Microeconomics 201 First Midterm Chapter 1 Introduction: What Is Economics? 1.1 What Is Economics? 1) Which of the following is n o t a factor of production? A) money B) human capital C) physical capital D) labor Answer: A 2) An arrangement that allows buyers and sellers to exchange things is called: A) a contract. B) money. C) efficient. D) a market. Answer: D 3) Economics is best defined as the study of: A) financial decision‑making. B) how consumers make purchasing decisions
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Make up assignment: 5. Choose three retailers. You believe the first builds customer value through product excellence‚ the second through operational excellence‚ and the third through customer excellence. Justify you answer. 6.Visit the website of your bank and try to identify how it uses STP to develop various types of bank accounts (products) and charge different fees (price) for different types of accounts. 5. Product excellence: Apple IPhone Steve Jobs unveiled iPhone to the
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Problem set 2.2 This question Is mainly concentration on the price changed effect. As the price raise ‚what is the changed to the quantity‚ turnover ‚and the market equilibrium. And the assumption are as following: The demand of the concert remain unchanged‚ the supply of the concert also unchanged( which consist on 3 concerts) ‚so the supply curve is vertical. In the question‚ the concert price in 2005 is $500 and all the tickets have been sold out which are 12000seats. The turnover is 12000seats
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A minimum wage policy induces an: Select one: a. elastic labor supply response. b. excess supply of labor. Correct c. excess demand for labor. d. efficient market outcome. Suppose the demand and supply curve for good X are as follows: PD = 533 – 5Q PS = 122 + 3Q where P is the price of X and Q is the quantity. Suppose an excise tax of $8 per unit of X is assessed on this market. What is the new equilibrium quantity of X? Answer Feedback The correct answer is: 50.375 Use
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THE GLOBAL ECONOMY PROJECT PAPER 2 By Team F Submitted in Partial Fulfillment of the Course Requirements for Business Economics ECON545 Professor The US Economy in 1982-2000 Introduction Throughout the late 1970s‚ American people had grown discontent with the government’s fiscal and monetary policies as the economy was stagnant and recovery was not in sight. This ultimately led to the election of former actor and California governor‚ Ronald Reagan in 1980. President Reagan’s
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100 Points Total Answer the following questions as well as you can. LATE HOMEWORKS ARE NEVER ACCEPTED. You may meet/consult with colleagues in the class. But the assignment you turn in needs to be your own work. You should show some (though not necessarily every bit) of work for any substantial calculations. 1. (Each part 5 points) Suppose . That is‚ X has a normal distribution with μ=30 and σ2=144. 1a. Find a transformation of that will give it a mean of zero and a variance of one (ie
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ELEMENTS OF ECONOMICS (3RD EDITION) BOOK I. Compiled by J. Linn 1 Economics is the study of allocation of scarce resources among wants that exceed those resources 2 A good is scarce if the amount demanded exceeds the amount supplied at a zero price. 3 Resources are inputs used to produce goods and services. 4 Human rational self-interest is assumed. 5 Economics is a science‚ and employs the scientific method. 6 Theory is a set of testable hypotheses that explain observed
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Exercise 1 Question 1- Everyone’s Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Why does this happen? Let’s take a closer look at what it takes to get a gallon of gas into your car. All gas companies follow the same basic formula. Crude Oil + Refining Process + Retail Sales/Distribution + Taxes = Gas Price The problem with this formula is not all of these components contribute equally. So let’s take a look at each of these components and what economic
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Ten principles of economics HOW PEOPLE MAKE DECISIONS #1: People Face Tradeoffs There is no such thing as free lunch. To get one thing that we like‚ we usually have to give up another thing that we like. Making decisions requires trading off one goal against another. #2: The Cost of Something Is What You Give Up to Get It The opportunity cost of an item is what you give up to get that item. When making any decision‚ such as whether to attend college‚ decisionmakers should be aware of the opportunity
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a. Explain the difference between merit goods‚ demerit goods and public goods (10 marks) Merit goods‚ demerit goods and public goods could all cause market failure‚ which is a situation where goods and services in a free market are not allocated efficiently. The ways in which these 3 kinds of goods cause market failure are different and will be explained below. Firstly‚ merit goods refer to goods with positive externalities. This means that its consumption or production can create unintended positive
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