Economics

  1. 1. Which of the following is an example of foreign portfolio investment?

    A business owner in the United Kingdom purchases a United States business. An investor in the United Kingdom purchases stock issued by a United States corporation. <------ My answer.

  2. What is the definition of a benefit?

    A. a government-provided reward B. a high rate of return on investment C. an advantage of making a specific choice D. an ability to produce better goods than the competition A city council has $100,000 to spend on city

  3. 1. Which of the following is the best example of a public good?

    A. Highway system B. Shopping mall C. Country club D. Movie theater 2. Which of the following is a characteristic of a public good? A. the private sector could provide it more efficiently B.

  4. Which phrase best defines scarcity?

    A. a state in which productive resources are not enough to create a given good or service B. a state in which human wants are greater than the resources available to fill those wants C. a state in which too few choices

  5. With all other economic forces held constant, an increase in labor productivity throughout the country implies _____.

    a. a decrease in GDP due to an increase in labor hours b. an increase in GDP with labor hours held constant c. a decrease in GDP with labor

  6. Jim buys only milk and cookies.

    a. In year 1, Jim earns $100, milk costs $2 per quart, and cookies cost $4 per dozen. Draw Jim's budget constraint.

  7. Which changes will cause demand for a product to rise in a free market economy?

    Choose all answers that are correct. A. an increase in the income of consumers B. an increase in consumer awareness C. an increase in consumer preference D. an increase in the

  8. 7. Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people have incomes of $30,000 and one person has an income of $10,000. In the second distribution, all ten people have incomes of $25,000.

    a.

  9. A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to arrive at the answers

  10. 2. Identify three decisions that you (micro) have made recently.

    3. Identify three decisions that our government (macro) has made recently. Use the internet, the newspaper, or television news to research this information. 4. List three resources that you

  11. Two investors are each issued one bond with the same face value, maturity date, and yield. After both bonds have reached maturity, it is discovered that one of the bondholders received a greater total return on her investment. If all expected payments were

  12. Which of the following is a realistic concern faced by the owners of sole proprietorships?~ Answer.D

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Three partners have formed a limited partnership with two limited partners each earning 5% of the

  13. In the country of Alpha, T-shirts are sold domestically in a competitive market, the equilibrium price is $10, and the equilibrium quantity is 100.

    (a) Draw a correctly labeled demand and supply graph for the domestic T-shirt market in Alpha. Plot the

  14. Below are a few questions I had difficulty with so please check my answers and correct me if I am wrong, thanks :)

    1. Kim, a public relations manager, has just completed the process of checking the references of several job candidates. What should she do

  15. 2.The owner-manager of Good Guys Enterprises obtains utility from income(profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures. Can you set up the problem and derive the

  16. Questions:

    Are the following workers more likely to experience short-term or long-term unemployment? Explain. a. A construction worker laid off because of bad weather. b. A manufacturing worker who loses her job at a plant in an isolated area. c. A

  17. Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band. The market demand schedule for the CD is:

    Q = 800 – 100P. Q represents quantity demanded measured in thousands of CDs and P represents the price in dollars. Production

  18. At a management luncheon, two managers were overheard arguing about the following statement “A manager should never hire another worker if the new person causes diminishing returns”. Is this statement correct? If so, why? If not, explain why not.

  19. Jonathan owns and operates a successful sole proprietorship. A friend, who owns a similar business, suggests that they combine their businesses and form a new partnership. Which of the following should Jonathan consider before making a decision?(1 point)

    Wh

  20. you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is profit maximizing, is the

  21. Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000

    a)What is the average total cost of producing 5 cars b)What is the marginal cost of the fifth car? c)Draw the marginal cost curve and the average

  22. A man wishes to bequeath to his daughter P20,000 ten years from now. What amount should he invest now if it will earn interest of 8% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years?

  23. Explain the causes of abnormal supply

  24. Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50

  25. As the aggregate price level falls, the number of domestic products purchased by foreigners will [rise], causing the quantity of domestic output demanded to [rise]. This is known as the [foreign purchases effect].

