ECO/365 Principles of Microeconomics

As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-1,050 word research paper about current microeconomic thought and theory.    

 
Ten Principles of Economics and How Markets Work
ECO/365 Ten Principles of Economics and How Markets Work (New 2016/2017)


Word Count: 1,233 words! 

BRAND NEW A+ WORK!

As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-word research paper about current microeconomic thought and theory.
Use Principles of Microeconomics, Chs. 1, 2, 3, 4, 5, and 6, as the source for all your information.




Identify the fundamental lessons the Ten Principles of Economics teach about:
• How people make decisions
• How people interact
• How the economy as a whole works




Explain the following to help the committee members understand how markets work:
• How society manages its scarce resources and benefits from economic interdependence
• Why the demand curve slopes downward and the supply curve slopes upward
• Where is the point of equilibrium and what does it determine?
• The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices
ECO/365 Ten Principles of Economics and How Markets Work (New 2016/2017)


Word Count: 1,233 words! 

BRAND NEW A+ WORK!

As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-word research paper about current microeconomic thought and theory.
Use Principles of Microeconomics, Chs. 1, 2, 3, 4, 5, and 6, as the source for all your information.




Identify the fundamental lessons the Ten Principles of Economics teach about:
• How people make decisions
• How people interact
• How the economy as a whole works




Explain the following to help the committee members understand how markets work:
• How society manages its scarce resources and benefits from economic interdependence
• Why the demand curve slopes downward and the supply curve slopes upward
• Where is the point of equilibrium and what does it determine?
• The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices

ECO/365 Week 1

Principles of Microeconomics

 

Ten Principles of Economics and How Markets Work

Word Count: 1,233 words!

BRAND NEW A+ WORK!

As part of a marketing research committee for your organization, you have been assigned the task of preparing a 700-1,050 word research paper about current microeconomic thought and theory.
Use Principles of Microeconomics, Chs. 1, 2, 3, 4, 5, and 6, as the source for all your information.

 

Identify the fundamental lessons the Ten Principles of Economics teach about:
• How people make decisions
• How people interact
• How the economy as a whole works

 

Explain the following to help the committee members understand how markets work:
• How society manages its scarce resources and benefits from economic interdependence
• Why the demand curve slopes downward and the supply curve slopes upward
• Where is the point of equilibrium and what does it determine?
• The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices

 

Format consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

 

Supporting Activity: Ten Principles of Economics

Discuss the Ten Principles of Economics.

 

Supporting Activity: Law of Supply

Describe the Law of Supply. What is the difference between a movement along the supply curve and a shift in the supply curve?

 

Supporting Activity: Law of Demand

Describe the Law of Supply. What is the difference between a movement along the curve and a shift in the curve?

 

Supporting Activity:  The Invisible Hand

What does the saying, " Theres no such this as a free lunch" mean?

 

ECO/365 Week 2 ECO/365 Week 2 (New 2016/2017)

Principles of Microeconomics



Markets and the Economics of the Public Sector(New 2016/2017)




You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should address the following:


• Explain why equilibrium of supply and demand is desirable.
• Explain the following concepts using the concept of consumer and producer surplus:
• Efficiency of markets
• Costs of taxation
• Benefits of international trade
• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
ECO/365 Week 2 ECO/365 Week 2 (New 2016/2017)

Principles of Microeconomics



Markets and the Economics of the Public Sector(New 2016/2017)




You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should address the following:


• Explain why equilibrium of supply and demand is desirable.
• Explain the following concepts using the concept of consumer and producer surplus:
• Efficiency of markets
• Costs of taxation
• Benefits of international trade
• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.

ECO/365 Week 2

Principles of Microeconomics

 

Markets and the Economics of the Public Sector

Option #1 Word Count: 2,368 words!

Option #2 Word Count:   462 words!

You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should address the following:


• Explain why equilibrium of supply and demand is desirable.
• Explain the following concepts using the concept of consumer and producer surplus:
• Efficiency of markets
• Costs of taxation
• Benefits of international trade
• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.


Cite a minimum of 3 peer-reviewed sources, not including your textbook.
Format consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

 

Supporting Activity: Market Equilibrium

Why is market equilibrium most desirable?

 

Supporting Activity: Surplus

Describe Consumer and producer surplus? What do they measure?

