Premium Essay

Econ Quiz

In: Business and Management

Submitted By AbdulaziZ91
Words 406
Pages 2
1. Price controls are usually enacted
a. as a means of raising revenue for public purposes.
b. when policymakers believe that the market price of a good or service is unfair to buyers or sellers.
c. when policymakers detect inefficiencies in a market. d. All of the above are correct.
ANS: B 2. A price ceiling
a. is a legal maximum on the price at which a good can be sold.
b. is often imposed in markets in which “cutthroat competition” would prevail without a price ceiling.
c. is often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
d. All of the above are correct.
ANS: A 3. A price floor is binding if it
a. is set lower than the equilibrium market price.
b. results in an observed price that is the same as the equilibrium price.
c. leads to a surplus. d. is strictly enforced by the government.
ANS: C 4. If a binding price ceiling were imposed in the computer market,
a. the demand for computers would increase. b. the supply of computers would decrease.
c. a shortage of computers would develop. d. All of the above are correct.
ANS: C 5. Advocates of the minimum wage
a. deny that the minimum wage produces any adverse effects.
b. emphasize the benefits to teenagers of increases in the minimum wage.
c. emphasize the low annual incomes of those who work for the minimum wage.
d. All of the above are correct.
ANS: C 6. The minimum wage is an example of
a. a price ceiling. b. a price floor.
c. a wage subsidy. d. a price control that is not binding.
ANS: B

7. Refer to Figure 6-8. The effective price that buyers pay after the tax is imposed is
a. $8. b. $6. c. $5. d. $3.
ANS: A

8. Refer to Figure 6-8. The price that sellers receive after the tax is imposed is
a. $8. b. $6. c. $5. d. $3.
ANS: C

9.…...

Similar Documents

Premium Essay

Econ

...ECON 191, Fall 2012 Guidelines for Writing an Economics Research Paper Writing a good economics paper is both an exciting and a nontrivial task. It requires a sustained effort in identifying an important question and in developing a credible model to think about that question or a testable hypothesis to answer it. In many cases it may require collecting data that gives the opportunity to test the hypothesis that you develop. You are encouraged to structure your paper in four parts: introduction, literature review, body, and conclusion. A brief abstract of no more than 100 words should precede your paper. Introduction Identifying a significant and well formulated question is the single most important part of the research process and the most difficult as well. A good research question has to be concise (remember, you are writing a 15-page paper, not a book), feasible and important. Choosing a research question requires balancing importance and feasibility. Feasibility means tractability for theoretical research and data availability for empirical research. Whenever you come up with an idea for a research question, always try to think about a critic sitting in front of you asking “Why should I care about this?” Consider this question to be a first filter for your research question. Identify a well-defined research question. The introduction is where you (1) present the research question, (2) motivate why it is important and briefly outline (3) how you go about answering it...

Words: 1405 - Pages: 6

Premium Essay

Econ

...Lassiez Faire. The invisible hand. What is the invisible hand? How to increase national income (expansionary) [opposite is contractionary) Money supply up Banks lend more, interest rate down Radicals, socialists Causes: Interest rate down Buy bonds More people deposit money His serious book. Difficult read. "Capital" three volumes. First in 1867 Volume two and three published after his death Major book? National income When Fed buys bonds it must at democratically. It must offer higher prices for people to want to sell bonds. Others like Lenin talked about Socialism/Communism. Talked mostly about Capitalism. He talked very little about socialism and communism. Most popular booklet likely the Communist Manifesto. Easy read. Econ Final What is his booklet? Looking and analyzing our economy. (Consumer + investment + government + net exports) Workers/employees are exploited by owners (capitalists.) Liberals and conservatives reject this belief. They argue, whatever wages/benefits receive, as determined by the market, is what they deserve. The Concept of Exploitation. What is that? What is the main idea that separates a Marxist from a non-Marxist? What was the Keynesian equation that equalled GDP? C+I+G+Xn Liberal economists Money Employees make the surplus What defines money? M1 or M2 Capitalists control the surplus Velocity (388) Significant part of surplus is used for investment under capitalism. Profit (most of the surplus) What......

