand than water. Root beer is a luxury with closesubstitutes, while water is a necessity with no close substitutes. If the price of water were to rise, consumers have little choice but to pay the higher price.But if the price of root beer were to rise, consumers could easily switch toother sodas or beverages. So the quantity demanded of root beer is moreresponsive to changes in price than the quantity demanded of water.2. a. For business travelers, the price elasticity of demand when the price oftickets rises from $200 to $250 is [(2,000 – 1,900)/1,950]/[(250 – 200)/225]= = . For vacationers, the price elasticity of demand when the price oftickets rises from $200 to $250 is [(800 – 600)/700] / [(250 – 200)/225] == .b. The price elasticity of demand for vacationers is higher than the elasticityfor business travelers because vacationers can choose a substitute more easilythan business travelers. For example, vacationers can choose a different mode of transportation (like driving or taking the train), a different destination, a different departure date, and a different return date. They may also choose to not travel at all. Business travelers are less likely to do so because their schedules are less adaptable.3. a. The percentage change in price is equal to – / x 100 = 20%. If the priceelasticity of demand is , quantity demanded will fall by 4% in the short run [ ]. If the price elasticity of demand is , quantity demanded will fall by 14% in the long run [].b. Over time, consumers can make adjustments to their homes by purchasingalternative heat sources such as natural gas or electric furnaces. Thus, they can respond more easily to the change in the price of heating oil in the long run than in the short run.4. If quantity demanded fell, price must have increased according to the law ofdemand. For a price increase to increase total revenue, the percentage increase in the price must be greater than the percentage decline in quantity demanded. Therefore, demand is inelastic.5. , a. The effect on the market for coffee beans is shown in Figure 2. When ahurricane destroys half of the crop, the supply of coffee beans decreases, the price of coffee beans increases, and the quantity decreases.QuantityPrice Figure 2Demand S 1 S 2b. The effect on the market for cups of coffee is shown in Figure 2. When theprice of coffee beans, an important input into the production of a cup ofcoffee, increases, the supply of cups of coffee decreases, the price of a cup of coffee increases, and the quantity decreases.Because cups of coffee have an inelastic demand, when the price of a cup ofcoffee increases, the total expenditure on coffee increases.c. The effect on the market for donuts is shown in Figure 3. When the price ofcoffee increases and the quantity demanded of coffee decreases, consumersdemand fewer donuts because coffee and donuts are complements. When demanddecreases, the price of donuts decreases.Because donuts have an inelastic demand, when the price of donuts decreases,the total expenditure on donuts decreases.6. a. If your income is $10,000, your price elasticity of demand as the price of DVDsrises from $8 to $10 is [(40 – 32)/36]/[(10 – 8)/9] = = 1. If your income is $12,000, the elasticity is [(50 – 45)/]/[(10 – 8)/9] = = .b. If the price is $12, your income elasticity of demand as your income increasesfrom $10,000 to $12,000 is [(30 – 24)/27]/[(12,000 – 10,000)/11,000] = = . Price Figure 3If the price is $16, your income elasticity of demand as your income increases from $10,000 to $12,000 is [(12 – 8)/10]/[(12,000 – 10,000)/11,000] = = .7. a. If Maria always spends one-third of her income on clothing, then her incomeelasticity of clothing demand is one, because maintaining her clothingexpenditures as a constant fraction of her income means the percentage changein her quantity of clothing must equal her percentage change in income.b. Maria's price elasticity of clothing demand is also one, because everypercentage point increase in the price of clothing would lead her to reduce her quantity purchased by the same percentage.c. Because Maria spends a smaller proportion of her income on clothing, then forany given price, her quantity demanded will be lower. Thus, her demand curvehas shifted to the left. Because she will again spend a constant fraction ofher income on clothing, her income and price elasticities of demand remain one.8. a. The percentage change in price (using the midpoint formula) is – / × 100%= %. Therefore, the price elasticity of demand is = , which is very elastic.b. Because the demand is inelastic, the Transit Authority's revenue rises when thefare rises.c. The elasticity estimate might be unreliable because it is only the first monthafter the fare increase. As time goes by, people may switch to other means oftransportation in response to the price increase. So the elasticity may belarger in the long run than it is in the short run.9. Walt's price elasticity of demand is zero, because he wants the same quantityregardless of the price. Jessie's price elasticity of demand is one, because he spends the same amount on gas, no matter what the price, which means hispercentage change in quantity is equal to the percentage change in price.10. a. With a price elasticity of demand of , reducing the quantity demanded ofcigarettes by 20% requires a 50% increase in price, because 20/50 = . With the price of cigarettes currently $2, this would require an increase in the priceto $ a pack using the midpoint method (note that ($ – $2)/$ = .50).b. The policy will have a larger effect five years from now than it does one yearfrom now. The elasticity is larger in the long run, because it may take sometime for people to reduce their cigarette usage. The habit of smoking is hardto break in the short run.c. Because teenagers do not have as much income as adults, they are likely to havea higher price elasticity of demand. Also, adults are more likely to beaddicted to cigarettes, making it more difficult to reduce their quantitydemanded in response to a higher price.11. To determine whether you should increase or decrease the price of admissions, youneed to know if the demand is elastic or inelastic. If demand is elastic, adecline in the price of admissions will increase total revenue. If demand isinelastic, an increase in the price of admissions will cause total revenue to rise.12. A worldwide drought could increase the total revenue of farmers if the priceelasticity of demand for grain is inelastic. The drought reduces the supply of grain, but if demand is inelastic, the reduction of supply causes a large increase in price. Total farm revenue would rise as a result. If there is only a drought in Kansas, Kansas’ production is not a large enough proportion of the total farm product to have much impact on the price. As a result, price does not change (or changes by only a slight amount), while the output by Kansas farmers declines, thus reducing their income.。
曼昆经济学原理英文版文案加习题答案13章(最新整理)
221WHAT’S NEW IN THE SEVENTH EDITION:There are no major changes to this chapter.LEARNING OBJECTIVES:By the end of this chapter, students should understand:what items are included in a firm’s costs of production. the link between a firm’s production process and its total costs.the meaning of average total cost and marginal cost and how they are related. the shape of a typical firm’s cost curves.the relationship between short-run and long-run costs.CONTEXT AND PURPOSE:Chapter 13 is the first chapter in a five-chapter sequence dealing with firm behavior and the organization of industry. It is important that students become comfortable with the material in Chapter 13 because Chapters 14 through 17 are based on the concepts developed in Chapter 13. To be more specific, Chapter 13 develops the cost curves on which firm behavior is based. The remaining chapters in thissection (Chapters 14-17) utilize these cost curves to develop the behavior of firms in a variety of different market structures—competitive, monopolistic, monopolistically competitive, and oligopolistic.The purpose of Chapter 13 is to address the costs of production and develop the firm’s cost curves. These cost curves underlie the firm’s supply curve. In previous chapters, we summarized the firm’s production decisions by starting with the supply curve. While this is suitable for answering manyquestions, it is now necessary to address the costs that underlie the supply curve in order to address the part of economics known as industrial organization —the study of how firms’ decisions about prices and quantities depend on the market conditions they face.KEY POINTS:The goal of firms is to maximize profit, which equals total revenue minus total cost.THE COSTS OF PRODUCTION222 ❖ Chapter 13/The Costs of Production∙When analyzing a firm’s behavior, it is important to include all the opportunity costs of production. Some of the opportunity costs, such as the wages a firm pays its workers, are explicit. Other opportunity costs, such as the wages the firm owner gives up by working at the firm rather than taking another job, are implicit. Economic profit takes both explicit and implicit costs into account, whereas accounting profits consider only explicit costs.∙A firm’s costs reflect its production process. A typical firm’s production function gets flatter as the quantity of an input increases, displaying the property of diminishing marginal product. As a result, a firm’s total-cost curve gets steeper as the quantity produced rises.∙A firm’s total costs can be divided between fixed costs and variable costs. Fixed costs are costs that do not change when the firm alters the quantity of output produced. Variable costs are costs that change when the firm alters the quantity of output produced.∙From a firm’s total cost, two related measures of cost are derived. Average total cost is total cost divided by the quantity of output. Marginal cost is the amount by which total cost rises if output increases by one unit.∙When analyzing firm behavior, it is often useful to graph average total cost and marginal cost. For a typical firm, marginal cost rises with the quantity of output. Average total cost first falls as output increases and then rises as output increases further. The marginal-cost curve always crosses the average-total-cost curve at the minimum of average total cost.∙A firm’s costs often depend on the time horizon considered. In particular, many costs are fixed in the short run but variable in the long run. As a result, when the firm changes its level of production, average total cost may rise more in the short run than in the long run.CHAPTER OUTLINE:I.What Are Costs?A.Total Revenue, Total Cost, and Profit1.The goal of a firm is to maximize profit.Chapter 13/The Costs of Production ❖ 2232.Definition oftotal revenue: the amount a firm receives for the sale of its output.3.Definition of total cost: the market value of the inputs a firm uses in production.4.Definition of profit: total revenue minus total cost.B.Costs as Opportunity Costs1.Principle #2: The cost of something is what you give up to get it.2.The costs of producing an item must include all of the opportunity costs of inputs used inproduction.3.Total opportunity costs include both implicit and explicit costs.a.Definition of explicit costs: input costs that require an outlay of money by thefirm.b.Definition of implicit costs: input costs that do not require an outlay of moneyby the firm.c.The total cost of a business is the sum of explicit costs and implicit costs.d.This is the major way in which accountants and economists differ in analyzing theperformance of a business.e.Accountants focus on explicit costs, while economists examine both explicit and implicitcosts.C.The Cost of Capital as an Opportunity Cost1.The opportunity cost of financial capital is an important cost to include in any analysis of firmperformance.2.Example: Caroline uses $300,000 of her savings to start her firm. It was in a savings accountpaying 5% interest.3.Because Caroline could have earned $15,000 per year on this savings, we must include thisopportunity cost. (Note that an accountant would not count this $15,000 as part of the firm'scosts.)224 ❖ Chapter 13/The Costs of Production4.If Caroline had instead borrowed $200,000 from a bank and used $100,000 from her savings,the opportunity cost would not change if the interest rate stayed the same (according to the economist). But the accountant would now count the $10,000 in interest paid for the bank loan.D.Economic Profit versus Accounting Profit1.Figure 1 highlights the differences in the ways in which economists and accountants calculateprofit.2.Definition of economic profit: total revenue minus total cost, including both explicitand implicit costs .a.Economic profit is what motivates firms to supply goods and services.b.To understand how industries evolve, we need to examine economic profit.3.Definition of accounting profit: total revenue minus total explicit cost .4.If implicit costs are greater than zero, accounting profit will always exceed economic profit.II.Production and CostsA.The Production Function1.Definition of production function: the relationship between quantity of inputs usedto make a good and the quantity of output of that good.2.Example: Caroline's cookie factory. The size of the factory is assumed to be fixed; Carolinecan vary her output (cookies) only by varying the labor used.Number ofWorkersOutputMarginal