29-05-2013, 12:41 PM
Practice Questions – Microeconomics at Intermediate level
1. If Nick.s elasticity of demand for hot dogs is constantly 0.9, and he buys 4 hot dogs when the price is $1.50 per hot dog, how many will he buy when the price is $1.00 per hot dog?
2. How do minimum wages affect wages, employment, and unemployment?
3. Is the CPI a good measure of inflation? Why or why not?
4. Why do stores offer coupons instead of simply reducing the price by the value of the coupon?
5. Why is the price of electricity regulated in most areas?
6. Why do some workers prefer set wages rather than commissions, even if they might make more working on commission?
7. Agree or disagree: We should strive to be a zero-pollution society.