Questions On Problems And Applications

Decent Essays

Chapter 1: Questions for Review: 1,5,8 Problems and Applications: 1,6,8,10 Chapter 2: Questions for Review: 1,3,6,7 Problems and Applications: 3,4,5,6 Chapter 3: Questions for Review: 2,5 Problems and Applications: 1,2,7 Chapter 4: Questions for Review: 1,3,6,9 Problems and Applications: 1,5,6,8,11 Chapter 1 Give three examples of important trade-offs that you face in your life. Some examples of trade-offs that I face in my life are rather I should go to sleep early or adding another hour of studying for a test. Another trade-off was that if I should watch some shows online or study more for the final. The last trade-off is when I could spend my money to go out to eat or I could save my money and eat at home. 5. …show more content…

6. The Social Security system provides income for people over age 65. If a recipient of Social Security decides to work and earn some income, the amount he or she receives in Social Security benefits is typically reduced. a. How does the provision of Social Security affect people’s incentive to save while working? People will save up less money if they know they will get money through Social Security program from the government. b. How does the reduction in benefits associated with higher earnings affect people’s incentive to work past age 65? It will make people to work less or barely work at all. 8. Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved. Regulating cable TV prices. The government is concern about efficiency. The market failure has to do with the market power, this include with just a person or a group of people that influences the market prices. Providing some poor people with vouchers that can be used to buy food This shows the government 's concern about equality. Prohibiting smoking in public places. This shows the government 's concern about efficiency.

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