Questions from Microeconomics

Q: Ted and Fred are the owners of a gas station. They

Ted and Fred are the owners of a gas station. They invested $150,000 each and pay an employee named Lawrence $35,000 per year. This year revenues are $900,000, while costs are $940,000. Who is legally...

Q: Real (inflation-adjusted) tuition costs were nearly constant during

Real (inflation-adjusted) tuition costs were nearly constant during the 1960s despite a huge increase in the number of college students as the very large Baby Boom generation came of age.  What does t...

Q: Suppose the total demand for wheat and the total supply of wheat

Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the table below. Suppose that the government establishes a price ceiling of $...

Q: Why are shortages or surpluses more likely with preset prices, such

Why are shortages or surpluses more likely with preset prices, such as those on tickets, than flexible prices, such as those on gasoline?

Q: Explain why zoning laws, which allow certain land uses only in

Explain why zoning laws, which allow certain land uses only in specific locations, might be justified in dealing with a problem of negative externalities. Explain why in areas where buildings sit clos...

Q: Why is money not considered to be a capital resource in economics

Why is money not considered to be a capital resource in economics? Why is entrepreneurial ability considered a category of economic resource, distinct from labor? What are the major functions of the e...

Q: In a sentence, describe the meaning of the phrase “invisible

In a sentence, describe the meaning of the phrase “invisible hand.”

Q: A price ceiling will result in a shortage only if the ceiling

A price ceiling will result in a shortage only if the ceiling price is ____________ the equilibrium price. a. less than b. equal to c. greater than d. louder than

Q: Distinguish between a carbon-tax and a cap-and-

Distinguish between a carbon-tax and a cap-and-trade strategy for reducing carbon dioxide and other so-called greenhouse gases (that are believed by many scientists to be causing global warming). Whic...

Q: Specify and explain the typical shapes of marginal-benefit and marginal

Specify and explain the typical shapes of marginal-benefit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current outp...