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# Ch04

Course: ECON 105, Spring 2011

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CHAPTER 4 Individual and Market Demand MULTIPLE CHOICE Section 4.1 easy 1. Moving down along a demand curve for apples a. b. c. d. e. easy 2. The change in the price of one good has no effect on the quantity demanded of another good. These goods are: a. b. c. d. e. easy Utility is maximized but income is not all spent. All income is spent, but utility is not maximized. Utility is maximized, and all income is...

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CHAPTER 4 Individual and Market Demand MULTIPLE CHOICE Section 4.1 easy 1. Moving down along a demand curve for apples a. consumer well-being decreases. b. the marginal utility of apples decreases. c. the marginal utility of apples increases. d. both (a) and (b) are true. e. both (a) and (c) are true. easy 2. The change in the price of one good has no effect on the quantity demanded of another good. These goods are: a. complements. b. substitutes. c. both inferior. d. both Giffen goods. e. none of the above. easy 3. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that: a. good A is a normal good. b. good B is an inferior good. c. goods A and B are substitutes. d. goods A and B are complements. e. none of the above. easy 4. An individual demand curve can be derived from the curve. a. price-consumption b. price-income c. income-substitution d. income-consumption e. Engel curve easy 5. Which of the following is true at each point along a price consumption curve? a. Utility is maximized but income is not all spent. b. All income is spent, but utility is not maximized. c. Utility is maximized, and all income is spent. d. The level of utility is constant. moderate 6. Which of the following is true regarding income along a price consumption curve? a. Income is increasing. b. Income is decreasing. c. Income is constant. d. The level of income depends on the level of utility. 100 CHAPTER 4 TEST BANK INDIVIDUAL AND MARKET DEMAND SIXTH EDITION moderate 7. Which of the following is true regarding utility along a price consumption curve? a. It is constant. b. It changes from point to point. c. It changes only if income changes. d. It changes only for normal goods. easy 8. The income-consumption curve a. illustrates the combinations of incomes needed with various levels of consumption of a good.CHAPTER 4 Individual and Market Demand MULTIPLE CHOICE Section 4.1 easy 1. Moving down along a demand curve for apples a. consumer well-being decreases. b. the marginal utility of apples decreases. c. the marginal utility of apples increases. d. both (a) and (b) are true. e. both (a) and (c) are true. easy 2. The change in the price of one good has no effect on the quantity demanded of another good. These goods are: a. complements. b. substitutes. c. both inferior. d. both Giffen goods. e. none of the above. easy 3. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that: a. good A is a normal good. b. good B is an inferior good. c. goods A and B are substitutes. d. goods A and B are complements. e. none of the above. easy 4. An individual demand curve can be derived from the curve. a. price-consumption b. price-income c. income-substitution d. income-consumption e. Engel curve easy 5. Which of the following is true at each point along a price consumption curve? a. Utility is maximized but income is not all spent. b. All income is spent, but utility is not maximized. c. Utility is maximized, and all income is spent. d. The level of utility is constant. moderate 6. Which of the following is true regarding income along a price consumption curve? a. Income is increasing. b. Income is decreasing. c. Income is constant. d. The level of income depends on the level of utility. 100 CHAPTER 4 TEST BANK INDIVIDUAL AND MARKET DEMAND SIXTH EDITION moderate 7. Which of the following is true regarding utility along a price consumption curve? a. It is constant. b. It changes from point to point. c. It changes only if income changes. d. It changes only for normal goods. easy 8. The income-consumption curve a. illustrates the combinations of incomes needed with various levels of consumption of a good.

