1. Consider the orange-growing industry, which hires workers on a common labor market and sells oranges on a common product market. Firms in the industry have nearly identical production functions and capital.   Suppose that a freeze affects the industry in the following way: some oranges on each tree are damaged and cannot be sold, but others are fine. As a result, each worker takes longer to harvest oranges from each tree. What is the effect on Labor Demand for workers in this industry? Think carefully about all the components of Labor Demand.

12. U-shaped LRAC curves with a horizontal segment surrounding their minimum level exhibit

a. Constant Returns to Scale

b. Increasing Returns to Scale

c. Decreasing Returns to Scale

d. All of the above

13. Economist’s classification of a market’s structure will depend upon

a. The number of firms in the market

b. The diversity of products available to consumers in the market

c. The ease with which a firm could potentially enter or exit the market

d. All of the above

14. In perfect competition, each firm’s individual demand curve for their product is

a. Perfectly inelastic

b. Perfectly elastic

c. Downward sloping

d. Upward sloping

15. If a market is perfectly competitive, which of the following would be inconsistent with a

predicted long run equilibrium condition?

a. The marginal firm is operating at the minimum point on its LRAC curve.

b. The marginal firm is earning $0 economic profit.

c. The marginal firm is earning positive economic profit.

d. All of the above

16. Gloria runs her own candy shop. Last year, she spent $215,000 purchasing candy to sell in her

store and paid $35,000 in rent. She had no other direct costs associated with operating her

business and her total revenues for the year were $295,000. Assume that during the same year, if

she did not run her own shop she would have worked at her friend’s shop for a salary of $50,000.

Gloria’s economic profit was ______and her accounting profit was ______.

a. - $5,000 ; $45,000

b. $60,000 ; $15,000

c. $45,000 ; $80,000

d. $45,000 ; $60,000

17. A firm should shut down in the short run if

a. It cannot earn revenues that cover its total costs

b. It cannot earn revenues that cover its variable costs

c. It cannot earn revenues that cover its fixed costs

d. All of the above

18. The long run market supply curve could be upward sloping in a competitive market due to which

of the following reasons?

a. Expansion of the market’s size increases the demand for the inputs used in production,

pushing their prices higher.

b. Entry and exit of the market is costly for firms.

c. Expansion of the market’s size brings new firms that are less efficient than previously

producing firms.

d. All of the above

compare and contras two countries and the different Regulatory and Legal aspects of their different Global Business Environments

Show your understanding of the economics and competitive forces of the telecom industry. Describe why Verizon chose to go with fiber. Do you think this was a wise decision, or not? Why? Summarize clearly in as little words as possible.

For example:

Question: If income changes by $40 billion for each $2.28 billion change in spending, h much will income change by?

Answer:   91   (rounded down from the calculated value of $91.2 billion)

[Not acceptable would be: 91.2, nor $91, nor $91.2, et al.]

For the following five questions, assume the following characteristics of the monetary transmission mechanism:

The money multiplier is 2.33

Interest rates will change by 2.25% for every $75 billion change in the money supply.

Investment will change by $60 billion for every 1.5% change in the interest rate.

Income will change by $15 billion for every $3.8 billion change in investment.

1)Identify the change in income when the Fed does the following:

a. Buys $35 billion in bonds.

b. Buys $18 billion in bonds.

c. Buys $5.5 billion in bonds.

d. Sells $12 billion in bonds.

e. Sells $22 billion in bonds.

What health, Economic, Social and Lost Productivity Costs did the Opioid Crisis in the US cause?

2. What are the four major markets in the economy? Which variables are important in each of those markets.

a. If two markets are in equilibrium, which arguments are offered to suggest that all markets are in equilibrium.

b. What is LM Curve?

c. What factors will shift the LM curve?

Why do you think we’re (in academia) are seeing a resurgence of plagiarism? Is it a case of “the higher the stakes, the more pressure there is to perform” or are we as a society just getting lazy? Is it information overload?  From a leadership standpoint, should we be concerned?

You work for a very large engineering consulting firm. You have been asked to look at the viability of the company purchasing a private jet to fly staff to project sites around the world. A new Gulfstream G450 currently costs $40,000,000. Assume a 15-year service life, a salvage value of $24,000,000, annual costs of $2,500,000/year, and annual benefits of $3,500,000/year (time saved, increased business), a corporate tax rate of 40%, a CCA rate of 25%, and an after-tax MARR of 8% per year, compounded annually.

What is the after-tax net present value of this investment?

1. According to the classical economists how does inflation come about?

2. Explain three causes of inflation and why it may be is undesirable.

1. If the Federal Reserve decreases the money supply to raise the federal funds rate, ceteris paribus, then

a. The value of the U.S. dollar will increase in foreign exchange markets

b. Economic output will increase

c. The economy will experience inflation

d. The unemployment rate will fall

e. The value of the U.S. dollar will decrease in foreign exchange markets

2. When the short-run aggregate supply (SRAS) curve is steeper, expansionary monetary policy ________ in the short run, and when the short-run aggregate supply (SRAS) curve is flatter, expansionary monetary policy __________ in the short run.

a. has no effect on output; has no effect on prices.

b. has an effect on output that is equal to the effect on prices; has an effect on prices that is equal to the effect on output

c. has a larger effect on prices than on output; has a larger effect on output than on prices.
d. has no effect on prices or output

e. has a larger effect on output than prices; has a larger effect on prices than output

You are to construct a production possibilities frontier from 2 grocery stores based on the available milk and eggs (you choose which particular milk product and which particular egg product you use). Use the total quantity of milk as the intersection for the vertical axis and the total quantity of eggs as the intersection for the horizontal axis. Connect those points to form your production possibilities frontier, one graph for each store. Determine the opportunity costs of milk in terms of eggs from your production possibilities graph. Describe your production possibilities frontier. Identify on the curve and then explain the unattainable, efficient, and inefficient areas of production. Discuss the concept of increasing opportunity costs and identify whether the opportunity costs from your graph exhibit increasing opportunity costs. Illustrate, based on the opportunity costs for each store, how specialization and trade can lead to a mutually beneficial outcome.

In the absence of direct externalities, common property and public goods, discuss the optimality of free markets.

For the article "The theory of Rational Addiction"

Did this paper make you realize something that you had not before?

Is the paper making any strong assumptions that you disagree with? If yes, what, according to you, will be a more plausible alternative assumption?

If there was one thing you could change about the model, what would that be? Will that make the model intractable?

For the "Theory of Rational Addiction" article by Becker and Murphy

What is the main question/behaviour that the paper models?

What are the costs and benefits of that behaviour for different agents in the model?

Conclusion of the model?