University of Lethbridge Econ 3030Y – Managerial Economics PRACTICE MIDTERM EXAMINATION Fall 2012 Marks: 80 Time: 2 hours The examination is out of 80 marks. You have 2 hours to complete it – please note the value of each section and plan your work accordingly. This is your opportunity to demonstrate your knowledge and understanding of the material. A premium will be placed on the clarity of the exposition. Question 1 (10 marks) Copy the following table in your examination booklet‚ complete
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been far stronger than we anticipated‚" said Lee Don-Joo‚ head of sales and marketing at Samsung’s mobile unit.US telecom carriers T-Mobile and Sprint both had to postpone scheduled sales of the S4‚ citing delays in shipments from the South Korean consumer electronics giant. The world’s top handset maker starts selling the much-anticipated device in South Korea on Friday‚ followed by a global roll-out at the weekend. The S4‚ armed with eye motion control technology that will pause a video when the
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ticket‚ and you sell him the ticket. What is his consumer surplus? a. $410 b. $90 c. $10 d. $0 Buyer Willingness to Pay Michael $500 Earvin $400 Larry $350 Charles $300 Figure 3-2 The vertical distance between points A and B represents a tax in the market. 4.Refer to Figure 3-2. The amount of deadweight loss as a result of the tax is a. $105. b. $210. c. $490. d. $600. Figure 3-3 5.Refer to Figure 3-3. Which area represents consumer surplus at a price of P2? a. ABD b. ACG c.
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carbohydrates. This negative perception resulted in a decreasing consumption and an inferior image of potatoes. Among other national and regional boards‚ Western Potatoes is now trying to change customers’ negative perception. This report examined Western Potatoes marketing campaign for the years 2008 and 2009. It was the aim of the report to evaluate‚ whether the undertaken actions of Western Potatoes were appropriate with respect to the existing theories and concepts of perception. In addition the report
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We know from the text book that we can think of the product’s value to the customer as the highest price he/she is willing to pay in the absence of a competing product and in the context of other items to buy. In other words‚ the maximum amount a consumer thinks a product or service is worth. Any higher price than this means that the customer simply refuses to purchase the product. If we look at a product such as tap water‚ we know that in the United States this is a readily available resource; I
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It’s 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 good X change if consumer incomes increase? Since X is a normal good‚ an increase in income will lead to an increase in the demand for good X. b. How will the demand for good Y change if consumer incomes decrease? Since Y is an inferior good‚ a decrease in income will lead to an increase in the demand for good Y. c. How will the demand for good
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Gas prices have continued to increase over the last seven years‚ which has drastically changed the way people spend money. In just the last week‚ the price of gas per gallon fluctuated 50 cents a gallon‚ making it difficult for consumers to budget their gas spending. Regardless of the price of gas‚ few Americans are likely to drive less‚ but rather cut spending in other portions of their household budget. 70 percent of Americans are more likely to cut back on entertainment‚ 60
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Econ 301 Review 1 Spring 2014 1. A consumer can spend her fixed income of $200 on two products‚ food (F) and luxuries (L). The consumer’s tastes are represented by the utility function U=FL. Food sells for $2 per unit and luxuries sell for $5 per unit. a) Draw the budget constraint of the consumer and explain your diagram. b) Knowing that the marginal utilities of F and L are MUF = L and MUL = F‚ respectively‚ compute the amount of each good in the consumer’s optimal basket. 2. Let income
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Public Finance and Public Policy Jonathan CopyrightGruber © 2012 Fourth WorthEdition Publishers Copyright © 2012 Worth Publishers 1 of 46 Theoretical Tools of Public Finance 2 2.1 Constrained Utility Maximization 2.2 Putting the Tools to Work: TANF and Labor Supply among Single Mothers 2.3 Equilibrium and Social Welfare 2.4 Welfare Implications of Benefit Reductions: The TANF Example Continued 2.5 Conclusion PR E PAR E D BY Dan Sacks Public Finance and Public Policy Jonathan Gruber Fourth Edition
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the Happy-Is-Productive Model 2-1 Chapter 02 - Economists’ View Of Behavior DECISION MAKING UNDER UNCERTAINTY Expected Value Variability Risk Aversion Certainty Equivalent and Risk Premium Risk Aversion and Compensation SUMMARY APPENDIX: CONSUMER CHOICE Marginal Utility Slope of an Indifference Curve Individual Choice Solving for the Optimal Consumption Bundle Demand Functions Income and Substitution Effects Magnitude of the Substitution Effect Additional Considerations Calculus Derivation
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