Problem Set II
1. For the acreage limitation referred to in this question, there are a few explanations. One
being that the government doesnt want one farmer to be large enough to influence the
price of his agricultural products. If one farm
A . Business requires government: There cannot be trading without rules of trade.
-ownership cannot be a meaningful concept without enforcement.
-In more complicated economies, goods change hands for money, and money changes hands for
Department of Economics
Northern Illinois University
Problem Set III
Due Thursday, October 25, in class.
In 1931, surveys about consumer attitudes toward monopoly identified Sears or A&P as
monopolies. Is there any basis in economics for consumers view
CH 3: Price Searching:
-Price Taking behavior makes sense for producers of perfectly substitutable goods who sell to
well-informed customers. Firm believes it will lose all of its sales if it posts a higher price, and it
will give up some
There are many aspects of monopolization that show a lessening of competition. For one,
monopolists do not have to fear entry from other entrepreneurs who can compete away th
Term Assignment Part II
1) For the first question, I dont think I would have changed much, although I would have
elaborated much more. The only thing I would change would be the last sentence saying
that we would still
CARSON LIBERAL/CONSERVATIVE/ RADICALThe introduction
1960s/70s, economists held a particularly liberal viewpoint on political economy.
-Adam Smith: Conservative: Remove all commercial and industrial activity to allow the market
to work freely.
Term Assignment Part 1
1) I believe that technological and scientific advances will happen if people want them to.
These advances are not going to happen if people have no motivation for them to. When
you look at the major ad
Problem Set I
1) a. Rationing is necessary because most people live on a certain budget. People use rationing as
a tool for balancing out the amount of a good or service they would consume. People thinking
rationally leads t