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I need help with these 6 questions from my economic HW final and I have less than 5 hours to answers these questions....

1) What is the difference between constant and current dollars?

2) What evidence is there that unions have been successful?

3) What is the biggest expense of most corporations? How do they reduce that expense?

4) Why are professional ball players paid more than doctors?

5) How does the market system encourage low prices and high quality?

6) Why is tax on gas a fair way to pay for roads?


I need these questions answered in quite complete sentences but lists are OK so yeah....also, please include source websites

whoever got the most accurate answers w/ sources will get 10 points from me....

thankz!

2007-01-15 10:34:32 · 2 answers · asked by Anonymous in Social Science Economics

2 answers

1) Inflation - When comparing prices from different years, using constant dollars will take into account inflation.

2) Average wages of union verses non union. Average income above and below the poverty line for union and non union.

3) Labor is the major expense. It can be reduced by cutting back and out sourcing.

4) Supply, demand, and productivity - baseball payers with professional skills are less available than doctors. The average person spends more time watching baseball than with the doctor. (I spent 10 minutes with a doctor last year - 2 visits. I went to 1 baseball game for 3 hours. A Season ticket holder might go to 80 games.) Productivity - a doctor sees one patient at a time. A baseball player has 30,000 to 50,000 paying fans in the stands plus TV.

5) Through competition - given customers will pay for products based on comparing things like prices and quality it insures the survival of the fittest among businesses.

6) If you buy gas to put in your car, then you are using it on the roads. Putting the tax on other items would be more arbitrary.

2007-01-15 11:34:07 · answer #1 · answered by JuanB 7 · 0 1

1. Inflation coefficient, such as CPI

2. Uhm ... workers of Big 3 automakers get high wages, and their retireers - the benefits.

3. Your teacher expects a some sort of policially motivated answer, go look it up in your texbook or notes.

Scientific answer is: Labor or materials or capital, depending on the industry. You can substiute one for another to some degree. The only way to reduce all three (given same output) is new technology or business practice.



4. B/c there are several hundred footbal pros, but tens of thousands doctors. Which is b/c entire country watches same football game, but a doctor can only treat so many patients.

5. Via competition - if you have lower prices or higher quality than the other guy, you get the sales & profits.

6. B/c amout you pay is proportional to wear-and-tear of roads, both in terms of distance travelled and weight of vehicle.

2007-01-15 10:56:14 · answer #2 · answered by Anonymous · 1 1

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