 

Supporting Activity: International Trade

Discuss the pros and cons of globalization and international trade.

 

Supporting Activity: Externalities

What are externalities? What are some of the policies against them?

 

Supporting Activity: Supply & Demand

How are the concepts and demand and supply relevant to your employer or a company that you are familiar with?

 

 

ECO/365 Week 3 (New 2016/2017)

Principles of Microeconomics



Current Market Conditions Competitive Analysis (New 2016/2017)



You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products.


Select your organization and a product produced by that organization
from IndustryWeek.


Write a 2,100-word analysis of the current market conditions facing your product, making sure that you address the following topics:


• Define the type of market in which your selected product will compete, along with an analysis of competitors and customers.
• Analyze any comparative advantages and international trade opportunities.
• Explain the factors that will affect demand, supply, and prices of that product.

• Examine factors that will affect Total Revenue, including but not limited to:
• Price elasticity of demand
• Factors that influence productivity
• Various measures of costs, including opportunity costs
• Externalities and government public policy and their effect on marginal revenue and marginal cost



• Recommend how your organization can maximize their profit-making potential and increase their presence within the market served by the product.
ECO/365 Week 3 (New 2016/2017)

Principles of Microeconomics



Current Market Conditions Competitive Analysis (New 2016/2017)



You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products.


Select your organization and a product produced by that organization
from IndustryWeek.


Write a 2,100-word analysis of the current market conditions facing your product, making sure that you address the following topics:


• Define the type of market in which your selected product will compete, along with an analysis of competitors and customers.
• Analyze any comparative advantages and international trade opportunities.
• Explain the factors that will affect demand, supply, and prices of that product.

• Examine factors that will affect Total Revenue, including but not limited to:
• Price elasticity of demand
• Factors that influence productivity
• Various measures of costs, including opportunity costs
• Externalities and government public policy and their effect on marginal revenue and marginal cost



• Recommend how your organization can maximize their profit-making potential and increase their presence within the market served by the product.

ECO/365 Week 3

Principles of Microeconomics

 

Current Market Conditions Competitive Analysis

Option #1 - General Motors - Word Count: 2,216 words!

Option #2 - Apple, Inc. - Word Count: 1,619 words!

Option #3 - Coca Cola, Inc. - Word Count: 1,778 words!
You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products.
Select your organization and a product produced by that organization from IndustryWeek.
Write a 2,100-word analysis of the current market conditions facing your product, making sure that you address the following topics:

• Define the type of market in which your selected product will compete, along with an analysis of competitors and customers.
• Analyze any comparative advantages and international trade opportunities.
• Explain the factors that will affect demand, supply, and prices of that product.

• Examine factors that will affect Total Revenue, including but not limited to:
• Price elasticity of demand
• Factors that influence productivity
• Various measures of costs, including opportunity costs
• Externalities and government public policy and their effect on marginal revenue and marginal cost

• Recommend how your organization can maximize their profit-making potential and increase their presence within the market served by the product.
Use a minimum of 3 peer-reviewed sources from the University Library.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

 

Supporting Activity: Economic vs Accounting profit

What is the difference between economic and accounting profit? Is one method better than the other? Why or why not?

 

Supporting Activity: Perfect Competition

What is perfect competition? Does it exist in the real world? Why or why not?

 

Supporting Activity: Monopoly vs Monopolistic Competition

Compare and contrast monopoly and monopolistic competition.

 

Supporting Activity: Oligopoly

What are the characteristics of an oligopoly? Describe an industry that falls into this market structure.

 

 

**BONUS KNOWLEDGE CHECK**

1. In a monopolistically competitive market,
2. Strategic decision-making is most important in
3. The general monitoring problem implies that
4. Lazy monopolists are characterized by the tendency to
5. Judgment by performance means that the competitiveness of a market is determined by
6. Consumers tend to accept the market restrictions imposed by suppliers because
7.  The fact that U.S. managers' salaries are about four times higher than those of comparable managers in Japan, where banks control firms more closely, is probably

 

ECO/365 Week 4 ECO/365 Week 4 (New 2016/2017) 

Principles of Microeconomics



The Economics of Labor Markets (New 2016/2017)



Select an organization you are familiar with.
Write an approximately 1500 word paper to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.


