Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 9IP
(a)
To determine
Explain whether the payment should be allowed or not.
(b)
To determine
Explain how would Freed incentives from the royalty payment differ from Freed incentives if Chuck offered a flat payment.
(c)
To determine
Determine the two examples of similar activities.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On December 30, 1974, the hypothetical country Alpha decided to introduce a minimum wage policy. Cities with ID numbers 11, 23, 45, 57, 60, and 61 were randomly chosen to implement this minimum wage policy. The remaining cities in country Alpha did not adopt a minimum wage policy. You are asked to empirically and theoretically evaluate the impact of the introduction of the minimum wage in country Alpha on the labour market outcomes.
Now suppose that there is mobility in the labour market in country Alpha and we are in the pre-minimum wage period. Country Alpha receives migrants from country Beta and these migrants are positively selected.
a) Suppose country Alpha decides to adopt a welfare program to increase the minimum income of its workers. This minimum income is granted to all native workers, immigrant workers, and the new incoming immigrants. Using the Roy model, and ignoring how the program is funded, with the aid of a diagram, discuss how the welfare program changes the…
Which of the below statements DOES NOT capture Economics?
Group of answer choices
Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread.
The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree.
Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game.
Even the most prosperous economy will contiue to require certain manual tasks that do not require advanced college degrees. These tasks cannot be replaced with automation. Expecting Ph.D.s or people with professional education to do such tasks will have a high opportunity cost.
The alternative to the Uber pricing model is the taxi pricing model where a government commission set a flat price per ride (think of it like a price ceiling). Suppose that a local government is considering forcing Uber to charge the same rate as taxi companies. The goal this week is to use what we learned about welfare to advice the government on this policy.
Individually complete an initial draft of analysis about the policy. Remember to focus on the positive aspect and not the normative. If you want to use a graph of supply and demand to illustrate your argument, something simple, like linear, is fine.
Chapter 1 Solutions
Macroeconomics
Ch. 1.1 - Prob. 1QCh. 1.1 - Prob. 2QCh. 1.1 - Prob. 3QCh. 1.1 - Prob. 4QCh. 1.1 - Prob. 5QCh. 1.1 - Prob. 6QCh. 1.1 - Prob. 7QCh. 1.1 - Prob. 8QCh. 1.1 - Prob. 9QCh. 1.1 - Prob. 10Q
Ch. 1 - Prob. 1QECh. 1 - Prob. 2QECh. 1 - Prob. 3QECh. 1 - Prob. 4QECh. 1 - Prob. 5QECh. 1 - Prob. 6QECh. 1 - Prob. 7QECh. 1 - Prob. 8QECh. 1 - Prob. 9QECh. 1 - Prob. 10QECh. 1 - Prob. 11QECh. 1 - Prob. 12QECh. 1 - Prob. 13QECh. 1 - Prob. 14QECh. 1 - Prob. 15QECh. 1 - Prob. 16QECh. 1 - Prob. 17QECh. 1 - Prob. 18QECh. 1 - Prob. 1QAPCh. 1 - Prob. 2QAPCh. 1 - Prob. 3QAPCh. 1 - Prob. 4QAPCh. 1 - Prob. 5QAPCh. 1 - Prob. 6QAPCh. 1 - Prob. 1IPCh. 1 - Prob. 2IPCh. 1 - Prob. 3IPCh. 1 - Prob. 4IPCh. 1 - Prob. 5IPCh. 1 - Prob. 6IPCh. 1 - Prob. 7IPCh. 1 - Prob. 8IPCh. 1 - Prob. 9IPCh. 1 - Prob. 10IPCh. 1 - Prob. 11IPCh. 1 - Prob. 12IPCh. 1 - Prob. 13IP
Knowledge Booster
Similar questions
- The narrator in the Planet Money Video poses this question: Is our shirt providing opportunities for people like Jasmine, or is it taking advantage of a desperate population? How do you think a Dependency Theorist would answer this question? Explain why.arrow_forwardMany cities have taxes on products that are considered "bad," like cigarettes and alcohol. These things may be bad for the individual who consumes them (in terms of lowered health), but also imposes costs on society if people who smoke need health care or people who drink cause accidents. Taxes on these sorts of goods are sometimes referred to as "sin taxes." The idea is that taxing the good will cause people to buy less of that bad (sinful) product. Do you think these taxes work well do produce the desired effect of lowering consumption? What factors may cause a tax to work better or worse as far as lowering consumption? Would these factors cause more or less tax revenue to be raised? If the goal is to reduce consumption, does tax revenue even matter? Would a sin tax work as well on other products like sodas? Why or why not? You don't have to answer every one of the questions I posed -- pick a couple/few that are of interest to you. I threw a lot in there to get you…arrow_forwardThe City of Ditty passes a law that requires all pizza delivery persons to sing to customers when delivering pizza. Tone Deaf, the owner of the “No Frills Pizza Restaurant” challenges