Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Why or why not? O A. Economic analysis can provide such an answer because it seeks to address both positive and normative questions such as "what is" and "what ought to be." O B. Economic analysis cannot provide such an answer because it seeks to address positive questions such as "what is." OC. Economic analysis can provide such an answer because it seeks to address normative questions such as "what ought to be." O D. Economic analysis can provide such an answer because it seeks to address positive questions such as "what is." O E. Economic analysis cannot provide such an answer because it seeks to address normative questions such as "what ought to be."

Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Why or why not? O A. Economic analysis can provide such an answer because it seeks to address both positive and normative questions such as "what is" and "what ought to be." O B. Economic analysis cannot provide such an answer because it seeks to address positive questions such as "what is." OC. Economic analysis can provide such an answer because it seeks to address normative questions such as "what ought to be." O D. Economic analysis can provide such an answer because it seeks to address positive questions such as "what is." O E. Economic analysis cannot provide such an answer because it seeks to address normative questions such as "what ought to be."

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter1: The Economic Approach

Section: Chapter Questions

Problem 3CQ

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a) Suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketer is 5 for IBM and 3 for Microsoft. Explain why this outcome violates the condition for efficiency in production and how a voluntary exchange could make both companies better off. b) Ignoring rationing problems and black markets, under rent control (or any price ceiling that produces a shortage) the price paid by consumers equals the marginal cost of producing the good. Does this mean the output level is efficient? Explain. c) What does the contract curve in an Edgeworth production box signify? Why do competitive markets generate equilibriums that lie on the contract curve?
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Define the Market Economy term and provide an original, economics-based explanation of the term. Aslo provide a real/hypothetical contextual example (different from that provided in the text) of the term as it is applied to economics.
Supply chain shortages have limited the number of microchips available to car manufacturersin the US. Since every new car needs microchips to control it, we can think of a limit on thenumber of microchips as a quota on the production of new cars. If this quota is binding,which of the following may be a market consequence of a production quota on new cars in theUS market? Do not worry about the underlying facts; only whether the explanations makeeconomic sense given our model. (Select one or more) (a) The quantity supplied of new cars will rise to meet the quota.(b) The quantity supplied of new cars will fall to meet the quota.(c) The quantity supplied is unaffected by a binding quota.(d) The price of new cars will rise until there is no excess demand.(e) The price of new cars will fall until there is no excess demand.(f) Consumer surplus will increase as a result of the quota.(g) Consumer surplus will decrease as a result of the quota.(h) Consumer surplus will be unaffected by the…
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Construct the Two-commodity market model and find out th set of equilibrium prices mathematically?