Words: 2975 - Pages: 12

Premium Essay

Econ 545 Quiz 1 Guidllines

...ECON545 Quiz 1 Guidelines Recall that Keller courses are built around Terminal Course Objectives (TCOs). At the conclusion of the course, you will even be asked to rate the extent to which the TCOs have been covered. There are 9 TCOs specified for GM545. Review the TCOs by clicking on Course Syllabus at the top of the course home page, and then clicking on the Terminal Course Objectives link. Also, please note that the TCO(s) to be covered during any given week are specified in the Objective section for that course week. Quiz 1 addresses material covered in Weeks 1 and 2 of the course. The TCOs at issue are: Course Objective Description A Given a demand function and a supply function, illustrate how the price mechanism, in response to changes in other demand or supply factors, leads to a new market equilibrium price and level of output. B Given appropriate marketing data, including price elasticity coefficients, demonstrate how to use this information in product pricing in order to maximize revenues. C Given knowledge of key cost and marginal revenue relationships, use marginal analysis to demonstrate shutdown, break-even and optimal output points, as well as the optimal amount of a resource to utilize. You will note that the problems that have been assigned from the book focus on these TCOs. The problems address the basics while Discussion topics focus on broad applications. The quizzes (and the final exam) emphasize the basics. So, make......

Words: 2613 - Pages: 11

Premium Essay

Econ

...Econ Problem Set #3 1. Suppose that a comic book publisher pays an annual licensing fee of $20,000 for the rights to an artist’s character. Which would have a larger impact on the number of readers of the comic using this character: (i) an increasing in the printing costs associated with publishing the comic, or (ii) an increase in the artist’s licensing fee to $22,000. Please carefully explain your reasoning. The increase in printing cost would have the larger impact on the number of readers of the comic. Because the increase in printing cost could be thought as a variable cost increase. The increase in cost would vary when the quantity increases. The increase costs per book could be easily realized and thus the publisher would choose to increase the price of goods. The number of readers would thus decrease due to increase of selling price. For the increase in license fee, it would be considered as fixed cost, which is more important in the short run business instead of long run businesses. 2. A firm's total cost schedule and the demand for its product are summarized in the table below (a) Complete the table and use the tools discussed in the online lecture and in the book to determine the level of output that maximizes the firm's profit. Costs | Revenues | Quantity Produced | Total Cost | Marginal Cost | Quantity Demanded | Price | Total Revenue | Marginal Revenue | 0 | 0 | - | 0 | 155 | 0 | - | 1 | 70 | 70 |...

Words: 505 - Pages: 3

Premium Essay

Econ

...cross-cultural marketing, experiential education, and effective pedagogy. My research articles are published in numerous journals that include International Journal of Business Strategy, The Journal of Current Research in Global Business, Competition Forum, Journal of the Northeastern Association of Business Economics and Technology, Journal for Advancement of Marketing Education, Applied Business Review, Journal of Promotion Management, Journal of Global Business, Journal of Marketing Education, and Journal of the Academy of Business Education. Catalog Description  A study of those activities necessary to the design, pricing, promotion, and distribution of goods and services for use by organizations and ultimate consumers. Prerequisites  ECON 122 Principles of Economics II Junior Standing  Message from Dean’s Office: There will be absolute enforcement of every pre-requisite requirement for the course work offered by the Eberly College of Business & Information Technology. This means that students cannot postpone pre-requisites and take them after the course in question. The dean's office is responsible for monitoring course pre-requisites. Students who manage to register for course work in spite of the fact that they do not have the appropriate pre-requisite will be subject to unilateral withdrawal after the course has commenced. At that time, no appeal will be accepted, and adding a different class after the official registration period will not be......

Words: 1615 - Pages: 7

Premium Essay

Econ

...Quiz Note: It is recommended that you save your response as you complete each question. Question 1 (1 point) Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that Question 1 options: we should agree with Senator Brown. we should agree with Senator Johnson. a good decision requires that we recognize both viewpoints. there are no tradeoffs between equity and efficiency. Save Question 2 (1 point) When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included? Question 2 options: Your full room-and-board expenses should always be included. None of your room-and-board expenses should ever be included. You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college. Save Question 3 (1 point) Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market? Question 3 options: to promote efficiency to promote equality to enforce property rights to protect an industry from foreign competition ...

Words: 7170 - Pages: 29

Premium Essay

Econ Practice Quiz

...~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ AP Econ Quiz 6 ~ Supply & S/D Name: ____________________________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1. A supply schedule shows |a. |the "market potential" for a product. |d. |how much consumers would like to buy at different prices. | |b. |how much producers are willing and able to sell at different prices. |e. |All of the above are correct. | |c. |possible combinations of output under different conditions. | 2. If price rises, what happens to quantity supplied for a product? |a. |It increases. |c. |It does not change. | |b. |It decreases. |d. |Quantity supplied is constant, but supply increases. | 3. Along a supply curve, |a. |supply changes as price changes. |c. |supply changes as technology changes. | |b. |quantity supplied changes as price changes. |d. |quantity supplied changes as technology changes. | 4. If new manufacturers enter the gadget industry, then which of the following will most likely happen with gadgets? |a. |the supply will increase |c. |the quantity supplied will increase | |b. |the supply will decrease |d. |the quantity supplied will decrease | 5. An increase in the price of metal raw materials will result......

Words: 833 - Pages: 4

Premium Essay

Econ

...ECON 2113 Homework 2 L4 Hu Weiwei 20268464 Xu Lili L4 Hu Weiwei 20268464 Xu Lili 1a. The demand curve is estimated as Qd = 1600-2400P and the supply curve for pay telephone service is Qs = 200+3200P. When equilibrium is reached, the quantity demanded is equal to the quantity supplied. Thus, we can solve 1600-2400P = 200+3200P to find out the equilibrium price. By calculation, the equilibrium price P = $0.25. Substitute P = $0.25 into the demand curve equation, Q = 1600-2400(0.25), the equilibrium quantity Q = 1000. Therefore, the equilibrium price is $0.25 and the equilibrium quantity is 1000 pay telephone calls per month. 1b. With the effective price ceiling at $0.10 on local pay phone service in long run, it is below the equilibrium. Since the quantity demanded is larger than the quantity supplied after the price ceiling is imposed, shortage is resulted. As the price is restricted at $0.1, though Qd = 1600-2400(0.1) = 1360, Qs = 200+3200(0.1) = 520 < Qd = 1360. The quantity supplied is not enough to satisfy the quantity demanded. It results in a shortage of 1360-520 = 840 pay telephone calls per month.Therefore, the maximum......

Words: 2075 - Pages: 9

Premium Essay

Econ

...Will Bury Business Proposal Econ/561 March 2, 2011 To: Whom it May Concern From: Will Bury Date: March 2, 2011 I have gathered you here today to discuss the future of my company Will Bury’s Digital Books. My company’s structure is monopolistic competition, which mean as demand increases, prices decrease. To make any profits, I have to make sure that my product is in demand (Halmos, 1995). After that, it is in my best interest to determine ways to increase revenue, minimize cost, profit maximizing quantity, concepts of marginal cost and marginal revenue, pricing and non-pricing, barriers to entry, and product differentiation. The things I have listed will ensure the success of my company. Increase Revenue and Minimizing Cost Increasing revenue and minimizing cost is what we strive to do as an organization. Many things considered in the process of creating a plan to increase revenue and minimize cost. I believe that I first need a budget to be set so I do not overspend; therefore, I will minimize cost because I will not spend any unnecessary money. One way to cut cot is to do just in time processing; orders are produced when orders are complete. This will prevent overstock. Instead of hiring a high school graduate or overseas staff, my plan is to partner with local colleges and getting some interns. I can get interns to work free; this will cut cost and ultimately increase revenue and minimize cost. Minimizing my variable cost is also away to minimize cost and......

