Questions from General Economics

Q: Draw a consumer’s indifference curves for wine and cheese. Describe and

Draw a consumer’s indifference curves for wine and cheese. Describe and explain four properties of these indifference curves.

Q: Pick a point on an indifference curve for wine and cheese and

Pick a point on an indifference curve for wine and cheese and show the marginal rate of substitution. What does the marginal rate of substitution tell us?

Q: Draw a budget constraint and indifference curves for pizza and Pepsi.

Draw a budget constraint and indifference curves for pizza and Pepsi. Show what happens to the budget constraint and the consumer’s optimum when the price of pizza rises. In your diagram, decompose th...

Q: Leadbelly Co. sells pencils in a perfectly competitive product market and

Leadbelly Co. sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market. Assume that the market wage rate for workers is $150 per day. a. What r...

Q: Explain how an increase in the wage can potentially decrease the amount

Explain how an increase in the wage can potentially decrease the amount that a person wants to work.

Q: Draw the budget constraint for a person with income of $1

Draw the budget constraint for a person with income of $1,000 if the price of Pepsi is $5 and the price of pizza is $10. What is the slope of this budget constraint?

Q: Draw some indifference curves for pizza and Pepsi. Explain the four

Draw some indifference curves for pizza and Pepsi. Explain the four properties of these indifference curves.

Q: Show the effect of each of the following events on the market

Show the effect of each of the following events on the market for labor in the computer manufacturing industry. a. Congress buys personal computers for all U.S. college students. b. More college stude...

Q: Suppose there are two possible income distributions in a society of ten

Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $30,000 and one person has an income of $10,000. In the second di...

Q: Two athletes of equal ability are competing for a prize of $

Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the...