EBK ECONOMICS OF PUBLIC ISSUES
20th Edition
ISBN: 9780134532295
Author: NORTH
Publisher: YUZU
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Question
Chapter 11, Problem 1DQ
To determine
Whether the envy of those who are rich depends on the source of that wealth and the envy felt by others towards each of these people differ?
Expert Solution & Answer
Explanation of Solution
- Yes, the envy of those who are rich completely depends on the source of that wealth. This is because if the person works hard and becomes rich then his work is acknowledged in the society and people have more respect for him.
- If two people are equally rich but their source of wealth is different, then the person who is wealthy by means of hard work will be appreciated more rather than the person who is wealthy by the means of a lottery.
- Yes, the envy felt by others towards each of these people would differ completely because in one case, the source of money is hard work while in the other case the source is luck. Luck may fail but hard work ultimately pays.
Economics Concept Introduction
Introduction:
Capitalist economy:
According to Karl Marx, the main aim of a capitalist is to earn profit. In such an economy, the rich gets richer and the poor gets poorer. He argues that under such practice labors get exploited a lot which increases the income inequality in the specified era.
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36
Q
Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.
Chapter 11 Solutions
EBK ECONOMICS OF PUBLIC ISSUES
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