Explain the following in your presentation:


• How your organization's production function is related to its marginal product of labor
• How your organization's marginal product of labor is related to the value of its marginal product
• How your organization's marginal product is related to its demand for labor
• Examples of events that could shift the demand or supply of labor and why they do so
• Reasons a worker's wages might be above the level that balances supply and demand
• An analysis of the impact that government policies addressing income inequity and poverty could have on labor demand or supply Cite a minimum of 3 peer-reviewed sources not including your textbook.
ECO/365 Week 4 ECO/365 Week 4 (New 2016/2017) 

Principles of Microeconomics



The Economics of Labor Markets (New 2016/2017)



Select an organization you are familiar with.
Write an approximately 1500 word paper to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.


Explain the following in your presentation:


• How your organization's production function is related to its marginal product of labor
• How your organization's marginal product of labor is related to the value of its marginal product
• How your organization's marginal product is related to its demand for labor
• Examples of events that could shift the demand or supply of labor and why they do so
• Reasons a worker's wages might be above the level that balances supply and demand
• An analysis of the impact that government policies addressing income inequity and poverty could have on labor demand or supply Cite a minimum of 3 peer-reviewed sources not including your textbook.

ECO/365 Week 4

Principles of Microeconomics

 

The Economics of Labor Markets Presentation

*BONUS PAPER INCLUDED-Same content in  a 1,509 word essay! = A+**

 

Presentation #1- Slide Count: 14 slides with FULL Speakers Notes!

Presentation #2 - Slide Count: 15 slides with FULL Speaker Notes!!

Presentation #3 - Slide Count: 15 slides!


Select an organization your team is familiar with or an organization
where a team member works.
Develop a 15- to 20-slide Microsoft PowerPoint presentation to be presented to the CEO's executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
Explain the following in your presentation:
    • How your organization's production function is related to its marginal product of labor
    • How your organization's marginal product of labor is related to the value of its

        marginal product
    • How your organization's marginal product is related to its demand for labor
    • Examples of events that could shift the demand or supply of labor and why they do so
    • Reasons a worker's wages might be above the level that balances supply and

        demand
    • An analysis of the impact that government policies addressing income inequity and

        poverty could have on labor demand or supply Cite a minimum of 3 peer-reviewed

        sources not including your textbook.

Format consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

 

***BONUS KNOWLEDGE CHECK***

1. What do economists mean when they say there is "market failure"?
2. If a market has no externalities, marginal private costs
3. Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement
4. The size performance improvements sought by those pursuing horizontal mergers is
5. A company buys another company in the same supply chain, but either in front of it or behind it in the supply chain. This is called

6. Sony and Toshiba become partners in a microprocessor manufacturing company. This is called
7. If two companies share ownership in a venture and agree on a formal management structure including members of both companies,this is called a
8. Two companies come together to take on a project that has an explicit time cycle and ending point. The most efficient form of acquisition of this project is
9. The more elastic the supply and the demand curves are,
10. Assuming a binding price floor, the more elastic the supply and demand curves are

 

ECO/365 Week 5, ECO/365 Theory of Consumer Choice and Frontiers of Microeconomics

 (New 2016/2017)

Principles of Microeconomics



Theory of Consumer Choice and Frontiers of Microeconomics



Your team been asked to assist your organization's marketing department to better understand how consumers make economic decisions.
Write a 1,500-word analysis that identifies and describes your firm, and includes the following:


• The impact the theory of consumer choice has on:
• Demand curves
• Higher wages
• Higher interest rates
• The role asymmetric information has in many economic transactions
• The Condorcet Paradox and Arrow's Impossibility Theorem in the political economy
• People not being rational in behavioral economics
ECO/365 Week 5, ECO/365 Theory of Consumer Choice and Frontiers of Microeconomics

 (New 2016/2017)

Principles of Microeconomics



Theory of Consumer Choice and Frontiers of Microeconomics



Your team been asked to assist your organization's marketing department to better understand how consumers make economic decisions.
Write a 1,500-word analysis that identifies and describes your firm, and includes the following:


• The impact the theory of consumer choice has on:
• Demand curves
• Higher wages
• Higher interest rates
• The role asymmetric information has in many economic transactions
• The Condorcet Paradox and Arrow's Impossibility Theorem in the political economy
• People not being rational in behavioral economics

ECO/365 Week 5

Principles of Microeconomics

 

Theory of Consumer Choice and Frontiers of Microeconomics

Option #1 Word Count: 1,254 words!