    The first two blanks can be rise,fall or

  26. A city must decide whether to build a downtown parking garage and what rate to charge. It is

    considering two rates: a flat $1.50-per-hour rate or an all-day rate averaging $1 per hour (based on a $10 daily rate and an average 10-hour stay). Parking demand

  27. 1. The Gold Standard Act of 1900 ended the standard known as(1 point)

    fractional-reserve banking. bimetallism. liquidity. full-reserve banking. 2. Which of the following describes the practice of fractional-reserve banking?(1 point) The United States issues

  28. 3. Suppose the Clean Springs Water Company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean Springs' profit-maximizing level of output, price, and profit? Explain in words and with a

  29. The assessed value of Patty's residential property was $200,000 in 2004. In 2006, the assessed value increased to $225,000. The property tax rate in both years was 1.2 percent. Patty earned $60,000 each year.

    Determine Patty’s property taxes for 2004 by

  30. During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money instead of investing the money and earning a 10% annual rate

  31. advantages and disadvantages of allocating resources through the public sector

  32. Given P=140-0.6Q, TC1=7q1, TC2=0.6q2 the power of 2. A. Determine the short run equilibrium output of each duopoly ignoring their Independence ( with naive assumptions). B. What is the short run market price ? C. Find the demand functions of the duopolies

  33. How does scarcity affect producers?

    A.) Limited costs prevent producers from hiking prices. * B.) Limited demand prevents producers from offering low prices. C.) Limited time prevents producers from finding the best employees. D.) Limited resources prevent

  34. . Consider total cost and total revenue given in the table below:

    QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm produce to maximize

  35. 1. Products that would be used in calculating GDP include:

    a. Toys manufactured in China at a factory owned by a U.S. company b. cars manufactured in Tennessee at a factory owned by a Japanese automobile company c. plastic manufactured in Kentucky and sold

  36. In order to increase economic development and productivity, which of the following might a country do?

    A. increase capital goods B. lower tariffs C. restrict literacy and education D. encourage trade barriers

  37. 1) Give an example of a fairly major purchasing decision you've made in your lifetime. How did you justify the purchase? How did you prepare for it financially once you decided to make the purchase?

    2) What aspects of your decision-making process fit the

  38. 1. Your roommate's long hours in chem lab finally paid off--she discovered a secret formula that lets people do an hour's worth of studying in 5 minutes. So far, she's sold 200 doses and faces the following average-total-cost schedule:

    Q = 199 & ATC = $199

  39. What are the three types of productive resources? Select all that apply.

    A. the raw materials provided by the planet B. the planning and work that go into production C. the markets that sell the results of production D. the social systems that ensure

  40. Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you expect will happen to

    a. Your firm's costs of production? (will production

  41. A study by the Computer Manufacturers Association of America analyzed the significant increase in the usage of computers by business firms in the United States over the last two decades. In terms of production theory, on might say the computer-labor ration

  42. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that

  43. Here is a question that my professor posted...

    "Assume the price elasticity of demand for U.S. Frisbee. frisbees is -0.6. If the company increases the price of each frisbee from $6 to $8, the number of frisbees sold will:" The answer is: Decrease by 17.1

  44. If utility is U(x,y) = xy + y, what is the indirect utility function and expenditure function?

  45. 1. The funding for which expense in the federal government is set by the House and Senate Appropriations Committees?

    a. interest on the national debt b.mandatory spending c.discretionary spending d.entitlements 2. Programs such as unemployment compensation

  46. 1. What effect would a decrease in consumer savings have on the aggregate demand curve?

    The curve would level off. The curve would shift to the right. The curve would shift to the left. The curve would not change 2. If there is an increase in aggregate

  47. Please simplify. Thanks.

    Cecelia is an avid art collector who owns many original works of art. Recently, she decided to sell an oil painting by Norman Rockwell. The buyer paid $500,000 for the painting. Since Cecelia had paid just $350,000 for the painting,

  48. What is medical arms race (MAR)?

  49. The Largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage rate is $20, and the price of a printing press is $5000. The last printer added 20 books to total output, while the last press added 1000 books to

  50. An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows:

    Q Avg. Variable Cost ($) 1 1 2 2 3 3 4 4 5 5 6 6 a. Compute marginal cost and avg. total cost. b. the price is $10. what is the total quantity

  51. 17. The current price for a good is $20, and 100 units are demanded at that price. The price elasticity of demand for the good is -1. When the price of the good drops by 10% to $18, consumer surplus:

    Increases or decreases by $__?

