Microeconomics

Assignment 4

Name _________________

Each question is worth 25 points and each response must contain:

1) a min of 100 words

2) and must be in your own words

3) and must include citations to support your answer

1. Explain how changes in technology affect and change the demand for labor. Distinguish between situations in which a particular type of technological change increases the demand for a particular type of labor and those in which it decreases the demand for a particular type of labor. Provide examples to support your answer. 25 points

2. Most major sports organizations (NFL, NBA, NHL, etc.) and the players' unions can be viewed as a bilateral monopolies. In the light of the text discussion and the theory of bilateral monopoly, discuss the situation faced by the team owners and players as to ease of settling salary and salary cap disputes, prospects for the future, etc. 25 points

3. If the purpose of taxation is to raise revenue: 25 points

· Would it be better for the government to levy taxes on products whose demand is elastic or inelastic? Explain.

· Are there any other reasons why governments levy taxes? Explain.

4. Compare and contrast the economic issues involved in each of the following pairs of terms: 25 points.

A. Rule of reason versus illegal per se

- compare them

- contrast them

B. Antitrust policy versus regulation and deregulation

- compare them

- contrast them