Option #2 Word Count: 1,005 words!

Option #3 Word Count: 1,429 words!

 

Your team been asked to assist your organization's marketing department to better understand how consumers make economic decisions.
Write a 1,500-word analysis that identifies and describes your firm, and includes the following:

• The impact the theory of consumer choice has on:
• Demand curves
• Higher wages
• Higher interest rates
• The role asymmetric information has in many economic transactions
• The Condorcet Paradox and Arrow's Impossibility Theorem in the political economy
• People not being rational in behavioral economics

Cite a minimum of 3 peer-reviewed sources not including your textbook.
Format consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

 

Includes 5 Different Final Exams with Answers!!

(Scroll down to see all 4 sets.  Questions on Exam may be in a different order.)

 

NEW 2017 / 2017 FINAL EXAM ECO/265

Includes Full Explanation!

 

Economic Structures

  1. A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?
  2. Mike sells navel oranges in a market where there are a lot of other sellers and faces a perfectly elastic demand curve for Oranges. He hires 10 Workers in a perfectly competitive market to help him with picking Oranges. Given this information, it can be said that
  3. Moonlife LLC. observed that its total revenue is proportional to the quantity of good sold. It is likely that Moonlife LLC. is a:
  4. Squeeze Inc. sells orange juice in a market where there are a large number of consumers and sellers. New firms can enter the market easily and also exit whenever they want to. It sells 40 bottles in a month at a price of $4 per bottle and incurs a cost of $5 per bottle. The average revenue of the firm is:

Business and Profit Maximization

  1. Penelope has recently started a printing business in Duluth. She had to pay a fee to obtain a trade license from the Minnesota government and took a loan from the local bank to purchase inkjet printers, laser printers, and screen printers. She employs 20 workers who are paid a wage of $30 per hour. She is also a trained ballet dancer who used to earn an average of $50,000 a year. Penelope’s implicit cost of running the business is:
  2. he exhibit given below shows the market for wheat in Zenetia. At a price of p, the profit-maximizing quantity for a wheat producer is:
  3. Bryan is trying to decide whether he should give up his job as a software programmer and invest in a start-up. Bryan earns an annual salary of $80,000 and has a saving of$50,000. The start-up would require an initial investment of
    $600,000. Bryan plans to take a loan from Trust Bank, a local commercial bank, which charges an interest rate of 5 percent on loans and provides an interest of 7 percent on savings deposits. Which of the following is true in this case?
  4. The exhibit given below shows Melanie’s budget constraint for two goods, wine and cheese. The slope of the budget constraint equals

Labor Curve

  1. Suppose both Ross and Vivian produce butter and cheese. When Ross works for
    10 hours a day, he produces 6 pounds of butter and 24 pounds of cheese. When
    Vivian works for the same hours, she produces 20 pounds of cheese and 40
    pounds of butter. Ross’s opportunity cost of producing a pound of butter is:
  2. Given an increase in the market demand for its product, a firm decides to hire an
    additional worker. The amount of output produced by 25 workers is 80 units. The
    marginal product of the 26 worker is 15 units. After the 26 worker is hired, the
    total output would increase to
  3. Recent political unrest has caused many citizens of Serria to flee the country.
    This is likely to
  4. Suppose both Monica and Edith grow roses and make guns. If Monica devotes 10
    hours to growing roses, she grows 16 roses, and if she devotes 10 hours to
    making guns, she produces 4 guns. If Edith divides her 10 hours equally, she
    produces 12 roses and 6 guns. Identify the correct statement.

