曼昆微观经济学课后练习英文答案

WHAT’S NEW IN THE SIXTH EDITION:

There are no major changes to this chapter.

LEARNING OBJECTIVES:

By the end of this chapter, students should understand: the link between buyers’ willingness to pay for a good and the demand curve. how to define and measure consumer surplus. the link between sellers’ costs of producing a good and the supply curve. how to define and measure producer surplus. that the equilibrium of supply and demand maximizes total surplus in a market.

CONTEXT AND PURPOSE:

Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then utilized in Chapters 8 and 9 to determine the winners and losers from taxation and restrictions on international trade. The purpose of Chapter 7 is to develop welfare economics —the study of how the allocation of resources affects economic well-being. Chapters 4 through 6 employed supply and demand in a positive framework, which focused on the question, “What is the equilibrium price and quantity in a market” This chapter now addresses the normative question, “Is the equilibri um price and quantity in a market the best possible solution to the resource allocation problem, or is it simply the price and quantity that balance supply and demand” Students will discover that under most circumstances the equilibrium price and quantity is also the one that maximizes welfare.

CONSUMERS, PRODUCERS, AND THE

EFFICIENCY OF MARKETS

KEY POINTS:

Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market. Consumer surplus can be computed by finding the area below the demand curve and above the price.

Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market. Producer surplus can be computed by finding the area below the price and above the supply curve.

An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient.

Policymakers are often concerned with the efficiency, as well as the equality, of economic outcomes.

The equilibrium of supply and demand maximizes the sum of consumer and producer surplus. That is, the invisible hand of the marketplace leads buyers and sellers to allocate resources efficiently.

Markets do not allocate resources efficiently in the presence of market failures such as market power or externalities.

CHAPTER OUTLINE:

I. Definition of welfare economics: the study of how the allocation of resources affects economic well-being.

II. Consumer Surplus

A. Willingness to Pay

1. Definition of willingness to pay: the maximum amount that a buyer will pay for a good.

2. Example: You are auctioning a mint-condition recording of Elvis Presley’s first album. Four buyers

show up. Their willingness to pay is as follows:

If the bidding goes to slightly higher than $80, all buyers drop out except for John.

Because John is willing to pay more than he has to for the album, he derives some

benefit from participating in the market.

3. Definition of consumer surplus: the amount a buyer is willing to pay for a good minus the amount

the buyer actually pays for it.

4. Note that if you had more than one copy of the album, the price in the auction would end up being

lower (a little over $70 in the case of two albums) and both John and Paul would gain consumer surplus.

B. Using the Demand Curve to Measure Consumer Surplus

1. We can use the information on willingness to pay to derive a demand curve for the rare Elvis Presley

album.

Price

Buyers

Quantity Demanded

More than $100 None 0 $80 to $100 John

1 $70 to $80 John, Paul

2 $50 to $70 John, Paul, George

3 $50 or less

John, Paul, George, Ringo

4

2. At any given quantity, the price given by the demand curve reflects the willingness to pay of the

marginal buyer . Because the demand curve shows the buyers’ willingness to pay, we can use the demand curve to measure consumer surplus.

Figure 1 “This represents the demand curve for the time machine. Consumer surplus is the difference between what consumers are willing to pay and the amount they actually have to pay. The market price will determine who uses the time machi ne and how much surplus they keep.”

“If the price of a time machine ride was $500, three rides would be sold—one to Scott, one to Carol, and one to Steve. Jeanne is not willing to pay $500, so she wouldn’t time travel.”

“We can calculate the consumer su rplus of three time trips. Scott would pay $3,000 but only pays $500, leaving $2,500 of net benefits.” (Put these numbers on the board.) “Carol has net benefits of $2,000. Steve has $300 in net benefits. Adding up these net savings gives $4,800 in consumer surplus.”

Points for Discussion

The consumer surplus depends on a good’s selling price and the number of consumers who are willing to purchase the good at that price. The lower the price, the greater the consumer surplus.

Figure 2

3. Consumer surplus can be measured as the area below the demand curve and above the price.

C. How a Lower Price Raises Consumer Surplus

Figure 3

1. As price falls, consumer surplus increases for two reasons.

a. Those already buying the product will receive additional consumer surplus because they are

paying less for the product than before (area A on the graph).

b. Because the price is now lower, some new buyers will enter the market and receive consumer

surplus on these additional units of output purchased (area B on the graph).

D. What Does Consumer Surplus Measure

It is important to stress that consumer surplus is measured in monetary terms. Consumer

surplus gives us a way to place a monetary cost on inefficient market outcomes (due to

government involvement or market failure).

1. Remember that consumer surplus is the difference between the amount that buyers are willing to

pay for a good and the price that they actually pay.

2. Thus, it measures the benefit that consumers receive from the good as the buyers themselves

perceive it.

III. Producer Surplus

A. Cost and the Willingness to Sell

1. Definition of cost: the value of everything a seller must give up to produce a good .

2. Example: You want to hire someone to paint your house. You accept bids for the work from four

sellers. Each painter is willing to work if the price you will pay exceeds her opportunity cost. (Note that this opportunity cost thus represents willingness to sell.) The costs are:

3. Bidding will stop when the price gets to be slightly below $600. All sellers will drop out except for

Grandma. Because Grandma receives more than she would require to paint the house, she derives some benefit from producing in the market.

4. Definition of producer surplus : the amount a seller is paid for a good minus the seller’s cost of

providing it.

5. Note that if you had more than one house to paint, the price in the auction would end up being

higher (a little under $800 in the case of two houses) and both Grandma and Georgia would gain producer surplus.

ALTERNATIVE CLASSROOM EXAMPLE:

Review the material on price ceilings from Chapter 6. Redraw the market for two-bedroom apartments in your town. Draw in a price ceiling below the equilibrium price.

Then go through: consumer surplus before the price ceiling is put into place. consumer surplus after the price ceiling is put into place.

