Kelsea Shick Economics October 5‚ 2010 An economic system consists of production‚ distribution/consumption of goods and services of an economy (Grolier). Without any of the above an economy would not become as industrialized and successful as either the
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Quiz 1 1. An increase in the imports of clothing into the U.S from India wills benefits the____________ & hurt the___________. A) U.S. clothing producers; Indian clothing producers B) Indian consumers; Indian clothing producers C) U.S consumers; Indian clothing producers D) U.S consumers; U.S clothing produces 2. Suppose Country A‚ a labor-abundant country‚ produces only wheat & cloth. The following equations illustrate the prices & costs of wheat and cloth in
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Assess the view that making an oligopolistic market more contestable is the best way to improve the efficiency of that market. The theory of perfectly contestable markets was presented as a generalization of the theory of perfectly competitive markets and was presented as providing guidelines for the conduct of regulation‚ namely to allow freedom of entry and exit and to ensure equal access of competitors. An oligopolistic market is a particular market that is controlled by a small number of firms
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influence and normative social influence. • Informational social influence or “social proof”‚ our desire to be right in situations in which the correct action or judgement is not obvious and we need information. Example: On your way to a concert‚ but not sure where the entrance is‚ lots of people are going in a certain direction‚ you follow everyone else. You follow because you lack the information so you do whatever everyone else is doing (they must know something you don’t know). • Normative social influence
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Sample Midterm #1 Questions 1. Which of the following does not constitute a form of direct foreign investment? a. Franchising b. International trade c. Joint ventures d. Acquisitions of existing operations e. Establishment of new foreign subsidiaries 2. Which of the following theories identifies specialization as a reason for international business? a. theory of comparative advantage. b. imperfect markets theory. c. product cycle theory. d. none of the above 3. Agency costs faced by multinational
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1. A nation’s standard of living is best measured by its a. | real GDP. | b. | real GDP per person. | c. | nominal GDP. | d. | nominal GDP per person. | 2. Productivity is defined as the quantity of a. | labor required to produce a nation’s GDP. | b. | labor required to produce one unit of goods and services. | c. | goods and services produced from each unit of labor input. | d. | goods and services produced per unit of time. | 3. The equipment and structures available to
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1. Suppose that there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. Present production is: | |Iowa |Nebraska | |Wheat |20 million bushels
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Opportunity Cost‚ Supply and Demand 1. The following table shows output per hour for Martha and Stewart who make gift baskets and potholders: (a) What is the opportunity cost of a gift basket for Martha? What is the opportunity cost of a gift basket for Stewart? Who has a comparative advantage in producing gift baskets? How can you tell? (b) What is the opportunity cost of a potholder for Martha? What is the opportunity cost of a potholder for Stewart? Who
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Appalachian Coal Mining believes that it can increase labor productivity and‚ there- fore‚ net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR =1‚000 =10P. How much pollution reduction should Appalachian Coal
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Through my whole life‚ I had dreamt of helping people especially those who deserve justice. For this reason‚ my goal is to graduate from university and become a lawyer. Therefore‚ I need to find resources that could help me to achieve my goals. There are many ways in which this scholarship will facilitates me. First of all‚ this scholarship will make it easier for me to function well in my education goals. It gives me an opportunity to further my education at University of Malaya in the field of
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