Productof LaborCost of Factory Cost of WorkersTotal Cost of Inputs 00---$30$0$30150503010402904030205031203030306041402030407051501030508061555306090Chapter 13/The Costs of Production ❖ 2253.Definition of marginal product: the increase in output that arises from an additionalunit of input.a.As the amount of labor used increases, the marginal product of labor falls.b.Definition of diminishing marginal product: the property whereby the marginalproduct of an input declines as the quantity of the input increases.4.We can draw a graph of the firm's production function by plotting the level of labor (x -axis)against the level of output (y -axis).226 ❖ Chapter 13/The Costs of Productiona.The slope of the production function measures marginal product.b.Diminishing marginal product can be seen from the fact that the slope falls as theamount of labor used increases.B.From the Production Function to the Total-Cost Curve1.We can draw a graph of the firm's total cost curve by plotting the level of output (x-axis)against the total cost of producing that output (y-axis).a.The total cost curve gets steeper and steeper as output rises.b.This increase in the slope of the total cost curve is also due to diminishing marginalproduct: As Caroline increases the production of cookies, her kitchen becomesovercrowded, and she needs a lot more labor.Chapter 13/The Costs of Production ❖ 227III.The Various Measures of CostA.Example: Conrad’s Coffee ShopOutputTotal Cost Fixed Cost Variable Cost Average Fixed Cost Average Variable Cost AverageTotalCostMarginal Cost 0 $3.00 $3.00 $0------------1 3.30 3.000.30$3.00$0.30$3.30$0.302 3.80 3.000.80 1.500.40 1.900.503 4.50 3.00 1.50 1.000.50 1.500.704 5.40 3.00 2.400.750.60 1.350.905 6.50 3.00 3.500.600.70 1.30 1.1067.80 3.00 4.800.500.80 1.30 1.3079.30 3.00 6.300.430.901.33 1.50228 ❖ Chapter 13/The Costs of Production811.00 3.008.000.38 1.00 1.38 1.70912.90 3.009.900.33 1.10 1.43 1.901015.003.0012.000.301.201.502.10B.Fixed and Variable Costs1.Definition of fixed costs: costs that do not vary with the quantity of outputproduced.2.Definition ofvariable costs: costs that do vary with the quantity of outputproduced.3.Total cost is equal to fixed cost plus variable cost.C.Average and Marginal Cost1.Definition of average total cost: total cost divided by the quantity of output.2.Definition ofaverage fixed cost: fixed costs divided by the quantity of output.3.Definition of average variable cost: variable costs divided by the quantity of output.4.Definition of marginal cost: the increase in total cost that arises from an extra unitof production.Chapter 13/The Costs of Production ❖ 2295.Average total cost tells us the cost of a typical unit of output and marginal cost tells us thecost of an additional unit of output.D.Cost Curves and Their Shapes1.Rising Marginal Costa.This occurs because of diminishing marginal product.b.At a low level of output, there are few workers and a lot of idle equipment. But as outputincreases, the coffee shop gets crowded and the cost of producing another unit of outputbecomes high.2.U-Shaped Average Total Costa.Average total cost is the sum of average fixed cost and average variable cost.b.AFC declines as output expands and AVC typically increases as output expands. AFC ishigh when output levels are low. As output expands, AFC declines pulling ATC down. Asfixed costs get spread over a large number of units, the effect of AFC on ATC falls andATC begins to rise because of diminishing marginal product.c.Definition of efficient scale: the quantity of output that minimizes average totalcost.3.The Relationship between Marginal Cost and Average Total Costa.Whenever marginal cost is less than average total cost, average total cost is falling.Whenever marginal cost is greater than average total cost, average total cost is rising.b.The marginal-cost curve crosses the average-total-cost curve at minimum average totalcost (the efficient scale).230 ❖ Chapter 13/The Costs of Production4.Typical Cost Curvesa.Marginal cost eventually rises with output.b.The average-total-cost curve is U-shaped.c.Marginal cost crosses average total cost at the minimum of average total cost.IV.Costs in the Short Run and in the Long RunA.The division of total costs into fixed and variable costs will vary from firm to firm.B.Some costs are fixed in the short run, but all are variable in the long run.1.For example, in the long run a firm could choose the size of its factory.2.Once a factory is chosen, the firm must deal with the short-run costs associated with thatplant size.C.The long-run average-total-cost curve lies along the lowest points of the short-run average-total-cost curves because the firm has more flexibility in the long run to deal with changes in production.D.The long-run average-total-cost curve is typically U-shaped, but is much flatter than a typicalshort-run average-total-cost curve.E.The length of time for a firm to get to the long run will depend on the firm involved.F.Economies and Diseconomies of Scale1.Definition of economies of scale: the property whereby long-run average total costfalls as the quantity of output increases.2.Definition of diseconomies of scale: the property whereby long-run average totalcost rises as the quantity of output increases.3.Definition of constant returns to scale: the property whereby long-run average totalcost stays the same as the quantity of output changes.4.FYI: Lessons from a Pin Factorya.In The Wealth of Nations, Adam Smith described how specialization in a pin factoryallowed output to be greater than it would have been if each worker attempted toperform many different tasks.b.The use of specialization allows firms to achieve economies of scale.V.Table 3 provides a summary of all of the various cost definitions used throughout this chapter.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1.Farmer McDonald’s opportunity cost is $300, consisting of 10 hours of lessons at $20 an hourthat he could have been earning plus $100 in seeds. His accountant would only count theexplicit cost of the seeds ($100). If McDonald earns $200 from selling the crops, thenMcDonald earns a $100 accounting profit ($200 sales minus $100 cost of seeds) but incursan economic loss of $100 ($200 sales minus $300 opportunity cost).2.Farmer Jones’s production function is shown in Figure 1 and his total-cost curve is shown inFigure 2. The production function becomes flatter as the number of bags of seeds increasesbecause of the diminishing marginal product of seeds. The total-cost curve gets steeper asthe amount of production increases. This feature is also due to the diminishing marginalproduct of seeds, since each additional bag of seeds generates a lower marginal product, andthus, the cost of producing additional bushels of wheat rises.Figure 1Figure 23.The average total cost of producing 5 cars is $250,000/5 = $50,000. Since total cost rosefrom $225,000 to $250,000 when output increased from 4 to 5, the marginal cost of the fifthcar is $25,000.The marginal-cost curve and the average-total-cost curve for a typical firm are shown inFigure 3. They cross at the efficient scale because at low levels of output, marginal cost isbelow average total cost, so average total cost is falling. But after the two curves cross,marginal cost rises above average total cost, and average total cost starts to rise. So thepoint of intersection must be the minimum of average total cost.Figure 34.The long-run average total cost of producing 9 planes is $9 million/9 = $1 million. The long-run average total cost of producing 10 planes is $9.5 million/10 = $0.95 million. Since thelong-run average total cost declines as the number of planes increases, Boeing exhibitseconomies of scale.Questions for Review1.The relationship between a firm's total revenue, profit, and total cost is profit equals totalrevenue minus total costs.2.An accountant would not count the owner’s opportunity cost of alternative employment as anaccounting cost. An example is given in the text in which Caroline runs a cookie business, butshe could instead work as a computer programmer. Because she's working in her cookiefactory, she gives up the opportunity to earn $100 per hour as a computer programmer. Theaccountant ignores this opportunity cost because money does not flow into or out of thefirm. But the cost is relevant to Caroline’s decision to run the cookie factory.3.Marginal product is the increase in output that arises from an additional unit of input.Diminishing marginal product means that the marginal product of an input declines as thequantity of the input increases.4.Figure 4 shows a production function that exhibits diminishing marginal product of labor.Figure 5 shows the associated total-cost curve. The production function is concave becauseof diminishing marginal product, while the total-cost curve is convex for the same reason.Figure 4Figure 55.Total cost consists of the costs of all inputs needed to produce a given quantity of output. Itincludes fixed costs and variable costs. Average total cost is the cost of a typical unit of output and is equal to total cost divided by the quantity produced. Marginal cost is the cost of producing an additional unit of output and is equal to the change in total cost divided by the change in quantity. An additional relation between average total cost and marginal cost is that whenever marginal cost is less than average total cost, average total cost is declining; whenever marginal cost is greater than average total cost, average total cost is rising.Figure 66.Figure 6 shows the marginal-cost curve and the average-total-cost curve for a typical firm.There are three main features of these curves: (1) marginal cost is U-shaped but risessharply as output increases; (2) average total cost is U-shaped; and (3) whenever marginal cost is less than average total cost, average total cost is declining; whenever marginal cost is greater than average total cost, average total cost is rising. Marginal cost is increasing for output greater than a certain quantity because of diminishing returns. The average-total-cost curve is downward-sloping initially because the firm is able to spread out fixed costs over additional units. The average-total-cost curve is increasing beyond some output levelbecause as quantity increases, the demand for important variable inputs increases; therefore, the cost of these inputs increases. The marginal-cost and average-total-cost curves intersect at the minimum of average total cost; that quantity is the efficient scale.7.In the long run, a firm can adjust the factors of production that are fixed in the short run; forexample, it can increase the size of its factory. As a result, the long-run average-total-costcurve has a much flatter U-shape than the short-run average-total-cost curve. In addition,the long-run curve lies along the lower envelope of the short-run curves.8.Economies of scale exist when long-run average total cost decreases as the quantity ofoutput increases, which occurs because of specialization among workers. Diseconomies ofscale exist when long-run average total cost rises as the quantity of output increases, whichoccurs because of the coordination problems inherent in a large organization.Quick Check Multiple Choice1. a2. d3. d4. c5. b6. aProblems and Applications1. a.opportunity cost; b. average total cost; c. fixed cost; d. variable cost; e. total cost; f.marginal cost.2. a.The opportunity cost of something is what must be given up to acquire it.b.The opportunity cost of running the hardware store is $550,000, consisting of $500,000to rent the store and buy the stock and a $50,000 implicit cost, because your aunt wouldquit her job as an accountant to run the store. Because the total opportunity cost of$550,000 exceeds the projected revenue of $510,000, your aunt should not open thestore, as her economic profit would be negative.3. a.The following table shows the marginal product of each hour spent fishing:Hours Fish Fixed Cost Variable Cost Total Cost Marginal Product 00$10$0$10---11010515102181010208324101525642810203045301025352b.Figure 7 graphs the fisherman's production function. The production function becomesflatter as the number of hours spent fishing increases, illustrating diminishing marginalproduct.Figure 7c.The table shows the fixed cost, variable cost, and total cost of fishing. Figure 8 shows the fisherman's total-cost curve. It has an upward slope because catching additional fish takes additional time. The curve is convex because there are diminishing returns to fishing time because each additional hour spent fishing yields fewer additional fish.Figure 84.Here is the completed table:WorkersOutputMarginal Product Total Cost Average Total Cost Marginal Cost00---$200------12020300$15.00$5.00250304008.00 3.3339040500 5.56 2.50412030600 5.00 3.33514020700 5.00 5.00615010800 5.3310.0071555900 5.8120.00a.See the table for marginal product. Marginal product rises at first, then declines becauseof diminishing marginal product.b.See the table for total cost.c.See the table for average total cost. Average total cost is U-shaped. When quantity islow, average total cost declines as quantity rises; when quantity is high, average totalcost rises as quantity rises.d.See the table for marginal cost. Marginal cost is also U-shaped, but rises steeply asoutput increases. This is due to diminishing marginal product.e.When marginal product is rising, marginal cost is falling, and vice versa.f.When marginal cost is less than average total cost, average total cost is falling; the costof the last unit produced pulls the average down. When marginal cost is greater thanaverage total cost, average total cost is rising; the cost of the last unit produced pushes the average up.5.At an output level of 600 players, total cost is $180,000 (600 × $300). The total cost ofproducing 601 players is $180,901. Therefore, you should not accept the offer of $550, because the marginal cost of the 601st player is $901.6. a.The fixed cost is $300, because fixed cost equals total cost minus variable cost. At anoutput of zero, the only costs are fixed cost.b.Quantity TotalCost VariableCostMarginal Cost(using total cost)Marginal Cost(using variable cost)0$300$0------135050$50$50239090404034201203030445015030305490190404065402405050Marginal cost equals the change in total cost for each additional unit of output. It is also equal to the change in variable cost for each additional unit of output. This relationship occurs because total cost equals the sum of variable cost and fixed cost and fixed costdoes not change as the quantity changes. Thus, as quantity increases, the increase intotal cost equals the increase in variable cost.7.The following table illustrates average fixed cost (AFC), average variable cost (AVC), andaverage total cost (ATC) for each quantity. The efficient scale is 4 houses per month,because that minimizes average total cost.Quantity VariableCost FixedCostTotalCostAverageFixed CostAverageVariable CostAverageTotal Cost0$0.00$200.00$200.00---------110.00200.00210.00$200.00$10.00$210.00220.00200.00220.00100.0010.00110.00340.00200.00240.0066.6713.3380.00480.00200.00280.0050.0020.0070.005160.00200.00360.0040.0032.0072.006320.00200.00520.0033.3353.3386.677640.00200.00840.0028.5791.43120.008. a.The lump-sum tax causes an increase in fixed cost. Therefore, as Figure 10 shows, onlyaverage fixed cost and average total cost will be affected.Figure 10b.Refer to Figure 11. Average variable cost, average total cost, and marginal cost will all begreater. Average fixed cost will be unaffected.Figure 119. a.The following table shows average variable cost (AVC), average total cost (ATC), andmarginal cost (MC) for each quantity.Quantity VariableCost TotalCostAverageVariable CostAverageTotal CostMarginalCost0$0.00$30.00---------110.0040.00$10.00$40.00$10.00225.0055.0012.5027.5015.00345.0075.0015.0025.0020.00470.00100.0017.5025.0025.005100.00130.0020.0026.0030.006135.00165.0022.5027.5035.00b.Figure 12 shows the three curves. The marginal-cost curve is below the average-total-cost curve when output is less than four and average total cost is declining. Themarginal-cost curve is above the average-total-cost curve when output is above four and average total cost is rising. The marginal-cost curve lies above the average-variable-cost curve.Figure 1210.The following table shows quantity (Q), total cost (TC), and average total cost (ATC) for thethree firms:Firm A Firm B Firm CQuantity TC ATC TC ATC TC ATC1$60.00$60.00$11.00$11.00$21.00$21.00270.0035.0024.0012.0034.0017.00380.0026.6739.0013.0049.0016.33490.0022.5056.0014.0066.0016.505100.0020.0075.0015.0085.0017.006110.0018.3396.0016.00106.0017.677120.0017.14119.0017.00129.0018.43Firm A has economies of scale because average total cost declines as output increases. Firm B has diseconomies of scale because average total cost rises as output rises. Firm C has economies of scale from one to three units of output and diseconomies of scale for levels of output beyond three units.。
曼昆《微观经济学》答案(英文版)_Chapter_1~5[1]
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Chapter 1Problems and Applications1. a. A family deciding whether to buy a new car faces a tradeoff between the cost of thecar and other things they might want to buy. For example, buying the car mightmean they must give up going on vacation for the next two years. So the real costof the car is the family's opportunity cost in terms of what they must give up.b. For a member of Congress deciding whether to increase spending on national parks,the tradeoff is between parks and other spending items or tax cuts. If more moneygoes into the park system, that may mean less spending on national defense or on thepolice force. Or, instead of spending more money on the park system, taxes couldbe reduced.c. When a company president decides whether to open a new factory, the decision isbased on whether the new factory will increase the firm's profits compared to otheralternatives. For example, the company could upgrade existing equipment orexpand existing factories. The bottom line is: Which method of expandingproduction will increase profit the most?d. In deciding how much to prepare for class, a professor faces a tradeoff between thevalue of improving the quality of the lecture compared to other things she could dowith her time, such as working on additional research.2. When the benefits of something are psychological, such as going on a vacation, it isn't easy tocompare benefits to costs to determine if it's worth doing. But there are two ways to think about the benefits. One is to compare the vacation with what you would do in its place. If you didn't go on vacation, would you buy something like a new set of golf clubs? Then you can decide if you'd rather have the new clubs or the vacation. A second way is to think about how much work you had to do to earn the money to pay for the vacation; then you can decide if the psychological benefits of the vacation were worth the psychological cost of working.3. If you are thinking of going skiing instead of working at your part-time job, the cost of skiingincludes its monetary and time costs, plus the opportunity cost of the wages you're giving up by not working. If the choice is between skiing and going to the library to study, then the cost of skiing is its monetary and time costs plus the cost to you of getting a lower grade in your course.4. If you spend $100 now instead of investing it for a year and earning 5 percent interest, youare giving up the opportunity to spend $105 a year from now. The idea that money has a time value is the basis for the field of finance, the subfield of economics that has to do with prices of financial instruments like stocks and bonds.5. The fact that you've already sunk $5 million isn't relevant to your decision anymore, sincethat money is gone. What matters now is the chance to earn profits at the margin. If you spend another $1 million and can generate sales of $3 million, you'll earn $2 million in marginal profit, so you should do so. You are right to think that the project has lost a total of $3 million ($6 million in costs and only $3 million in revenue) and you shouldn't have started it. That's true, but if you don't spend the additional $1 million, you won't have any sales and your losses will be $5 million. So what matters is not the total profit, but the profit you can earn at the margin. In fact, you'd pay up to $3 million to complete development; any more than that, and you won't be increasing profit at the margin.6. Harry suggests looking at whether productivity would rise or fall. Productivity is certainlyimportant, since the more productive workers are, the lower the cost per gallon of potion.Harry wants to look at average cost. But both Harry and Ron are missing the other side of the equation−revenue. A firm wants to maximize its profits, so it needs to examine both costs and revenues. Thus, Hermione is right−it’s best to examine whether the extra revenue would exceed the extra costs. In addition, Hermione is the only one who’s thinking at the margin.7. a. Since a person gets fewer after-tax Social Security benefits the greater is his or herincome, there's an incentive not to save for retirement. If you save a lot, yourincome will be higher, and you won't get as much after-tax Social Security income assomeone who didn't save as much. The unintended consequence of the taxation ofSocial Security benefits is to reduce saving; yet the Social Security system arosebecause of worries that people wouldn’t save enough for retirement.b. For the same reason, you'll tend not to work (or not work as much) after age 65.The more you work, the lower your after-tax Social Security benefits will be. Thusthe taxation of Social Security benefits discourages work effort after age 65.8. a. When welfare recipients who are able to work have their benefits cut off after twoyears, they have greater incentive to find jobs than if their benefits were to lastforever.b. The loss of benefits means that someone who can't find a job will get no income atall, so the distribution of income will become less equal. But the economy will bemore efficient, since welfare recipients have a greater incentive to find jobs. Thusthe change in the law is one that increases efficiency but reduces equity.9. By specializing in each task, you and your roommate can finish the chores more quickly. Ifyou divided each task equally, it would take you more time to cook than it would take your roommate, and it would take him more time to clean than it would take you. By specializing, you reduce the total time spent on chores.Similarly, countries can specialize and trade, making both better off. For example, suppose it takes Spanish workers less time to make clothes than French workers, and French workers can make wine more efficiently than Spanish workers. Then Spain and France can both benefit if Spanish workers produce all the clothes and French workers produce all the wine, and they exchange some wine for some clothes.10. a. Being a central planner is tough! To produce the right number of CDs by the rightartists and deliver them to the right people requires an enormous amount ofinformation. You need to know about production techniques and costs in the CDindustry. You need to know each person's musical tastes and which artists theywant to hear. If you make the wrong decisions, you'll be producing too many CDsby artists that people don't want to hear, and not enough by others.b. Your decisions about how many CDs to produce carry over to other decisions. Youhave to make the right number of CD players for people to use. If you make toomany CDs and not enough cassette tapes, people with cassette players will be stuckwith CDs they can't play. The probability of making mistakes is very high. Youwill also be faced with tough choices about the music industry compared to otherparts of the economy. If you produce more sports equipment, you'll have fewerresources for making CDs. So all decisions about the economy influence yourdecisions about CD production.11. a. Efficiency: The market failure comes from the monopoly by the cable TV firm.b. Equityc. Efficiency: An externality arises because secondhand smoke harms nonsmokers.d. Efficiency: The market failure occurs because of Standard Oil's monopoly power.e. Equityf. Efficiency: There's an externality because of accidents caused by drunk drivers.12. a. If everyone were guaranteed the best health care possible, much more of our nation'soutput would be devoted to medical care than is now the case. Would that beefficient? If you think that currently doctors form a monopoly and restrict healthcare to keep their incomes high, you might think efficiency would increase byproviding more health care. But more likely, if the government mandated increasedspending on health care, the economy would be less efficient because it would givepeople more health care than they would choose to pay for. From the point of viewof equity, if poor people are less likely to have adequate health care, providing morehealth care would represent an improvement. Each person would have a more evenslice of the economic pie, though the pie would consist of more health care and lessof other goods.b. When workers are laid off, equity considerations argue for the unemploymentbenefits system to provide them with some income until they can find new jobs.After all, no one plans to be laid off, so unemployment benefits are a form ofinsurance. But there’s an efficiency problem why work if you can get income fordoing nothing? The economy isn’t o perating efficiently if people remainunemployed for a long time, and unemployment benefits encourage unemployment.Thus, there’s a tradeoff between equity and efficiency. The more generous areunemployment benefits, the less income is lost by an unemployed person, but themore that person is encouraged to remain unemployed. So greater equity reducesefficiency.13. Since average income in the United States has roughly doubled every 35 years, we are likelyto have a better standard of living than our parents, and a much better standard of living than our grandparents. This is mainly the result of increased productivity, so that an hour of work produces more goods and services than it used to. Thus incomes have continuously risen over time, as has the standard of living.14. If Americans save more and it leads to more spending on factories, there will be an increasein production and productivity, since the same number of workers will have more equipment to work with. The benefits from higher productivity will go to both the workers, who will get paid more since they're producing more, and the factory owners, who will get a return on their investments. There's no such thing as a free lunch, though, because when people save more, they're giving up spending. They get higher