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US Macroeconomics

Give a specific example of how you used the marginal decision-making principle to choose between two alternatives.

Give an example of a public good

What is the current minimum wage in the U.S.?

Give an example of cap and trade legislation.

The automobile industry operates in a(n)_____________________ market structure

Give an example of a good with a relatively price elastic demand.

Give an example of a good with a relatively price inelastic demand.

Give an example of 2 goods with a negative cross price elasticity of demand.

Give an example of government intervention in the marketplace

Solution Preview

When you decide how much ice cream to buy, you weigh the cost of the next scoop against how much it will benefit you. If the cost of the next scoop is more than you feel eating that scoop is worth, you do not buy it. You continue to buy scoops until the next scoop's marginal benefit is less than its marginal cost.

A public good is something that is nonexcluable and non-rivalrous. This means that my use of it doesn't demish it for someone else, and no one can be excluded from using it. Example are street lights and law enforcement.

See http://www.dol.gov/dol/topic/wages/minimumwage.htm
"The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. "

Cap and trade legislation exists for some pollutants. In the Northeast, there is a ...

Solution Summary

Questions related to public goods, trade and cap legislation, and minimum wage laws are determined.

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