# Figure kidney trade ban policy spectrum refer to

• Test Prep
• 13
• 100% (2) 2 out of 2 people found this document helpful

This preview shows page 11 - 13 out of 13 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 9
Macroeconomics for Today
Tucker
Expert Verified
24. (Figure: Kidney Trade Ban Policy Spectrum) Refer to figure. If A, B, and C are all candidates in the election, and an open market for kidney trading is the only issue being debated, based on the median voter theorem, which candidate will win the election? A) B) C) D) A, B, and C will each receive an equal number of votes.
A
B
C
Use the following to answer questions 25-26: Table: Three-Country Oil Production Total Market Output Market Price 600 90 800 80 1,000 70 1,200 60 1,400 50 1,600 40 1,800 30 25. (Table: Three-Country Oil Production) Refer to the table. Suppose that three countries are engaged in oil production. For simplicity, assume zero costs so that revenue equals profit. If the countries create a cartel and agree to mimic monopoly-like behavior, what level of output would each firm produce?
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 4 / Exercise 9
Macroeconomics for Today
Tucker
Expert Verified
11 26. (Table: Three-Country Oil Production) Refer to the table. Suppose that three countries are engaged in oil production. For simplicity, assume zero costs so that revenue equals profit. Assume that Country A cheats on the cartel agreement by producing 200 more barrels than the other two countries. What is the resultant profit earned by each of the other two countries?
Use the following to answer questions 27-28: Table: Myrtle Beach Golf Maximum Willingness to Pay for One-Night Stay and One Round of Golf David John One-Night Stay 50 110 Round of Golf 80 27. (Table: Myrtle Beach Golf) Refer to the table. Assume that costs of production are zero. If the resort bundles a one-night stay with a round of golf, how much profit will it make on David and John? 35
28. (Table: Myrtle Beach Golf) Refer to the table. Assume the firm has zero costs. If the resort sets prices for lodging and golf individually, it will charge ________ for one night's stay and ________ for one round of golf. A) \$110; \$80 B) \$50; \$110 C) \$80; \$57.50 D) \$50; \$35
12 29. Assume Xs earn \$5 less per hour than Ys and a firm employs 200 workers. There are 8 working hours in the day, 5 working days a week, and 50 working weeks a year. If the firm discriminates and hires only Ys, how much profit will it lose in a year? (Assume Xs have the same work skills as Ys.)
30. Tuna in the ocean is a common resource because:
Please turn in your scantron AND cover page. You may keep this test question sheet for review. Make sure NAME, STUDENT #, and VERSION # are on scantron