incomes at the cost of buying fewer goods.15. a. If people have more money, they're probably going to spend more on goods andservices.b. If prices are sticky, and people spend more on goods and services, then output mayincrease, as producers increase output to meet the higher demand rather than raisingprices.c. If prices can adjust, then people's higher spending will be matched with increasedprices, and output won't rise.16. To make an intelligent decision about whether to reduce inflation, a policymaker would needto know what causes inflation and unemployment, as well as what determines the tradeoff between them. Because prices are sticky, an attempt to reduce inflation will lead to higher unemployment. A policymaker thus faces a tradeoff between the benefits of lower inflation compared to the cost of higher unemployment.Chapter 2Problems and Applications1. Many answers are possible.2. a. Steel is a fairly uniform commodity, though some firms produce steel of inferiorquality.b. Novels are each unique, so they are quite distinguishable.c. Wheat produced by one farmer is completely indistinguishable from wheat producedby another.d. Fast food is more distinguishable than steel or wheat, but certainly not as much asnovels.3. See Figure 2-5; the four transactions are shown.Figure 2-54. a. Figure 2-6 shows a production possibilities frontier between guns and butter. It isbowed out because when most of the economy’s resources are being used to pr oducebutter, the frontier is steep and when most of the economy’s resources are being usedto produce guns, the frontier is very flat. When the economy is producing a lot ofguns, workers and machines best suited to making butter are being used to makeguns, so each unit of guns given up yields a large increase in the production of butter;thus the production possibilities frontier is flat. When the economy is producing alot of butter, workers and machines best suited to making guns are being used tomake butter, so each unit of guns given up yields a small increase in the productionof butter; thus the production possibilities frontier is steep.b. Point A is impossible for the economy to achieve; it is outside the productionpossibilities frontier. Point B is feasible but inefficient because it’s inside theproduction possibilities frontier.Figure 2-6c. The Hawks might choose a point like H, with many guns and not much butter. TheDoves might choose a point like D, with a lot of butter and few guns.d. If both Hawks and Doves reduced their desired quantity of guns by the same amount,the Hawks would get a bigger peace dividend because the production possibilitiesfrontier is much steeper at point H than at point D. As a result, the reduction of agiven number of guns, starting at point H, leads to a much larger increase in thequantity of butter produced than when starting at point D.5. See Figure 2-7. The shape and position of the frontier depend on how costly it is to maintaina clean environment the productivity of the environmental industry. Gains inenvironmental productivity, such as the development of a no-emission auto engine, lead to shifts of the production-possibilities frontier, like the shift from PPF1 to PPF2 shown in the figure.Figure 2-76. a. A family’s decision about how much income to save is microeconomics.b. The effect of government regulations on auto emissions is microeconomics.c. The impact of higher saving on economic growth is macroeconomics.d. A f irm’s decision about how many workers to hire is microeconomics.e. The relationship between the inflation rate and changes in the quantity of money ismacroeconomics.7. a. The statement that society faces a short-run tradeoff between inflation andunemployment is a positive statement. It deals with how the economy is, not how itshould be. Since economists have examined data and found that there’s a short-runnegative relationship between inflation and unemployment, the statement is a fact,thus it’s a positive statement.b. The statement that a reduction in the rate of growth of money will reduce the rate ofinflation is a positive statement. Economists have found that money growth andinflation are very closely related. The statement thus tells how the world is, and soit is a positive statement.c. The statement that the Federal Reserve should reduce the rate of growth of money isa normative statement. It states an opinion about something that should be done,not how the world is.d. The statement that society ought to require welfare recipients to look for jobs is anormative statement. It doesn’t state a fact about how the world is. Instead, it is astatement of how the world should be and is thus a normative statement.e. The statement that lower tax rates encourage more work and more saving is apositive statement. Economists have studied the relationship between tax rates andwork, as well as the relationship between tax rates and saving. They’ve found anegative relationship in both cases. So the statement reflects how the world is, andis thus a positive statement.8. Two of the statements in Table 2-2 are clearly normative. They are: “5. If the federalbudget is to be balanced, it should be done over the business cycle rather th an yearly” and “9.The government should restructure the welfare system along the lines of a ‘negative income tax.’” Both are suggestions of changes that should be made, rather than statements of fact, so they are clearly normative statements.The other statements in the table are positive. All the statements concern how the world is, not how the world should be. Note that in all cases, even though they’re statements of fact, fewer than 100 percent of economists agree with them. You could say that positive statements are statements of fact about how the world is, but not everyone agrees about what the facts are.9. As the president, you’d be interested in both the positive and normative views of economists,but you’d probably be most interested in their positive views. Economists are on your staff to provide their expertise about how the economy works. They know many facts about the economy and the interaction of different sectors. So you’d be most likely to call on them about questions of fact posit ive analysis. Since you’re the president, you’re the one who has the make the normative statements as to what should be done, with an eye to the political consequences. The normative statements made by economists represent their views, not necessarily ei ther your’s or the electorate’s.10. There are many possible answers.11. As of this writing, the chairman of the Federal Reserve is Alan Greenspan, the chair of theCouncil of Economic Advisers is Martin N. Baily, and the secretary of the treasury is Larry Summers.12. There are many possible answers.13. As time goes on, you might expect economists to disagree less about public policy becausethey’ll have opportunities to observe different policies that are put into place. As new policies are tried, their results will become known, and they can be evaluated better. It’s likely that the disagreement about them will be reduced after they’ve been tried in practice.For example, many economists thought that wage and price controls would be a good idea for keeping inflation under control, while others thought it was a bad idea. But when the controls were tried in the early 1970s, the results were disastrous. The controls interfered with the invisible hand of the marketplace and shortages developed in many products. As a result, most economists are now convinced that wage and price controls are a bad idea for controlling inflation.But it’s unlikely that the differences between economists will ever be completely eliminated.Economists differ on too many aspects of how the world works. Plus, even as some policies get tried out and are either accepted or rejected, creative economists keep coming up with new ideas.Chapter 3Problems and Applications1. In the text example of the farmer and the rancher, the farmer’s opportunity cost of producingone pound of meat is two pounds of potatoes because for every 20 hours of work, he can produce one pound of meat or two pounds of potatoes. With limited time at his disposal, producing a pound of meat means he gives up the opportunity to produce two pounds of potatoes. Similarly, the rancher’s opportunity cost of producing one pound of meat is 1/8 pound of potatoes because for every hour of work, she can produce one pound of meat or 1/8 pound of potatoes. With limited time at her disposal, producing a pound of meat means she gives up the opportunity to produce 1/8 pound of potatoes.2. a. See Figure 3-2. If Maria spends all five hours studying economics, she can read100 pages, so that is the vertical intercept of the production possibilities frontier. Ifshe spends all five hours studying sociology, she can read 250 pages, so that is thehorizontal intercept. The time costs are constant, so the production possibilitiesfrontier is a straight line.Figure 3-2b. It takes Maria two hours to read 100 pages of sociology. In that time, she couldread 40 pages of economics. So the opportunity cost of 100 pages of sociology is40 pages of economics.3. a.Workers needed to make:One Car One Ton of GrainU.S. 1/4 1/10Japan 1/4 1/5b. See Figure 3-3. With 100 million workers and four cars per worker, if eithereconomy were devoted completely to cars, it could make 400 million cars. Since aU.S. worker can produce 10 tons of grain, if the U.S. produced only grain it wouldproduce 1,000 million tons. Since a Japanese worker can produce 5 tons of grain, ifJapan produced only grain it would produce 500 million tons. These are theintercepts of the production possibilities frontiers shown in the figure. Note thatsince the tradeoff between cars and grain is constant, the production possibilitiesfrontier is a straight line.Figure 3-3c. Since a U.S. worker produces either 4 cars or 10 tons of grain, the opportunity cost of1 car is 2½ tons of grain, which is 10 divided by 4. Since a Japanese workerproduces either 4 cars or 5 tons of grain, the opportunity cost of 1 car is1 1/4 tons of grain, which is 5 divided by 4. Similarly, the U.S. opportunity cost of1 ton of grain is 2/5 cars (4 divided by 10) and the Japanese opportunity cost of 1 tonof grain is 4/5 cars (4 divided by 5). This gives the following table:Opportunity Cost of:1 Car (in terms of tons ofgrain given up) 1 Ton of Grain (in terms ofcars given up)U.S. 2 1/2 2/5Japan 1 1/4 4/5d. Neither country has an absolute advantage in producing cars, since they’re equallyproductive (the same output per worker); the U.S. has an absolute advantage in producing grain, since it’s more productive (greater output per worker).e. Japan has a comparative advantage in producing cars, since it has a loweropportunity cost in terms of grain given up. The U.S. has a comparative advantage in producing grain, since it has a lower opportunity cost in terms of cars given up. f. With half the workers in each country producing each of the goods, the U.S. wouldproduce 200 million cars (that’s 50 million workers times 4 cars each) and 500 million tons of grain (50 million workers times 10 tons each). Japan would produce 200 million cars (50 million workers times 4 cars each) and 250 million tons of grain(50 million workers times 5 tons each).g. From any situation with no trade, in which each country is producing some cars andsome grain, suppose the U.S. changed 1 worker from producing cars to producinggrain. That worker would produce 4 fewer cars and 10 additional tons of grain.Then suppose the U.S. offers to trade 7 tons of grain to Japan for 4 cars. The U.S.will do this because it values 4 cars at 10 tons of grain, so it will be better off if thetrade goes through. Suppose Japan changes 1 worker from producing grain toproducing cars. That worker would produce 4 more cars and 5 fewer tons of grain.Japan will take the trade because it values 4 cars at 5 tons of grain, so it will be betteroff. With the trade and the change of 1 worker in both the U.S. and Japan, eachcountry gets the same amount of cars as before and both get additional tons of grain(3 for the U.S. and 2 for Japan). Thus by trading and changing their production,both countries are better off.4. a. Pat’s opportunity cost of making a pizza is 1/2 gallon of root beer, since she couldbrew 1/2 gallon in the time (2 hours) it takes her to make a pizza. Pat has anabsolute advantage in making pizza since she can make one in two hours, while ittakes Kris four hours. Kris’s opportunity cost of making a pizza is 2/3 gallons ofroot beer, since she could brew 2/3 of a gallon in the time (4 hours) it takes her tomake a pizza. Since Pa t’s opportunity cost of making pizza is less than Kris’s, Pathas a comparative advantage in making pizza.b. Since Pat has a comparative advantage in making pizza, she will make pizza andexchange it for root beer that Kris makes.c. The highest price of pizza in terms of root beer that will make both roommates betteroff is 2/3 gallons of root beer. If the price were higher than that, then Kris wouldprefer making her own pizza (at an opportunity cost of 2/3 gallons of root beer)rather than trading for pizza that Pat makes. The lowest price of pizza in terms ofroot beer that will make both roommates better off is 1/2 gallon of root beer. If theprice were lower than that, then Pat would prefer making her own root beer (she canmake 1/2 gallon of root beer instead of making a pizza) rather