 

 

Final Exam - SET#1

  1. George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent. The demand for Christmas trees is __________________.
  2. A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes the facts behind the headline? 
  3. State what type of business combination is occurring in the following scenario: Samsung and Sony become partners in a flat screen manufacturing company.
  4. The price of a ticket to a rock concert is set at $35. All the tickets for the concert sell out 1 hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that
  5. According to the text, Microeconomics, Colander (2013), economics is the study of how
  6. Suppose a firm finds that an additional dollar spent on labor increases output more than does an additional dollar spent on machines. Under these conditions, the firm
  7. Which of the following is the best example of a macroeconomic externality?
  8. Refer to the graph shown. The figure shows the demand and supply curves for eggs and shows two equilibrium points, E1 and E2. An increase in demand from D1 to D2 would cause
  9. State what type of business combination is occurring in the following scenario: A tobacco producer buys a carbonated beverage plant.
  10. A resource is said to have a comparative advantage if
  11. Refer to the graph shown. If hamburger dinners are produced by a perfectly competitive industry with a market demand D
  12. Oligopoly is characterized by
  13. Refer to the table shown. Diminishing marginal productivity begins when the
  14. When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation for why few economists agreed with Perot?
  15. If MR < MC, a monopolist should: 
  16. Refer to the graph shown. At which point is elasticity zero?
  17. Refer to the table shown. The average product when eight workers are employed is
  18. Germany restricts the use of nonrefillable bottles and cans. The European Union argues that the rules aren't just protecting the environment; they also are protecting German beverage makers from competition. The EU sees Germany's environmentalism as _____________________.
  19. Refer to the table shown. At what level of employment is the marginal product of labor seven? 
  20. The morel is a prized mushroom that is often abundant in the Western United States in years after forest fires. Suppose two companies are buying morels from workers willing to find them. One company offers to pay workers $5.00 per pound, and the other company will pay workers only $4.00 per pound. Economists would say that
  21. Economists and laypeople see the pros and cons of international trade in different ways. Which of the following is one of those ways?
  22. Which of the following statements is true?
  23. Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is _______________.
  24. Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to
  25. Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will
  26. Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will
  27. Opponents of government intervention in the economy argue that externalities
  28. State what type of business combination is occurring in the following scenario: IBP meat processing firm buys American Cattle, a very large cattle ranch.
  29. State what type of business combination is occurring in the following scenario: Golf Smith, a golf supply retailer buys its competitor, Vango golf.
  30. Oligopoly is probably the best market for technological change because

Final Exam - Set #2

  1. An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in
  2. A basic difference between microeconomics and macroeconomics is that microeconomics
  3. The distinction between supply and the quantity supplied is best made by saying that
  4. After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil prices. What best describes these events?
  5. Price elasticity of demand is the:
  6. If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about:
  7. When labor is the variable input, the average product equals the
  8. The increase in output obtained by hiring an additional worker is known as
  9. Which of the following is the best example of a long-run decision?
  10. Other things being equal, when average productivity falls,
  11. According to economist Colin Camerer of the California Institute of Technology, many New York taxi drivers decide when to finish work by setting an income goal for themselves. If this is true, then on busy days when the effective hourly wage is higher, taxi drivers will
  12. A firm’s demand for labor is derived from the
  13. Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. This will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day
  14. Expected economic profit per unit is equal to
  15. If a firm in a perfectly competitive market experiences a technological breakthrough,
  16. A significant difference between monopoly and perfect competition is that
  17. A monopoly firm is different from a competitive firm in that
  18. The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a
  19. As long as marginal cost is below marginal revenue, a perfectly competitive firm should
  20. Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal
  21. In the Flint Hills area of Kansas, proposals to build wind turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local chapters of the Nature Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbines
  22. When negative externalities are present, market failure often occurs because
  23. A merger between a textile mill and a clothing manufacturing company would be considered a
  24. A merger between a baby food company and a life insurance company would be considered a
  25. From the point of view of consumer and producer surplus, what problem may be created when a country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?
  26. Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person’s income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
  27. The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is
  28. Countries can expect to gain from international trade as long as they
  29. Which of the following is an example of the law of one price?
  30. The fact that U.S. managers’ salaries are substantially greater than those of comparable managers in Japan may be related to

