MICROECONOMICS
MICROECONOMICS
1. Political corruption is epidemic in Russia today. What effect does this have on the Russian economy? Compare and contrast bureaus and business firms.
2. What is market power and what are its effects?
3. Suppose seven people are trying to decide whether to get a pizza with pepperoni, a pizza with sausage and pepperoni, or a pizza with everything on it. Four people want everything, one wants pepperoni and sausage, and two want pepperoni only. Assume that each person prefers a pizza closer to his or her first choice to a pizza that is unlike the first choice. What is the preference of the median voter? Which pizza will be selected if the majority rules?
4. Distinguish among private goods, public goods, natural monopoly, and open-access goods.
5. What dilemma faces regulators trying to regulate natural monopolies?
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