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A Brief Economic History of
the United States
ore than two centuries ago, some Americans believed it was manifest destiny
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conomics is dened in various ways, but scarcity is always part of the denition.
We bake an economic pie each year, which is
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Supply and Demand
hould your college charge you for parking, or should parking be free? Should the
federal government put a
Chapter 13 Workbook Answer Key
Since the 1980s _. (LO5)
a) The banking industry has grown much more concentrated
Which is not in M2? (LO3)
d) Large-denomination time deposits
Which one of the following is the most accurate
When the economy goes into recession, Real GDP _ and the unemployment rate _ .
According to Keynesian theory, during a recessionary gap the governments budget:
c. should be in deficit
Out of 221 million persons aged 16 and older, 1
DEMAND and SUPPLY FUNDAMENTALS: Shifts in Demand or Supply
Name Rebecca Willemstein 2 [worth 50 points]
If in doubt, explain your choice with a sentence of two.
Variables typically included in a multivariate demand function (other than the price and quant
Table 1 make a graph of below.
Table 2 make a graph of:
Chapter 23 # 1 Graph to draw:
Chapter 23 # 2 Graph of a monopolistic competitor taking a loss:
Chapter 23 Graph #3 to draw monopolistic competitor in the long run
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Chapters 17, 18 and 19
Watch the Khan Academy videos on Demand and Supply
Read Chapter 17
There are 5 changes in Demand that shift the demand curve to the right or left. They are
Change in Tastes and Preferenc
S. A rm has total revenue of $15 million, xed costs of $6 million, and variable costs of $8
million. What does the rm do (a) in the short run? (0) in the long run?
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d) State in dollars and cents the minimum points of the AVG and ATC curves.
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yang a x ssq 90
Average Average Average
Variable Total Fixed Variabie Total Marginal
Outgut 3th Cit. 9231 % Cost Cost
1 50 We Leo 20 l '70 3 0
2 80 30 5
C) $6? MK own/RU)? W )0 M radkm
Using the information in Figure 2, answer questions 4~61
Chapter 20 & 22
$91) Variable Total Marginal
Output Cost Cost gm
1 \00 $100 900 \00
2 we 180 also
3 \w 240 3% 70
4 no 320 W 30
1. In Table 1, '
a) If xed is $100, ll in the rest of Table 1.
b) How much is total cost when output is 0?i\00
8. Use your answers from Table 3 to draw a graph of that rm's marginal cost, average variable
cost, and average total cost curves. (Hint: Draw the MC curve rst.)
See, weal-9L '5th
9. State the mi imum points of the AVG and ATC curves in dollars and cents.
3. The Cost of grapes is going up for the wine industry
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4. Income is increasing in the area where you own a restaurant
Using the information in Figure 1, answer questions 13:
Mar 'nal Revenue
Using Table 7,
8.) Fill in the total revenue and marginal revenue columns of Table 7.
13) Draw a graph of the rm's demand and marginal revenue curves (actually the same
Using the information in Figure 4, answer 1216:
Figure 7, how much is total prot?
28. Using Figure 7, what is the rm's price in the long run?
27. Using Figure 7, how much is the most efcient output?
25. Using Figure 7, how much is output?
x) r $Lee)
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his) amides Wises Q ~ in as
A cup of Starbucks gourmet coffee , \Qxxkwk/
Renting a ski boat for a day
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A Box of pickling salt that costs $1.20 and y
Solutions to Worksheets
3. 10 visits to doctors; 1 visit to Disney World
4. A to B: lose 10 PCs; B to C: lose 20 PCs; C to D: lose 30 PCs; D to E: lose 40 PCs; E to F:
lose 50 PCs.
Homework 4 Chapters 25, 27 and 31
Do a., b., and c., and one of d.
a. Find a current article on a labor dispute, summarize and explain at least two
pros and cons of both sides of the argument and;
b. Find a current article on an antitrust or anticompetiti
1. Using Figure
a) Calculate the firm's profit or loss.
b) If this firm were a perfect competitor, what is the lowest price it would accept in the long
2. Using Figure 2,
a) Calculate the firm's profit or loss.
b) If this
1. In Figure 1, place an A to show where our economy operated in 1933, a B to show where our
economy operated in 1944, and a C to show an unemployment rate of 50%.
2. In Figure 2, place a D to show where our economy usually ope
Chapter 13 & 14
1. If M2 is 4000, small-denomination time deposits are 500, large-denomination time deposits
are 400, money market mutual funds held by individuals are 200, and money market mutual
funds held by instituti
1. What does Trade Deficit mean? How can the U.S. eliminate a trade deficit? Why is it
unlikely that the U.S. will eliminate the trade deficit?
According to the, Business Dictionary.com, in a definition that was uploaded and approved
Profit Maximization in a Monopolistically Competitive Market
PROBLEM # 1
From the model above, explain why the firm in a
monopolistically competitive industry can earn an economic
profit in th