ECO/365 Week 1
Principles of Microeconomics
Ten Principles of Economics and How Markets Work
Option #1 Word Count: 1,027 words!
Option #1 Word Count: 1,235 words!
Option #1 Word Count: 1,018 words!
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 Demand. 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 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 - Apple, Inc. - Word Count: 2,232 words!
Option #4 - Coca Cola - Word Count: 1,778 words!
Option #5 - Starbucks - Word Count: 2,004 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 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.
NEW 2018 FINAL EXAM plus FOUR Exams from prior years!
Questions on Exam may be in a different order.
Economic Competitive Structures
- 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?
- 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
- Moonlife LLC. observed that its total revenue is proportional to the quantity of good sold. It is likely that Moonlife LLC. is a:
- 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
- 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:
- 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:
- 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?
- The exhibit given below shows Melanie’s budget constraint for two goods, wine and cheese. The slope of the budget constraint equals
Labor Curve and Workforce Topics
- 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:
- 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
- Recent political unrest has caused many citizens of Serria to flee the country.
This is likely to
- 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.
Consumer Surplus Topics
- The exhibit given below shows the demand curve for Good X, labeled D. At a price of
$8 per unit, the quantity demanded of Good X is 5 units. A decrease in price to $4 per
unit increases the quantity demanded to 8 units. Assuming that a decrease in price
leads to new consumers buying the good, what is the consumer surplus received by
the new consumers in the market?
- The table given below shows three buyers willingness to pay for an antique necklace.
At a market price of $25,000, the total consumer surplus in the market is:
- Adrianne values a play at $85, and Joanna values it as $82. When the price of tickets
increased from $80 to $83 following the imposition of a tax, Joanna stopped watching
plays on Broadway, while Adrianne continued to buy tickets. Identify the correct
statement
Supply Curves and Demand Curves
- The exhibit given below shows the supply curve of printing machines. At a price of
$400 per machine, the producer surplus is
- A sudden increase in the demand for air conditioners increased the earnings of the
workers employed in air conditioner-manufacturing firms and attracted workers from
other sectors. Which of the following will be true in the market for workers employed
in air conditioner-manufacturing firms?
- Suppose Timothy consumes two goods, soda and chips. The slope of his indifference
curve for these two goods reflects
- Which of the following reflects the law of
demand?
Government and Society
- The Rhodes and Samson families, with annual incomes of $100,000 and $120,000,
respectively, live in a society where the primary objective of the government is to
maximize the sum of the utility attained by everyone in the Society. Which of the
following is likely to be true in such a society?
- Which of the following is a difference between
liberalism and libertarianism?
- The state government of Dalmatia noticed that whenever its baseball team played a
match in any of the local stadiums, the prices of tickets became too high. It decided
to impose a price ceiling on the ticket prices. The exhibit given below shows the
demand curve for and the supply curve of baseball game.
- The exhibit given below shows the demand curve for and the supply curve of laptops,
D and S. The government decides to impose a price ceiling on the price of laptops. At
the same time, the price of inverter boards that provide power to backlight lamps
inside laptop screens increases. identify the correct statement:
- Color Mate Inc., a company that produces interior and wall paints, dumps its chemical
waste in a river. Which of the following is likely to be true in this case?
Final Exam - SET#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 __________________.
- 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?
- State what type of business combination is occurring in the following scenario: Samsung and Sony become partners in a flat screen manufacturing company.
- 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
- According to the text, Microeconomics, Colander (2013), economics is the study of how
- 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
- Which of the following is the best example of a macroeconomic externality?
- 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
- State what type of business combination is occurring in the following scenario: A tobacco producer buys a carbonated beverage plant.
- A resource is said to have a comparative advantage if
- Refer to the graph shown. If hamburger dinners are produced by a perfectly competitive industry with a market demand D:
- Oligopoly is characterized by
- Refer to the table shown. Diminishing marginal productivity begins when the
- 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?
- If MR < MC, a monopolist should:
- Refer to the graph shown. At which point is elasticity zero?
- Refer to the table shown. The average product when eight workers are employed is
- 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 _____________________.
- Refer to the table shown. At what level of employment is the marginal product of labor seven?
- 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
- Economists and laypeople see the pros and cons of international trade in different ways. Which of the following is one of those ways?
- Which of the following statements is true?
- Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is _______________.
- 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
- Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will
- 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
- Opponents of government intervention in the economy argue that externalities
- State what type of business combination is occurring in the following scenario: IBP meat processing firm buys American Cattle, a very large cattle ranch.
- State what type of business combination is occurring in the following scenario: Golf Smith, a golf supply retailer buys its competitor, Vango golf.
- Oligopoly is probably the best market for technological change because
Final Exam - Set #2
- An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in
- A basic difference between microeconomics and macroeconomics is that microeconomics
- The distinction between supply and the quantity supplied is best made by saying that
- 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?
- Price elasticity of demand is the:
- 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:
- When labor is the variable input, the average product equals the
- The increase in output obtained by hiring an additional worker is known as
- Which of the following is the best example of a long-run decision?
- Other things being equal, when average productivity falls,
- 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
- A firm’s demand for labor is derived from the
- 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
- Expected economic profit per unit is equal to
- If a firm in a perfectly competitive market experiences a technological breakthrough,
- A significant difference between monopoly and perfect competition is that
- A monopoly firm is different from a competitive firm in that
- The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a
- As long as marginal cost is below marginal revenue, a perfectly competitive firm should
- Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal
- 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
- When negative externalities are present, market failure often occurs because
- A merger between a textile mill and a clothing manufacturing company would be considered a
- A merger between a baby food company and a life insurance company would be considered a
- 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?
- 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?
- 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
- Countries can expect to gain from international trade as long as they
- Which of the following is an example of the law of one price?
- 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
- Which of the following statements is true about a downward-sloping demand curve that is a straight line?
- The best example of positive externality is:
- 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:
- 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?
- The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of:
- 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:
- 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:
- Cartels are organizations that:
- Price elasticity of demand is the:
- For a monopolist, the price of a product:
- 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:
- Microeconomics is the study of:
- 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?
- 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:
- The law of diminishing marginal productivity implies that the marginal product of a variable input:
- 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:
- Graphically, a change in price causes:
- Microeconomics and macroeconomics are:
- 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?
- 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?
- 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:
- Oligopoly is probably the best market for technological change because:
- A monopoly firm is different from a perfectly competitive firm in that:
- 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?
- 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:
- 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:
- 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:
- A reduction in the supply of labor will cause wages to:
- 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:
- 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?
|
