The disease killing the silkworm population.

1. A shipwreck has stranded two people, Alice and Bob, on a desert island. This island’s food supply comes from its abundant coconut trees and the plentiful fishes that swim in the waters near the beautiful, white sand beaches that line its coast. Alice is a mediocre swimmer, but a brilliant climber, meaning that it takes her two hours to catch one fish, but only half an hour to gather one coconut. Bob is a good swimmer and a decent climber. It takes him one hour to catch a fish and one hour to gather a coconut. Although this island is near the equator and has many hours of sunlight, both Alice and Bob are exhausted after only eight hours of foraging each day.

a.  How much of each good would be produced in one day if Alice and Bob each split their time evenly between both activities?

Don't use plagiarized sources. Get Your Custom Essay on
The disease killing the silkworm population.
Just from $9/Page
Order Essay

b.  How much of each good would be produced in one day if Alice only fished and Bob only gathered coconuts.

c.  What would the daily production of goods be if Bob only fished and Alice only gathered coconuts?

d. Who has the absolute advantage in producing coconuts? Who has the comparative advantage in catching fish?

e.  Assuming that Alice and Bob prefer to eat some mix of coconuts and fish, does it make sense for them to specialize in production? Who should specialize in the production of which good?

f.  If Alice had a nasty fall that caused her to develop a fear of heights, reducing her coconut production rate to two hours per coconut, who would have the absolute advantage in each good? Who would have the comparative advantage? Would gains from trade still be possible?

 

 

2. Describe the effects of the following scenarios on the price and quantity of silk scarves in a market using supply-and-demand diagrams.

a.  A disease is killing the silkworm population.

b.  A very unpopular celebrity starts wearing silk scarves all the time, causing many to change their habits to avoid being compared to her.

c.  Changes in the climate reduce temperature extremes, making winters less cold and summers less hot.

d. A new method of cheaply synthesizing silk is discovered.

 

 

4. For each of the following pairs of goods indicate which one will be more elastic. Briefly explain why.

a.  Potatoes or Caviar.

b.  Cadillac Escalades or Automobiles.

c.  Pop music mp3s or symphonic death metal mp3s.

 

 

5. The government of the isolated nation of Tinyland believes that tobacco cigarettes are causing public health problems that need to be addressed. Smoking is highly addictive, meaning that consumers do not change their behavior very much in response to price differences. The farmers of Tinyland are blessed with rich soil that can easily grow any number of crops, including tobacco. Three different groups have proposals designed to address the problems arising from smoking. Analyze the effect each proposal would have on the cigarette market, focusing especially on how much smoking would be reduced and who would lose or benefit from the program.

a.  The central government proposes a tax on cigarettes in order to give smokers an incentive to stop smoking.

b.  A group of concerned citizens believe that creating a minimum price above the current market price might discourage smokers from smoking.

c.  A lobby representing smokers argues that forcing producers to sell at much lower prices would pressure tobacco growers to stop producing so many cigarettes.

 

 

6. The local government is planning two new taxes on services: one on tourism services (such as travel agencies), and the other on healthcare.

a.  Which of the two taxes is likely to cause more deadweight loss? Why?

b.  Which worker is more likely to lose his or her job because of such a tax: a nurse or a travel agent? Explain.

c.  If the government wanted to raise tax revenues in the most efficient way possible, which of the two taxes would it be more likely to abandon? Why?

d. Is the most efficient tax the best tax for residents of this locality? Why or why not? Be sure to explain how you define what a good tax is.

 

 

7. Over the past few years there has been a dramatic increase in the demand for coffee.

a.  Does this make people who buy coffee better off or worse off? Explain, using the concept of consumer surplus.

b.  Is the move beneficial or harmful to coffee sellers? How do you know? Explain, using the concept of producer surplus.

c.  Is the overall economic wellbeing generated by the market greater or less than it was before the new firms entered the market? Explain.

 

 

8. Recently residents of the nation of Autarkia have noticed that the price of woolen goods has increased dramatically, even to the point where very few Autarkians buy anything made of wool. At the same time, many Autarkians have quit their other jobs in order to raise sheep to produce wool. What change in government policy could explain this?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS