1 Explain and distinguish between the economic and accounting measures of a firm’s cost of production and profit.
2 Explain the relationship between a firm’s output and labor employed in the short run.
3 Explain the relationship between a firm’s output and costs in the short run.
4 Derive and explain a firm’s long-run average cost curve.
Find an article in the Wall Street Journal, New York Times or The Financial Times website that discusses Government Actions and Markets and explain how it relates to the concepts
1.how taxes change prices and quantities, are shared by buyers and sellers, and create inefficiency..
2.how a price ceiling works, and why a rent ceiling creates a housing shortage and is inefficient and unfair.
3.how a price floor works, and why the minimum wage creates unemployment and is inefficient and unfair.
4.how a production quota works and why it brings a higher price and is inefficient and unfair.
Distinguish between low and high incomes and low and high economic growth rates. What key features are present in an economy when incomes are high or fast growing and absent when incomes are low and stagnating or growing slowly? Provide an example of an economy with a low income and slow growth rate, a low income and rapid growth rate, and a high income with sustained growth over many decades.
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