Chapter One
火鹤花1. Some examples of microeconomics:
(1) How does the local phone company t its fee structure?
(2) Does Microsoft act like a monopoly?
Some examples of macroeconomics:
(1) How would GDP be affected by the increasing unemployment rate?
(2) What is the growth rate of the Unites States’ trade deficit关于运动会的作文?
2. (1) labor
(2) capital
(3) land
(4) capital
(5) land
3. Open-ended.
油条英语4. If the bus has empty ats, the cost of adding one more pasnger is negligible. As long as the pasnger pays more than the marginal cost, lling him a ticket is profitable.
5. The opportunity cost of operating his own business should include the foregone income as a civil rvant ($25,000). Thus, although the profit calculated by the accountant is positive ($20,000), the profit adjusted for the opportunity cost of foregone income will be -$5,000 ($20,000 – $25,000).
6. It depends on what your next best choice is. 嘴唇干裂起皮什么原因造成的Instead of studying Economics, you could watch TV, study罗技鼠标宏设置 English, or talk to a friend on the telephone. Suppo your next best choice is to watch TV. Then the opportunity cost of studying Economics is the foregone pleasure you might obtain from watching TV.
7. Open-ended.
Chapter Two
1. Open-ended.
2. A market failure occurs when a market, left to itlf, fails to allocate resources efficiently. Lack of competition, inadequate information, externalities, and public goods are examples of market failures. Generally lack of competition, inadequate information, externalities and lack of public goods are the main sources of market failure.
3. (3)
(4).
4. Positive externality: Instead of driving, people cycle to work. Cycling can lead to less deaths in car accidents and reduce the gas that affect global warming.
Negative externality: Your neighbor is blasting his stereo 到处都是英语and the noi is coming into your room.
5. (1) rival, excludable
(2) non-rival, excludable
(3) non-rival, non-excludable
6. (1)
7. The subway becomes more rival during rush hours.
8. (1) Public good.
(2) A police station.
(3) The rvices would be under provided.
Chapter Three
1. Many factors influence the quantity demanded other than the price. If some circumstances change, the quantity demanded changes too.惊蛰日 This assumption is helpful to
isolate just two variables that are being discusd — price and quantity demanded.
2. (1)
(2)
(3)
(4)
3. (1) Normal goods.
(2) Inferior goods.
(3) Inferior goods.
(4) Normal goods.
4. The demand curve for China Mobile will shift to the left. China Telecom will experience movement down its demand curve.
5. People would book their hotels early to guarantee they get the room. There would be a rush of early bookings. The demand curve would shift to the right.
安全教育平台成都6. The five main factors that can shift the supply curve are changes in
1) input prices, 2) prices of related goods, 3) technology, 4) expectations,
and 5) the number of firms in the market.
7. (1) The supply curve will shift to the left.
(2) The demand curve will shift to the right.
(3) The demand curve will shift to the left.
(4) The supply curve will shift to the right.
8. (1) The supply curve for taxi rvice will shift to the left. The new equilibrium price will go up. The new equilibrium quantity will decrea.
(2) The demand curve for taxi rvice will shift to the left. The new equilibrium price will go down. The new equilibrium quantity will decrea.
(3) The demand curve for taxi rvice will shift to the right. The new equilibrium price will go up. The new equilibrium quantity will increa.
(4) The demand curve for taxi rvice will shift to the left. The new equilibrium price will go down. The new equilibrium quantity will decrea.
Chapter Four
1.
The demand for gasoline was inelastic.
2. Becau the demand for wheat is inelastic, the total revenue will decrea if the price of wheat goes down.
3. Total revenue when the price is 50: 50×1000 = 50000.
If the manager reduces the price of each ticket by 10%, the quantity of tickets being sold will increa by 20% (10%×2).
The new price will be 45. The new quantity of tickets will be 1200.
Total revenue after the price change: 45×1200 = 54000
Change in total revenue: 54000–50000 = 4000.
4.
5. (2) As incomes ri the demand for fresh fruit also ris but by a smaller proportion.
6. (1)
7. The demand for necessities is income inelastic, while it is elastic for luxury goods.
