Economics
Chapter 1
4. [Related to Solved Problem 1-1] Suppo Dell is currently lling 250,000 Pentium 4 laptops per month. A manager at Dell argues, “The last 10,000 laptops we produced incread our revenue by 8.5 million and our costs by 8.9 million. However, becau we are making a substantial total profit of $25 million from producing 250,000 laptops, I think we are producing the optimal number of laptops.” Briefly explain whether you agree with the manger’s reasoning.
托福听力算分Optimal decisions are made at the margin. For the optimal number, MB=MC, 8.5m not equal 8.9m, so I’m not agree with the manager’s reasoning.
sleep的用法8. In 1838, the U.S. Army was given the job of moving the Cherokees, Creeks, Choctaws, and Seminoles from the eastern United States to Oklahoma. Contractors were given $65 per person (about $1,270 in today’s money) to provide food and medicine for the Indians du
ring the 1,000- mile forced march. Many of the contractors provided scanty food portions, bad meat, and no medicine. As a result, approximately one-quarter of the Indians perished along the way. How could the incentives have been changed so that the death rates would have been lower?
Human beings act from a variety of motives, the contractors’ immoral acts were droved by massive benefit. So the incentives have to be changed, the wage or salary should not be decided first and paid in advance, the paid make a relationship with the alive people, the more alive people, the more paid the contractors get. While the more death, the lower paid and even the penalty. This act may make the death rates would be lower.
美国经典动画片大全15. Many large firms have begun outsourcing work to China.
a. Why have they done this?
b. Is outsourcing work to low-wage Chine workers a risk-free proposition for large firms?晚餐英语
a. Most economists/corporates believe that international trade, including the trade that results when firms move production offshore, increas economic efficiency and rais incomes. Large firms have begun 世界语翻译outsourcing work to China becau of the lower production and labor costs, cloness to the Chine market and Chine customers, as well as shorter delivery times and global prence.
健康成长演讲稿b. No, there are also risks for outsourcing work to China, such as quality standard issues, difficulty to keep the Chine staff, IPR problems, and unemployment in the original industries, etc.
17. Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue:
a. The effect of higher cigarette taxes on the quantity of cigarette sold
b. The effect of higher income taxed on the total amount of consumer spending
c. The reason for the economics of East Asian countries growing faster than the economi
cs of sub-Saharan African countries
decline
d. The reasons for low rates of profit in the airline industry.
a. and d. are microeconomic questions becau they relate to specific industries; b. and c. are macroeconomic questions becau they relate to economy-wide issues.
junonChapter 2
discrete11. Using the same amount of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots as shown in the following production possibilities frontiers:
a. Who has a comparative advantage in producing lumberjack boots? Who has a comparative advantage in producing lumberjack shirts? Explain your reasoning.
b. Does either country have an absolute advantage in producing both goods? Explain.
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c. Suppo that both countries are currently producing three pairs of boots and three shirts. Show that both can be better off if they specialize in producing one good and then engage in trade.
a. Canada has the comparative advantage in making boots. Canada’s opportunity cost of making 1 boot is giving up 1 shirt. In the United States, the opportunity cost of making 1 boot is giving up 3 shirts. The United States has the comparative advantage in making shirts. In the United States, the opportunity cost of making one shirt is giving up 1/3 boot, but Canada’s opportunity cost of making 1 shirt is 1 boot.
b. Neither country has an absolute advantage in making both goods. The United States has the absolute advantage in making shirts, but Canada has the absolute advantage in making boots. Remember, both countries have the same amount of resources. If each country puts all of its resources into making shirts, then the United States makes 12 shirts, but Canada makes only 6 shirts. If each country put
s all of its resources into making boots, then Canada makes 6 boots, but the United States makes only 4 boots.
c. If each country specializes in the production of the good in which it has a comparative advantage and then trades with the other country, both will be better off. Let’s u the ca in which each country trades half of what it makes for half of what the other makes. The United States will specialize by making 12 shirts and Canada will specialize by making 6 boots. Becau each gets half of the other’s production, they both end up with 6 shirts and 3 boots. They are better off than before trading becau they end up with the same number of boots, but twice as many shirts. Other trades will also make them better off.
