Suggested Answers for Mankiw, Chapter 22, Other Problems
The landlord is the principal and the tenant is the agent. There is
asymmetric information because the landlord does not know how well the
tenant will take care of the property. Having a tenan
Suggested Answers for Mankiw, Chapter 16, Problem 3, 4, 6, 9, 10, 11
If there were many suppliers of diamonds, price would equal marginal cost
($1,000), so the quantity would be 12,000.
With only one supplier of diamonds, quantity would be set
Suggested Answers for Mankiw, Chapter 17, Other Problems
The market for #2 pencils is perfectly competitive because pencils by any
manufacturer are identical and there are a large number of manufacturers.
The market for copper is perfectly
Suggested Answers for Mankiw, Chapter 13, Other Problems
a. opportunity cost; b. average total cost; c. fixed cost; d. variable cost; e. total cost;
f. marginal cost.
The opportunity cost of something is what must be given up to acquire it.
Suggested Answers for Mankiw, Chapter 22, Problem 4, 5, 8, 10, 11, 12
If insurance companies were not allowed to determine if applicants are HIV-positive,
more individuals who are HIV-positive would be able to purchase insurance, but that
Suggested Answers for Mankiw, Chapter 2, Other Problems
See Figure 5; the four transactions are shown.
Figure 6 shows a production possibilities frontier between guns and butter.
It is bowed out because the opportunity cost of butter dep
Suggested Answers for Mankiw, Chapter 19, Problem 2, 6, 7, 8, 10
Figure 1 shows a diagram for the two labor markets. The labor market on the left
is one in which workers are covered by a binding minimum wage. in the labor
market on the right, worker
Suggested Answers for Mankiw, Chapter 19, Other Problems
The opportunity cost of taking a job as a summer intern that pays little or
nothing is the wage that the student could earn at an alternative job.
Despite the low wages, students are willin
Suggested Answers for Mankiw, Chapter 3, Problem 7
The production possibilities frontiers for the two countries are shown in Figure 5. If,
without trade, a U.S. worker spends half of his time producing each good, the United
States will have 100 pill