Contents Section A: Case Studies 1. 2007 TPJC Prelims H1 Paper CSQ1: China’s Water Woes 2. 2007 GCE A-Level Paper H1 CSQ1: International Tourism (covered in Lecture) 3. 2008 CJC Prelims H1 Paper CSQ1: The Illegal Drug Market 4. 2009 RVHS Year 5 End of Year Exams Paper CSQ1: Challenges of the Agricultural Sector Section B: Essays 1. 2006 SAJC H1 Final Exams: Application of Demand and Supply – Price Control 2. 2008 SRJC H1 Prelims: Market Failure 3. 2008 A Levels H2 Essay: Elasticity of DD and
Premium Supply and demand Externality
made the commitment. Thus‚ in a Cournot game a soft commitment will cause the firm to produce relatively less output‚ while in a Bertrand game a soft commitment will induce the firm to charge a higher price than if it had not made the commitment. 2. How are commitments related to sunk costs? A commitment is a difficult-to-reverse action or investment that alters the subsequent competitive interaction between a firm and its rivals‚ presumably to the advantage of the firm making the commitment.
Premium Economics terminology Game theory Competition
However the welfare is the sum of the new consumer surplus and the producer surplus‚ minus the government’s expenses. Depending on how much the government is spending to subsidies this industry‚ the effect on welfare may be negative or positive. 2. (10 pts) A tax reduces welfare less than a quota because it does not prevent the market from reaching equilibrium. False. A new Equilibrium is reached with both a tax and a quota. A tax causes the price to rise and the quantity supplied to decrease
Premium Supply and demand
Econ 301 Intermediate Macroeconomics‚ Professor __________ Park University Online‚ Fax _________________ Final Exam (Weight 300 Points) STUDENT’S NAME ______________________________ Multiple choice Questions. (Weight 5 points each) Choose the best answer. 1) The unemployment rate is the number of ? 2) The value of steel sold to an automobile producer is __________ directly included in the GDP because __________. 3) In the simplest Keynesian model of the determination of income‚ interest
Premium Economics Question Management
ECO 5305 Final Exam Answers underlined in yellow 1. Fixed costs include: a. variable labor expenses. b. output-related energy costs. c. output-related raw material costs. d. variable interest costs for borrowed capital. 2. Marginal cost equals: a. average variable cost at its maximum point. b. the change in total fixed cost divided by the change in quantity. c. the change in total variable cost divided by the change in quantity. d. total cost divided by quantity
Premium Costs Marginal cost Variable cost
scarcity problem? You would not escape the scarcity problem even if you won $1 million in a lottery because the problem of scarcity will always be present. There will always be unlimited wants that cannot be satisfied due to limited resources. 2 Why is money not considered as “capital” in economics? Money is not a productive resource. It is used for purchasing resources. Capital in economics can actually be used to produce goods and services. 3 Explain the difference between macroeconomics
Free Economics
Business Administration Department of Economics and Finance Econ 341 - Monetary Economics Problem Set 6 (Chapter 22) AlShawa 1. According to the quantity theory of money‚ movements in the price level result * a. solely from changes in the quantity of money. b. primarily from changes in the quantity of money. c. partially from changes in the quantity of money. d. from changes in factors other than the quantity of money. 2. Because Keynes assumed that the expected return on money was
Premium Economics Inflation Macroeconomics
efficient use of limited productive resources to satisfy economic wants. issue of equality in the distribution of income and wealth among households. budget deficits in the domestic economy and trade deficits in the international economy. | 2. (TCO 1) The term scarcity in economics refers to the fact that (Points : 1) | economic wants are limited and resources are abused. even in the richest country some people go hungry. no country can produce enough products to satisfy everybody’s economic
Premium
Chapter 1: Page 20; Questions - 4‚ 7‚ 9‚ 10‚ 11 4) What are the key elements of the scientific method and how does this method relate to economic principles and laws? The key elements of the scientific method are the observation of real world behavior and outcomes. Based on those observations‚ formulating a possible explanation of cause and effect which is a hypothesis. Next‚ testing this explanation by comparing the outcomes of specific events to the outcome predicted by the hypothesis. Then‚ accepting
Premium Economics Supply and demand
Assume that autonomous expenditures in an economy decreased by $10 billion. What is the change in aggregate demand at a given price level if the MPC is 0.5? decrease by $20 billion The actual multiplier for the U.S. economy is thought to be: about 2 How does a change in taxes primarily affect aggregate demand? A tax change alters disposable income and consumption spending. Contractionary fiscal policy consists of: decreased government purchases‚ increased taxes‚ decreased transfer payments
Premium Money Monetary policy