than trading for rootbeer that Kris makes.5. a. Since a Canadian worker can make either two cars a year or 30 bushels of wheat, theopportunity cost of a car is 15 bushels of wheat. Similarly, the opportunity cost of abushel of wheat is 1/15 of a car. The opportunity costs are the reciprocals of eachother.b. See Figure 3-4. If all 10 million workers produce two cars each, they produce atotal of 20 million cars, which is the vertical intercept of the production possibilitiesfrontier. If all 10 million workers produce 30 bushels of wheat each, they produce atotal of 300 million bushels, which is the horizontal intercept of the productionpossibilities frontier. Since the tradeoff between cars and wheat is always the same,the production possibilities frontier is a straight line.If Canada chooses to consume 10 million cars, it will need 5 million workers devotedto car production. That leaves 5 million workers to produce wheat, who willproduce a total of 150 million bushels (5 million workers times 30 bushels perworker). This is shown as point A on Figure 3-4.c. If the United States buys 10 million cars from Canada and Canada continues toconsume 10 million cars, then Canada will need to produce a total of 20 million cars.So Canada will be producing at the vertical intercept of the production possibilitiesfrontier. But if Canada gets 20 bushels of wheat per car, it will be able to consume200 million bushels of wheat, along with the 10 million cars. This is shown as pointB in the figure. Canada should accept the deal because it gets the same number ofcars and 50 million more bushes of wheat.Figure 3-46. Though the professor could do both writing and data collection faster than the student (that is,he has an absolute advantage in both), his time is limited. If the professor’s comparative advantage is in writing, it makes sense for him to pay a student to collect the data, since that’s the student’s comparative advantage.7. a. English workers have an absolute advantage over Scottish workers in producingscones, since English workers produce more scones per hour (50 vs. 40). Scottishworkers have an absolute advantage over English workers in producing sweaters,since Scottish workers produce more sweaters per hour (2 vs. 1). Comparativeadvantage runs the same way. English workers, who have an opportunity cost of1/50 sweaters per scone (1 sweater per hour divided by 50 scones per hour), have acomparative advantage in scone production over Scottish workers, who have anopportunity cost of 1/20 sweater per scone (2 sweaters per hour divided by 40 sconesper hour). Scottish workers, who have an opportunity cost of 20 scones per sweater(40 scones per hour divided by 2 sweaters per hour), have a comparative advantagein sweater production over English workers, who have an opportunity cost of 50scones per sweater (50 scones per hour divided by 1 sweater per hour).b. If England and Scotland decide to trade, Scotland will produce sweaters and tradethem for scones produced in England. A trade with a price between 20 and 50scones per sweater will benefit both countries, as they’ll be getting the traded good ata lower price than their opportunity cost of producing the good in their own country.c. Even if a Scottish worker produced just one sweater per hour, the countries wouldstill gain from trade, because Scotland would still have a comparative advantage inproducing sweaters. Its opportunity cost for sweaters would be higher than before(40 scones per sweater, instead of 20 scones per sweater before). But there are stillgains from trade since England has a higher opportunity cost (50 scones per sweater).。
曼昆经济学原理答案英文版
曼昆经济学原理答案英文版一、选择题1、在经济学中，什么是GDP？A.国内生产总值B.国民生产总值C.国内总收入D.国民总收入答案：A.国内生产总值（Gross Domestic Product，GDP）是指一个国家在一定时期内所有常住单位的生产活动的最终成果。
2、GDP的计算方法是什么？A.收入法B.支出法C.生产法D.混合法答案：B.支出法。
GDP可以通过对一国所有常住单位的商品和服务的最终消费支出、资本形成总额和货物与服务净出口进行计算，这种计算方法被称为支出法。
3、在经济学中，什么是通货膨胀？A.货币贬值B.物价上涨C.货币供应增加D.以上都不是答案：A.通货膨胀是指商品和服务的总体价格水平上升，导致货币购买力下降。
4、什么是货币政策？A.政府调节货币供应量的政策B.政府调节利率的政策C.政府调节汇率的政策D.以上都不是答案：A.货币政策是指中央银行通过控制货币供应量来调节利率和影响经济活动的政策。
二、简答题1、请简述GDP的概念及作用。
答案：GDP是指一个国家在一定时期内所有常住单位的生产活动的最终成果。
GDP是国民经济核算的核心指标，也是衡量一个国家经济状况和发展水平的重要指标。
它反映了整个国家经济运行的有效性，以及国民收入分配的公平性。
2、请简述通货膨胀的原因及影响。
答案：通货膨胀的原因有多种，包括货币供应量增加、需求拉动、成本推动等。
其中，货币供应量增加是最主要的原因。
当货币供应量增加时，物价上涨，导致货币购买力下降。
通货膨胀会对经济产生负面影响，包括降低消费者购买力、增加企业成本、扭曲价格信号等。
通货膨胀还会导致社会不稳定和政治风险。
曼昆的经济学原理课件是经济学教育中的重要资源，它以深入浅出的方式解释了经济学的基本原理和概念。
本文将对这些原理进行概述，并解释它们在现实生活中的应用。
曼昆的经济学原理主要包括微观经济学和宏观经济学两个部分。
微观经济学主要研究个体经济单位的行为和决策，如消费者、企业和政府。
微观经济学曼昆第七版答案
微观经济学曼昆第七版答案【篇一：曼昆微观经济学英文版本答案】a family deciding whether to buy a new car faces a tradeoff between the cost of the car and other things they might wantto buy. for example, buying the car might mean they must give up going on vacation for the next two years. so the real cost of the car is the familys opportunity cost in terms of what they must give up.b. for a member of congress deciding whether to increase spending on national parks, the tradeoff is between parks and other spending items or tax cuts. if more money goes into the park system, that may mean less spending on national defense or on the police force. or, instead of spending more money on the park system, taxes could be reduced.c. when a company president decides whether to open a new factory, the decision is based on whether the new factory will increase the firms profits compared to other alternatives. for example, the company could upgrade existing equipment or expand existing factories. the bottom line is: which method of expanding production will increase profit the most?d. in deciding how much to prepare for class, a professor faces a tradeoff between the value of improving the quality of the lecture compared to other things she could do with her time, such as working on additional research.2. when the benefits of something are psychological, such as going on a vacation, it isnt easy to compare benefits to costs to determine if its worth doing. but there are two ways to think about the benefits. one is to compare the vacation with what you would do in its place. if you didnt go on vacation, would you buy something like a new set of golf clubs? then you can decide if youd rather have the new clubs or the vacation. a second way is to think about how much work you had to do to earn the money to pay for the vacation; then you can decide if the psychological benefits of the vacation were worth the psychological cost of working.3. if you are thinking of going skiing instead of working at your part-time job, the cost of skiing includes its monetary and time costs, which includes the opportunity cost of the wagesyou are giving up by not working. if the choice is between skiing and going to the library to study, then the cost of skiing is its monetary and time costs including the cost to you of getting a lower grade in your course.4. if you spend $100 now instead of saving it for a year and earning 5 percent interest, you are giving up the opportunity to spend $105 a year from now. the idea that money has a time value is the basis for the field of finance, the subfield of economics that has to do with prices of financial instruments like stocks and bonds.5. the fact that youve already sunk $5 million isnt relevant to your decision anymore, since that money is gone. what matters now is the chance to earn profits at the margin. if you spend another $1 million and can generate sales of $3 million, youll earn $2 million in marginal profit, so you should do so. you are right to think that the project has lost a total of $3 million ($6 million in costs and only $3 million in revenue) and you shouldnt have started it. thats true, but if you dont spend the additional $1 million, you wont have any sales and your losses will be $5 million. so what matters is not the total profit, but the profit you can earn at the margin. in fact, youd pay up to $3 million to complete development; any more than that, and you wont be increasing profit at the margin.6. harry suggests looking at whether productivity would riseor fall. productivity is certainly important, since the more productive workers are, the lower the cost per gallon of potion. ron wants to look at average cost. but both harry and ron are missing the other side of the equation?revenue. a firm wants to maximize its profits, so it needs to examine both costs and revenues. thus, hermione is right?it’s best to examine whether the extra revenue would exceed the extra costs. hermione is the only one who is thinking at the margin.7. a. the provision of social security benefits lowers an individual’s incentive t o save for retirement. the benefits provide some level of income to the individual when he or she retires. this means that the individual is not entirely dependent on savings to support consumption through the years in retirement.b. since a person gets fewer after-tax social security benefits the greater is his or her earnings, there is an incentive not towork (or not work as much) after age 65. the more you work, the lower your after-tax social security benefits will be. thus the taxation of social security benefits discourages work effort after age 65.18. a. when welfare recipients who are able to work have their benefits cut off after two years, they have greater incentive to find jobs than if their benefits were to last forever.b. the loss of benefits means that someone who cant find ajob will get no income at all, so the distribution of income will become less equal. but the economy will be more efficient, since welfare recipients have a greater incentive to find jobs. thus the change in the law is one that increases efficiency but reduces equity.9. by specializing in each task, you and your roommate can finish the chores more quickly. if you divided each task equally, it would take you more time to cook than it would take your roommate, and it would take him more time to clean than it would take you. by specializing, you reduce the total time spent on chores.10. a. being a central planner is tough! to produce the right number of cds by the right artists and deliver them to the right people requires an enormous amount of information. youneed to know about production techniques and costs in the cd industry. you need to know each persons musical tastes and which artists they want to hear. if you make the wrong decisions, youll be producing too many cds by artists that people dont want to hear, and not enough by others.b. your decisions about how many cds to produce carry overto other decisions. you have to make the right number of cd players for people to use. if you make too many cds and not enough cassette tapes, people with cassette players will be stuck with cds they cant play. the probability of making mistakes is very high. you will also be faced with tough choices about the musicindustry compared to other parts of the economy. if you produce more sports equipment, youll have fewer resourcesfor making cds. so all decisions about the economy influence your decisions about cd production.11. a. efficiency: the market failure comes from the monopoly by the cable tv firm.b. equityc. efficiency: an externality arises because secondhand smoke harms nonsmokers.d. efficiency: the market failure occurs because of standard oils monopoly power.e. equityf. efficiency: there is an externality because of accidents caused by drunk drivers.12. a. if everyone were guaranteed the best health care possible, much more of our nations output would be devoted to medical care than is now the case. would that be efficient? if you think that currently doctors form a monopoly and restrict health care to keep their incomes high, you might think efficiency would increase by providing more health care. but more likely, if the government mandated increased spending on health care, the economy would be less efficient because it would give people more health care than they would choose to pay for. from the point of view of equity, if poor people are less likely to have adequate health care, providing more health care would represent an improvement. each person would have a more even slice of the economic pie, though the pie would consist of more health care and less of other goods.b. when workers are laid off, equity considerations argue for the unemployment benefits system to provide them with some income until they can find new jobs. after all, no one plans to be laid off, so unemployment benefits are a form of insurance. but there’s an efficiency problem?why work if you can get income for doing nothing? the economy isn’t operating efficiently if people remain unemployed for a long time, and unemployment benefits encourage unemployment. thus, there’s a tradeoff between equity and efficiency. the more generous are unemployment benefits, the less income is lost by an unemployed person, but the more that person is encouraged to remain unemployed. so greater equity reduces efficiency.13. since average income in the united states has roughly doubled every 35 years, we are likely to have a better standard of living than our parents, and a much better standard of living than our grandparents. this is mainly the result of increased productivity, so that an hour of work produces more goodsand services than it used to. thus incomes have continuously risen over time, as hasthe standard of living.14. if americans save more and it leads to more spending on factories, there will be an increase in production and productivity, since