Microeconomics Answers

Positive externalities create ________ spillover ___________. The result is that the __________ benefit of production/consumption is greater than the __________ benefit. External benefits might be in the form of lower __________ for other parties or __________ revenues/profits for other parties.

1)    Differentiate between signaling theory and human capital theory and argue for or against each theory?

Per capita real GDP is an indicator to measure welfare. However, it has important limitations to measure welfare. Briefly discuss some of these limitations while using Per capita real GDP as a measure of welfare

Describe some of the trade-offs faced by A recent college undergraduate deciding whether to go to graduate school

Is it a positive or normative statement that Society faces a short run tradeoff between inlation and unemployment

Generate a PPF graph for a society that has production sectors of potatoes and diamonds and show the following changes to your original PPF. Show the effect of the introduction of a new improved fertilizer on your societies PPF.

What happens to the price if the demand for fresh tomatoes increases while the supply remains constant

What happens to the price if the supply of butter falls and the demand remains constant

1)    Give an example of adverse selection and moral hazard challenges in your home town and suggest policy intervention to address the problem?

Suppose that Congress imposes a tariff on import autos to protect the US in auto industries from foreign competition assuming that the United State is a price taker in the world auto Market show the following on a diagram the change in the quantity of imports the lost to us consumers the game to us manufactures government revenue and the diet weight loss associated with the tariff the loss to consumer can be decomposed into three pieces again to domestic producers revenue for the Government and that weight loss use your diagram to identify these three piece