Susan Doty
Director of the Center for Economic Education and Financial Literacy
Senior Lecturer in Economics
Fall 2016
P
S
There is no trade so there is
no world price and there are
no imports.
S
E
$1,000
D
1000
Q
The domestic price and the
domestic quant
Measuring the Macroeconomy:
GDP
FALL 2016
UNIT TWO CLASS #1
SUSAN DOTY
CEEFL DIRECTOR
UNIT ONE GRADE REVIEW
QuickStart Points 10 at 10 Points = 100 points*
ILA on McGraw-Hill 4 assignments at 20 points = 80 points
CLCA 9 activities at 10 points = 90 po
Review for Unit Two Short
Answer/Graphing Exam
Susan Doty
Director of the Center for Economic Education and Financial Literacy
Gross Domestic Product
GDP is the dollar (or market) value of all final goods and services
produced in an economy in one year.
1. The crucial problem of economics is
(A) establishing a fair tax system.
(B) providing social goods and services.
(C) developing a price mechanism that reflects the relative scarcities of products and resources.
(D) allocating scarce productive resource
Module 2 Review for final
The short answer review is at the end
The Basics
1) What is Economics? The social science of choice
2) Everything we value is what? Scarce
3) Why do we have to make choices? Because everything we value is scarce and we cannot hav
Principles of Economics
Unit One Sample Test - Professor Doty Fall 2015
1.
Throughout Unit One, we did several class activities designed to help you better understand important economic
concepts. For each of the following activities, describe i) the activ
ECON 5320.701
ECONOMICS FOR MANAGERS
Name:
Exam II
PART II [55 Points]
Computational and analytical questions
You must to show and explain your work
1. [20 Points] Monopoly
You are the manager of a business in a monopoly market with the following
inverse
ECON 5320
Chapter 3 Problems that are in the textbook-steps worked out. If you still have questions,
please email me.
1.
a. When P = $12, R = ($12)(1) = $12. When P = $10, R = ($10)(2) = $20. Thus, the
price decrease results in an $8 increase in total rev
These are the last homework questions worked out that will be included in the midterm.
These are from chapter 7. The midterm includes chapters 1-7. You can go back and review
the questions worked out for each chapter in the Instructor Insights section of
Please use these as a guide for the textbook chapter 5 homework questions. Email me with
any questions that you may need answered.
1.
a. When K = 81 and L = 16, Q = (81)0.75(16)0.25 = 54. Thus, APL = Q/L = 54/16 =
3.375. When K = 81 and L = 256, Q = (81)0
1.
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The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes
a substitute good that it markets under the name Y. Good Y is an inferior good.
a. How will the demand for goo
Here are the problems worked out for the textbook chapter 4. If you have questions, please
let me know via email.
1.
a. The market rate of substitution is
P x 15
=
=3 .
Py
5
b. See Figure 4-1.
c. Increasing income to $600 (by $300) expands the budget set,
1.
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Answer the following questions based on the accompanying diagram:
Instructions: All dollar responses should be entered as whole numbers. Include a minus (-) sign for
all negative answers.
a. How much would the
1.
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The graph below illustrates two demand curves for a firm operating in a differentiated product
oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the
demand curves is
1.
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Use the following, one shot, normal-form game to answer the accompanying questions.
Player 1
Strategy
A
B
C
D
-200, 150
200, -300
-150, 250
Player 2
E
350, 100
400, 400
-250, 550
F
-50, 600
300, 100
750, -350
1.
Award: 0 out of 0.00 points
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You are the manager in a market composed of 4 firms, each of which has a 25.00 percent market
share. In addition, each firm has a strong financial position and is located within a 100-mile radius of
its compet
1.
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Based on the best available econometric estimates, the market elasticity of demand for your firms
product is -2.5. The marginal cost of producing the product is constant at $175, while average total
cost at cu
1.
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A firm can manufacture a product according to the production function:
Q = F(K,L) = K3/4L1/4.
a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the
firm uses 16
1.
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Ten firms compete in a market to sell product X. The total sales of all firms selling the product are
$2,500,000. Ranking the firms sales from highest to lowest, we find the top four firms sales to be
$415,000
2.
Award: 0 out of 0.00 points
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You did not receive credit for this question in a previous attempt
What is the maximum amount you would pay for an asset that generates an income of $250,000 at
the end of each of five years, if the opportunit
1.
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A potential entrant can produce at the same cost as the monopolist illustrated in the figure below.
The monopolists demand curve is given by DM, and its average cost curve is AC.
a. What level of output does t
Chapter 9 Quiz
1.
The following diagram illustrates the reaction functions and isoprofit curves for a homogeneousproduct duopoly in which each firm produces at constant marginal cost.
a. If your rival produces 50 units of output, what is your optimal leve
1.
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The graph below summarizes the demand and costs for a firm that operates in a perfectly
competitive market.
Instruction: Use the nearest whole numbers on the graph when calculating numerical responses
below.
a
1.
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Consider the two options in the following table, both of which have random outcomes:
Option 1
Probability of
Outcome
1/16
4/16
6/16
4/16
1/16
Option 2
Possible
Outcomes ($)
150
300
750
300
150
Probability of
O
1.
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A consumer has $300 to spend on goods X and Y. The market prices of these two goods are Px =
$15 and Py = $5.
a. What is the market rate of substitution between goods X and Y?
-3
b. In the graph below: 1) Illu
1.
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What is the optimal method for procuring inputs that have well-defined and measurable quality
specifications and require highly specialized investments.
Contract
Explanation:
When an input has well-defined and
Name: _ Date: _ Class:
_
AP Economics Unit 2 Test
1. Suppose the total market value of all final
goods and services produced in a particular
country in 2004 is $500 billion and the total
market value of final goods and services
sold is $450 billion. We ca
Name: _ Date: _ Class:
_
AP Economics Unit 3 Test
4. Holly's break-even level of income is
$10,000 and her MPC is 0.75. If her actual
disposable income is
A) consumption spendingwill be $14,500
B) consumption spending will be $15,500.
C) consumption spend
1.
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Southwest Airlines begins a 'Bags Fly Free' campaign, charging no fees for
-2-2
http:/ /ezto.mhedu
a first and second checked bag.
This situation best represents producer-producer rivalry
.
2.
Award: 0 ou