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Indian School of Business - ECON - 105
CHAPTER 5Uncertainty and Consumer BehaviorMULTIPLE CHOICESECTION 5.1Scenario 1:Aline and Sarah decide to go into business together as economic consultants. Aline believes theyhave a 50-50 chance of earning \$200,000 a year, and that if they don't, th
Indian School of Business - ECON - 105
CHAPTER 6ProductionMULTIPLE CHOICESECTION 6.1moderate1. A production function defines the output that can be produceda.b.c.d.e.easy2. A production function assumes a givena.b.c.d.e.easytechnology.set of input prices.ratio of input pri
Indian School of Business - ECON - 105
CHAPTER 7The Cost of ProductionMULTIPLE CHOICESECTION 7.1easy1. Two small airlines provide shuttle service between Las Vegas and Reno. The services are alikein every respect except that Fly Right bought its airplane for \$500,000, while Fly by Night
Indian School of Business - ECON - 105
CHAPTER 8Profit Maximization and Competitive SupplyMULTIPLE CHOICESection 8.1easy1. A price taker isa.b.c.d.e.easy2. Which of following is an example of a homogeneous product?a.b.c.d.e.easya firm that accepts different prices from diffe
Indian School of Business - ECON - 105
CHAPTER 9The Analysis of Competitive MarketsMULTIPLE CHOICESection 9.1Figure 9.1easy1. Refer to Figure 9.1. If the market is in equilibrium, the consumer surplus earned by the buyer ofthe 1st unit isa.b.c.d.easy2. Refer to Figure 9.1. If the
Indian School of Business - ECON - 105
CHAPTER 10Market Power: Monopoly and MonopsonyMULTIPLE CHOICESection 10.1easy1. When the demand curve is downward sloping, marginal revenue isa.b.c.d.easy2. For the monopolist shown below, the profit maximizing level of output is:a.b.c.d.e
Indian School of Business - ECON - 105
CHAPTER 11Pricing with Market PowerMULTIPLE CHOICESection 11.1easy1. Which of the following strategies are used by business firms to capture consumer surplus?a.b.c.d.easyprice discrimination.bundling.two-part tariffs.all of the above.2. Rat
Indian School of Business - ECON - 105
CHAPTER 12Monopolistic Competition and OligopolyMULTIPLE CHOICESection 12.1easy1. For which of the following market structures is it assumed that there are barriers to entry?a.b.c.d.e.easyperfect competitionmonopolistic competitionmonopolya
Indian School of Business - ECON - 105
CHAPTER 13Game Theory and Competitive StrategyMULTIPLE CHOICESection 13.1easy1. Which of the following conditions, if present, is sufficient to make a game cooperative?a. Individual payoffs are greater if all players choose the same strategy.b. Pla
Indian School of Business - ECON - 105
CHAPTER 14Markets For Factor InputsMULTIPLE CHOICESection 14.1easy1. A firm should hire more labor when the marginal revenue product of labora.b.c.d.e.easy2. The marginal revenue product of labor is equal toa.b.c.d.e.easyequals the wage
Indian School of Business - ECON - 105
CHAPTER 15Investment, Time and Capital MarketsMULTIPLE CHOICESection 15.1easy1. The marginal revenue product of input purchase is not a complete picture in the case of capital,because capital isa.b.c.d.e.easy2. Which of the following question
Indian School of Business - ECON - 105
CHAPTER 16General Equilibrium and Economic EfficiencyMULTIPLE CHOICESection 16.1easy1. Which of these is NOT an exercise in general equilibrium analysis?a. A discussion of factors within the wheat market that influence wheatprices.b. An analysis o
Indian School of Business - ECON - 105
CHAPTER 17Markets With Asymmetric InformationMULTIPLE CHOICESection 17.1easy1. Used cars sell for much less than new cars becausea.b.c.d.e.easyof imperfect competition in the automobile industry.buyers know much more about the quality of cars
Indian School of Business - ECON - 105
CHAPTER 18Externalities and Public GoodsMULTIPLE CHOICESection 18.1easy1. Externalitiesa. are not reflected in market prices, so they can be a source ofeconomic inefficiency.b. do become reflected in market prices, so they can be a source ofecono
Indian School of Business - ECON - 105
CONTENTSPART1:Introduction:MarketsandPricesChapter1Preliminaries1Chapter2TheBasicsOfSupplyAndDemand11PART2:Producers,Consumers,andCompetitiveMarketsChapter 3Consumer Behavior42Chapter4IndividualAndMarketDemand100Chapter5UncertaintyandConsu
Indian School of Business - ECON - 105
TESTITEMFILESusanLeeFloridaStateUniversity
University of Phoenix - BUS - 415
Running head: ALL CAPS SHORT TITLE 50 CHARACTERS OR LESS1Title of Paper Goes Here And I Will Also Add Here the Unnecessary Words APA Format SixthEdition Template So the Document Can Come Up in SearchesPaul RoseSouthern Illinois University Edwardsvill
