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Economics Questions and Answers

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Answering economics questions may become a significant problem for many students at a certain point in their education process. You may have a short economics question that seems not so hard and time-consuming, but when you finally get to do it, you realize that it is more complicated than it looks, and Google search is not helping at all. There are a few websites that offer economics questions and answers for free, but they do not always provide solutions to the particular problems you have. If you need assistance with your economics homework problems or need answers to economics worksheet, test or quiz questions, be it multiple choice or free answer questions, Assignment Expert will be glad to provide it. We offer professional help with questions in a variety of economics topics you may find confusing or difficult to comprehend. Ask your economics question here, and our economics experts will answer it for free. If you need a solution to the entire set of questions or assistance with an economics project, order now, and our economics experts will help you for a reasonable price.

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Trade among nations is ultimately based on
Answered!
A special interest group may be successful in getting a project approved even when the potential costs far outweigh the potential benefits because:

they are informed voters on their special interest and will reward politicians who support their interest. or

most other voters remain rationally ignorant of the issue; thus, their opinion of the politician remains unchanged. or

the cost a single, average taxpayer must pay is less than the cost they would incur if they were to protest the project. or

all of the above.
Answered!
The reason why national defense is commonly provided by the government, while food is not, is that food…

is too essential to survival to be provided by a bureaucratic organization. or

manufacturers have successfully lobbied the government to stay out of the food industry. or

can easily be withheld from those who refuse to pay for it. or

provision is subject to a free-rider problem.
Answered!
Which of the following is an example of moral hazard?

There are likely more cars of low quality than of high quality offered for sale without warranties in the used car market. or

An individual who eats well and exercises regularly chooses not to purchase health insurance. or

An individual drives less cautiously after obtaining automobile insurance. or

A car salesman offers a full warranty on a used car for 90 days.
Answered!
Which of the following activities represents a positive externality?

The benefit to a consumer from watching a film on DVD.or

An increase in quantity demanded for your product when you put it on sale. or

The increase in the value of property belonging to your neighbors when you hire a landscaper to maintain your front yard. or

All of the above.
Answered!
An example of a negative externality is:

the reduction in profits for your company that occurs when there is a decrease in consumer demand for the product you manufacture. or

the sleep you lose when your neighbor throws a loud party next door that keeps you awake. or

the additional friends you make when you move into a dorm with a shared bathroom. or

all of the above
Answered!
Which of the following provides an example of an externality?

The air pollution generated when you drive your car.or

The view that passersby and neighbors enjoy when observing your Halloween decorations.or

The free concerts neighbors hear when an accomplished musician practices at home.or

All of the above.
Answered!
A household consuming a bundle of goods X and Y such that MUX = 15 and MUY = 3 when the prices are such that pX = 5 and pY = 1 is maximizing its “utility”.
Answered!
an estimate of the demand function for household furniture produced the following results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where
Answered!
Bad gums may mean a bad heart. Researchers discovered that 85% of people who have suffered a heart attack had periodontal disease, an inflammation of the gums. Only 29% of healthy people have this disease. Suppose that in a certain community heart attacks are quite rare, occurring with only 10% probability. If someone has periodontal disease, what is the probability that he or she will have a heart attack? (to 3 decimals)
Answered!
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