Modern Principles: Macroeconomics
3rd Edition
ISBN: 9781429278409
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
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Question
Chapter 7, Problem 4FT
Sub part (a):
To determine
World's total
Sub part (b):
To determine
GDP per person of least productive 80 percent of the world's population.
Sub part (c):
To determine
Comparison of GDP per person of least productive 80 percent with the top 20 percent productive labor force.
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Part 1
The figure to the right gives an economy's initial aggregate demand (AD) curve.
Using the line drawing tool, show a decrease in aggregate demand. Properly label this line.
Part 2
Note: Carefully follow the instructions above and only draw the required object.
Part 3
Which of the following will generate a decrease in aggregate demand?
A.
Increased government expenditures for infrastructure.
B.
A tax increase.
C.
An increase in the price level.
D.
An increase in the money supply.
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
c. $1,500; $2,000
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
c. $1,500; $2,000
Chapter 7 Solutions
Modern Principles: Macroeconomics
Ch. 7.A - Prob. 1QCh. 7.A - Prob. 2QCh. 7.A - Prob. 3QCh. 7 - Prob. 1FTCh. 7 - Prob. 2FTCh. 7 - Prob. 3FTCh. 7 - Prob. 4FTCh. 7 - Prob. 5FTCh. 7 - Prob. 6FTCh. 7 - Prob. 7FT
Ch. 7 - Prob. 8FTCh. 7 - Prob. 9FTCh. 7 - Prob. 10FTCh. 7 - Prob. 11FTCh. 7 - Prob. 12FTCh. 7 - Prob. 1TPSCh. 7 - Prob. 2TPSCh. 7 - Prob. 3TPSCh. 7 - Prob. 4TPSCh. 7 - Prob. 5TPSCh. 7 - Prob. 6TPSCh. 7 - Prob. 7TPSCh. 7 - Prob. 8TPSCh. 7 - Prob. 9TPSCh. 7 - Prob. 10TPSCh. 7 - Prob. 11TPSCh. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - Prob. 3CCh. 7 - Prob. 4CCh. 7 - Prob. 5CCh. 7 - Prob. 6CCh. 7 - Prob. 7C
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