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Boulevard Poster Bedroom Seth ttp:/www.maxfurniture.com/ShowProduct.aspx?prodID=35394East Sea Poster Bedh ttp:/www.maxfurniture.com/detail- -East-Sea-Poster-Bed-0-34629.aspx
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RUNNING HEAD: AGENCY STRUCTURE1Agency StructureAllissia JonesProfessor Amanda HodnettPAD 505: Public Budgeting and Finance17 July 2011AGENCY STRUCTURE2Determine where each agency lies in the administrative structure of the federalgovernment. Ide
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1) Which of the following statements regarding the cross factorial anaylsis ist rue?a. There is a testing phase followed by a Training phaseb. All groups receive the same procedures during the t raining phasec. All groups receive the same procedures d
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Chapter 11Acquisition- T he initial stage of learning.A mnesia- Loss of memory. (See also retrograde amnesia.)cognitive ethology- A b ranch of ethology that assumes that consciousness, awareness,and intentionality can be inferred from the complexity,
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1) BPs Helios strategy revolves around the concept of making their brand seemoptimistic, happier and most importantly more green and environmentallyfriendly. This is accomplished by their new logo, nicer gas stations and grassrootsmarketing. In the vid
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1. How has an understanding of consumer behavior helped Best Buy grow from a smallspecialty audio retailer to the worlds largest consumer electronics retailer?-The understanding of consumer behavior has helped Best Buy expand because itcreates the shop
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1)a. The situation in the northeast is worse than other of the other regions and theUS as a whole. The quarterly change only has increased by 3% as opposed to6% average increase of the US as a whole.b. A reason for the relatively flat sales in the nor
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1) One trend in the environmental forces that could work for Prince Sports is theemergence of social networking through which Prince can advertise its productsto certain demographics at a lower cost than other outlets of advertisement. Thiscould also w
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1) What are the characteristics of the target market for the 3M Greptile GripGlove?a. The target market for the 3M Greptile Grip Glove is golf players that needbetter grip with less grip pressure. These people include individuals that havetendinitis a
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1) Why has Mall of America been such a marketing success so far?a. Mall of American has been a marketing success so far because it haspositioned itself as a destination rather than just a mall. It also has many formsof entertainment such as an aquarium
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1. What promotional opportunities gave Under Armour its initial success?- One of the several promotional opportunities that gave Under Armour its initial successwas the picture of an Oakland Raider player wearing an Under Armour shirt. This created word
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1) In the US, cake mix is in the mature stage of the product life cycle. Thepercentage of consumers that bought cake mix at least once was 80 in 2000 butthis number declined to 77 in 2004. On other hand, Warm Delights is in theindulgent, single serve t
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43applicationquestions,7definitionalquestions,6chapters:13,16,17,19,21,2210chapter135chapter168chapter179chapter1910chapter218chapter22Learningobjective1and2Definitionofmarketingcustomercentric,strategymaprememberthemap.SWOTChapter19tvexamplecons
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1) Data from quarter that ended on April 29th, 2011. * All numbers in millionsBook value of debt : \$31,418Book value of equity: \$8,3702) Cost of EquityStock Price (from 6/3/11): \$15.62Shares Outstanding: 1.89BMarket Capitalization: 22.48BBeta: 1.38
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1) Overall, the costs for a Dutch auction IPO are significantly lower than the costs ofa regular IPO. One reason is that there isnt much marketing done with an auctionIPO. Another reason there are lower costs is that an underwriter is not needed topric
