Economics practice problems

Anna owns the Sweet Alps Chocolate store. You, the economist, have calculated the elasticity of demand for chocolate in her town to be 2. If she wants to increase her total revenue, what advice will you give her and why? Be able to explain your answer.

Economics practice problems

From the SparkNotes Blog

Suppose that in the land of Plenty there is no scarcity. We can conclude that: All of the following are examples of opportunity cost except: Suppose you have to wait in line to purchase a soft drink at a Missouri State - Tulsa football game. The drink costs one dollar. While, waiting in line, you hear the crowd roar as someone scores a touchdown.

While running back to your seat, you fall and spill your drink on another spectator.

Economics practice problems

What is your opportunity cost for the drink? Which of the following is the best definition of opportunity costs? A free good is not scarce because: Which of the following statements could not be tested by economic analysis? Higher tax rates cause tax revenues to fall.

Only cigarette companies are harmed by higher cigarette taxes. Gambling should be legalized to raise tax revenue. Outlawing bars will reduce drunk driving.

Which of the following is a positive statement? An unemployment rate of 7 percent is a national disgrace. Unemployment is not so important a problem as inflation.

When the national unemployment rate is 7 percent, the unemployment rate for inner-city youth is often close to 40 percent.

Unemployment and inflation are equally important problems. All of the following statements are positive except: Microeconomics is not concerned with: Most of economic theory:Information economics, which studies such problems, has relevance in subjects such as insurance, contract law, mechanism design, monetary economics, and health care.

Practice Problems

The close relation of economic theory and practice with politics. economics problems Essay the demand curve for orange juice shifts rightward.

The cheaper picking robot lowers the production costs of orange juice, so the supply of orange juice increases and the supply curve of orange juice shifts rightward.

The equilibrium quantity increases. The central topic is comparative statics for economics problems with many variables. The ideal reader is approximately equally prepared in mathematics and economics. He or she will have studied mathematics through vector calculus and linear algebra and have completed.

Mathematical economics is the application of mathematical methods to represent theories and analyze problems in convention, these applied methods are beyond simple geometry, such as differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, and other .

Principles of Economics - Wikiversity

Practice problems-Tax Incidence Question 1 Let’s do it with vertical supply curve (perfectly inelastic) and see the indidence.

Let α = Qs = 86,Qd = −20p The story is a market for strawberry. Question 1 A _____ is an economic justification for government involvement in a policy problem.

a. policy impact b. market failure c. policy subsystem d. referendum Question .

Labor Economics