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Unformatted text preview: Final Exam: Fall 2005 Student Name:________________ BA 315: Economy, Industry, and Competitive Analysis HW Team#:____________ Charles H. Lundquist College of Business University of Oregon Ali Emami Please answer all questions. For questions marked with (*), support your answers by showing your calculations, words, or graphs . Correct answers without such supports will not receive any credit. For multiple choices questions, circle only one of the letters associated with the right answer (do not make any other forms of marking on answers). Please do not attach extra paper. Part A: Multiple Choice Questions (One point each) 1. Which of the following events would cause the production-possibilities curve to shift inward? A) The labor supply grows. B) New factories are built. C) A technological breakthrough occurs that makes production of all goods more efficient. D) A major earthquake destroys several industrial centers. Use the following to answer question 2: Figure 1 Production possibilities I N V E S T M E N T G O O D S CONSUMPTION GOODS A B D C 2. Expansionary monetary and fiscal policies are designed to move the economy in Figure 1, in the short run, from point: A) A to point B . B) C to point B . C) C to point D . D) D to point B . 3. In the U.S. economy, foreigners participate in: A) The factor market only. B) The product market only. C) Both the product and factor markets. D) Foreigners do not participate in the U.S. economy. 4. Marginal utility is an important economic concept because it: A) Indicates the budget limitations of the consumer. B) Is the total utility a consumer receives from a good. C) Predicts the amount of a good a rational consumer will purchase. D) Predicts the amount of a good a business will produce. 1 Use the following to answer question 5: Figure 2: Cost structure for a competitive Firm in the short-run $ q 8 0 0 1 0 0 3 5 4 2 1 M C A TC 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 A V C 0 Priceandcost(dolars) These are the cost curves for a perfectly competitive firm. 5*. If market price is $5, how much profit will the firm earn? A) $600 B) $900 C) $3,000 D)- $600 6. The competitive structure of an industry is unattractive from a profit-making perspective when A) the industry's driving forces are strong and there are more than three key success factors. B) there are few opportunities for achieving scale economies and experience curve effects are minimal. C) capital requirements are large, entry barriers are fairly high, and companies must spend heavily on advertising to retain customer loyalty and maintain a strong brand image....
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This test prep was uploaded on 04/22/2008 for the course ECON 315 taught by Professor Aliemami during the Spring '08 term at University of Oregon.
- Spring '08