the same number of workers will have more equipment to work with. the benefits from higher productivity will go to both the workers, who will get paid more since theyre producing more, and the factory owners, who will get a return on their investments. there is no such thing as a free lunch, however, because when people save more, they are giving up spending. they get higher incomes at the cost of buying fewer goods.15. a. if people have more money, they are probably going to spend more on goods and services.b. if prices are sticky, and people spend more on goods and services, then output may increase, as producers increase output to meet the higher demand rather than raising prices.c. if prices can adjust, then the higher spending of consumers will be matched with increased prices and output wont rise.16. to make an intelligent decision about whether to reduce inflation, a policymaker would need to know what causes inflation and unemployment, as well as what determines the tradeoff between them. any attempt to reduce inflation will likely lead to higher unemployment in the short run. a policymaker thus faces a tradeoff between the benefits of lower inflation compared to the cost of higher unemployment. ch21. economics is like a science because economists use the scientific method. they devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories about how the world works. economists use theory and observation like other scientists, but they are limited in their ability to run controlled experiments. instead, they must rely on natural experiments.2. economists make assumptions to simplify problems without substantially affecting the answer. assumptions can make the world easier to understand.3. an economic model cannot describe reality exactly because it would be too complicated to understand. a modelis a simplification that allows the economist to see what is truly important.4. figure 3 shows a production possibilities frontier between milk and cookies (ppf1). if a disease kills half of the economys cow population, less milk production is possible, so the ppf shifts inward (ppf2). note that if the economy produces all cookies, so it doesnt need any cows, then production is unaffected. but if the economy produces any milk at all, then there will be less production possible after the disease hits. figure 35. the idea of efficiency is that an outcome is efficient if the economy is getting all it can from the scarce resources it has available.in terms of the production possibilities frontier, an efficient point is a point on the frontier, such as point a in figure 4. a point inside the frontier, such as point b, is inefficient since more of one good could be produced without reducing the production of another good.6. the two subfields in economics are microeconomics and macroeconomics. microeconomics is the study of how households and firms make decisions and how they interact in specific markets. macroeconomics is the study of economy-wide phenomena.7. positive statements are descriptive and make a claim about how the world is, while normative statements are prescriptive and make a claim about how the world ought to be. here is an example. positive: a rapid growth rate of money is the cause of inflation. normative: the government should keep the growth rate of money low.8. the council of economic advisers is a group of economists who consult with the president of the united states about economic matters. the council consists of three members and a staff of several dozen economists. it writes the annual economic report of the president.9. economists sometimes offer conflicting advice to policymakers for two reasons: (1) economists may disagree about the validity of alternative positive theories about how the world works; and (2) economists may have different values and, therefore, different normative views about what public policy should try to accomplish.ch31. in the text example of the farmer and the rancher, the farmers opportunity cost of producing one ounce of meat is 4 ounces of potatoes because for every 8 hours of work, he can produce 8 ounces of meat or 32 ounces of potatoes. with limited time at his disposal, producing an ounce of meat means he gives up the opportunity to produce 4 ounces of potatoes. similarly, the ranchers opportunity cost of producing one ounce of meat is 2 ounces of potatoes because for every 8 hours of work, she can produce 24 ounces of meat or 48 ounces of potatoes. with limited time at her disposal, producing an ounce of meat means she gives up the opportunity to produce 2 ounces of potatoes.2. a. see figure 2. if maria spends all five hours studying economics, she can read 100 pages, so that is the vertical intercept of the production possibilities frontier. if she spends all five hours studying sociology, she can read 250 pages, so figure 4that is the horizontal intercept. the time costs are constant, so the production possibilities frontier is a straight line.figure 2b. it takes maria two hours to read 100 pages of sociology. in that time, she could read 40 pages of economics. so the opportunity cost of 100 pages of sociology is 40 pages of economics.3. a.b. see figure 3. with 100 million workers and four cars per worker, if either economy were devoted completely to cars, it could make 400 million cars. since a u.s. worker can produce 10 tons of grain, if the united states produced only grain it would produce 1,000 million tons. since a japanese worker can produce 5 tons of grain, if japan produced only grain it would produce 500 million tons. these are the intercepts of the production possibilities frontiers shown in the figure. note that since the tradeoff between cars and grain is constant, the production possibilities frontier is a straight line.【篇二：微观经济学原理(第七版) 曼昆名词解释(带英文)】=txt>稀缺性（scarcity）：社会资源的有限性。
微观经济学曼昆 课后答案2
ECONOMICS 2010 ASSIGNMENT 2 – CHAPTERS 4 & 5NAME____________________________________________1. What is a market?A MARKET IS A GROUP OF BUYERS AND SELLERS OF A PARTICULAR GOOD OR SERVICE--- BUYERS AS A GROUP DETERMINE DEMAND FOR THE PRODUCT OR SERVICE AND THE SELLERS AS A GROUP DETERMINE THE SUPPLY OF THE PRODUCT OR SERVICE2. What are the characteristics of a perfectly competitive market? Explain.A COMPETITIVE MARKET IS A MARKET IN WHICH THERE ARE MANY BUYERS AND MANY SELLERS. EACH BUYER AND SELLER HAS A NEGLIGIBLE IMPACT ON THE MARKET PRICE AND THERE IS FULL INFORMATION AMONGST BUYERS AND SELLERS.3. Explain what is meant by a) quantity demanded; b) a demand schedule;and c) the law of demand.THE QUANTITY DEMANDED IS THE AMOUNT OF A GOOD THAT BUYERS ARE WILLING AND ABLE TO PURCHASE.THE DEMAND SCHEDULE IS A TABLE OR LISTING THAT SHOWS THE RELATIONSHIP BETWEEN THE PRICE OF A GOOD OR SERVICE AND THE QUANTITY OF THE GOOD OR SERVICE DEMANDED.THE LAW OF DEMAND IS A CLAIM THAT ,OTHER THINGS EQUAL, THE QUANTITY DEMAND OF A GOOD OR SERVICE FALLS WHEN THE PRICE OF THE GOOD OR SERVICE RISES.4. Graph the demand curve given the data from the demand schedule for slices of cherry pie at different prices in the table below.$14 85. Define or identify the economic factors that shift the demand curve. CHANGES IN INCOME, CHANGES IN THE PRICES OF SUBSTITUTE AND COMPLEMENTARYGOODS, TASTES AND PREFERENCES, CHANGES IN EXPECTATIONS, AND CHANGES IN THE NUMBER OF BUYERS,.6. Define what is meant by the “Law of Supply”.THE LAW OF SUPPLY CLAIMS THAT, OTHER THINGS BEING EQUAL, THE QUANTITY SUPPLIED OF A GOOD OR SERVICE INCREASES WHEN THE PRICE OF THE GOOD OR SERVICE INCREASES.7. Look at the figure below and then indicate what factors, or variables, wouldcause the supply curve for Pizza to shift back from supply curve S1 tosupply curve S2.INCREASES IN THE COSTS (PRICES) OF INPUTS SUCH AS LABOR, CAPTITAL, MATERIALS, ENERGY WILL SHIFT THE SUPPLY CURVE FROM S1 TO S2. SIMILARLY CHANGES IN TECHNOLOGY THAT INCREASE THE COST OF PRODUCTION WILL SHIFT THE SUPPLY CURVE BACK IN ADDITION OF THE DAMPENING OF EXPECTATIONS ON HOW MUCH CAN BE SOLD. IFTHE NUMBER OF SELLERS (PRODUCERS) DECREASES AND THEIRPRODUCTION DECREASES, THEN SUPPLY WILL SHIFT BACK AS WELL.8. The supply of canvas covers from the Cheung Company to the canvasmarket is 300 canvases if the price per canvas is RNB2,000. The supply of canvases from the Liu Company is 314 canvases if the price per canvas is RNB2,000. What is the market supply of canvases at a price of RNB2,000?MARKET SUPPLY OF CANVASES AT ANY GIVEN PRICE IS THE ADDITION OF THE SUPPLY OF EACH PRODUCER AT THAT GIVEN PRICE, WHICH IN THIS CASE WOULD BE 614CANVASES IF THERE ARE ONLY THE TWO SUPPLIERS IN THE MARKET.9. The demand function for a good, Q, is given by Q D = 12 – P, while thesupply function for Q is given by Q S = 4 + 3P, where P = price. Solve for the equilibrium quantity, Q, and price, P, in the market.SET Q D = Q S, OR 12 – P = 4 + 3P, OR 4P = 8, OR P = 8/4 = 2, SO P = 2SUBSTITUTE P = 2 INTO Q D = 12 – P, OR Q = 12 – 2 = 10, SO Q = 1010. Now suppose that the demand for good Q shifts out (same as shiftingupwards on the supply curve) and the demand curve under theseconditions now becomes Q D = 14 – P. In addition, because of a shortage in inputs used to produce good Q, the supply of Q shifts back and the supply function becomes Q S = 2 + 3P. Now solve for the new equilibrium price, P, and quantity, Q, in the market.AGAIN SET Q D = Q S UNDER THE NEW SUPPLY AND DEMANDCONDITIONS: 14 –P = 2 + 3P, OR 4P = 12, AND P = 3SUBSTITUTE P = 3 INTO Q = 14 – P = 14 – 3 = 11, SO PRICE = 3 ANDQUANTITY = 11 BECAUSE OF THESE SHIFTS IN DEMAND AND SUPPLY.11. Define the economic meaning of the term, “Price Elasticity of Demand” inwords and also in terms of percentage changes.)THE PRICE ELASTICITY OF DEMAND IS A MEASURE OF HOW MUCHQUANTITY DEMANDED OF A GOOD OR SERVICE RESPONDS TO ACHANGE IN PRICE OF THE GOOD OR SERVICE, AND IS COMPUTED AS THE PERCENTAGE IN QUANTITY DEMANDED DIVIDED BY THEPERCENTAGE CHANGE IN THE PRICE OF THE GOOD OR SERVICE.12. Derive the price elasticity of demand using the midpoint method if thequantity purchased of a good is 60 units at price $HK8,000 and changes to70 units purchased at a price of $HK6,000.THE MIDPOINT METHOD OF COMPUTING THE PRICE ELASTICITY OFDEMAND = ((Q2– Q1)/ (Q2 + Q1)/2) / ((P2– P1)/(P2 + P1)/2)((70 – 60) / (70 + 60)/2 ) / ((6000 – 8000)/ (6000 + 8000)/2) = -0.5384613. a) The quantity of Women’s purses (in some locations women call thesehandbags) purchased decreases 67 % as price is increased by 22%. What is the price elasticity of demand for women’s purses?IN THIS CASE, PRICE ELASTICITY OF DEMAND =- 76 PERCENT / 22 PERCENT = - 3. 45455b) Do women’s purses have an elastic demand elasticity or an inelasticdemand elasticity from your answer derived in part a) above? Explain. THE ABSOLUTE VALUE OF THE ELASTIITY HERE IS 3.45455 > 1, SO THE ELASTICITY OF WOMENS PURSES IS ELASTIC MEANING THAT AS PRICE DECREASES, THE QUANTITY DEMANDED INCREASES MORE THAN THE PERCENTAGE DECREASE IN PRICE. OR, SAID ANOTHER WAY, AS PRICE INCREASES, THE QUANTITY DEMANDED DECREASES GREATER THANTHE PECENTAGE PRICE INCREASE.14. You are the manager of a clothing store and you have information that thepric e elasticity of demand on men’s shirts is -1.568. What would you do to increase shirt revenues? (Choose from the choices below and explain your choice)a) Increase price?b) Initiate a sale from time to time by decreasing prices of men’s shirts?c) Only sell men’s cotton pants?THE PRICE ELASTICITY OF DEMAND HERE SUGGESTS THAT MEN’SSHIRTS HAVE ELASTIC DEMAND. SO A 10 PERCENTAGE DECREASE IN THE PRICE OF MEN’S SHIRTS INDUCES A GREATER THAN 10PERCENT INCREASE IN QUANTITY DEMANDED. SO THE STRATEGYWOULD BE TO DECREASE PRICES BY HAVING A SALE FROM TIME TO TIME IN ORDER TO INCREASE REVENUES ON THE SALE OF MEN’SSHIRTS, SINCE QUANTITY DEMANDED INCREASES GREATER THANPRICE DECLINE, THIS INCREASING REVENUE.15. The income elasticity of demand for watches in Hong Kong is 0.785. Whathappens to the demand for watches as incomes in Hong Kong increase?Explain.ONE SUCH SCENARIO WOULD BE THAT AS INCOMES INCREASE SAY BY10 PERCENT, THEN THE QUANTITY OF WATCHES DEMANDEDINCREASES BY 7.85 PERCENT. SO AS INCOMES INCREASE, THEDEMAND FOR WATCHES INCREASES. SUCH AN INCREASE IN INCOME CREATES AN OUTWARD SHIFT IN THE DEMAND FOR WATCHES.16. The cross-price elasticity of demand for oranges relative to the price ofpineapple is 0.286. Are oranges and pineapples complements orsubstitutes in consumption? Explain your answer.SINCE THE CROSS-PRICE ELASTICITY OF DEMAND IS POSITIVE, ANINCREASE IN THE PRICE OF PINEAPPLE INCREASES THE DEMAND FOR ORANGES, THAT IS THE DEMAND FOR ORANGES EXPERIENCES APOSITIVE (OUTWARD) SHIFT IN DEMAND. ORANGES AND PINEAPPLE ARE SUBSTITUTE GOODS ACCORDING TO THE CROSS-PRICEELASTICITY.17. Suppose the price of milk in the United States increases from $2.85 pergallon to $3.15 per gallon and the quantity supplied increases from 9,000 to 11,000 gallons per month. Derive the price elasticity of milk supply in the United States.USING THE MID-POINT METHOD OF CALCULATING THE SUPPLYELASCTITY WE OBTAIN,((11000 -9000)/(11000+9000)/2)/ ((3.15 – 2.85)/(3.15 + 2.85)/2) = 1.997AS THE PRICE ELASTICITY OF SUPPLY OF MILK.18. Both the demand for and supply of rice in Thailand are inelastic, but a newhybrid rice is developed that increases the yield of rice per hectare inThailand.a) Is this good news for Thai agriculture? Explain.YES, THIS IS GOOD NEWS FOR THAI AGRICULTURE, SINCE NOW MORE RICE CAN BE PRODUCED AND PRODUCED MORE EFFICIENTLY. THE SUPPLY CURVE OR FUNCTION FOR RICE SHIFTS OUTWARD. MORE RICE CAN NOW BE PRODUCED PER UNIT OF LAND IN THAILAND.b) Is this good revenue news for individual Thai rice farmers? ExplainTHE SUPPLY CURVE FOR RICE SHIFTS OUTWARD AND MORE RICE IS PRODUCED FROM THAI AGRICULTURE. IF THE DEMAND FOR RICE DOES NOT CHANGE, THEN THE PRICE FOR RICE IN THAILAND WILL FALL AND DEPENDING ON THE ELASTICITY OF DEMAND FOR RICE IN THAILAND, REVENUE TO THAI RICE FARMERS COULD DECREASE SINCE THEY ARE PRODUCING MORE RICE. IF THE DEMAND FOR RICE IS INELASTIC, THEN PRICE DECLINES ARE GREATER THAN INCREASES IN RICECONSUMPTION AND REVENUES TO THE FARMERS DECLINE.19. Explain the difference in prices changes in the short run relative to the longrun as a result in changes in demand and supply in the short run relative to the same changes over the long run.In the long run, both the price elasticities of supply and demand become less inelastic or more elastic and therefore more responsive to pricechanges relative to short run conditions of demand and supply. For any given shift of supply on a given demand, quantity increases or decreases are greater than price increases or decreases in the long run setting. In the long run there are more substitutes for any given product or servicemaking demand less inelastic or more elastic. On the supply side, smaller increases in price bring about greater increases in quantity suppliedrelative to the short run conditions of supply.20. Explain the factors or influences upon which the price elasticity of supplydepends.THE ELASTICITY OF SUPPLY DEPENDS ON THE FLEXIBILITY OFSELLERS TO CHANGE THE AMOUNT OF THE GOOD OR SERVICE THEY PRODUCE OR OFFER, ANDTHE TIME PERIOD BEING CONSIDERED, SUCH AS BEING MORE ELASTIC IN THE LONG RUN RELATIVE TO THE SHORT RUN.。
