1. Which of the following is NOT a potential source of monopoly power?

a) patents and copyrights

b) control of scarce inputs

c) mark-up pricing

d) government franchise

2. A good is considered to be inferior of

a) the price elasticity of demand is between zero and one

b) the income elasticity of demand is negative

c) a cheaper good serves as a perfect substitute

3. Flynn Rider operates a falafel stand in the kingdom of Corona. As the only seller of falafel. Flynn serves the entire market (inverse) demand of P=250-2Q. Flynn has a constant average and marginal cost of $0.50 per serving with no fixed costs. Flynn's marginal revenue function is given by:

a) MR= 500-2Q

b) MR=-0.5Q

c) MR=250-4Q

d) P= 250-4Q

e) MR=250-Q

4. Flynn Rider operates a falafel stand in the kingdom of Corona. As the only seller of falafel. Flynn serves the entire market (inverse) demand of P=250-2Q. Flynn has a constant average and marginal cost of $0.50 per serving with no fixed costs. Flynn's profit maximizing monopoly output is

a) 62.375 servings

b) 187.125 servings

c) 249.75 servings

d) 124.5 servings

e) 166.67 servings

5. If the price elasticity of demand is -0.75, the, what change in price would cause quantity demanded to rise by 20%?

a) 15% increase in price

b) 26.67% increase in price

c) 15% decline in price

d) 19.25% decline in price

e) 26.67% decline in price

6. A natural monopoly has

a) less market power than a created monopoly

b) a long-run average cost curve that is everywhere upward sloping

c) diseconomies of scale

d) control of natural resources used in production

e) a lower average cost of producing the market demand than two or more firms would have

7. If the (inverse) demand for peanuts at a baseball game is given by P=5-0.02Q. What price will maximize the vendor's revenues?

a) $125

b) $5.00

c) $2.50

d) $12.50

e) $1.25

Please define characteristics of competitive markets.  Please compare and contrast the four types of market structures

1. Imagine students could opt to have their student loans paid in euros. What would the long-term effect on the balance of payments be? Would it make a difference if the students immediately opted to do a year’s study as a foreign exchange student in the Eurozone?
2. 1) Using a diagram, show how the government can intervene in the forex market to maintain a fixed exchange rate. 2) When would it become necessary to devalue the currency?
3. Given the exchange rates between the UK pound and the US dollar and between the UK pound and the euro, how can the exchange rate between the euro and the dollar be calculated?

(Article 9.4) Match each of the following growth and development policies that countries might choose to either Developmental State or Neoliberal.

Suppose Andy can make 20 loaves of bread in a day, or 4 dresses in a day.

1. Write down his production possibilities frontier equation, and then graph it.
2. Explain what the line itself represent, what the area under the line represents, and what the area above the line represents.

1. a. Within the Aggregate Demand-Aggregate Supply Macroeconomic model, discuss in general the difference in the impacts on nominal and real variables in the long and short run.

1. b. Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession (no diagram necessary). How would you recognize that a recession is induced by demand or supply? What policies would be appropriate in each of the two cases?

Consider the relationship that links the Net National Investment to the savings of different economic sectors. Explain how the federal government budget deficit and the country’s trade deficit are connected.

Most economic policies are a two-edge sword. The overuse of a policy may cause significant side effects. The side effects of an expansionary fiscal policy include:

• A.

  government budget deficit.

• B.

  potential inflation.

• C.

  that the government may have too much influence on the market economy, and its efficiency is always of question.

• D.

  all of the above.

One year ago, the federal discount rate (a key interest rate) was 2.5%, and the current federal discount rate is 0.5%. Such adjustment aims to:

• A. encourage lending.

• B. decrease the monetary base.

• C. increase the cost for firms to borrow from the Fed.

• D. balance federal budget.

Shannon made $50,000 last year and received a $10,000 raise this year for her excellence at work. With the additional income, she spent $6,000 more this year. What is the marginal propensity to consume (MPC) for Shannon?

• A. 50%

• B. 60%

• C. 40%

• D. 70%

Suppose banks keep cash reserves as much as 5% of their deposits (currency drain ratio), and the current required reserve ratio is 10%. What is the money multiplier?

multiplier = (1 + CDR) / (RRR + CDR)

• A. 4

• B. 6

• C. 3

• D. 7

Suppose the U.S. real GDP in 2008 is $14 trillion, price level is 2, and velocity of circulation is 4. What is the quantity of money in the economy?

• A. 7 trillion

• B. 4 triliion

• C. 28 trillion

• D. 14 trillion

The Short-Run Phillips Curve shows:

• A. that monetary policy has an inverse effect on the unemployment rate and the inflation rate.

• B. monetary policy is effective in moving the real economy in the short run since it can affect the unemployment rate.

• C. There is a negative relationship between the inflation rate and the unemployment rate in the short run.

• D. all of the above.

The government expenditure multiplier refers to:

• A. that government spending leads to less consumer spending.

• B. that each additional dollar spent by the government will lead to a less than one dollar increase in GDP.

• C. that government spending has little impact on national economy.

• D. that government spending has a magnified effect on national economy.

To serve as a commodity money, an object must satisfy which of the following requirements?

• A. It has to be a commodity or token, which can be divided into small parts.

• B. It has to be generally accepted by the market participants to trade for goods and services.

• C. It has to be used as a method of settling a debt or payment.

• D. all of the above.

To serve as a commodity money, an object must satisfy which of the following requirements?

• A. It has to be a commodity or token, which can be divided up into small parts.

• B. It has to be generally accepted by the market participants to trade for anything and everything.

• C. It has to be used as a method of settling a debt or payment.

• D. All of the above.

Tom bought 6 oranges for 3 dollars. Money serves the function of:

• A. store of value.

• B. unit of account.

• C. medium of exchange.

• D. standard of deferred payment.

What is (are) the main objective(s) of fiscal policy:

• A. higher economic growth.

• B. full employment.

• C. low inflation.

• D. all of the above.

Discuss the pros and cons of Progressive Reforms. (1901-1920)
Examples, consider:
•The social purity movement
•The anti alcohol movement
•Business regulations
•Race reform and federal employment

The case Harnessing the Science of Persuasion, HBR, 2001. After carefully reading the case, reflect on and answer the following questions:

“Robert Cialdini discusses six persuasion tactics used to influence people. Pick any 3 out of these 6 tactics and find relevant examples from the marketing field. Your examples can come from advertisements, marketing communications, company practices and operations, or any other relevant company communication medium (foreign media). Discuss why your examples fit those three categories and justify your reasoning. Your answer should demonstrate you’ve done the reading and don’t forget to attach/include your examples to your essay.”

Assume that the MPC is 0.8. Assume that the total crowding-out effect is $25 billion. How will an increase in government purchases of $9 billion shift the AD curve?

Select one:

1. It will shift the AD curve right by $20 billion.

2. It will shift the AD curve left by $25 billion.

3. It will shift the AD curve right by $25 billion.

4. It will shift the AD curve left by $20 billion.

What were the factors that made high-speed growth in western Europe in the 1950s possible?

1. How does demand for the WNBA today compare to demand for the NBA today? How does demand for the WNBA today compare to what we saw in the NBA after 20 years?

What does insurance do to a CEF?

Group of answer choices

nothing

shifts it to the right

shifts it down

shifts it to the left

all of the choices are possible