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1) A pro of the international sales plan is there can be arbitrage opportunities that can beexploited since currency rates change. This leads to another possible advantage which isthat is the dollar strengthens the company would have increased income. A
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#1nx bars00.000.00H0 &lt; 35H1 &gt; 35tp#DIV/0!#DIV/0!Since .051 &gt; .05, we cannot reject the null hypothesis and there is not enough evidenceto say that the average colonial home is more than 35 years old#2nx bars#REF!#REF!#REF!H0 &gt; .60
Rutgers - MRKT - 630:301
1) a)What percent of the variation in the sweetness index is due to the differing pectinconcentrations?SweetIndex Pectin22.9% is the variation (taken from r squaremeanSSxxSUMMARY OUTPUT256.9656452.96b)With 95% confidence, what is the expected s
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11.24A)B)C)D)E)F)y hat = 131.92 + 2.73x1+.05x2-2.59x3sig level0.01F0Since 2.32E-05 &lt; .01, there is a relationshipH0B2=0H1B2=/0sig level0.05R^2= .770. This is pretty high which means that the independent variablesexplain part of the tot
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Pivot Tables#28Data1503673812111341225163813107xdfst .005n97.1711113.763.1112test statistic x + t .005(s/sqrt(n)+/102Confidence Interval-4.83199.17We can be 99% confident that the wells have a mean level of MTBEbetween -4.83
Rutgers - STAT - 930
10.627654Mass(pound)3210010203040506070Time(minutes)Thereisastrongnegativecorrelationbetweenthemassandthetime.r=0.0910.6480706050DigestionEfficiency40Column BLinear Regressionfor Column B3020100-10-505101520Chang
Rutgers - STAT - 930
1)a) At the 5% significance level, test the hypothesis that for every unit increase of pectin(in ppm), the sweetness index decreases by about 0.0018.sig levelH0H1n24tobs = -0.0018df22p -0.0018r5%-0.480.64-0.48Since p is not equal to -0.
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Chapter One: Accounting in ActionAccounting consists of three basic activities- it identifies, records andcommunicates the economic events of an organization to interested users.oTo identify economic events, a company selects the economic eventsrelev
Rutgers - ACCT - 101
Accounting Exam Two: ReviewChapter 5:Accounting for Merchandising OperationsRetailers- merchandising companies that purchase and sell directly to consumersWholesalers- merchandising companies that sell to retailersSales revenue/sales- primary source o
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F rom Hellenism to RomeBegin: Fall of Alexander the Great; End: Rise of OctavianAlexander the Great t ransformed ancient worldooHellenism: mix of culture, urbanism + religionsEmbraced Persian cultureThe Hellenistic WorldoLegacy of classical city
Rutgers - CLASSICS - 190
E arly Sumerian CitiesTime periodsooProtoliterate (Uruk) period: 3500-2900 BCoUbaid period: 5000-3500 BCEarly Dynastic period: 2900-2350 BC (divided into 3 parts: I, I I, I I I)Inhabited southern Mesopotamia from the fourth into the early secondm
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Chapter 1: The Investment Environment1. Real Assets versus Financial AssetsReal assets- land, buildings, machines, and knowledge that can be used to producegoods and servicesFinancial assets- stocks and bonds; do not contribute directly to the product
Rutgers - FIN - 380
Chapter 2: Asset Classes and Financial Instruments2.1 The Money MarketMoney market is a subsector of the fixed income market, consists of short termdebt securities that are highly marketableTreasury Bills- most marketable of all money market instrumen
Rutgers - FIN - 380
Chapter 3: How Securities are TradedTwo types of primary market issues of common stockooInitial public offering- stocks issued by a formerly privately owned companythat is going publicSeasoned equity offerings- offered by companies that already have
Rutgers - FIN - 380
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Rutgers - FIN - 380
Chapter 5: Introduction to Risk, Return, and the Historical Record5.1 Determinants of the Level of Interest RatesFundamental Factors that determine the level of interest rates:ooThe demand for funds from businesses to be used to finance investments i
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University of Michigan-Dearborn - ACC - 380
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University of Michigan-Dearborn - ACC - 380
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University of Michigan-Dearborn - ACC - 380
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