Macroeconomics Case Studies

Is Daylight Saving Time Efficient?

Q: Why does inefficiency mean either incurring a higher expense to produce the same number of items or producing fewer items at the same level of expenses?


Q: Why is it possible that remaining on standard time is not necessarily the next-best alternative to switching to daylight saving time? (Hint: Are there alternatives to moving clocks ahead by exactly one hour in the spring?)




Questioning China’s Official Real GDP Statistics

Q: Why do you think that many observers have argued that the world’s GDP statistics would be more believable if private companied tabulated the data?


Q: Why do you suppose that the U.S government leaves official determination of business contractions and expansions to a nonprofit organization?




Pricing the iPad: Learning Lessons from the iPhone

Q: By setting the iPad’s price at half the expected level, did apple signal that it anticipated a price elasticity of demand below or above 1? Explain


Q: Why is the price elasticity of demand for Apple’s iPhone greater than the price elasticity of the market demand for all smart cellphones?



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