经济学作业.docx

1、经济学作业Economics Chapter 14. Related to Solved Problem 1-1 Suppose Dell is currently selling 250,000 Pentium 4 laptops per month. A manager at Dell argues, “The last 10,000 laptops we produced increased our revenue by 8.5 million and our costs by 8.9 million. However, because we are making a substanti

2、al 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 mangers reasoning.Optimal decisions are made at the margin. For the optimal number, MB=MC, 8.5m not equal 8.9m, so Im not agree with the

3、managers reasoning. 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 todays money) to provide food and medicine for the Indians during the 1,000- mil

4、e forced march. Many of the contractors provided scanty food portions, bad meat, and no medicine. As a result, approximately one-quarter of these 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 o

5、f 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 mo

6、re death, the lower paid and even the penalty. This act may make the death rates would be lower.15. Many large firms have begun outsourcing work to China.a. Why have they done this?b. Is outsourcing work to low-wage Chinese workers a risk-free proposition for large firms?a. Most economists/corporate

7、s believe that international trade, including the trade that results when firms move production offshore, increases economic efficiency and raises incomes. Large firms have begun outsourcing work to China because of the lower production and labor costs, closeness to the Chinese market and Chinese cu

8、stomers, as well as shorter delivery times and global presence.b. No, there are also risks for outsourcing work to China, such as quality standard issues, difficulty to keep the Chinese staff, IPR problems, and unemployment in the original industries, etc.17. Briefly explain whether each of the foll

9、owing is primarily a microeconomic issue or a macroeconomic issue:a. The effect of higher cigarette taxes on the quantity of cigarette soldb. The effect of higher income taxed on the total amount of consumer spendingc. The reason for the economics of East Asian countries growing faster than the econ

10、omics of sub-Saharan African countriesd. The reasons for low rates of profit in the airline industry.a. and d. are microeconomic questions because they relate to specific industries; b. and c. are macroeconomic questions because they relate to economy-wide issues.Chapter 211. Using the same amount o

11、f 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 you

12、r reasoning.b. Does either country have an absolute advantage in producing both goods? Explain.c. Suppose 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 ha

13、s the comparative advantage in making boots. Canadas 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

14、 of making one shirt is giving up 1/3 boot, but Canadas 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

15、 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 puts all of its resources into making boots, then Canada makes 6 boots, but the United States makes only

16、 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. Lets use the case in which each country trades half of what it makes for half of what the other makes. The United States wil

17、l specialize by making 12 shirts and Canada will specialize by making 6 boots. Because each gets half of the others production, they both end up with 6 shirts and 3 boots. They are better off than before trading because they end up with the same number of boots, but twice as many shirts. Other trade

18、s will also make them better off.15. Identify whether each of the following transactions will take place in the factors market or in the product market, or service, or demanding the good or service:a. George buys a BMW X5 SUVb. BMW increase employment at its Spartanburg plant.c. George works 20 hour

19、s per week at McDonalds d. George sells land he owns to McDonalds so it can build a new restaurant.a. An auto purchase takes place in the product market. The household (George) demands the good, and the firm (Tesla Motors) supplies the good.b. The labor market is a factor market. Households supply l

20、abor, and the firm demands labor.c. The labor market is a factor market. The household (George) supplies the factor of production (labor), while the firm (McDonalds) demands it.d. The land market is a factor market. The household (George) supplies the factor of production (land), and the firm (McDon

21、alds) demands it.16. In The Wealth of Nations, Adam Smith wrote the following (Book I, Chapter II):It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our diner, but from their regard to their own interest.Briefly discuss what he meant by his.Adam Smith realizedas

22、 economists today realizethat peoples motives can be complex. But in analyzing people in the act of buying and selling, economists have concluded that in most instances, the motivation of financial reward provides the best explanation for the actions people take. Moreover, being self-interestedlooki

23、ng out for your own well-being and happinessand being selfishcaring only about yourselfare not exactly the same thing. Many successful business people are, in fact, generous: Donating to charity, volunteering for activities, and otherwise acting in a generous way. These actions are not inconsistent

24、with making business decisions that maximize profits for their companies.Chapter 32. For each of the following pairs of products, state which are compliments, which are substitutes, and which are unrelated.a. Pepsi and Cokeb. Oscar Mayer hot dogs and Wonder hot dog bunsc. Jiffy peanut butter and Smu

25、ckers strawberry jamd. Hewlett-Packard printers and Texas Instruments hand calculatorsa. Substitutesb. Complementsc. Complementsd. Unrelated3. State whether each of the following events will result in a movement along the demand curve for McDonalds Big Mac hamburgers or whether it will cause the cur

26、ve to shift. If the demand curve shifts, indicate whether it will shift to the left or to the right and draw a graph to illustrate the shift.a. The price of Burger Kings Whopper hamburger declines.b. McDonalds distributes coupons for $1.00 off on a purchase of a Big Mac.c. Because of a shortage of p

27、otatoes, the price of French fries increases.d. Kentucky Fried Chicken raises the price of a bucket of fried chicken.a. Because the price of a substitute good has declined, the demand curve for Big Macs will shift to the left from D1 to D2.b. The coupon results in a cut in the price of Big Macs, so

28、there will be a movement down the demand curve for Big Macs.c. Because for most people Big Macs and fries are complements, the demand curve for Big Macs will shift to the left from D1 to D2.d. The demand curve for Big Macs will shift. If the Big Mac is an inferior good, the demand curve will shift t

29、o the left from D1 to D2. If the Big Mac is a normal good, the demand curve will shift to the right.21. Briefly explain whether each of the following statements is true or false.a. If the demand and supply for a product both increase, the equilibrium quantity of the product must also increase.b. If

30、the demand and supply for a product both increase, the equilibrium price of the product must also increase.c. If the demand for a product decreases and the supply of the product may increase of decrease, depending upon whether supply or demand has shifted by more.An increase in demand increases the

31、equilibrium price and equilibrium quantity. A decrease in demand decreases the equilibrium price and equilibrium quantity.An increase in supply decreases equilibrium price and increases the equilibrium quantity. A decrease in supply increases equilibrium price and decreases the equilibrium quantity.

32、a.Trueb.Falsec.False22. According to an article in the Wall Street Journal, “Online auctioneers like eBay are having a huge impact on the price of fame. After Cal Ripken Jr. announced his retirement from baseball dozen of Ripken-autographed game jerseys, baseball cards and Wheaties boxes flooded the online bazaar.” Use a demand and supply graph to illustrate the impact of eBay on the equilibrium price of Cal Ripken memorabilia.Chapter 4 1. The figure below illustrates the market for apples in which the government has impos