Final Exam - Set #3

  1. Which of the following statements is true about a downward-sloping demand curve that is a straight line?
  2. The best example of positive externality is:
  3. Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year.  Based on this information, we can best conclude that:
  4. Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share.  From this information, what would economists strongly suspect about this industry?
  5. The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of: 
  6. At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the production of fake killer whales exhibits:
  7. Using 100 workers and 10 machines, a firm can produce 10,000 units of output; using 250 workers and 25 machines, the firm produces 21,000 units of output. These facts are best explained by: 
  8. Cartels are organizations that: 
  9. Price elasticity of demand is the:
  10. ​For a monopolist, the price of a product:
  11. A perfectly competitive firm facing a price of $50 decides to produce 500 widgets. Its marginal cost of producing the last widget is $50. If the firm’s goal is to maximize profit, it should: 
  12. Microeconomics is the study of:
  13. When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation of why few economists agreed with Perot?
  14. Suppose OPEC announces it will increase production. Using supply and demand analysis to predict the effect of increased production on equilibrium price and quantity, the first step is to show the:
  15. ​The law of diminishing marginal productivity implies that the marginal product of a variable input:
  16. In 1997, the federal government reinstated a 10 percent excise tax on airline tickets. The industry tried to pass on the full 10 percent ticket tax to consumers but was able to boost fares by only 4 percent. From this you can conclude that the:
  17. Graphically, a change in price causes:
  18. Microeconomics and macroeconomics are:
  19. Suppose people freely choose to spend 40 percent of their income on health care, but then the government decides to tax 40 percent of that person’s income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
  20. Mr. Woodward’s cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodward has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?
  21. The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:
  22. Oligopoly is probably the best market for technological change because:
  23. ​A monopoly firm is different from a perfectly competitive firm in that:
  24. Many call centers that provide telephone customer services for U.S. companies have been established in India, but few or none have been established in China. Why?
  25. Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly of $17.85 while the market equilibrium hour rate is $16.50, the:
  26. Alex is playing his music at full volume in his dorm room. The other people living on his floor found this to be a nuisance, but Alex doesn’t care. Alex’s music playing is an example of:
  27. In 2011, the Department of Justice sued AT&T to block its merger with the cell phone service provider T-Mobile. To defend itself against the charge, AT&T argued that the: 
  28. A reduction in the supply of labor will cause wages to:
  29. There are many restaurants in the city of Raleigh, each one offering food and services that differ from those of its competitors.  There is also free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day.  The restaurant industry in Raleigh is best characterized as:
  30. Strategic decision making is most important in: 

 

FINAL EXAM – SET #4

1. Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is:

2. Refer to the table shown. The average product when eight workers are employed is:

3. A resource is said to have a comparative advantage if:

4. Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to:

5. Refer to the table shown. Diminishing marginal productivity begins when the:

6. Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will

7. The price of a ticket to a rock concert is set at $35. All the tickets for the concert sell out 1 hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that:

8. Which of the following statements is true?

9. State what type of business combination is occurring in the following scenario: Samsung and Sony become partners in a flat screen manufacturing company.

10. Suppose a firm finds that an additional dollar spent on labor increases output more than does an additional dollar spent on machines. Under these conditions, the firm should substituted machines for labor if it:

11. Economists and laypeople see the pros and cons of international trade in different ways. Which of the following is one of those ways?

12. The morel is a prized mushroom that is often abundant in the Western United States in years after forest fires.

13. Which of the following is the best example of a macroeconomic externality?

14. If MR < MC, a monopolist should:

15. Opponents of government intervention in the economy argue that externalities:

16. State what type of business combination is occurring in the following scenario: IBP meat processing firm buys American Cattle, a very large cattle ranch.

17. Refer to the graph shown. At which point is elasticity zero?

18. A Wall Street Journal headline reads: “Cigar Shortage Draws New Brands into Market”. The shortage resulted from a renewed interest in smoking cigars. What best describes the facts behind the headline?

19. Refer to the graph shown. If hamburger dinners are produced by a perfectly competitive industry with a market demand:

20. State what type of business combination is occurring in the following scenario: Golf Smith, a golf supply retailer busy its competitor, Vango golf.

21. According to the text, Microeconomics, Colander (2013), economics is the study of how:

22. Oligopoly is characterized by

23. When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low.  Which of the following is the best explanation for why few economists agreed with Perot?

24. Refer to the graph shown.

25. Germany restricts the use of nonrefillable bottles and cans.

26. Oligopoly is probably the best market for technological change because
27. George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent.
28. State what type of business combination is occurring in the following scenario: A tobacco producer busy a carbonated beverage plant.
29. Suppose the minimum possible price of constructing homes if $50 per square foot.  As a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will:
30. Refer to the table shown.  At what level of employment is the marginal product of labor seven?