ECN 361 Microeconomics Complete Discussion Week 1-8 Grand Canyon

Topic 1 DQ 1: If the United States could produce five televisions per hour of labor and China could produce three televisions per hour of labor, would it necessarily follow that the United States should specialize in television production? Why or why not?

Topic 2 DQ 3: Suppose a farmer knows that he will be able to harvest and sell 3,000 bushels of wheat. Would he prefer a market in which conditions are favorable and most farmers harvest large crops or a market in which conditions are unfavorable and many farmers harvest small crops? Why?

Topic 2 DQ 2: Adam and Barb go to the store to purchase some lottery tickets. Without looking at the price, Adam says, "I’ll take 10 lottery tickets," and Barb says, "I’ll take $10 worth of lottery tickets." What is each person’s price elasticity of demand for lottery tickets? Explain your a...

Topic 2 DQ 1: Explain the difference between change in quantity demanded and shift in demand. What causes change in quantity demanded? What causes a shift in demand?

Topic 4DQ2 The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain your answer.

Topic 4DQ1 The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the U.S. government correct for this apparent market...

Topic 3 DQ 2: Does the United States' labor supply tend to be more elastic or more inelastic? Explain the competing theories discussed in the textbook. Which seems more convincing to you?Explain your answer.

Topic 3 DQ 1: Consider the market for white athletic socks, which consumers consider to be identical products. If the demand is very elastic and the supply is very inelastic, how would the burden of a new tax on athletic socks be shared between consumers and producers? What if the situation were r...

ECN Topic 5 DQ 2 Evaluate the following statement: "Warren Buffet is one of richest people in the world. He doesn't face any constraint on his ability to purchase commodities he wants." Do you agree with this statement? Why or why not?

Topic 5 DQ 1 List and briefly explain each of the four properties of indifference curves. Provide an example where you have made a buying decision based on one or more of these properties. Justify your answer.

Topic 6 DQ2 News reports from the western United States occasionally report incidents of cattle ranchers slaughtering many newborn calves and burying them in mass graves rather than transporting them to markets. Assuming that this is rational behavior by profit-maximizing "firms," explain what ec...

ECN Topic 6 DQ 1 Suppose that a small family farm sold its output for $100,000 in a given year. The familyspent $25,000 on fuel; $40,000 on seed, fertilizer, and pesticides; and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations. W...

ECN Topic 7 DQ 2 In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble with restrictions on advertising (for example, cigarettes and hard liquor). Do potential (or actual) restrictions on advertising in these markets serve the interest of a gove...

ECN Topic 7 DQ 1 In many college towns, private independent bookstores typically locate on the periphery of the college campus. However, in some college towns, the university has used political power to restrict private bookstores near campus through community zoning laws. Use your knowledge o...