  52. Which of the following is not a factor of production?

    A. Land B. Capital C. Labor D. Goods and Services D?

  53. Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by:

    q = 60 - (1/2)p, where q is quantity sold per week. The firm's marginal cost curve is given by: MC = 60. 1. How much will the firm produce in the short

  54. PROBLEM SOLVING 1: "ANDREA'S SOFTWARE BUSINESS"

    I. Complete the following table: DO THE MATH Data Number of Programs Total Fixed Costs Total Variable Costs Total Costs Marginal Costs Average Fixed Costs Average Variable Costs Average Total Costs 0 $60 $0

  55. Determine whether each of the following would cause a shift in the aggregate demand curve, the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case?

    a. The

  56. Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2006 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2007, they buy 75 heads of cauliflower

  57. What does the slope of the production possibilities curve represent?

    A)The slope represents the level of efficiency in production. B)The slope represents the opportunity cost of producing one good instead of the other. C)If the slope is greater than one,

  58. Which economic system gives producers and consumers the most power to make economic decisions?

  59. 21. The EU is an example of a trading bloc, or _______, that has a common external tariff

    and no internal tariffs, and that coordinates laws to facilitate trade between member countries. A. strategic alliance B. joint venture C. common market D.

  60. 1. Use the table below to predict what would happen if airlines and baseball stadiums priced all seats the same instead of using variable-pricing. What would happen to the number of tickets sold? What would happen to the total revenue from ticket sales?

  61. Suppose a university decides to alter its tuition schedule by separating its students based on how many years of college they have completed. Most university programs require four years to complete. First-year students would get a 13% tuition reduction.

  62. Why do people routinely stuff themselves at all-you-can-eat buffets? Explain in terms of both utility and demand theories.

    At any level, the marginal cost of take another bite at an all-you-can-eat place is zero. In terms of utility, a person should

  63. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run.

    c. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the long

  64. Answer the question based on the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $4 and $3, respectively.

    Production Techniques

  65. Which statement best describes the role of government in a mixed economy?

    1) it controls all decisions about business activities, including profit levels. 2) it forms companies and then allows individual managers to run them. 3) it follows a strict policy

  66. THE SOUTH AFRICAN GOVERNMENT IS NOT PROVIDING ENOUGH WELFARE OR SUBSIDIES TO THE POOR AND UNDERPRIVILEDGED.

    1.What are welfare payments or consumer subsidies? 2.What is the South African government providing and to whom? 3.What are the cost and consequences

  67. What components of GDP (if any) would each of the following transactions affect?

    Explain. (b) Aunt Jane buys a new house. (c) Ford sells a Mustang from its inventory. (g) Honda expands its factory in Marysville, Ohio. My Answers: (b) Investment since I read

  68. explain how a firm's production function is related to its marginal product of labor,how a firm's marginal product of labor is related to the value of its marginal product, and how a firm's value of marginal product is related to its demand for labor?

  69. Beachfront resorts have inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was).

    a. What happens to the equilibrium

  70. The price received by sellers in a market will decrease if the government

    Answer A. imposes a binding price floor in that market. B. decreases a binding price ceiling in that market. C. decreases a tax on the good sold in that market. D. increases a binding

  71. 1. An economy's production possibilities frontier is also its consumption possibilities frontier.

    a. under all circumstances b. under no circumstances c. when the economy is self-sufficient d. when the rate of tradeoff between the two goods being produced

  72. 1) Which of the following is an example of a measure of labor productivity?

    a. Autos get 30 gallons to the mile. b. The growth rate of per capita real GDP is 3.5 percent per year. c. Farm workers produce 30 bushels of wheat per worker per day. d. Wages

  73. Two firms produce the same good and compete against each other in a Cournot market. The market demand for their product is P = 204 - 4Q, and each firm has a constant marginal cost of $12 per unit. MR1 = 204 - 8q1 - 4q2. Let q1 be the output produced by

  74. 6. Show the effect of each of the following events on the market for labor in the computer manufacturing

    industry. Use graphs. a. Congress buys personal computers for all American college students. Wouldn't the demand curve shift to the right while the

  75. When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his operating

  76. Suppose the price elasticity of demand for a novel translated into English is perfectly inelastic. Assume the initial price of the novel is $24 and the quantity demanded is 222 copies per year. If the price of the novel increases by $3, then the quantity

  77. Sandra purchases 5 pounds of coffee and 10 gallons of milk per month when the price of coffee is $10 per pound. She purchases 6 pounds of coffee and 12 gallons of milk per month when the price of coffee is $8 per pound. Sandra’s cross-price

