1. Jim has estimated elasticity of demand for gasoline to be 0.7 in the short run and 1.8 in the
long run. A decrease in taxes on gasoline would
d. lower tax revenue in the short run but raise tax revenue in the long run.
2. Which one
City University of Seattle
Masters in Business Administration
MBA 531: Applied Managerial Economics
The Merge of Fiat and Chrysler: The birth of FCA
Professor: Yunae Wilson
Student: Elsa Trevio Salazar
Student ID: 30115222
1. After massive promotion of Justin Biebers latest music album, the producers reacted by raising prices
for his albums. This implies that promotion expenditures made the album demand
d. less elastic.
2. All the following choices are
1. A business owner makes 1,000 items a day. Each day he or she contributes eight hours to produce
those items. If hired, elsewhere he or she could have earned $250 an hour. The item sells for $15 each.
Production does not stop during weekends.
1. You are bidding in a second-price auction for a painting that you value at $800. You estimate that
other bidders are most likely to value the painting at between $200 and $600. Which of these is likely to
be your best bid?
1. In the long run, which of the following outcomes is most likely for a firm?
d. Zero economic profits but positive accounting profits
2. At the individual firm level, which of the following types of firms faces a downward sloping de
1. The prisoners dilemma is an example of
b. a simultaneous game.
2. Nash equilibrium
b. is where each player maximizes his own payoff given the action of the other player.
Use the following to answer Questions 35: Consider the follo
Multiple choice questions
1. Why might performance compensation caps be bad
a. Different pay rates promote dissent
b. Compensation caps can discourage employees from being productive after the cap
2. What is a possible consequence of a performan
Created by Dr.Ibrahem Alezee
Tuesday, May 08,
SPECIAL NOTES REGARDING THE MAIN POINTS OF CHAPTER ONE
Definitions of Economics
Economics is best defined as the study of how people, businesses, governments, and
societies make choices to cop
Microeconomics 9e (Parkin)
Chapter 1 What Is Economics?
1 Definition of Economics
1) All economic questions are about
A) how to make money.
B) what to produce.
C) how to cope with scarcity.
D) how to satisfy all our wants.
Topic: Definition of E
Discussion Questions for Tutorial in week 12 [Team D] Chapter 11
1. Using the classification in the lecture notes, in which category does each of the following
goods belong? Explain.
a. Deer on a hunting preserve
b. Deer in the wild
c. Broadcast radio sig
Discussion Questions for Tutorial in week 11 [Team C] Chapter 10
1. Consider two ways to protect your car from theft. The Club, a steering wheel
lock, makes it difficult for a car thief to take your car. Lojack, a tracking system,
makes it easier for the