social problems: riots and protests. A living wage is a set wage of $12.50 per hour that allows college‚ groceries‚ housing‚ and gas to be affordable. The problems that occur include rescission‚ increase in the price of goods‚ and less profit for the producer. The consequences of a living wage hurt the poor by increasing prices defeating the purpose of an imposed living wage. Evidence supports living wage it is a respectable idea. If Americans were paid $12.50 an hour people would spend more money. When
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Production–possibility frontier In economics‚ a production–possibility frontier (PPF)‚ sometimes called a production–possibility curve‚ production-possibility boundary or product transformation curve‚ is a graph that compares the production rates of two commodities that use the same fixed total of the factors of production. Graphically bounding the production set‚ the PPF curve shows the maximum specified production level of one commodity that results given the production level of the other. By
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MT445 Unit 2: Supply and Demand - QuizTop of Form Question 1. 1. An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery. The first development concerned side effects from the surgery‚ including blurred vision. The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries‚ these two developments (Points : 1) decreased demand and decreased supply
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Econ 100A–Midterm 2 solutions. Thursday‚ March 22‚ 2012. True/False (2 questions‚ 10 points total) Answer true or false and explain your answer. Your answer must fit in the space provided. T/F 1. (5 points) Suppose the government wants to place a tax on one of two goods‚ and suppose that supply is perfectly elastic for both goods. If the government wants to minimize the deadweight loss from a tax of a given size‚ it should put the tax on whichever good has worse substitutes. False: If
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Opportunity cost The true cost of something is what you give up to get it.(This includes not only the money spent in buying (or doing) the something‚ but also the economic benefits (UTILITY) that you did without because you bought (or did) that particular something and thus can no longer buy (or do) something else.) Factors of production The ingredients of economic activity: land‚ labor‚ capital and enterprise. Economic Development The scope of economic development includes the process and
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Competition is essential to achieve efficiency in any market. In an imperfectly competitive market structure‚ however‚ efficiency is lost. The Economist’s article “Let Mexico’s Moguls Battle”‚ describes the lack of competition in the fixed and mobile phone markets in Mexico‚ shows its effects on consumers‚ and outlines the measures taken to promote competition. Figure 1 Figure 1 Telmex and Telcel abuse the lack of competition in the Mexican fixed and mobile phone markets respectively. These “two
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Introduction In the 1960s‚ 1970s or even 1980s‚ if you ask someone‚ which countries produce the best wine in the world? They would have said France‚ Italy or Spain. However‚ if you ask someone the same question nowadays‚ the answer would be different. The new wine industry players such as Australia‚ the United States and Chile are changing the global industry structure‚ leading the global industry trend‚ and challenging the traditional wine makers by introducing innovations at every stage
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Introductory Microeconomics Assignment 2 Due date: Value: Note: Word limit: Tuesday 17 September 2013 This assignment is worth 10% of your final grade in this unit This assignment is an individual assignment 1000 words. General assignment instructions Read the task carefully and in your answer address the concepts and issues associated with each part of the task. Remember DO NOT PLAGIARISE. http://policy.monash.edu.au/policy-bank/academic/education/conduct/plagiarism-policy
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2002. [2] Mostly in deficit (1)‚ only 3 surplus years (1)‚ cyclical/volatile pattern (1)‚ detail of cycle (1)‚ any 2 points. (ii) Explain how the US might have been able to finance the current account position it faced between 1992 and 2002. [3] A worsening deficit needs extra funds (1)‚ can come from capital‚ financial inflows (1)‚ borrowing (1)‚ use of reserves (1) – recognition of position (1)‚ explanation of sources (2). (b) Suppose a country has a surplus on its current account. Explain how this
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perfectly competitive market then the situations of monopoly and monopsony arise. Monopoly market is the one which has only one seller but so many buyers. Monopsony market is the one which has only one buyer and so many sellers. Monopolist is the sole producer of a product‚ in market demand curve‚ price is determined by the quantity which is offered by the monopolist to sell‚ the quantity of produce sold by monopolist is low and the price is high‚ it happens because his products has full demand and he
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