Question #1 – (100 words and 1 citation)
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?
Question #2 – (100 words and 1 citation)
Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade patterns, absolute advantage or comparative advantage? Why?
Question #3 – (100 words and 1 citation)
Explain the difference between change in quantity demanded and shift in demand. What causes change in quantity demanded? What causes a shift in demand?
Question #4 – (100 words and 1 citation)
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 answer.
Question #5 – (100 words and 1 citation)
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 reversed – a very inelastic demand and a very elastic supply? How would that change the way consumers and producers share the burden of the new tax? Justify your answer.
Question #6 – (100 words and 1 citation)
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.
*** 100 words each questions***
*** 1 Citation in each question***
*** No plagiarism***
The post Question #1 – (100 words and 1 citation) If the United States appeared first on PapersSpot.