  78. Explain how each of the following people would talk about scarcity and trade-offs.

    a) The President of the United States: b) The leader of a developing nation. c) A U.S. citizen whose income is in the top one percent. d) A U.S. citizen whose income is in

  79. Supply is best defined as the measure of how much producers are willing and able to sell

    A) above the market-clearing price. B)at any one price in a given period of time. C) at all possible prices. D)according to their resources and profit motives. ( its D

  80. Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38

  81. Determine which of two investment projects a manager should choose if the discount rate of the firm is 20%. The first project promises a profit of $100,000 in each of the next four years, while the second project promises a profit of $75,000 in each of the

  82. VERY HARD PLEASE HELP

    Kristin lives in Alaska. Ben lives in Rhode Island. They each drive a car with a 12-gallon fuel tank. When Kristin fills her empty gas tank in Alaska, she has to pay a federal gasoline tax of $.18 (or 18 cents) per gallon, plus a state

  83. 1. According to the data table below, what is the unemployment rate?:

    Total Population: 1,500 Population under 16 or institutionalised: 360 Not in the labor force: 450 Unemployed: 69 Workers with part-time work who want full-time: 30 A. 10% B. 11% C. 8.4%

  84. Andrew quits his job as an accountant where he earns $60,000 per year to go back to school for two years to get an MBA degree. He attends a school that charges $25,000 per year for tuition and related expenses. How much is the total cost (explicit cost

  85. 6. The chapter uses the analogy of a "leaky bucket" to explain one constraint on the redistribution of income.

    a. What elements of the U.S. system for redistributing income create the leaks in the bucket? Be specific. I would think it would be “people

  86. Describe a specific event that would make each of the following happen to a production possibilities graph.

    (a) a point moves down to the (b) the frontier shifts to the right:

  87. An airline has a low marginal cost per passenger of $30 on a route from Boston to Detroit. At the same time the typical fare charged is $300. The planes that fly the route are usually full, yet the airline claims that is loses money on the route, how is

  88. 5. (Ch. 17 # 5) Sparkle is one firm of many in the market for toothpaste, which is in long-run

    equilibrium. a. Draw a diagram showing Sparkle’s demand curve, marginal revenue curve, average cost curve, and marginal cost curve. Label Sparkle’s

  89. Elesha babysits on the weekends for extra money. Suppose that three neighbors with children are interested in paying Elesha to babysit their children. In particular, Dr. and Mrs. Brown would be willing to pay $30 to have Elesha babysit their children, Mrs.

  90. Two grocery stores are located in the downtown area of a small city. The first offers excellent prices for buying large bulk quantities. The second does not have bulk offers, but offers lower prices on single items.

    Use the passage to answer the question.

  91. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number of workers who are

  92. Are there any welfare or subsidy payments that should be reviewed or added?

  93. A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 - Q.

    What are the profits of the monopoly in equilibrium? A. $225 B. $120 C. $345 D. None of the statements associated

  94. 10. An industry currently has 100 firms, all of which have fixed cost of $16 and average variable cost as follows:

    Quantity / Average variable cost: (1/$1),(2,$2), (3,$3), (4,$4), (5,$5), and (6,$6) b. The price is currently $10. What is the total quantity

  95. 4. Which of the following statements are positive in nature and which are normative?

    a. A tax cut will raise interest rates. I think it is Normative Economics

  96. How is the state of domestic tourism if the Rand is strong

  97. Buyers will opt out of markets in which:

    A. there are significant negative externalities. B. standardized products are being produced. C. there is inadequate information about sellers and their products. D. there are only foreign sellers. I think the answer

  98. In a perfect competitive market setting,which of the following would be a true statement?

    a)market price automatically sets itself exactly at equilibrium b)market price rarely trends toward the equilibrium value c)wage rates trend toward marginal revenue

  99. Develop a hypothetical table of information for coffee that shows demanded at various price and supply of coffee at these prices draw a demand and supply curve and show a equilibrium price at which the market is cleared of its aupplies

  100. Can someone check my answers? "Explain how unemployment affects the following groups. Give at least 3 examples for each of the groups; Laborers, Businesses, and Government"

    Laborers: 1) No longer has a job 2) Families can hurt from lack of money 3)Poor

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