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WHAT’S NEW IN THE SIXTH EDITION:There are no major changes to this chapter.LEARNING OBJECTIVES:By the end of this chapter, students should understand: the link between buyers’ willingness to pay for a good and the demand curve. how to define and measure consumer surplus. the link between sellers’ costs of producing a good and the supply curve. how to define and measure producer surplus. that the equilibrium of supply and demand maximizes total surplus in a market.CONTEXT AND PURPOSE:Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then utilized in Chapters 8 and 9 to determine the winners and losers from taxation and restrictions on international trade. The purpose of Chapter 7 is to develop welfare economics —the study of how the allocation of resources affects economic well-being. Chapters 4 through 6 employed supply and demand in a positive framework, which focused on the question, “What is the equilibrium price and quantity in a market” This chapter now addresses the normative question, “Is the equilibri um price and quantity in a market the best possible solution to the resource allocation problem, or is it simply the price and quantity that balance supply and demand” Students will discover that under most circumstances the equilibrium price and quantity is also the one that maximizes welfare.CONSUMERS, PRODUCERS, AND THEEFFICIENCY OF MARKETSKEY POINTS:Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market. Consumer surplus can be computed by finding the area below the demand curve and above the price.Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient.Policymakers are often concerned with the efficiency, as well as the equality, of economic outcomes.The equilibrium of supply and demand maximizes the sum of consumer and producer surplus. That is, the invisible hand of the marketplace leads buyers and sellers to allocate resources efficiently.Markets do not allocate resources efficiently in the presence of market failures such as market power or externalities.CHAPTER OUTLINE:I. Definition of welfare economics: the study of how the allocation of resources affects economic well-being.II. Consumer SurplusA. Willingness to Pay1. Definition of willingness to pay: the maximum amount that a buyer will pay for a good.2. Example: You are auctioning a mint-condition recording of Elvis Presley’s first album. Four buyersshow up. Their willingness to pay is as follows:If the bidding goes to slightly higher than $80, all buyers drop out except for John.Because John is willing to pay more than he has to for the album, he derives somebenefit from participating in the market.3. Definition of consumer surplus: the amount a buyer is willing to pay for a good minus the amountthe buyer actually pays for it.4. Note that if you had more than one copy of the album, the price in the auction would end up beinglower (a little over $70 in the case of two albums) and both John and Paul would gain consumer surplus.B. Using the Demand Curve to Measure Consumer Surplus1. We can use the information on willingness to pay to derive a demand curve for the rare Elvis Presleyalbum.PriceBuyersQuantity DemandedMore than $100 None 0 $80 to $100 John1 $70 to $80 John, Paul2 $50 to $70 John, Paul, George3 $50 or lessJohn, Paul, George, Ringo42. At any given quantity, the price given by the demand curve reflects the willingness to pay of themarginal buyer . Because the demand curve shows the buyers’ willingness to pay, we can use the demand curve to measure consumer surplus.Figure 1 “This represents the demand curve for the time machine. Consumer surplus is the difference between what consumers are willing to pay and the amount they actually have to pay. The market price will determine who uses the time machi ne and how much surplus they keep.”“If the price of a time machine ride was $500, three rides would be sold—one to Scott, one to Carol, and one to Steve. Jeanne is not willing to pay $500, so she wouldn’t time travel.”“We can calculate the consumer su rplus of three time trips. Scott would pay $3,000 but only pays $500, leaving $2,500 of net benefits.” (Put these numbers on the board.) “Carol has net benefits of $2,000. Steve has $300 in net benefits. Adding up these net savings gives $4,800 in consumer surplus.”Points for DiscussionThe consumer surplus depends on a good’s selling price and the number of consumers who are willing to purchase the good at that price. The lower the price, the greater the consumer surplus.Figure 23. Consumer surplus can be measured as the area below the demand curve and above the price.C. How a Lower Price Raises Consumer SurplusFigure 31. As price falls, consumer surplus increases for two reasons.a. Those already buying the product will receive additional consumer surplus because they arepaying less for the product than before (area A on the graph).b. Because the price is now lower, some new buyers will enter the market and receive consumersurplus on these additional units of output purchased (area B on the graph).D. What Does Consumer Surplus MeasureIt is important to stress that consumer surplus is measured in monetary terms. Consumersurplus gives us a way to place a monetary cost on inefficient market outcomes (due togovernment involvement or market failure).1. Remember that consumer surplus is the difference between the amount that buyers are willing topay for a good and the price that they actually pay.2. Thus, it measures the benefit that consumers receive from the good as the buyers themselvesperceive it.III. Producer SurplusA. Cost and the Willingness to Sell1. Definition of cost: the value of everything a seller must give up to produce a good .2. Example: You want to hire someone to paint your house. You accept bids for the work from foursellers. Each painter is willing to work if the price you will pay exceeds her opportunity cost. (Note that this opportunity cost thus represents willingness to sell.) The costs are:3. Bidding will stop when the price gets to be slightly below $600. All sellers will drop out except forGrandma. Because Grandma receives more than she would require to paint the house, she derives some benefit from producing in the market.4. Definition of producer surplus : the amount a seller is paid for a good minus the seller’s cost ofproviding it.5. Note that if you had more than one house to paint, the price in the auction would end up beinghigher (a little under $800 in the case of two houses) and both Grandma and Georgia would gain producer surplus.ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price ceilings from Chapter 6. Redraw the market for two-bedroom apartments in your town. Draw in a price ceiling below the equilibrium price.Then go through: consumer surplus before the price ceiling is put into place. consumer surplus after the price ceiling is put into place.B. Using the Supply Curve to Measure Producer Surplus1. We can use the information on cost (willingness to sell) to derive a supply curve for house paintingservices.Price Sellers Quantity Supplied$900 or more Mary, Frida, Georgia, Grandma4$800 to $900Frida, Georgia, Grandma3$600 to $800Georgia, Grandma2$500 to $600Grandma1less than $500None02. At any given quantity, the price given by the supply curve represents the cost of the marginal seller.Because the supply curve shows the sellers’ cost (willingness to sell), we can use the supply curve to measure producer surplus.3. Producer surplus can be measured as the area above the supply curve and below the price.Figure 4Figure 5C. How a Higher Price Raises Producer Surplus1. As price rises, producer surplus increases for two reasons.a. Those already selling the product will receive additional producer surplus because they arereceiving more for the product than before (area C on the graph).b. Because the price is now higher, some new sellers will enter the market and receive producersurplus on these additional units of output sold (area D on the graph).D. Producer surplus is used to measure the economic well-being of producers, much like consumer surplus isused to measure the economic well-being of consumers.Figure 6ALTERNATIVE CLASSROOM EXAMPLE:Review the material on price floors from Chapter 6. Redraw the market for an agricultural productsuch as corn. Draw in a price support above the equilibrium price.Then go through:producer surplus before the price support is put in place.producer surplus after the price support is put in place.Make sure that you discuss the cost of the price support to taxpayers.Pretty Woman, Chapter 6. Vivien (Julia Roberts) and Edward (Richard Gere) negotiate aprice. Afterward, Vivien reveals she would have accepted a lower price, while Edward admitshe would have paid more. If you have done a good job of introducing consumer andproducer surplus, you will see the light bulbs go off above your students’ heads as theywatch this clip.IV. Market EfficiencyA. The Benevolent Social Planner1. The economic well-being of everyone in society can be measured by total surplus, which is the sum ofconsumer surplus and producer surplus:Total Surplus = Consumer Surplus + Producer SurplusTotal Surplus = (Value to Buyers – Amount Paid by Buyers) + (Amount Received by Sellers – Cost to Sellers)Because the Amount Paid by Buyers = Amount Received by Sellers:2. Definition ofefficiency: the property of a resource allocation of maximizing the total surplusreceived by all members of society .3. Definition of equality: the property of distributing economic prosperity uniformly the members ofsociety .B. Evaluating the Market EquilibriumTotal Surplus = Value to Buyers Cost to Sellers Figure 7 Now might be a good time to point out that many government policies involve a trade-off between efficiency and equity. When you evaluate government policies, like price ceilings or floors, you can explain them in terms of equity and efficiency.1. At the market equilibrium price:a. Buyers who value the product more than the equilibrium price will purchase the product; thosewho do not, will not purchase the product. In other words, the free market allocates the supplyof a good to the buyers who value it most highly, as measured by their willingness to pay.b. Sellers whose costs are lower than the equilibrium price will produce the product; those whosecosts are higher, will not produce the product. In other words, the free market allocates thedemand for goods to the sellers who can produce it at the lowest cost.2. Total surplus is maximized at the market equilibrium.Figure 8a. At any quantity of output smaller than the equilibrium quantity, the value of the product to themarginal buyer is greater than the cost to the marginal seller so total surplus would rise if outputincreases.b. At any quantity of output greater than the equilibrium quantity, the value of the product to themarginal buyer is less than the cost to the marginal seller so total surplus would rise if outputdecreases.3. Note that this is one of the reasons that economists believe Principle #6: Markets are usually a goodway to organize economic activity.It would be a good idea to remind students that there are circumstances when the marketprocess does not lead to the most efficient outcome. Examples include situations such aswhen a firm (or buyer) has market power over price or when there are externalities present.These situations will be discussed in later chapters.C. In the News: Ticket Scalping1. Ticket scalping is an example of how markets work to achieve an efficient outcome.2. This article from The Boston Globe describes economist Chip Case’s experience with ticket scalping.D. Case Study: Should There Be a Market in Organs1. As a matter of public policy, people are not allowed to sell their organs.a. In essence, this means that there is a price ceiling on organs of $0.b. This has led to a shortage of organs.2. The creation of a market for organs would lead to a more efficient allocation of resources, but criticsworry about the equity of a market system for organs.V. Market Efficiency and Market FailureA. To conclude that markets are efficient, we made several assumptions about how markets worked.1. Perfectly competitive markets.2. No externalities.B. When these assumptions do not hold, the market equilibrium may not be efficient.C. When markets fail, public policy can potentially remedy the situation.