Words: 1199 - Pages: 5

Premium Essay

Econ

...ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #1 Suggested Answers and Comments Notice: (1) This set of extra problems contains 25 multiple-choice problems and 6 analytic (short-answer) problems. These problems are not homework and will not be graded. The aim of these problems is to provide you with additional exercises. (2) I will give solutions of the assignment and the “extra-problem” set after the due date. Page 1 Problem 1~25: Multiple choice problems 1. C 2. A 3. D This problem helps you pay attention to the difference between variables and functions. First, whether prices (wages are prices for labor) are assumed to be flexible or 4. C sticky depends on the time horizon. In other words, the assumption of flexible prices is proper in a long-run model while the assumption of sticky prices makes sense in a short-run model. Second, a large part of macro-theory is based on the optimizing behavior of individual agents, such as households and firms, but the main concern of macroeconomics is the movement of the whole economy aggregated from those individual decisions. 5. B Economists, as well as most other social scientists, cannot do controlled experiments. 6. A Consider the National Income Accounts Identity: Y = C + I + G + NX 7. B 8. C Inventory is a kind of investment, so the sale of inventory can be understood as a decrease of investment, but there is an increase in consumption in the same......

Words: 1249 - Pages: 5

Premium Essay

Econs

...firmsDefine monopolyAnalyze monopolistDiscuss price discrimination | Parkins, Chapters 12 & 13 | 616 Sep | Monopolistic CompetitionOligopoly(Quiz 1: MCQ covering Lectures 7 to 11 during second half of Tutorial 11) | Define monopolistic competitionAnalyse monopolistic competitive firmsDefine oligopolyAnalyze oligopoly games | Parkins, Chapter 14 & 15 | 723 Sep | Introduction to Macroeconomics Measuring GDP and Economic GrowthMonitoring Jobs | Calculate GDPLink GDP to Economic GrowthCalculate labour figuresAnalyze unemployment | Parkin, Chapters 21 & 22 | 87 Oct | Monitoring InflationEconomic Growth | Calculate inflationAnalyze inflationAnalyze economic growth | Parkins, Chapters 22 & 23 | 914 Oct | Expenditure Multipliers: The Keynesian Model | Derive multipliersExplain multiplier effectApply Keynesian Model | Parkins, Chapter 28 | 1021 Oct | Finance, Saving and InvestmentMoney, the Price Level and Inflation | Discuss saving and investmentAnalyze money supplyExplain money supply and inflation | Parkins, Chapter 24 & 25 | 1128 Oct | Aggregate Supply and Aggregate DemandFiscal Policy | Derive aggregate demandDerive aggregate supplyApply aggregate demand aggregate supply to analyze fiscal policy | Parkins, Chapters 27 & 30 | 124 Nov | Monetary PolicyThe Exchange Rate and the Balance of Payments(Quiz 2: MCQ covering Lectures 1 to 5 during second half of Tutorial 5) | Apply aggregate demand aggregate supply to analyze monetary policyDefine and......

Words: 591 - Pages: 3

Premium Essay

Econ

...assignment is allowed, under any circumstances. * At the start of the 3rd class, all students must have formed groups of 3. They must inform the TA about their group. The students will submit all group assignments in the group formed. If you change your group under any circumstance, your assignment will not be graded. Every week, one group will be called randomly and will be asked to present the assignment given, or topic covered in last class, or any other topic the instructor deems fit. The group must be ready and should present when asked to. No excuses will be allowed for not presenting. You will be graded on your presentation on the basis of concept delivery and creativity in presentation. * Quizzes will be announced hence no makeup quiz will be taken for any student, under any circumstance. Quizzes will be conducted in the first 15 minutes at the start of the class. * At the end of every class the TA will mark the students’ class participation on a scale of 1-3, on the following guideline below. The class participation scores will be uploaded at the end of the semester. This component will keep on revising; therefore, you cannot be informed about them mid semester. Do not harass the TA or the instructor to tell you your score mid semester. Those students who disrupt the class and distract students will be negatively marked in the CP component. Marks | Description | 0 | Absent | 1 | Present but not contributing | 2 | Present and occasionally......

