SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
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Chapter 1, Problem 4P
To determine
The concepts of
- More people choose to graduate degrees when the job market is poor.
- More people choose their own home repairs when the economy is slow and hourly wages are down.
- There are more parks in suburban than in urban areas.
- Convenience stores, which have higher prices than supermarkets, cater to busy people.
- Fewer students enroll in classes that meet before 10.00 a.m.
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A movie theater is showing two different movies: a Hollywood blockbuster (with 100 customers willing to pay $10 for a ticket, and 100 willing to pay $8) and an independent film that attracts 50 film buffs, willing to pay $20 each. Marginal costs are zero and neither movie can fill theater capacity. What is the theater's maximum profit if it cannot price discriminate (it must charge the same price for both movies) and if it can price discriminate (it may charge different prices for different movies)?
a. $2,000; $2,600
b. $1,500; $2,100
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5. Download the Excel sheet from Brightspace. The data contains the GDP per capita and GNI
per capita of OECD member countries in 2014 (both figures are reported in US dollars). The
countries are ranked by GDP per capita.
a. Compute the ratio of GNI to GDP for each country (GNI per capita/GDP per capita). What
does this imply about net factor income from abroad for each country?
b. Rank the countries based on the GNI/GDP ratio, starting with the country with the highest
ratio and ending with the country with the lowest ratio. Which country has the highest ratio,
and which has the lowest?
c. Comment on why the countries you identified in the previous question have a large
difference between GDP and GNI? What does the difference imply?
Chapter 1 Solutions
SAPLINGPLUS ACCESS MICRO 1 TERM
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