If You Think Only Poor People Need Welfare, Wait Till You See What Really Rich Folks Do With It

http://www.upworthy.com/if-you-think-only-poor-people-need-welfare-wait-till-you-see-what-really-rich-folks-do-with-it

This video is a really interesting look at the question of welfare vs. entitlement in the United States. It invites you to rethink the idea of a guaranteed minimum income in the United States, and consider a new social contract for America’s citizenry.

PS It really made think, especially right around 10:40. I hope you check it out.

Answers to Homework, Thursday, January 30th

True/False

1. T

2. F (decreasing)

3. T

4. F (steeper)

5. T

6. F (divided by Q)

7. T

8. T

9. F (not MC curve, ATC curve)

10. T

11. F (not MC, ATC)

12. F (diseconomies of scale)

Multiple Choice

1. C

2. C

3. A

4. B

5. C

6. B

7. A

8. A

9. B

True/False

1. F (more than that)

2. T

3. T 

4. T

5. F (decreases)

6. F (AVC)

7. F (ATC)

8. F (stays in business but incurs loss)

9. T

10. T

Multiple Choice

1. B

2. A

3. C

4. A

5. D

6. E

7. A

8. B

9. B

10. C

11. B

12. C

13. A

14. D

15. E

Answers to “More Practice Problems With Cost”

1. Marty’s Frozen Yogurt

a. Fixed inputs: machines, refrigerators

b. Variable inputs: mix, cups, sprinkles, workers

c. Inputs on the x-axis, outputs on the y-axis, upward sloping curve, initially steep, then flattening out

d. MP: 110, 90, 70, 30, 20, 10

e. Diminishing returns/diminishing marginal product: as additional workers are added, each worker adds to output but at a decreasing rate.

2. Marty’s Frozen Yogurt Cost Calculations

Fixed cost: $100

Variable cost: $0, 135, 260, 475, 570, 660, 745

Total cost: $0, 235, 360, 575, 670, 760, 845

Average total cost: -, 2.14, 1.80, 1.76, 1.90, 2.06, 2.26

Marginal cost: 1.23, 1.39, 1.64, 3.17, 4.50, 8.50

270 cups of frozen yogurt 

Multiple choice:

1. D

2. A

3. A

4. A

5. A

6. D

Short Answer:

1. Spreading effect

2. Marginal product is falling; marginal product is rising

3. AFC changes; AVC stays the same; ATC changes; MC stays the same

4. spreading effect

5. diminishing returns effect

6. spreading effect at low levels of out; diminishing returns effect at high levels of output

7. upward sloping, initially steep, then flattens, due to diminishing returns.  As input is added, output increases but at a decreasing rate.

8. SR: at least one fixed input; LR: all inputs are variable

9. B/c there is always a fixed cost present

10. AVC gets closer and closer to ATC but the two curves never touch.

Something very exciting happened today!!!!!

Something very exciting happened today!!!!!

Celebrating Heroic Women of 2013

Celebrating Heroic Women of 2013

Consumer Choice Theory Flashcards

Consumer Choice Theory Flashcards

Hi guys!!!

Welcome to my website, for those of you who have never visited it before.  The link I’m providing may be useful to you as you study for Friday’s test on consumer choice theory.  

Feel free to check out the “In the News” articles on the right side of the screen.  Along the top, if you click on “Links for Students” there’s that fun history quiz I was telling you about.  Enjoy!!!

 

Answers to Price Controls handout

1. Cheese anyone????

a. Place price floor above the equilibrium price, illustrating that QD falls, QS rises, and a surplus results.

b. Yes, because while the price went up, cheese farmers lost customers, which could ultimately lead to less revenue overall.

c. Cheese farmers benefit because now they are able to sell all of the cheese at QS at the higher price without any surplus left over.  The government loses (what’s the government going to do with all that cheese??!!)

2. Frisbees!!!

a. $8 and 6 million Frisbees

b. $10, but only 2 million Frisbees will be sold at that price. (There will be a surplus of 10 million Frisbees.)

c. A price ceiling instituted at $9 is above the equilibrium price of $8; therefore, the price ceiling is non-binding or ineffective.  Thus, the market returns to the equilbrium price of $8 and equilibrium quantity of 6 million Frisbees.

3. Minimum wage

Employment will decrease (QD falls even more), and unemployment rises (surplus of workers gets even bigger).

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