Words: 2405 - Pages: 10

Premium Essay

Econ

...25 markers Econ The term inflation means a persistent increase in the level of prices. The question believer that an increase in aggregate demand can cause inflation, however there can also be other factors that can cause inflation. The term aggregate demand is that total planed expenditure in the economy. Known by the identity C+I+G+(X-m). In macroeconomics there are 2 types of inflation, demand-pull inflation and cost-push inflation. The demand-pull inflation is caused by an increase in total spending (aggregate demand), the economy is producing beyond the economy’s ability. The aggregate demand in an economy strongly outweighs the aggregate supply, which cause the price to increase. As the economy reaches full capacity, firms will be struggling to produce enough to meet the rising demand. As you can see from the figure, AS is slow curving up and becoming inelastic because of full capacity. The demand curve then shifts to the right because of a high demand, from AD1 to AD2. This causes involuntary stock depletion due to a low supply. When this happens, firms will choose to increase price to widen the profit margins. So price level increase from P1 to P2. Furthermore, as employment in an economy increase, the demand in goods and services will be much more inelastic. This allows firm to increase the price more without any significant fall in demand. There are various reasons that can cause an increase in aggregate demand. First of all, a decrease in exchange rate......

Words: 626 - Pages: 3

Premium Essay

Econ

...ECON Project I. Introduction The efficient market hypothesis says that these returns should not be systematically related to the information known in 1990. We have the data of the return of the stock prices from various firms over the four-year period between the end of 1990 and the end of 1994. If the characteristics of a firm reflected the return of the stock, this could help with predicting the stock price in the future. We hypothesize that the return of the stock are related to debt capital ratio, earnings per share, salary of the CEO, net income, logarithm of net income and salary, and the stock price at the end of 1990 and 1994. II. Literature Review We are formulating how the CEOs compensation can affect the stock prices within a four-year period between the end of 1990 and 1994.An investigation based on the use of individual evaluation in CEO’s incentive plans that contrasts with objective stock price based measures may involve. Using complementary data evidence can be shown that individual performance evaluation increases growth opportunities (Bushman p. 161-193). An examination of the executive compensation structure of 153 randomly-selected manufacturing firms in 1979–1980 provides evidence supporting advocates of incentive compensation, and also suggests that the form rather than the level of compensation is what motivates managers and CEOs to increase firm value (Hamid p. 163-184). III. Data and Methodology Our data is a list of observations from 142......

Words: 1407 - Pages: 6

Free Essay

Econ 545 Entire Class

...ECON 545 ENTIRE CLASS To purchase this visit following link: http://www.activitymode.com/product/econ-545-entire-class/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECON 545 ENTIRE CLASS DEVRY ECON 545 Week 1 DQs 1 Supply and Demanв DEVRY ECON 545 Week 1 DQs 2 Elasticity and the Minimum Wage DEVRY ECON 545 Week 2 DQs 1 Marginal Analysis DEVRY ECON 545 Week 2 DQs 2 Controlling Costs DEVRY ECON 545 Week 2 Project Part 1 DEVRY ECON 545 Week 3 DQs 1 Mergers Acquisitions DEVRY ECON 545 Week 3 DQs 2 Anti-Trust Policy and Microsoft DEVRY ECON 545 Week 3 Quiz Imperfect Competition DEVRY ECON 545 Week 4 DQs 1 Macroeconomic News DEVRY ECON 545 Week 4 DQs 2 Healthcare DEVRY ECON 545 Week 5 DQs 1 Trade Deficits ECON 545 ENTIRE CLASS To purchase this visit following link: http://www.activitymode.com/product/econ-545-entire-class/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECON 545 ENTIRE CLASS DEVRY ECON 545 Week 1 DQs 1 Supply and Demanв DEVRY ECON 545 Week 1 DQs 2 Elasticity and the Minimum Wage DEVRY ECON 545 Week 2 DQs 1 Marginal Analysis DEVRY ECON 545 Week 2 DQs 2 Controlling Costs DEVRY ECON 545 Week 2 Project Part 1 DEVRY ECON 545 Week 3 DQs 1 Mergers Acquisitions DEVRY ECON 545 Week 3 DQs 2 Anti-Trust Policy and Microsoft DEVRY ECON 545 Week 3 Quiz Imperfect Competition DEVRY ECON 545 Week 4 DQs 1 Macroeconomic News DEVRY ECON 545 Week 4 DQs 2 Healthcare DEVRY ECON 545 Week 5 DQs 1 Trade Deficits ECON 545 ENTIRE CLASS To purchase this visit......

Words: 1056 - Pages: 5

The Gallows | Medikamente von Apothekern | Independence Day Contraataque .. BluRay 3D 1080p