1. A change in business inventories is:
A. not counted in GDP because it does not represent final sales.
B. counted in GDP as investment.
C. counted in GDP as consumption.
D. counted in GDP as net exports.
2. In what category is the
Mining and Mining Methods
Most of the mineral resources that we use in our daily lives arent easily found and dont come
out of the ground in a useable form. Finding these resources, obtaining (mining) them, and
processing them into something
A river near a Siberian industrial center has turned as red as
borscht , and environmental officials in Russia have ordered an
This widely-shared image posted to a Russian social network depicts
the red Daldykan River near Norilsk. Image: V
Estimating Non-Market Benefits
Willingness to pay may be estimated through either direct or indirect
Direct Method #1: Contingent Valuation.
Derives a demand curve for a non-market good using surveys.
Ask respondents if they would be wiling t
Econ 365, Spring 2017 Chapter 4, The Efficiency Standard
As weve learned, an efficient policy is one that maximizes total surplus, or the sum of producer
and consumer surplus. What would this look like in a graph? This relates to another idea called
Homework #8, Econ 365 Spring 2017
Due by Tuesday, May 9 2017
There is a fish species that grows according to logistic growth:
St+1 = St + g St (1 St /K )
where St is the number of fish in period t, St+1 is the number of fish in the next period (t + 1), K
Lecture Set 2 Econ 365, Spring 2017
Ch. 3 Goodstein and Polasky, Ethics and Economics and How Economists See the
Environment, Fullerton and Stavins (1998)
This chapter throws out quite a few terms that may be new to you, such as utility, utility
Homework #4 Environmental Economics
Reading questions: How Efficient is Energy Efficiency? An interview with economist Arik Levinson
If you dont want to read the transcript, you may listen to the podcast at
Econ 365, Homework #5 Spring 2017
This homework is due on Thursday, April 6 2017.
Suppose that hedonic wage studies indicate a willingness to pay of $50 per person for a reduction in the
risk of premature death from an environmental hazard of 1/100,000
Econ 365, Spring 2017 Homework #6
This homework is due in class on Tuesday, April 25 2017.
1) Complete the Mining Impacts Reading posted to Blackboard. We will discuss this
reading (as part of a group activity for your participation credit in this class).
Money Vs. Humanity: Do the Poor Deserve Life Support?
We dont live in a black and white world- there are several shades of gray we encounter
daily and in severe situations. There are numerous of gray areas one would face when
Econ Midterm #1 Study Guide
1. Association does not indicate causation
2. Draw Production Possibility Curve
3. Draw the Circular Flow of the Economy
4. Draw the Scarcity Model (include questions)
5. Rules shifts in Supply (4)
Marginal thinking is best demonstrated by:
choosing to spend one more hour studying economics because you think the
improvement in your score on the next quiz will be worth the sacrifice of time.
Economists refer to
Which of the following statements most likely lies within the realm of microeconomics?
An increase in labor costs will increase the additional cost of producing another
Regardless of whether you are looking thro
1. A firm that holds a monopoly position in the market place is
a price maker
a price taker
subject to infinite market forces
1. What qualities would ideally suit a monopolistic firm with regard
Exam 2 Review Questions
1. What kind of examples of public policies do you know that set the market
2. What is a price floor? When is it binding? Not binding? How does it look on
3. What is a price ceiling? When is it binding?
You have 2 identical Elvis Presley albums to sell. You auction them off to 4 possible buyers.
Both albums are to be sold for the same price. Therefore, price rises until 2 buyers are left.
Bidding stops when price reaches $70.
Willingness to Pa
TI = GI Allowable tax deductions
Tax Law provides exclusions for many types of income: (apply to all taxpayers, including individuals)
Interest from state and local bonds
Life insurance paid on death of the insured
Imputed interest on below-mar
Child tax credit - A tax credit based solely on the number of
qualifying children under age 17. The maximum credit available is
$1,000 per child through 2013. A qualifying child must be claimed
as a dependent on a parent's tax return to qualify for the cr
Consider the following table for a period of six years.
U.S. Treasury Bills
Part 1: Calculate the arithmetic average returns for large-company
Use the following returns for X and Y.
Part 1: Calculate the average returns for X and Y.
X = (21.4 + -16.4 + 9.4 + 18.8 + 4.4)/5 = 7.52%
Y = (25.2 + -3.4 + 27.2 + -13.
Homework #1: Suppose a stock had an initial price of $119 per share, paid a dividend of $3.20 per share during the
year, and had an ending share price of $150. Compute the dividend yield, capital gains yield, and percentage total
PORTERS FIVE FORCE ANALYSIS
Threat of substitutes
Threat of new entrants
Intense rivalry amongst existing players
Bargaining power of suppliers
Bargaining power of buyers
Substitutes are products or services provided by another industry tha
Credit for certain retirement plan contributions - A nonrefundable
credit is available based on eligible contributions of up to $2,000
to certain qualified retirement plans, such as traditional and Roth
IRAs and 401(k) plans. The benefit provided by this
Adoption expenses credit - A provision
intended to assist taxpayers who incur
nonrecurring costs directly associated with
the adoption process, such as legal costs,
social service review costs, and transportation
costs. Up to $13,190 ($13,190 for a child
American Opportunity Credit - This credit replaces the HOPE scholarship
credit for 2009, 2010, 2011, 2012, and 2013 and applies for qualifying
expenses for the first four years of postsecondary education. Qualified
expenses include tuition and related exp
Adoption expenses credit - A provision intended to assist
taxpayers who incur nonrecurring costs directly associated with
the adoption process, such as legal costs, social service review
costs, and transportation costs. Up to $13,190 ($13,190 for a