B. Using the Supply Curve to Measure Producer Surplus

1. We can use the information on cost (willingness to sell) to derive a supply curve for house painting

services.

Price Sellers Quantity Supplied

$900 or more Mary, Frida, Georgia, Grandma4

$800 to $900Frida, Georgia, Grandma3

$600 to $800Georgia, Grandma2

$500 to $600Grandma1

less than $500None0

2. At any given quantity, the price given by the supply curve represents the cost of the marginal seller.

Because the supply curve shows the sellers’ cost (willingness to sell), we can use the supply curve to measure producer surplus.

3. Producer surplus can be measured as the area above the supply curve and below the price.

Figure 4

Figure 5

C. How a Higher Price Raises Producer Surplus

1. As price rises, producer surplus increases for two reasons.

a. Those already selling the product will receive additional producer surplus because they are

receiving more for the product than before (area C on the graph).

b. Because the price is now higher, some new sellers will enter the market and receive producer

surplus on these additional units of output sold (area D on the graph).

D. Producer surplus is used to measure the economic well-being of producers, much like consumer surplus is

used to measure the economic well-being of consumers.

Figure 6

ALTERNATIVE CLASSROOM EXAMPLE:

Review the material on price floors from Chapter 6. Redraw the market for an agricultural product

such as corn. Draw in a price support above the equilibrium price.

Then go through:

producer surplus before the price support is put in place.

producer surplus after the price support is put in place.

Make sure that you discuss the cost of the price support to taxpayers.

Pretty Woman, Chapter 6. Vivien (Julia Roberts) and Edward (Richard Gere) negotiate a

price. Afterward, Vivien reveals she would have accepted a lower price, while Edward admits

he would have paid more. If you have done a good job of introducing consumer and

producer surplus, you will see the light bulbs go off above your students’ heads as they

watch this clip.

IV. Market Efficiency

A. The Benevolent Social Planner

1. The economic well-being of everyone in society can be measured by total surplus, which is the sum of

consumer surplus and producer surplus:

Total Surplus = Consumer Surplus + Producer Surplus

Total Surplus = (Value to Buyers – Amount Paid by Buyers) + (Amount Received by Sellers – Cost to Sellers)

Because the Amount Paid by Buyers = Amount Received by Sellers:

2. Definition of

efficiency: the property of a resource allocation of maximizing the total surplus

received by all members of society .

3. Definition of equality: the property of distributing economic prosperity uniformly the members of

society .

B. Evaluating the Market Equilibrium

Total Surplus = Value to Buyers Cost to Sellers Figure 7 Now might be a good time to point out that many government policies involve a trade-off between efficiency and equity. When you evaluate government policies, like price ceilings or floors, you can explain them in terms of equity and efficiency.

1. At the market equilibrium price:

a. Buyers who value the product more than the equilibrium price will purchase the product; those

who do not, will not purchase the product. In other words, the free market allocates the supply

of a good to the buyers who value it most highly, as measured by their willingness to pay.

b. Sellers whose costs are lower than the equilibrium price will produce the product; those whose

costs are higher, will not produce the product. In other words, the free market allocates the

demand for goods to the sellers who can produce it at the lowest cost.

2. Total surplus is maximized at the market equilibrium.

Figure 8

a. At any quantity of output smaller than the equilibrium quantity, the value of the product to the

marginal buyer is greater than the cost to the marginal seller so total surplus would rise if output

increases.

b. At any quantity of output greater than the equilibrium quantity, the value of the product to the

marginal buyer is less than the cost to the marginal seller so total surplus would rise if output

decreases.

3. Note that this is one of the reasons that economists believe Principle #6: Markets are usually a good

way to organize economic activity.

It would be a good idea to remind students that there are circumstances when the market

process does not lead to the most efficient outcome. Examples include situations such as

when a firm (or buyer) has market power over price or when there are externalities present.

These situations will be discussed in later chapters.

C. In the News: Ticket Scalping

1. Ticket scalping is an example of how markets work to achieve an efficient outcome.

2. This article from The Boston Globe describes economist Chip Case’s experience with ticket scalping.

D. Case Study: Should There Be a Market in Organs

1. As a matter of public policy, people are not allowed to sell their organs.

a. In essence, this means that there is a price ceiling on organs of $0.

b. This has led to a shortage of organs.

2. The creation of a market for organs would lead to a more efficient allocation of resources, but critics

worry about the equity of a market system for organs.

V. Market Efficiency and Market Failure

A. To conclude that markets are efficient, we made several assumptions about how markets worked.

1. Perfectly competitive markets.

2. No externalities.

B. When these assumptions do not hold, the market equilibrium may not be efficient.

C. When markets fail, public policy can potentially remedy the situation.

SOLUTIONS TO TEXT PROBLEMS:

Quick Quizzes

1. Figure 1 shows the demand curve for turkey. The price of turkey is P1 and the consumer surplus that

results from that price is denoted CS. Consumer surplus is the amount a buyer is willing to pay for a

good minus the amount the buyer actually pays for it. It measures the benefit to buyers of

participating in a market.

Figure 1 Figure 2

2. Figure 2 shows the supply curve for turkey. The price of turkey is P1 and the producer surplus that

results from that price is denoted PS. Producer surplus is the amount sellers are paid for a good

minus the sellers’ cost of providing it (measured by the supply curve). It measures the benefit to

sellers of participating in a market.

Figure 3

3. Figure 3 shows the supply and demand for turkey. The price of turkey is P1, consumer surplus is CS,

and producer surplus is PS. Producing more turkeys than the equilibrium quantity would lower total

surplus because the value to the marginal buyer would be lower than the cost to the marginal seller

on those additional units.

Questions for Review

1. The price a buyer is willing to pay, consumer surplus, and the demand curve are all closely related.

The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus is

the area below the demand curve and above the price, which equals the price that each buyer is

willing to pay minus the price actually paid.

2. Sellers' costs, producer surplus, and the supply curve are all closely related. The height of the supply

curve represents the costs of the sellers. Producer surplus is the area below the price and above the

supply curve, which equals the price received minus each seller's costs of producing the good.

Figure 4

3. Figure 4 shows producer and consumer surplus in a supply-and-demand diagram.

4. An allocation of resources is efficient if it maximizes total surplus, the sum of consumer surplus and

producer surplus. But efficiency may not be the only goal of economic policymakers; they may also be

concerned about equitythe fairness of the distribution of well-being.

5. The invisible hand of the marketplace guides the self-interest of buyers and sellers into promoting

general economic well-being. Despite decentralized decision making and self-interested decision

makers, free markets often lead to an efficient outcome.

6. Two types of market failure are market power and externalities. Market power may cause market

outcomes to be inefficient because firms may cause price and quantity to differ from the levels they

would be under perfect competition, which keeps total surplus from being maximized. Externalities

are side effects that are not taken into account by buyers and sellers. As a result, the free market

does not maximize total surplus.

Problems and Applications

1. a. Consumer surplus is equal to willingness to pay minus the price paid. Therefore, Melissa’s

willingness to pay must be $200 ($120 + $80).

b. Her consumer surplus at a price of $90 would be $200 $90 = $110.

c. If the price of an iPod was $250, Melissa would not have purchased one because the price is

greater than her willingness to pay. Therefore, she would receive no consumer surplus.

2. If an early freeze in California sours the lemon crop, the supply curve for lemons shifts to the left, as

shown in Figure 5. The result is a rise in the price of lemons and a decline in consumer surplus from A

+ B + C to just A. So consumer surplus declines by the amount B + C.

Figure 5 Figure 6

In the market for lemonade, the higher cost of lemons reduces the supply of lemonade, as shown in

Figure 6. The result is a rise in the price of lemonade and a decline in consumer surplus from D + E + F

to just D, a loss of E + F. Note that an event that affects consumer surplus in one market often has

effects on consumer surplus in other markets.

3. A rise in the demand for French bread leads to an increase in producer surplus in the market for

French bread, as shown in Figure 7. The shift of the demand curve leads to an increased price, which increases producer surplus from area A to area A + B + C.

Figure 7

The increased quantity of French bread being sold increases the demand for flour, as shown in Figure

8. As a result, the price of flour rises, increasing producer surplus from area D to D + E + F. Note that

an event that affects producer surplus in one market leads to effects on producer surplus in related markets.

Figure 8

4. a. Bert’s demand schedule is:

Price Quantity Demanded

More than $70

$5 to $71

$3 to $52

$1 to $33

$1 or less4

Bert’s demand curve is shown in Figure 9.

Figure 9

b. When the price of a bottle of water is $4, Bert buys two bottles of water. His consumer surplus is

shown as area A in the figure. He values his first bottle of water at $7, but pays only $4 for it, so has consumer surplus of $3. He values his second bottle of water at $5, but pays only $4 for it, so has consumer surplus of $1. Thus Bert’s total consumer surplus is $3 + $1 = $4, which is the area of A in the figure.

c. When the price of a bottle of water falls from $4 to $2, Bert buys three bottles of water, an

increase of one. His consumer surplus consists of both areas A and B in the figure, an increase in the amount of area B. He gets consumer surplus of $5 from the first bottle ($7 value minus $2

price), $3 from the second bottle ($5 value minus $2 price), and $1 from the third bottle ($3

value minus $2 price), for a total consumer surplus of $9. Thus consumer surplus rises by $5

(which is the size of area B) when the price of a bottle of water falls from $4 to $2.

5. a. Ernie’s supply schedule for water is:

Price Quantity Supplied

More than $74

$5 to $73

$3 to $52

$1 to $31

Less than $10

Ernie’s supply curve i s shown in Figure 10.

Figure 10

b. When the price of a bottle of water is $4, Ernie sells two bottles of water. His producer surplus is

shown as area A in the figure. He receives $4 for his first bottle of water, but it costs only $1 to

produce, so Ernie has producer surplus of $3. He also receives $4 for his second bottle of water, which costs $3 to produce, so he has producer surplus of $1. Thus Ernie’s total producer surplus is $3 + $1 = $4, which is the area of A in the figure.

c. When the price of a bottle of water rises from $4 to $6, Ernie sells three bottles of water, an

increase of one. His producer surplus consists of both areas A and B in the figure, an increase by the amount of area B. He gets producer surplus of $5 from the first bottle ($6 price minus $1

cost), $3 from the second bottle ($6 price minus $3 cost), and $1 from the third bottle ($6 price

minus $5 price), for a total producer surplus of $9. Thus producer surplus rises by $5 (which is the size of area B) when the price of a bottle of water rises from $4 to $6.

6. a. From Ernie’s supply schedule and Bert’s demand schedule, the quantity demanded and supplied

are:

Price Quantity Supplied Quantity Demanded

$213

$422

$631

Only a price of $4 brings supply and demand into equilibrium, with an equilibrium quantity of

two.

b. At a price of $4, consumer surplus is $4 and producer surplus is $4, as shown in Problems 3 and 4

above. Total surplus is $4 + $4 = $8.

c. If Ernie produced one less bottle, his producer surplus would decline to $3, as shown in Problem

4 above. If Bert consumed one less bottle, his consumer surplus would decline to $3, as shown in

Problem 3 above. So total surplus would decline to $3 + $3 = $6.

d. If Ernie produced one additional bottle of water, his cost would be $5, but the price is only $4, so

his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his

value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total

surplus declines by $1 + $1 = $2.

7. a. The effect of falling production costs in the market for stereos results in a shift to the right in the

supply curve, as shown in Figure 11. As a result, the equilibrium price of stereos declines and the equilibrium quantity increases.

Figure 11

b. The decline in the price of stereos increases consumer surplus from area A to A + B + C + D, an

increase in the amount B + C + D. Prior to the shift in supply, producer surplus was areas B + E

(the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price

reduces producer surplus. Because consumer surplus rises by B + C + D and producer surplus

rises by F + G – B, total surplus rises by C + D + F + G.

c. If the supply of stereos is very elastic, then the shift of the supply curve benefits consumers most.

To take the most dramatic case, suppose the supply curve were horizontal, as shown in Figure 12.

Then there is no producer surplus at all. Consumers capture all the benefits of falling production

costs, with consumer surplus rising from area A to area A + B.

Figure 12

8. Figure 13 shows supply and demand curves for haircuts. Supply equals demand at a quantity of three

haircuts and a price between $4 and $5. Firms A, C, and D should cut the hair of Ellen, Jerry, and Phil.

Oprah’s willingness to pay is too low and firm B’s costs are too high, so they do not participate. The maximum total surplus is the area between the demand and supply curves, which totals $11 ($8 value minus $2 cost for the first haircut, plus $7 value minus $3 cost for the second, plus $5 value minus $4 cost for the third).

Figure 13

9. a. The effect of falling production costs in the market for computers results in a shift to the right in

the supply curve, as shown in Figure 14. As a result, the equilibrium price of computers declines and the equilibrium quantity increases. The decline in the price of computers increases consumer surplus from area A to A + B + C + D, an increase in the amount B + C + D.

Figure 14 Figure 15

Prior to the shift in supply, producer surplus was areas B + E (the area above the supply curve and below the price). After the shift in supply, producer surplus is areas E + F + G. So producer surplus changes by the amount F + G – B, which may be positive or negative. The increase in quantity increases producer surplus, while the decline in the price reduces producer surplus.

Because consumer surplus rises by B + C + D and producer surplus rises by F + G – B, total surplus rises by C + D + F + G.

b. Because typewriters are substitutes for computers, the decline in the price of computers means

that people substitute computers for typewriters, shifting the demand for typewriters to the left, as shown in Figure 15. The result is a decline in both the equilibrium price and equilibrium

quantity of typewriters. Consumer surplus in the typewriter market changes from area A + B to A + C, a net change of C – B. Producer surplus changes from area C + D + E to area E, a net loss of C + D. Typewriter producers are sad about technological advances in computers because their producer surplus declines.

微观经济学(曼昆)案例分析练习题

微观经济学（曼昆）案例分析练习题 https://www.wendangku.net/doc/661704299.html,/ 1、假设我们有以下自行车的市场供给与需求表： a．画出自行车的供给曲线和需求曲线。 b．自行车的均衡价格是多少? c．自行车的均衡数量是多少? d．如果自行车的价格是100美元，存在过剩还是短缺?有多少单位过剩或短缺?这将引起价格上升还是下降？ e．如果自行车的价格是400美元，存在过剩还是短缺?有多少单位过剩或短缺?这将引起价格上升还是下降? f.假设自行车市场的工会为增加工资而谈判。此外，再假设这个事件增加了生产成本，使自行车制造不利，而且，在每种自行车价格时减少了自行车供给量20辆。在图4_2中画出新的供给曲线以及原来的供给和需求曲线。自行车市场新的均衡价格和数量是多少? 【参考答案】： a．

b ．300美元。 c ．50辆自行车。 d ．短缺，70—30=40单位，价格将上升。 e ．过剩，60—40=20单位，价格将下降。 f.均衡价格为400美元，均衡数量为40辆自行车。 2、假设《每日新闻》估计，如果它把自己报纸的价格从1美元提高到1．5美元，那么订 户数就将从5万下降到4万。 a ．当用中点法计算弹性时，《每日新闻》的需求价格弹性是多少? b ．使用中点法的好处是什么? c ．如果《每日新闻》只关心总收益最大化，它应该把报纸的价格从1美元提高到1．5美元吗?为什么该提价或不该提价? 【参考答案】： a ．(10000／45000)／(0.50美元/1.25美元)=0.56。 b ．用中点法的好处是，无论你从价格为1美元开始上升到1.5美元，还是从1.5美元开始下降到1美元，弹性的值是相同的。 c ．应该提价。因为需求价格弹性小于1(缺乏弹性)，价格上升将增加总收益。 3、对下列每一对物品，你预期哪一种物品更富有供给弹性?为什么? a ．电视；海滩的地产

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1. Describe some of the trade-offs faced by each of the following: a. a family deciding whether to buy a new car b. a member of Congress deciding how much to spend on national parks c. a company president deciding whether to open a new factory d. a professor deciding how much to prepare for class e. a recent college graduate deciding whether to go to graduate school 2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 3. You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain. 4. You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the $100 now? 5. The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development? 6. The Social Security system provides income for people over age 65. If a recipient of Social Security decides to work and earn some income, the amount he or she receives in Social Security benefits is typically reduced.

曼昆微观经济学原理第五版课后习题答案

问题与应用 1．描写下列每种情况所面临的权衡取舍： A．一个家庭决定是否买一辆新车。 答：如果买新车就要减少家庭其他方面的开支，如：外出旅行，购置新家具；如果不买新车就享受不到驾驶新车外出的方便和舒适。 B．国会议员决定对国家公园支出多少。 答：对国家公园的支出数额大，国家公园的条件可以得到改善，环境会得到更好的保护。但同时，政府可用于交通、邮电等其他公共事业的支出就会减少。 C．一个公司总裁决定是否新开一家工厂。 答：开一家新厂可以扩大企业规模，生产更多的产品。但可能用于企业研发的资金就少了。这样，企业开发新产品、利用新技术的进度可能会减慢。 D．一个教授决定用多少时间备课。 答：教授若将大部分时间用于自己研究，可能会出更多成果，但备课时间减少影响学生授课质量。E．一个刚大学毕业的学生决定是否去读研究生。 答：毕业后参加工作，可即刻获取工资收入；但继续读研究生，能接受更多知识和未来更高收益。2．你正想决定是否去度假。度假的大部分成本((机票、旅馆、放弃的工资))都用美元来衡量，但度假的收益是心理的。你将如何比较收益与成本呢?? 答：这种心理上的收益可以用是否达到既定目标来衡量。对于这个行动前就会作出的既定目标，我们一定有一个为实现目标而愿意承担的成本范围。在这个可以承受的成本范围内，度假如果满足了既定目标，如：放松身心、恢复体力等等，那么，就可以说这次度假的收益至少不小于它的成本。3．你正计划用星期六去从事业余工作，但一个朋友请你去滑雪。去滑雪的真实成本是什么？现在假设你已计划这天在图书馆学习，这种情况下去滑雪的成本是什么？请解释之。 答：去滑雪的真实成本是周六打工所能赚到的工资，我本可以利用这段时间去工作。如果我本计划这天在图书馆学习，那么去滑雪的成本是在这段时间里我可以获得的知识。 4．你在篮球比赛的赌注中赢了100美元。你可以选择现在花掉它或在利率为55%的银行中存一年。现在花掉100美元的机会成本是什么呢? 答：现在花掉100 美元的机会成本是在一年后得到105 美元的银行支付(利息+本金)。 5．你管理的公司在开发一种新产品过程中已经投资500万美元，但开发工作还远远没有完成。在最近的一次会议上，你的销售人员报告说，竞争性产品的进入使你们新产品的预期销售额减少为300万美元。如果完成这项开发还要花费100万美元，你还应该继续进行这项开发吗？为了完成这项开发，你的最高花费应该是多少?? 答：还应该继续这项开发。因为现在它的边际收益是300 万美元，而边际成本是100 万美元。为了完成这项开发我最多能再花300 万美元。只要边际收益大于边际成本，就有利可图。 6．魔力饮料公司的三位经理正在讨论是否要扩大产量。每位经理提出了做出这个决策的一种方法：哈利：我们应该考查一下我们公司的生产率——每个工人生产的加仑数——将上升还是下降。 罗恩：我们应该考查一下我们的平均成本——每个工人的成本——将上升还是下降。 赫敏：我们应该考查一下多卖一加仑饮料的额外收益，大于还是小于额外的成本。你认为谁对？答：我认为赫敏提出的决策方法正确。因为只有多卖一加仑饮料的额外收益大于它的额外成本时，多卖一加仑饮料才是有利可图的。理性人应该考虑边际量。 77．社会保障制度为65岁以上的人提供收入。如果一个社会保障的领取者决定去工作并赚一些钱，他(或她)所领到的社会保障津贴通常会减少。 A．提供社会保障如何影响人们在工作时的储蓄激励? 答：社会保障的提供使人们退休以后仍可以获得收入，以保证生活。因此，人们不用为不能工作时的生活费而发愁，人们在工作时期的储蓄就会减少。

曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详解(第1章 经济学十大原理)

曼昆《经济学原理（微观经济学分册）》（第6版） 第1篇导言 第1章经济学十大原理 课后习题详解 跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。 以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。 一、概念题 1．稀缺性（scarcity） 答：经济学研究的问题和经济物品都是以稀缺性为前提的。稀缺性指在给定的时间内，相对于人的需求而言，经济资源的供给总是不足的，也就是资源的有用性与有限性。人类消费各种物品的欲望是无限的，满足这种欲望的物品，有的可以不付出任何代价而随意取得，称之为自由物品，如阳光和空气；但绝大多数物品是不能自由取用的，因为世界上的资源（包括物质资源和人力资源）是有限的，这种有限的、为获取它必须付出某种代价的物品，称为“经济物品”。正因为稀缺性的客观存在，地球上就存在着资源的有限性和人类的欲望与需求的无限性之间的矛盾。经济学的一个重要研究任务就是：“研究人们如何进行抉择，以便使用稀缺的或有限的生产性资源（土地、劳动、资本品如机器、技术知识）来生产各种商品，并把它们分配给不同的社会成员进行消费。”也就是从经济学角度来研究使用有限的资源来生产什么、如何生产和为谁生产的问题。 2．经济学（economics） 答：经济学是研究如何将稀缺的资源有效地配置给相互竞争的用途，以使人类的欲望得到最大限度满足的科学。时下经常见诸国内报刊文献的“现代西方经济学”一词，大多也都在这个意义上使用。 自从凯恩斯的名著《就业、利息和货币通论》于1936年发表之后，西方经济学界对经济学的研究便分为两个部分：微观经济学与宏观经济学。微观经济学是以单个经济主体（作为消费者的单个家庭或个人，作为生产者的单个厂商或企业，以及单个产品或生产要素市场）为研究对象，研究单个经济主体面对既定的资源约束时如何进行选择的科学。宏观经济学则以整个国民经济为研究对象，主要着眼于对经济总量的研究。 3．效率（efficiency） 答：效率指人们在实践活动中的产出与投入之比值，或者是效益与成本之比值，如果比值大，效率就高；反之，比值小，效率就低。效率与产出或者收益的大小成正比，而与成本或投入成反比，也就是说，如果想提高效率，必须降低成本或投入，提高收益或产出。 4．平等（equity） 答：平等指人与人的利益关系及利益关系的原则、制度、做法、行为等都合乎社会发展

最新版微观经济学精品习题英文版 (with answer) (9)

Chapter 9 Application: International Trade 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. _ __ 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. _ __ 1. Nations would gain from trade if a(n) ________ exists. ( c ) a.absolute advantage b.specialization https://www.wendangku.net/doc/661704299.html,parative advantage d.infant industry 2. If Canada has a comparative advantage over Denmark in the production of wood, this implies that ( b ) a.it requires fewer resources in Canada than in Denmark to produce wood. b.the opportunity cost of producing wood in Canada is lower than in Denmark. c.Denmark does not benefit by trading with Canada. d.Canada should buy wood from Denmark. 3. Domestic producers gain from the opportunity to export goods to foreign countries because ( a ) a.the free-trade price of the good is higher than the domestic price in the absence of trade. b.producers are able to reach a wider market. c.although the free-trade price is lower than in the absence of trade, producers are able to sell a greater quantity. d.production rises, although there is no change in the price of the good compared to the no-trade situation. 4. If at the world equilibrium price the U.S. quantity demanded is greater than the U.S. quantity supplied, then ( a ) a.the United States will import the good. b.the United States will export the good. c.the world price will fall. d.the world price will ris e.

曼昆微观经济学习题

第六章、第七章练习题 一、判断 1．某厂商产量达到5万时的MR=65元，MC=55元，（其它条件一定）该厂商应继续扩大产量. 2. 完全竞争厂商只能被动地接受既定的市场价格。 3. 完全竞争条件下，行业所面临的需求曲线是一条水平线。 4. 完全竞争厂商的短期供给曲线是短期边际成本曲线上等于和高于停止营业点的部分。 5. 完全竞争厂商的平均收益曲线和边际收益曲线与需求曲线是相同的。 6. 完全竞争厂商实现短期均衡时，定可获得大于零的经济利润。 7. 当一个完全竞争行业实现长期均衡时，每个企业都实现了正常利润，且经济利润都为零。 8. 在厂商短期均衡产量上，当AR＜SAC 且AR＞AVC时，厂商亏损，但应继续生产。 9. 在完全竞争市场上，SMC曲线和SAC 曲线的交点，被称为停止营业点。 10.垄断行业由于有规模经济可以比竞争行业产量更高，价格更低 11.完全竞争市场与垄断竞争市场的差别是后者可以影响产品的价格. 12.在完全竞争产品市场，厂商的短期反供给函数为P = SMC =f(Q)。 二、选择题 1、在完全竞争市场上，厂商短期均衡条件是（） A、P=AR B、P=MR C、P=MC D、P=AC 2、在垄断竞争中（） A、为数很少的厂商，有差异的产品 B、许多厂商，同质的产品； C、为数很少几个厂商，同质产品 D、许多厂商，有差异的产品 3、在一般情况下，厂商得到的价格若低于下述哪种成本，他将停止营业？（）A、平均可变成本 B、平均成本 C、平均不变成本 D、边际成本 4、在短期，完全垄断厂商（） A、无盈亏 B、取得最大利润 C、发生亏损 D、以上情况都可能出现 5、下列描述中，不属于完全垄断厂商实行差别定价的条件是（） A、市场存在不完全性 B、各个市场的需求弹性不同； C、市场未达到均衡状态 D、市场必须能有效地分离开来。 6、寡头垄断厂商的产品是（） A、同质的 B、有差异的 C、既可以是同质的，也可以是有差异的 D、以上都不对 7、P=MC的最大利润原则（） A．适用于任何条件下的厂商。 B、仅适用于完全竞争条件下的厂商。C．仅适用于非完全竞争的厂商。 D．所有的市场结构都不能适用。 8、在完全竞争市场上（） A、产品不同质 B、要素不能自由流动 C、信息不畅通 D、价格既定 9、在完全竞争市场的收支相抵点上（） A、P=SAC B、 P=LAC C、P=AVC D、MR=AVC 10、如果某厂商的平均收益曲线从水平线变为向右下方倾斜的曲线，说明（）。A、既有厂商进入也有厂商退出该行业 B、完全竞争被不完全竞争所取代 C、新的厂商进入了该行业 D、原有的厂商退出了该行业11、对一个垄断竞争企业来说，平均收益曲线（）。 A、和企业的需求曲线一样，边际收益曲线在企业的需求曲线之下。 B、在企业的需求曲线之上，边际收益曲线在企业的需求曲线之下。 C、在企业的需求曲线之上，边际收益曲线与企业的需求曲线相同。 D、和边际收益曲线一样都与企业的需求曲线相同。

曼昆微观经济学英文版课后练习题第一章

曼昆微观经济学英文版课后练习题第一章

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1 Chapter 1 Ten Principles of Economics Multiple Choice 1. The word that comes from the Greek word for "one who manages a household" is a. market. b. consumer. c. producer. d. economy. ANS: D DIF: 1 REF: 1-0 TOP: Economy MSC: Definitional 2. The word “economy” comes from the Greek word oikonomos , which means a. “environment.” b. “production.” c. “one who manages a househol d.” d. “one who makes decisions.” ANS: C DIF: 1 REF: 1-0 TOP: Economy MSC: Definitional 3. Resources are a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. c. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies. ANS: C DIF: 1 REF: 1-0 TOP: Resources, Scarcity MSC: Interpretive 4. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. ANS: A DIF: 1 REF: 1-0 TOP: Scarcity MSC: Definitional 5. Which of the following questions is not answered by the decisions that every society must make? a. What determines consumer preferences? b. What goods will be produced? c. Who will produce the goods? d. Who will consume the goods? ANS: A DIF: 2 REF: 1-0 TOP: Economies MSC: Interpretive 6. The overriding reason as to why households and societies face many decisions is that a. resources are scarce. b. goods and services are not scarce. c. incomes fluctuate with business cycles. d. people, by nature, tend to disagre e. ANS: A DIF: 2 REF: 1-0 TOP: Scarcity MSC: Interpretive 7. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies, wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. ANS: D DIF: 2 REF: 1-0 TOP: Scarcity MSC: Interpretive

曼昆《经济学原理》(微观)第五版测试题库 (05)

Chapter 5 Elasticity and Its Application TRUE/FALSE 1. Elasticity measures how responsive quantity is to changes in price. ANS: T DIF: 1 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 2. Measures of elasticity enhance our ability to study the magnitudes of changes. ANS: T DIF: 1 REF: 5-0 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 3. The demand for bread is likely to be more elastic than the demand for solid-gold bread plates. ANS: F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 4. In general, demand curves for necessities tend to be price elastic. ANS: F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 5. In general, demand curves for luxuries tend to be price elastic. ANS: T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 6. Necessities tend to have inelastic demands, whereas luxuries have elastic demands. ANS: T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 7. Goods with close substitutes tend to have more elastic demands than do goods without close substitutes. ANS: T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 8. The demand for Rice Krispies is more elastic than the demand for cereal in general. ANS: T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 9. The demand for soap is more elastic than the demand for Dove soap. ANS: F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 10. The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years. ANS: F DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 11. Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon. ANS: T DIF: 2 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Interpretive 12. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. ANS: T DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 13. The price elasticity of demand is defined as the percentage change in price divided by the percentage change in quantity demanded. ANS: F DIF: 1 REF: 5-1 NAT: Analytic LOC: Elasticity TOP: Price elasticity of demand MSC: Definitional 288

曼昆微观经济学课后练习英文答案(第七章)

rkets WHAT’S NEW IN THE SIXTH EDITION: There are no major changes to this chapter. LEARNING OBJECTIVES: By the end of this chapter, students should understand: the link between buyers’ willingness to pay for a good and the demand curve. how to define and measure consumer surplus. the link between sellers’ costs of producing a good and the supply curve. how to define and measure producer surplus. that the equilibrium of supply and demand maximizes total surplus in a market. CONTEXT AND PURPOSE: Chapter 7 is the first chapter in a three-chapter sequence on welfare economics and market efficiency. Chapter 7 employs the supply and demand model to develop consumer surplus and producer surplus as a measure of welfare and market efficiency. These concepts are then 7 CONSUMERS, PRODUCERS, AND THE EFFICIENCY OF MARKETS

曼昆微观经济学计算题复习题

曼昆微观经济学计算题复习题

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第一页 １.完全竞争行业中某厂商的成本函数为STC＝Q3-６Q2+３０Ｑ＋40,成本用美元计算，假设产品价格为６６美元。 (1)求利润极大时的产量及利润总额 （2)由于竞争市场供求发生变化，由此决定的新的价格为３０元，在新的价格下,厂商是否会发生亏损？如果会，最小的亏损额为多少? (3)该厂商在什么情况下才会退出该行业（停止生产）？ 解：(1）由STC=Q3-6Ｑ2+３0Q＋40，则ＭC=３Q2-1２Ｑ+30 当完全竞争厂商实现均衡时，均衡的条件为ＭC=ＭR=P，当P＝６６元时,有 66=3Q2-12Q+3０解得Q=6或Q=２（舍去) 当Q＝6时，厂商的最利润为 =TR-TC=PQ-(Q３-6Ｑ2+３0Ｑ+40)=6６×6-(6３-６×６2+３０×6＋４0）=176元 1、已知某企业的平均可变成本为A VC＝Ｘ2-30X＋3１0,Ｘ为产量。当市场价格为310时,该企业的利润为０，求该企业的固定成本。 ｐi=ＴR-TＣ=(Ｐ-AC)Q, P=310，pｉ=0得AC=310 AFC=ＡC-ＡVC=310-(X^2－3０X+310)=－X＾2+30Ｘ TFＣ=-Ｘ＾3+3０X^２ 因为ＭC=d(TVC)/dx =d(X＾3-30X＾2+31０Ｘ）/dｘ =３Ｘ^2-６0X+3１0 又P=ＭC=AC得X=20 所以TFC=－X^3＋３０ｘ^２＝4000 4、假设完全竞争市场的需求函数和供给函数分别为Qd=５0000-2000P; Qｓ＝4０000＋3000Ｐ。?求： （1）市场均衡价格和均衡产量； （２)厂商的需求函数？?市场均衡时Ｑd＝Qｓ，即 500０0-20０0Ｐ=40０0０＋３0００P 市场的均衡价格P=2 均衡产量ＱD＝Qs＝46000。 完全竞争市场中，厂商的需求曲线是由市场的均衡价格决定,故厂商的需求函数为P=２。 4、设生产成本函数为：C(Q)＝50+Q2,反需求函数为:P(Ｑ)＝40-Q，求：利润最大化时厂商的产量、价格及利润。 分析:利润最大化时ＭR=ＭＣ 因为P（Q)＝40－Ｑ得出TＲ=40Q-Q2 ＭR=40-２Ｑ C(Q)=50＋Ｑ2 得出MC＝2Ｑ MR=MＣ得Q=10，P＝30；

曼昆微观经济学计算题复习题

第一页 1.完全竞争行业中某厂商的成本函数为STC=Q3-6Q2+30Q+40，成本用美元计算，假设产品价格为66美元。 （1）求利润极大时的产量及利润总额 （2）由于竞争市场供求发生变化，由此决定的新的价格为30元，在新的价格下，厂商是否会发生亏损？如果会，最小的亏损额为多少？ （3）该厂商在什么情况下才会退出该行业（停止生产）？ 解：（1）由STC=Q3-6Q2+30Q+40，则MC=3Q2-12Q+30 当完全竞争厂商实现均衡时，均衡的条件为MC=MR=P，当P=66元时，有 66=3Q2-12Q+30 解得Q=6或Q=2（舍去）当Q=6时，厂商的最利润为 =TR-TC=PQ-（Q3-6Q2+30Q+40）=66×6-（63-6×62+30×6+40）=176元 1、已知某企业的平均可变成本为A VC＝X2－30X+310,X为产量。当市场价格为310时，该企业的利润为0，求该企业的固定成本。 pi=TR-TC=(P-AC)Q, P=310,pi=0得AC=310 AFC=AC-A VC=310-（X^2-30X+310）=-X^2+30X TFC=-X^3+30X^2 因为MC=d(TVC)/dx =d(X^3-30X^2+310X)/dx =3X^2-60X+310 又P=MC=AC得X=20 所以TFC=-X^3+30x^2=4000 4、假设完全竞争市场的需求函数和供给函数分别为Qd=50000－2000P； Qs=40000＋3000P。 求： （1）市场均衡价格和均衡产量； （2）厂商的需求函数？ 市场均衡时Qd=Qs，即 50000－2000P=40000＋3000P 市场的均衡价格P=2 均衡产量QD=Qs=46000。 完全竞争市场中，厂商的需求曲线是由市场的均衡价格决定，故厂商的需求函数为P=2。 4、设生产成本函数为：C（Q）＝50＋Q2，反需求函数为：P（Q）＝40－Q，求：利润最大化时厂商的产量、价格及利润。 分析：利润最大化时MR=MC 因为P（Q）=40-Q 得出TR=40Q-Q2 MR=40-2Q

