Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 34, Problem 8SCQ
How does the cost of “saving” jobs in protected industries compare to the workers’ wages and salaries?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
8. The current price of 3M stock is $87 per share. The previous dividend paid was $5.96, and
the next dividend is $6.25, assuming a growth rate of 4.86% per year.
What is the forward (next 12 months) dividend yield?
Show at least two decimal places, as in x.xx%
%
Joy's Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From
the analysis of Joy's various outlets, it was found that the demand curve follows this pattern:
Q=200-300P+1201 +657-250A +400A;
where Q = number of cups served per week
P = average price paid for each cup
I = per capita income in the given market (thousands)
Taverage outdoor temperature
A competition's monthly advertising expenditures (thousands)
=
A; = Joy's own monthly advertising expenditures (thousands)
One of the outlets has the following conditions: P = 1.50, I = 10, T = 60, A₁ = 15, A; = 10
1. Estimate the number of cups served per week by this outlet. Also determine the outlet's
demand curve.
2. What would be the effect of a $5,000 increase in the competitor's advertising expenditure?
Illustrate the effect on the outlet's demand curve.
3. What would Joy's advertising expenditure have to be to counteract this effect?
The Compute Company store has been selling its special word processing software, Aceword, during
the last 10 months. Monthly sales and the price for Aceword are shown in the following table. Also
shown are the prices for a competitive software, Goodwrite, and estimates of monthly family income.
Calculate the appropriate elasticities, keeping in mind that you can calculate an elasticity measure
only when all other factors do not change (using Excel). For example, price elasticities, months
1-2.
Month
Price
Aceword
Quantity
Aceword
Family
Income
Price
Goodwrite
1
$120
200
$4,000
$130
21
120
210
4,000
145
3
120
220
4,200
145
4
110
240
4,200
145
90
5
115
230
4,200
145
6
115
215
4,200
125
10
7899
115
220
4,400
125
105
230
4,400
125
105
235
4,600
125
105
220
4,600
115
Chapter 34 Solutions
Principles of Economics 2e
Ch. 34 - Explain how a tariff reduction causes an Increase...Ch. 34 - Explain how a subsidy on agricultural goods like...Ch. 34 - Explain how trade barriers save jobs in protected...Ch. 34 - Explain how trade barriers raise wages in...Ch. 34 - How does international trade affect working...Ch. 34 - Do the jobs for workers in low-income countries...Ch. 34 - How do trade barriers affect the average Income...Ch. 34 - How does the cost of saving jobs in protected...Ch. 34 - Explain how predatory pricing could be a...Ch. 34 - Why do low-income countries like Brazil, Egypt, or...
Ch. 34 - Explain the logic behind the race to the bottom...Ch. 34 - What are the conditions under which a country may...Ch. 34 - Why is the national security argument not...Ch. 34 - Assume a perfectly competitive market and the...Ch. 34 - What is the difference between a free trade...Ch. 34 - Why would countries promote protectionist laws,...Ch. 34 - What might account for the dramatic increase in...Ch. 34 - How does competition, whether domestic or foreign,...Ch. 34 - What are the gains from competition?Ch. 34 - Who does protectionism protect? From what does it...Ch. 34 - Name and define three policy tools for enacting...Ch. 34 - How does protectionism affect the price of the...Ch. 34 - Does international trade, taken as a whole,...Ch. 34 - Is international trade likely to have roughly the...Ch. 34 - How is international trade, taken as a whole,...Ch. 34 - Is international trade likely to have about the...Ch. 34 - What are main reasons for protecting infant...Ch. 34 - What is dumping? Why does prohibiting it often...Ch. 34 - What is the race to the bottom scenario?Ch. 34 - Do the rules of international trade require that...Ch. 34 - What is the national interest argument for...Ch. 34 - Name several of the international treaties where...Ch. 34 - What is the general trend of trade barriers over...Ch. 34 - If opening up to free trade would benefit a...Ch. 34 - Who gains and who loses from trade?Ch. 34 - Why is trade a good thing if some people lose?Ch. 34 - What are some ways that governments can help...Ch. 34 - Show graphically that for any tariff, there is an...Ch. 34 - From the Work It Out Effects of Trade Barriers,...Ch. 34 - If trade barriers hurt the average worker in an...Ch. 34 - Why do you think labor standards and working...Ch. 34 - How would direct subsidies to key industries be...Ch. 34 - How can governments identify good candidates for...Ch. 34 - Microeconomic theory argues that it is...Ch. 34 - How do you think Americans would feel if other...Ch. 34 - Is it legitimate to impose higher safety standards...Ch. 34 - Why might the unsafe consumer products argument be...Ch. 34 - Why might a tax on domestic consumption of...Ch. 34 - Why do you think that the GAIT rounds and, more...Ch. 34 - An economic union requires giving up some...Ch. 34 - What are some examples of innovative products that...Ch. 34 - In principle, the benefits of international trade...Ch. 34 - Economists sometimes say that protectionism is the...Ch. 34 - Trade has income distribution effects. For...Ch. 34 - Assume two countries, Thailand (T) and Japan (J),...Ch. 34 - You have just been put in charge of trade policy...Ch. 34 - The country of Pepperland exports steel to the...
