Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 30, Problem 47CTQ
What is a potential problem with a temporary tax increase designed to increase aggregate
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Home can produce a maximum of 400 apples or a maximum of 600 bananas.Foreign can produce a maximum of 160 apples or a maximum of 800 bananas.(a) Graph and label Homes PPF. Label each axis and the slope. Use numbers.1(b) In the
absence of trade, what is Homes autarky price of apples in terms of bananas?(c) Graph and label Foreigns production possibility frontier. Use numbers and label the slope.(d) Graph the world relative supply curve. Use numbers.23. (8 pts - RM) Now
suppose world relative demand for apples takes the following form:Demand for apples/demand for bananas - price of bananas/price of apples. That is, RDA = Pbananas Papples(a) Graph the relative demand and relative supply curves on the world
market diagram. Use numbers(b) What is the equilibrium (world) relative price of apples? (c) Show that both Home and Foreign gain from Trade and describe the pattern of trade.
A village has six residents, each of whom has accumulated savings of $100. Each villager can use this money either to
buy a government bond that pays 18 percent interest per year or to buy a year-old llama, send it onto the commons to
graze, and sell it after 1 year. The price the villager gets for the 2-year-old llama depends on the quality of the fleece It
grows while grazing on the commons. That in turn depends on the animal's access to grazing, which depends on the
number of llamas sent to the commons, as shown in the following table:
Number of
11amas on
the
commons
Price per 2-
year-old
11ama ($)
1
125
2
119
3
116
4
113
5
6
111
109
The villagers make their investment decisions one after another, and their decisions are public.
a. If each villager decides Individually how to Invest, how many llamas will be sent onto the commons, and what will
be the resulting village Income?
Number of llamas: [ 20
Instructions: Enter your response as a whole number.
Village Income: $
110
b. What is…
5. Discrimination in the labor market
The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as travel nurses at a regional hospital.
Name
Gender
Height
Minimum Wage
(Inches)
(Dollars per week)
Cho F 65 $297
Frances F 64 $316
Latasha F 68 $336
Dmitri M 70 $355
Jake M 71 $374
Rosa F 65 $393
Nick M 72 $420
Brian M 71 $439
Tim M 66 $451
Alyssa F 68 $478
The lowest weekly wage that the hospital can spend in order to hire five travel nurses is ________.
Suppose the hiring director of the hospital prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired travel nurses must have a height of at least 68 inches. With this mandate in place, the weekly wage rate the hospital now must pay in order to hire five travel nurses increases by ________.
Chapter 30 Solutions
Principles of Economics 2e
Ch. 30 - When governments run budget deficits, how do they...Ch. 30 - When governments run budget surpluses, what is...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - Suppose that gifts were taxed at a rate of 10 for...Ch. 30 - If an individual owns a corporation for which he...Ch. 30 - What taxes would an individual pay if he were...Ch. 30 - The social security tax is 6.2 on employees income...Ch. 30 - Debt has a certain self-reinforcing quality to it....Ch. 30 - True or False: Federal spending has grown...Ch. 30 - What is the main reason for employing...
Ch. 30 - What is the main reason for employing expansionary...Ch. 30 - In a recession, does the actual budget surplus or...Ch. 30 - What is the main advantage of automatic...Ch. 30 - Explain how automatic stabilizers work, both on...Ch. 30 - What would happen if expansionary fiscal policy...Ch. 30 - What would happen if contractionary fiscal policy...Ch. 30 - Do you think the typical time lag for fiscal...Ch. 30 - How would a balanced budget amendment affect a...Ch. 30 - How would a balanced budget amendment change the...Ch. 30 - Give some examples of changes in federal spending...Ch. 30 - Have the spending and taxes of the U.S. federal...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a budget deficit, a...Ch. 30 - Have spending and taxes by state and local...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a progressive tax,...Ch. 30 - What has been the general pattern of U.S. budget...Ch. 30 - What is the difference between a budget deficit...Ch. 30 - What is the difference between expansionary fiscal...Ch. 30 - Under what general macroeconomic circumstances...Ch. 30 - What is the difference between discretionary...Ch. 30 - Why do automatic stabilizers function...Ch. 30 - What is the standardized employment budget?Ch. 30 - What are some practical weaknesses of...Ch. 30 - What are some of the arguments for and against a...Ch. 30 - Why is government spending typically measured as a...Ch. 30 - Why are expenditures such as crime prevention and...Ch. 30 - Why is spending by the U.S. government on...Ch. 30 - Excise taxes on tobacco and alcohol and state...Ch. 30 - What is the benefit of having state and local...Ch. 30 - In a booming economy, is the federal government...Ch. 30 - Economist Arthur Laffer famously pointed out that,...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - How will cuts in state budget spending affect...Ch. 30 - Is expansionary fiscal policy more attractive to...Ch. 30 - Is Medicaid (federal government aid to low-income...Ch. 30 - What is a potential problem with a temporary tax...Ch. 30 - If the government gives a 300 tax cut to everyone...Ch. 30 - Do you agree or disagree with this statement: It...Ch. 30 - During the Great Recession of 20082009, what...Ch. 30 - A government starts off with a total debt of $3.5...Ch. 30 - If a government runs a budget deficit of 10...Ch. 30 - Specify whether expansionary or contractionary...
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