the law as being a denial of Equal Protection of the Laws because pizza delivery persons are being treated differently from other delivery persons or other restaurant employees. The City of Ditty claims that its governmental interest in passing the law was part of its overall economic plan to attract music industry type businesses to Ditty by creating a “music-friendly” city. If the Court finds this to be a legitimate governmental interest, what else must Ditty prove in order to win its case? the law is necessary to achieve that interest. the law directly advances that interest. the law creates the least restrictions on important fundamental rights while advancing that interest. the law is reasonably related to achieving the legitimate interest. the law is supported by more than half the city…arrow_forward
- According to a report from the US Census Bureau, "the average lifetime earnings of a full-time year round work with a high school education is about $1.2 million, compared to about $2.1 million for a college graduate. This indicates that there is a considerable benefit to a graduate from investing in his or her own education. Tuition at most state universities covers only about 2/3- of actual costs, so the state provides a subsidy to college education. If this subsidy is appropriate, is the externality created by the college education a positive or negative externality? What does this imply about the costs and benefits to the student as opposed to the costs and benefits to society in general? What are some reasons for the differences?arrow_forwardWrite the two views of the basis for determining the social discount rate?arrow_forwardExplain Economic and Social Disorderarrow_forward
- The theory of distributive justice that I found to be the most convincing was the Utilitarianism theory. In current times there is a large amount of economic inequality. It states in the textbook, "The top 0.1 percent of American families owns 22 percent of the nation’s wealth–exactly the same share as the bottom 90 percent" (Shaw, 2017, p. 85). The Utilitarianism theory believes that there should be a greater equality of income. They believe that if there was a more equal distribution of income, then the happiness of that population would vastly increase. The textbook mentions that countries that have a more equal distribution of income tend to have lower rates of infant mortality, life expectancy, malnutrition, obesity, teenage pregnancy, economic insecurity, personal anxiety, and other measures, in comparison to countries that have a larger income inequality, such as the United States (Shaw, 2017, p. 92). It is even believed that income equality can promote economic growth (Shaw,…arrow_forwardDiscuss the first and second fundamental theory of Welfare Economics.arrow_forwardis the provided Edgeworth box a good example of second-welfare economics theorem.arrow_forward
- Briefly describe the theory of rational ignorance.arrow_forwardWhen Paul Samuelson switched from physics to economics, Robert Solow is said to have remarked that the average IQ in both disciplines went up. A bystander responded that Solow's claim must be wrong because it implies that the average IQ for academia as a whole (which is a weighted average of the average IQ levels for each discipline) must also have gone up as a result of the switch, which is clearly impossible. Was the bystander right? A) Yes. If the average in both disciplines goes up then the population average must also rise. B) No. There is not enough information about the average IQ for the population. C) Yes. The weights may change so that the population average also increases. D) No. If those in physics had IQs above average and those in economics has IQs below average, then the population average need not have changed.arrow_forwardAnswer C only please On December 30, 1974, the hypothetical country Alpha decided to introduce a minimum wage policy. Cities with ID numbers 11, 23, 45, 57, 60, and 61 were randomly chosen to implement this minimum wage policy. The remaining cities in country Alpha did not adopt a minimum wage policy. You are asked to empirically and theoretically evaluate the impact of the introduction of the minimum wage in country Alpha on the labour market outcomes. a) Assuming there is no labour mobility and using the basic model of minimum wage, how do you expect the introduction of this policy to change the existing equilibrium wage and employment rate in the affected cities? MY ANSWER IS UNEMPLOYMENT DECREASES b)You are then asked to empirically evaluate the impact of the implementation of the minimum wage policy on employment rate in cities that implemented the new legislation compared to the other cities. Use data only from 1974, and 1975 in your policy evaluation. First, write down a…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning