Mankiw Solution

  • View
    212

  • Download
    0

Embed Size (px)

Text of Mankiw Solution

  • 8/10/2019 Mankiw Solution

    1/259

    Principles of Economics chapters Principles of Principles of Microeconomics Macroeconomics

    chapters chapters1. Ten Principles of Economics 1 12. Thinking Like an Economist 2 23. Interdependence and the Gains from Trade 3 34. The Market Forces of Supply and Demand 4 45. Elasticity and Applications 5 56. Supply, Demand, and Government Policies 6 67. Consumers, Producers and the Efficiency of Markets 7 78. Application: The Costs of Taxation 8 89. Application: International Trade 9 910. Externalities 10 --11. Goods and Common Resources 11 --12. The Tax System 12 --13. The Costs of Production 13 --14. The Competitive Firm 14 --15. Monopoly 15 --16. Oligopoly 16 --17. Monopolistic Competition 17 --18. The Markets for the Factors of Production 18 --19. Earnings and Discrimination 19 --20. The Distribution of Income 20 --21. The Theory of Consumer Choice 21 --22. Measuring a Nation's Wealth -- 1023. Measuring the Cost of Living -- 1124. Production and Growth -- 1225. Financial Markets: Saving, Investment, -- 13 and Interest Rates --26. Unemployment -- 1427. The Monetary System -- 1528. Inflation: Its Causes and Costs -- 1629. Open-Economy Macroeconomics: Basic Concepts -- 1730. A Macroeconomic Theory of the Open Economy -- 1831. Aggregate Demand and Aggregate Supply -- 1932. Monetary and Fiscal Policy Determinants of -- 20 Aggregate Demand33. The Short-Run Tradeoff between Inflation -- 21 andUnemployment34. Five Debates over Macroeconomic Policy -- 22

  • 8/10/2019 Mankiw Solution

    2/259

    1-1

  • 8/10/2019 Mankiw Solution

    3/259

    1-2

  • 8/10/2019 Mankiw Solution

    4/259

    1-3

  • 8/10/2019 Mankiw Solution

    5/259

    1-4

  • 8/10/2019 Mankiw Solution

    6/259

    1-5

  • 8/10/2019 Mankiw Solution

    7/259

    1-6

  • 8/10/2019 Mankiw Solution

    8/259

    Q u a n

    t i t y o

    f M i l k P r o

    d u c e

    d

    PPF 1

    PPF 2

    Quantity of Cookies Produced

    2-1

  • 8/10/2019 Mankiw Solution

    9/259

    2-2

  • 8/10/2019 Mankiw Solution

    10/259

    c. $7a. $1

    c. $7a. $1

    b. $4.50d. $10,000

    b. $4.50d. $10,000

    a. Quart of milkc. Movie ticket

    a. Quart of milkc. Movie ticket

    d. Acmes capitalb. One hour of work

    d. Acmes capitalb. One hour of workMarkets for

    Factors of Production

    Markets forGoods and Services

    Firms Households

    C l e a n l i n e s s o

    f E n v

    i r o n m e n

    t

    PPF 1

    PPF 2

    Income

    2-3

  • 8/10/2019 Mankiw Solution

    11/259

    2-4

  • 8/10/2019 Mankiw Solution

    12/259

    2-5

  • 8/10/2019 Mankiw Solution

    13/259

    2-6

  • 8/10/2019 Mankiw Solution

    14/259

    3-1

  • 8/10/2019 Mankiw Solution

    15/259

    E c o n o m

    i c s

    P a g e s

    Sociology Pages

    100

    250

    3-2

  • 8/10/2019 Mankiw Solution

    16/259

    C a r s

    ( m i l l i o n s

    )

    Grain (millions of tons)

    400

    1000500

    U.S.

    Japan

    3-3

  • 8/10/2019 Mankiw Solution

    17/259

    3-4

  • 8/10/2019 Mankiw Solution

    18/259

  • 8/10/2019 Mankiw Solution

    19/259

    3-6

  • 8/10/2019 Mankiw Solution

    20/259

    3-7

  • 8/10/2019 Mankiw Solution

    21/259

    4-1

  • 8/10/2019 Mankiw Solution

    22/259

    P r i c e o

    f P i z z a

    Quantity of Pizza

    S

    D1D2

    4-2

  • 8/10/2019 Mankiw Solution

    23/259

    P r i c e o

    f O r a n g e s

    Quantity of Oranges

    D

    S 1

    S 2

    P r i c e o

    f C a r i

    b b e a n

    H o

    t e l R o o m s

    Quantity of Caribbean Hotel Rooms

    S

    D1

    D2

    4-3

  • 8/10/2019 Mankiw Solution

    24/259

    P r i c e o

    f U s e

    d C a

    d i l l a c s

    Quantity of Used Cadillacs

    S 2

    S 1

    D1

    D2

    P r i c e o

    f G a s o l i n e

    Quantity of Gasoline

    S 1

    S 2

    4-4

  • 8/10/2019 Mankiw Solution

    25/259

    P r i c e o

    f N o

    t e b o o

    k s

    Quantity of Notebooks

    S

    D1

    D2

    P r i c e o

    f N o

    t e b o o

    k s

    Quantity of Notebooks

    S

    D1

    D2

    4-5

  • 8/10/2019 Mankiw Solution

    26/259

  • 8/10/2019 Mankiw Solution

    27/259

    P r i c e o

    f S w e a

    t s h i r t s

    Quantity of Sweatshirts

    S

    D1D2

    P r i c e o

    f S w e a

    t s h i r t s

    Quantity of Sweatshirts

    S

    D1D2

    4-7

  • 8/10/2019 Mankiw Solution

    28/259

    P r i c e o

    f S w e a

    t s h i r t s

    Quantity of Sweatshirts

    D

    S 1S 2

    P r i c e o

    f B a

    b y s

    i t t i n g

    S e r v

    i c e s

    Quantity of Babysitting Services

    S

    D1 D2

    4-8

  • 8/10/2019 Mankiw Solution

    29/259

    P r i c e o

    f B a

    b y s

    i t t i n g

    S e r v

    i c e s

    Quantity of Babysitting Services

    D

    S1 S 2

    P r i c e o

    f C i g a r s

    Quantity of Cigars

    S

    D1D2

    4-9

  • 8/10/2019 Mankiw Solution

    30/259

    P r i c e o

    f P i z z a

    Quantity of Pizza

    S

    D1

    D2

    4-10

  • 8/10/2019 Mankiw Solution

    31/259

    P r i c e o

    f C o m p u

    t e r s

    Quantity of Computers

    D

    S 1S 2

    P r i c e o

    f S o

    f t w a r e

    Quantity of Software

    S

    D1D2

    4-11

  • 8/10/2019 Mankiw Solution

    32/259

    P r i c e o

    f B a g e

    l s

    Quantity of Bagels

    D

    S 1 S 2

    P r i c e o

    f C r e a m

    C h e e s e

    Quantity of Cream Cheese

    S

    D1

    D2

    4-12

  • 8/10/2019 Mankiw Solution

    33/259

    P r i c e o

    f C r e a m

    C h e e s e

    Quantity of Cream Cheese

    D

    S 1S 2

    4-13

  • 8/10/2019 Mankiw Solution

    34/259

    P r i c e o

    f B a g e l s

    Quantity of Bagels

    S

    D1D2

    P r i c e o

    f B a s

    k e t b a

    l l T i c k e

    t s

    Quantity of Basketball Tickets

    S

    D

    $8

    8,000

    4-14

  • 8/10/2019 Mankiw Solution

    35/259

    P r i c e o

    f C h a m p a g n e

    Quantity of Champagne

    S

    D1D2

    4-15

  • 8/10/2019 Mankiw Solution

    36/259

    D

    Q

    S 1

    S 2P

    D

    Q

    S 1 S 2

    P

    DQ

    S 1

    S 2P

    DQ

    S 1 S 2

    P

    D

    Q

    S 1S 2P

    D

    Q

    S 1 S 2

    P

    DQ

    S 1S 2P

    DQ

    S 1S 2

    P

    4-16

  • 8/10/2019 Mankiw Solution

    37/259

    P r i c e

    Quantity

    S

    D

    Q

    PArea of rectangle= total spending by consumers= total revenue received by producers= P x Q

    5-1

  • 8/10/2019 Mankiw Solution

    38/259

    5-2

  • 8/10/2019 Mankiw Solution

    39/259

    5-3

  • 8/10/2019 Mankiw Solution

    40/259

    5-4

  • 8/10/2019 Mankiw Solution

    41/259

    5-5

  • 8/10/2019 Mankiw Solution

    42/259

    5-6

  • 8/10/2019 Mankiw Solution

    43/259

    6-1

  • 8/10/2019 Mankiw Solution

    44/259

    P r i c e o f

    B e e r

    Quantity of Beer

    Supply

    Demand

    Q1

    P 1

    P r i c e o f

    B e e r

    Quantity of Beer

    Supply

    Demand

    Q1Q2

    P 1

    P 2

    P 2 $2

    6-2

  • 8/10/2019 Mankiw Solution

    45/259

    P r i c e o f

    C h e e s e

    Quantity of Cheese

    Supply

    Demand

    Q1Q2 Q 3

    P 1

    P f

    6-3

  • 8/10/2019 Mankiw Solution

    46/259

    P r i c e o f

    G a s o l

    i n e

    Quantity of Gasoline

    S 1

    S 2

    D2D1

    Q1Q2

    P 1P 2 50

    P 2

    6-4

  • 8/10/2019 Mankiw Solution

    47/259

    P r i c e o

    f G a s o

    l i n e

    Quantity of Gasoline

    Supply

    tax

    tax

    D2

    D1

    Q1 Q 2

    W a g e

    Quantity of Labor

    Supply

    Demand

    unemployment

    D C

    BA

    Q1 Q3Q2

    w1wm

    6-5

  • 8/10