曼昆微观经济学第四版关键概念中英文对照

微观经济学关键概念中英文对照 CHAPTER 1 scarcity稀缺性 economics经济学 efficiency效率 equity平等 opportunity cost机会成本 rational people理性人 marginal changes边际变动 incentive激励 market economy市场经济 property rights产权 market failure市场失灵 externality外部性 market power市场势力 productivity生产率 inflation通货膨胀 business cycle经济周期

CHAPTER 2 circular-flow diagram循环流向图production possibilities frontier生产可能性边界 microeconomics微观经济学 macroeconomics宏观经济学 positive statements实证表述 normative statements规范表述 CHAPTER 3 absolute advantage绝对优势 opportunity cost机会成本 comparative advantage比较优势 imports进口 exports出口 CHAPTER 4 market市场 competitive market竞争市场 quantity demanded需求量 law of demand需求定理 demand schedule需求表 demand curve需求曲线

normal good正常物品 inferior good低档物品 substitutes替代品 complements互补品 quantity supplied供给量 law of supply供给定理 supply schedule供给表 supply curve供给曲线 equilibrium均衡 equilibrium price均衡价格 equilibrium quantity均衡数量 surplus过剩 shortage短缺 law of supply and demand供求定理 CHAPTER 5 elasticity弹性 price elasticity of demand需求价格弹性 total revenue总收益 income elasticity of demand需求收入弹性cross-price elasticity of demand需求的交叉价格弹性price elasticity of supply供给价格弹性

曼昆微观经济学计算题复习题定稿版

曼昆微观经济学计算题复习题精编W O R D版 IBM system office room 【A0816H-A0912AAAHH-GX8Q8-GNTHHJ8】

第一页1.完全竞争行业中某厂商的成本函数为STC=Q3-6Q2+30Q+40，成本用美元计算，假设产品价格为66美元。 （1）求利润极大时的产量及利润总额 （2）由于竞争市场供求发生变化，由此决定的新的价格为30元，在新的价格下，厂商是否会发生亏损如果会，最小的亏损额为多少 （3）该厂商在什么情况下才会退出该行业（停止生产） 解：（1）由STC=Q3-6Q2+30Q+40，则MC=3Q2-12Q+30 当完全竞争厂商实现均衡时，均衡的条件为MC=MR=P，当P=66元时，有 66=3Q2-12Q+30 解得Q=6或Q=2（舍去）当Q=6时，厂商的最利润为 =TR-TC=PQ-（Q3-6Q2+30Q+40）=66×6-（63-6×62+30×6+40）=176元 1、已知某企业的平均可变成本为AVC＝X2－30X+310,X为产量。当市场价格为310时，该企业的利润为0，求该企业的固定成本。 pi=TR-TC=(P-AC)Q, P=310,pi=0得AC=310 AFC=AC-AVC=310-（X^2-30X+310）=-X^2+30X TFC=-X^3+30X^2

因为MC=d(TVC)/dx =d(X^3-30X^2+310X)/dx =3X^2-60X+310 又P=MC=AC得X=20 所以TFC=-X^3+30x^2=4000 4、假设完全竞争市场的需求函数和供给函数分别为 Qd=50000－2000P； Qs=40000＋3000P。 求： （1）市场均衡价格和均衡产量； （2）厂商的需求函数？ 市场均衡时Qd=Qs，即 50000－2000P=40000＋3000P 市场的均衡价格P=2 均衡产量 QD=Qs=46000。 完全竞争市场中，厂商的需求曲线是由市场的均衡价格决定，故厂商的需求函数为P=2。 4、设生产成本函数为：C（Q）＝50＋Q2，反需求函数为：P（Q）＝40－Q，求：利润最大化时厂商的产量、价格及利润。

曼昆的《微观经济学原理》课业笔记 英文版

Ch 1 Ten Principles of economic ?Scarcity: the limited nature of society’s resources ?Economics: the study of how society manages its scarce resources, e.g. ?There are 10 principle of economic which are needed to be remember throughout. ?People face trade-off 1. Individual(time,money) and society(efficiency vs equality). ?Cost of something is what your give up to get it.\ 1. The opportunity cost of any item is whatever must be given up to obtain it. ?Rational people thinking at margin(effect of one additional item) 1. This principle assume that everyone is rational people(made their decision base on their interests) this was addressed on Adam Smith's Wealth of Nation. ?People respond to incentives(诱惑物） 1. This statement reveals that human psychology is a important feature in economic study. ?Trade can make everyone better-off 1.Ex: trade of agricultural product and technology between Japan and America, it will break the law of PPF. It involved absolute advantages(low input) and comparative advantage(low opportunity cost win) ?Markets are usually a good way to organize economy activity. 1.Markets can balance the price. ?Government can sometime improve market outcome. ? A country's standard of living depends on its ability to produce goods and services. ?Price rise when government print too much money.