Additional Business Textbook Solutions
Find more solutions based on key concepts
(NPV calculation) Calculate the NPV given the following free cash flows if the appropriate required rate of ret...
Foundations Of Finance
What are the four elements of the budgeting cycle?
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
S6-2 Determining inventory costing methods
Ward Hard ware does not expect costs to change dramatically and want...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable?...
Engineering Economy (17th Edition)
The weaknesses of payback period method of calculation. Introduction: Every investment requires a time period t...
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (12th Edition)
Knowledge Booster
Similar questions
- Gordon Dividend Growth Model I downloaded some data about 3M (ticker MMM). Company 3M Ticker MMM Dividends Per Share 2017 $4.70 2018 $5.44 2019 $5.76 2020 $5.88 2021 $5.92 2022 $5.96 4. The dividend payment in 2022 was $5.96 per share. Based on the five-year history, we see that dividends per share grew at a compound annual growth rate of 4.86% $5.96 (1/5) CAGR = $4.70 − 1 = (1.2681)0.20 − 1 = 1.0486 - 1 = 0.0486 = 4.86% - - What should be the 2023 dividend based on these values?arrow_forward4. The data set BWGHT.DTA contains data on births to women in the United States. Two variables of interest are the dependent variable, infant birth weight in ounces (bwght), and an explanatory variable, average number of cigarettes the mother smoked per day during pregnancy (cigs). The following simple regression was estimated using data on n=1,388 births: bwght=119.77 - .514 cigs (i) What is the predicted birth weight when cigs = 0? What about when cigs=20 (one pack per day)? Comment on the difference. (ii) Does this simple regression necessarily capture a causal relationship between the child's birth weight and the mother's smoking habits? Explain. (iii) To predict a birth weight of 125 ounces, what would cigs have to be? Comment. (iv) The proportion of women in the sample who do not smoke while pregnant is about .85. Does this help reconcile your finding from part (iii)?arrow_forwardGiven the demand equation Q following table (using Excel): = 1,500 200P, calculate all the numbers necessary to fill in the Elasticity P Q Point Arc Total Revenue Revenue Marginal $7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50arrow_forward
- Suppose a firm has the following demand equation: where Q = quantity demanded P = product price (in dollars) Q=1,000 3,000P + 10A A = advertising expenditure (in dollars) Assume for the following questions that P =3$ and A = $2,000. 1. Suppose the firm dropped the price to $2.50. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and demand curve. 2. Suppose the firm raised the price to $4.00 while increasing its advertising expenditure by $100. Would this be beneficial? Explain. Illustrate your answer with the use of a demand schedule and a demand curve. (Hint: First construct the schedule and the curve assuming A = $2,000. Then construct the new schedule and curve assuming A = $2,100.)arrow_forwardABC Sports, a store that sells various types of sports clothing and other sports items, is planning to introduce a new design of Arizona Diamondbacks' baseball caps. A consultant has estimated the demand curve to be where Q is cap sales and P is price. Q=2,000 100P 1. How many caps could ABC sell at $6 each? 2. How much would the price have to be to sell 1,800 caps? 3. Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? 4. At what price would no caps be sold? 5. Calculate the point price elasticity of demand at a price of $6.arrow_forward1. What are the basic information related to the BPO industry in the Philippines? 2. Top 15 BPO industries here in the Philippines. 3. Significance to certain economies. 4. What services are being outsourced?arrow_forward
- Select a real-world case situation relevant to credit analysis and lending in Guyana. Use this case which you either know about already or have identified through research and address the following questions in essay format: i. Outline and discuss what “triggered” the regulatory body to intervene? ii. How effective do you think the response was to such a crisis? iii. Outline and discuss two ways that could be used to strengthen the current regulatory environment?arrow_forwardHome 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.arrow_forwardA 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…arrow_forward
- 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 ________.arrow_forward5. 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 human resource specialists at a large financial firm. Name Gender Height Minimum Wage (Inches) (Dollars per week) Paolo M 67 $298 Ginny F 63 $311 Lucia F 66 $332 Eric M 71 $354 Kenji M 69 $375 Sharon F 66 $397 Paolo M 70 $411 Carlos M 70 $440 Van M 64 $452 Amy F 69 $474 The lowest weekly wage that the financial firm can spend in order to hire five human resource specialists is____. Suppose the hiring director of the financial firm prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired human resource specialists must have a height of at least 67 inches. With this mandate in place, the weekly wage rate the financial firm now must pay in order to hire five human resource specialists increases by_____.arrow_forwardnot use ai pleasearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax