1. it takes one hour to travel from new york city to wachington,D.C., by air, but it takes five hours by bus. If the airfare is $110 and the bus fare is $70, which would be cheaper for someone whose opportunity cost of travel time is $6 per hour? for someone whose opportunity cost is $10 per hour? $14 per hour?
2. " people in business get ahead by exploiting the need of their consumers. the gain of business are at the expense of suffering imposed on their customers. evaluate this statement.
3. during the last three decades, entrepreneurs like Michael Dell, Sam Walton, and Ted Turner have earned billions of dollars. do you think the average american is better or worse off as the result of the economic activities of these individuals? explain your response.
4. as the skill level ( and therefore earnings rate) of, say, an architect computer specialist, or chemist increases, what happens to his or her opportunity cost of doing other things? how is the time spent on leisure likely to change?
5.which of the following do you think would led to an increase in the current demand for beef?
a. higher pork prices
b. higher consumer income
c. higher prices of feed grains used to feed cattle
d. widespread outbreak of mad cow or hoof- and - mouth disease
e. an increase in the price of beef
6. 7, recent tax reforms make college tuition partially tax deductible for certain families. this should motivate more people to attend college. how will this higher demand for college education affect tuition prices? how will it affect the cost of college for families who don;t qualify for the tax deduction?
7. what is the difference between substitutes and complements? indicate two goods that are substitutes for each other. indicate two goods that are complements
8. how do higher gasoline prices affect each of the following ? explain your answer.
a. the incentive to invest in developing alternative fuels( such as coal liquefaction or solar energy)
b. use of mass transit and carpooling
c. the development of hybrid cars
9. suppose that college students in your town persuaded the town council to enact a law setting the maximum price for rental housing at $400 per month. will this help or hurt college students who rent housing? in your answer, address how this price ceiling will affect (a) the quality of rental housing; (b) the amount of rental housing available, (c) the incentive of landlords to maintain their properties, (d) the amount of racial, gender, and other types of discrimination in the local rental housing market,(e) the ease with which students will be able to find housing, and, finally, (f) whether a black market for housin would develop
10. congress recently passes a new program that will subsidize the purchase of prescription drugs by the elderly. what impact will this program have on the demand for and price of prescription drugs? how will people who are not elderly be affected by this program? explain