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Figure 1 shows the demand curve for turkey. The price of turkey is P1 and the consumer surplus thatresults from that price is denoted CS. Consumer surplus is the amount a buyer is willing to pay for agood minus the amount the buyer actually pays for it. It measures the benefit to buyers ofparticipating in a market.Figure 1 Figure 22. Figure 2 shows the supply curve for turkey. The price of turkey is P1 and the producer surplus thatresults from that price is denoted PS. Producer surplus is the amount sellers are paid for a goodminus the sellers’ cost of providing it (measured by the supply curve). It measures the benefit tosellers of participating in a market.Figure 33. Figure 3 shows the supply and demand for turkey. The price of turkey is P1, consumer surplus is CS,and producer surplus is PS. Producing more turkeys than the equilibrium quantity would lower totalsurplus because the value to the marginal buyer would be lower than the cost to the marginal selleron those additional units.Questions for Review1. The price a buyer is willing to pay, consumer surplus, and the demand curve are all closely related.The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus isthe area below the demand curve and above the price, which equals the price that each buyer iswilling to pay minus the price actually paid.2. Sellers' costs, producer surplus, and the supply curve are all closely related. The height of the supplycurve represents the costs of the sellers. Producer surplus is the area below the price and above thesupply curve, which equals the price received minus each seller's costs of producing the good.Figure 43. Figure 4 shows producer and consumer surplus in a supply-and-demand diagram.4. An allocation of resources is efficient if it maximizes total surplus, the sum of consumer surplus andproducer surplus. But efficiency may not be the only goal of economic policymakers; they may also beconcerned about equitythe fairness of the distribution of well-being.5. The invisible hand of the marketplace guides the self-interest of buyers and sellers into promotinggeneral economic well-being. Despite decentralized decision making and self-interested decisionmakers, free markets often lead to an efficient outcome.6. Two types of market failure are market power and externalities. Market power may cause marketoutcomes to be inefficient because firms may cause price and quantity to differ from the levels theywould be under perfect competition, which keeps total surplus from being maximized. Externalitiesare side effects that are not taken into account by buyers and sellers. As a result, the free marketdoes not maximize total surplus.Problems and Applications1. a. Consumer surplus is equal to willingness to pay minus the price paid. Therefore, Melissa’swillingness to pay must be $200 ($120 + $80).b. Her consumer surplus at a price of $90 would be $200 $90 = $110.c. If the price of an iPod was $250, Melissa would not have purchased one because the price isgreater than her willingness to pay. Therefore, she would receive no consumer surplus.2. If an early freeze in California sours the lemon crop, the supply curve for lemons shifts to the left, asshown in Figure 5. The result is a rise in the price of lemons and a decline in consumer surplus from A+ B + C to just A. So consumer surplus declines by the amount B + C.Figure 5 Figure 6In the market for lemonade, the higher cost of lemons reduces the supply of lemonade, as shown inFigure 6. The result is a rise in the price of lemonade and a decline in consumer surplus from D + E + Fto just D, a loss of E + F. Note that an event that affects consumer surplus in one market often haseffects on consumer surplus in other markets.3. A rise in the demand for French bread leads to an increase in producer surplus in the market forFrench bread, as shown in Figure 7. The shift of the demand curve leads to an increased price, which increases producer surplus from area A to area A + B + C.Figure 7The increased quantity of French bread being sold increases the demand for flour, as shown in Figure8. As a result, the price of flour rises, increasing producer surplus from area D to D + E + F. Note thatan event that affects producer surplus in one market leads to effects on producer surplus in related markets.Figure 84. a. Bert’s demand schedule is:Price Quantity DemandedMore than $70$5 to $71$3 to $52$1 to $33$1 or less4Bert’s demand curve is shown in Figure 9.Figure 9b. When the price of a bottle of water is $4, Bert buys two bottles of water. His consumer surplus isshown as area A in the figure. He values his first bottle of water at $7, but pays only $4 for it, so has consumer surplus of $3. He values his second bottle of water at $5, but pays only $4 for it, so has consumer surplus of $1. Thus Bert’s total consumer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water falls from $4 to $2, Bert buys three bottles of water, anincrease of one. His consumer surplus consists of both areas A and B in the figure, an increase in the amount of area B. He gets consumer surplus of $5 from the first bottle ($7 value minus $2price), $3 from the second bottle ($5 value minus $2 price), and $1 from the third bottle ($3value minus $2 price), for a total consumer surplus of $9. Thus consumer surplus rises by $5(which is the size of area B) when the price of a bottle of water falls from $4 to $2.5. a. Ernie’s supply schedule for water is:Price Quantity SuppliedMore than $74$5 to $73$3 to $52$1 to $31Less than $10Ernie’s supply curve i s shown in Figure 10.Figure 10b. When the price of a bottle of water is $4, Ernie sells two bottles of water. His producer surplus isshown as area A in the figure. He receives $4 for his first bottle of water, but it costs only $1 toproduce, so Ernie has producer surplus of $3. He also receives $4 for his second bottle of water, which costs $3 to produce, so he has producer surplus of $1. Thus Ernie’s total producer surplus is $3 + $1 = $4, which is the area of A in the figure.c. When the price of a bottle of water rises from $4 to $6, Ernie sells three bottles of water, anincrease of one. His producer surplus consists of both areas A and B in the figure, an increase by the amount of area B. He gets producer surplus of $5 from the first bottle ($6 price minus $1cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 priceminus $5 price), for a total producer surplus of $9. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6.6. a. From Ernie’s supply schedule and Bert’s demand schedule, the quantity demanded and suppliedare:Price Quantity Supplied Quantity Demanded$213$422$631Only a price of $4 brings supply and demand into equilibrium, with an equilibrium quantity oftwo.b. At a price of $4, consumer surplus is $4 and producer surplus is $4, as shown in Problems 3 and 4above. Total surplus is $4 + $4 = $8.c. If Ernie produced one less bottle, his producer surplus would decline to $3, as shown in Problem4 above. If Bert consumed one less bottle, his consumer surplus would decline to $3, as shown inProblem 3 above. So total surplus would decline to $3 + $3 = $6.d. If Ernie produced one additional bottle of water, his cost would be $5, but the price is only $4, sohis producer surplus would decline by $1. If Bert consumed one additional bottle of water, hisvalue would be $3, but the price is $4, so his consumer surplus would decline by $1. So totalsurplus declines by $1 + $1 = $2.7. a. The effect of falling production costs in the market for stereos results in a shift to the right in thesupply curve, as shown in Figure 11. As a result, the equilibrium price of stereos declines and the equilibrium quantity increases.Figure 11b. The decline in the price of stereos increases consumer surplus from area A to A + B + C + D, anincrease in the amount B + C + D. Prior to the shift in supply, producer surplus was areas B + E(the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the pricereduces producer surplus. Because consumer surplus rises by B + C + D and producer surplusrises by F + G – B, total surplus rises by C + D + F + G.c. If the supply of stereos is very elastic, then the shift of the supply curve benefits consumers most.To take the most dramatic case, suppose the supply curve were horizontal, as shown in Figure 12.Then there is no producer surplus at all. Consumers capture all the benefits of falling productioncosts, with consumer surplus rising from area A to area A + B.Figure 128. Figure 13 shows supply and demand curves for haircuts. Supply equals demand at a quantity of threehaircuts and a price between $4 and $5. Firms A, C, and D should cut the hair of Ellen, Jerry, and Phil.Oprah’s willingness to pay is too low and firm B’s costs are too high, so they do not participate. The maximum total surplus is the area between the demand and supply curves, which totals $11 ($8 value minus $2 cost for the first haircut, plus $7 value minus $3 cost for the second, plus $5 value minus $4 cost for the third).Figure 139. a. The effect of falling production costs in the market for computers results in a shift to the right inthe supply curve, as shown in Figure 14. As a result, the equilibrium price of computers declines and the equilibrium quantity increases. The decline in the price of computers increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D.Figure 14 Figure 15Prior to the shift in supply, producer surplus was areas B + E (the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price reduces producer surplus.Because consumer surplus rises by B + C + D and producer surplus rises by F + G – B, total surplus rises by C + D + F + G.b. Because typewriters are substitutes for computers, the decline in the price of computers meansthat people substitute computers for typewriters, shifting the demand for typewriters to the left, as shown in Figure 15. The result is a decline in both the equilibrium price and equilibriumquantity of typewriters. Consumer surplus in the typewriter market changes from area A + B to A + C, a net change of C – B. Producer surplus changes from area C + D + E to area E, a net loss of C + D. Typewriter producers are sad about technological advances in computers because their producer surplus declines.c. Because software and computers are complements, the decline in the price and increase in thequantity of computers means that the demand for software increases, shifting the demand forsoftware to the right, as shown in Figure 16. The result is an increase in both the price andquantity of software. Consumer surplus in the software market changes from B + C to A + B, a net change of A – C. Producer surplus changes from E to C + D + E, an increase of C + D, so softwareproducers should be happy about the technological progress in computers.Figure 16d. Yes, this analysis helps explain why Bill Gates is one the world’s richest people, because hiscompany produces a lot of software that is a complement with computers and there has beentremendous technological advance in computers.10. a. With Provider A, the cost of an extra minute is $0. With Provider B, the cost of an extra minute is$1.b. With Provider A, my friend will purchase 150 minutes [= 150 – (50)(0)]. With Provider B, myfriend would purchase 100 minutes [= 150 – (50)(1)].c. With Provider A, he would pay $120. The cost would be $100 with Provider B.Figure 17d. Figure 17 shows the friend’s demand. With Provider A, he buys 150 minutes and his cons umersurplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, his consumer surplus is equal to(1/2)(2)(100) = 100.e. I would recommend Provider A because he receives greater consumer surplus.11. a. Figure 18 illustrates the demand for medical care. If each procedure has a price of $100, quantitydemanded will be Q1 procedures.Figure 18b. If consumers pay only $20 per procedure, the quantity demanded will be Q2 procedures. Becausethe cost to society is $100, the number of procedures performed is too large to maximize totalsurplus. The quantity that maximizes total surplus is Q1 procedures, which is less than Q2.c. The use of medical care is excessive in the sense that consumers get procedures whose value isless than the cost of produ cing them. As a result, the economy’s total surplus is reduced.d. To prevent this excessive use, the consumer must bear the marginal cost of the procedure. Butthis would require eliminating insurance. Another possibility would be that the insurancecompany, which pays most of the marginal cost of the procedure ($80, in this case) could decide whether the procedure should be performed. But the insurance company does not get thebenefits of the procedure, so its decisions may not reflect the value to the consumer.。