APEC_1102_Review_Questions_for_Exam_1

APEC_1102_Review_Questions_for_Exam_1 - APEC 1102:...

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APEC 1102: Principles of Macroeconomics Review Questions for Exam I Analytical " Essay " Questions 1. How often do you rent DVD’s? Would you do so more often if a rental costs half as much? Distinguish between your demand curve for DVD’s and your "quantity demanded" at the current price? 2. Housing prices in Dallas-Texas and Houston –Texas have been on a roller coaster ride. Explain using supply and demand curves the effect of the following on the market for homes in both cities: a. A unilateral reduction in income taxes and property taxes by the state government. b. Low labor cots due to non unionized workers. c. Sudden migration of "baby boomers" back to the state of Texas due to a reduction in crime rates. 3. Define producer surplus and consumer surplus. Graphically illustrate the two concepts separately using supply and demand curves. 4. "The prices of condominiums in downtown Minneapolis has been increasing sharply. The demand for condominiums in downtown Minneapolis has been rising sharply as well. This is hard to explain because the law of demand states that higher prices
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This note was uploaded on 04/25/2008 for the course APEC 1102 taught by Professor Tade during the Spring '08 term at Minnesota.

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APEC_1102_Review_Questions_for_Exam_1 - APEC 1102:...

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