QUESTION 1

1. The law of diminishing marginal productivity pertains to_____:

   	a.	the short run.
   	b.	the long run.
   	c.	both the short run and the long run.
   	d.	the short run for small firms, and the long run for large firms.

1 points   

QUESTION 2

1. Assume that you own a sole proprietorship. Your first year earnings were $75,000, and your explicit costs were $55,000.  If you could have worked at another establishment and earned $25,000, which of the following is true?

   	a.	Your firm earned an economic profit of $20,000.
   	b.	Your firm's total implicit costs were $80,000.
   	c.	Your firm sustained an economic loss of $5,000.
   	d.	Your firm's total costs are $100,000.

1 points   

QUESTION 3

1. Which of the following is true regarding accounting profit?

   	a.	It is typically smaller than economic profit.
   	b.	It includes all explicit and implicit cost of production.
   	c.	It includes depreciation.
   	d.	All of the above.

1 points   

QUESTION 4

1. Marginal cost is understood as the change in__________ when producing one more unit of output. In the short run, marginal cost can also be determined by the change in__________ when producing one more unit of output.

   	a.	variable cost; fixed cost
   	b.	total cost; fixed cost
   	c.	fixed cost; variable cost
   	d.	total cost; variable cost

1 points   

QUESTION 5

1. Which of the following are characteristics of a perfectly competitive market?

   	a.	Firms are price takers.
   	b.	Firms produce identical or nearly identical products.
   	c.	Firms can enter the market without any restrictions.
   	d.	All of the above.

1 points   

QUESTION 6

1. An organization with 50 employees will add 10 employees next month. This is_____:

   	a.	a long run decision.
   	b.	a long run and a short run decision.
   	c.	a short run decision.
   	d.	none of the above.

1 points   

QUESTION 7

1. Fixed inputs are_____:

   	a.	those inputs to production that have a fixed price.
   	b.	those inputs to production that result in a fixed variable product.
   	c.	those inputs to production that cannot be varied in the short run.
   	d.	those inputs to production that have a fixed market.

1 points   

QUESTION 8

1. When deciding whether to continue operations or shutdown, a perfectly competitive firm should_____:

   	a.	continue operations if the price of the firm's product falls below the minimum average variable cost.
   	b.	shut down if the price of the firm's product falls below the minimum average variable cost.
   	c.	continue operations if the marginal cost of a new invention for the firm surpasses average variable cost.
   	d.	shut down if it can cover all of its costs, but only at a diminishing marginal rate.

1 points   

QUESTION 9

1. If the total output rises while the cost per unit fails, a firm is understood to be enjoying_____:

   	a.	increased profits.
   	b.	economies of scale.
   	c.	maximum efficiency.
   	d.	all of the above.

1 points   

QUESTION 10

1. Firms that compete in perfectly competitive markets must decide_____:

   	a.	the quantity to produce.
   	b.	the price to charge.
   	c.	the price to charge and the quantity to produce.
   	d.	none of the above.

3. NJ wants to attract businesses to move to NJ from other states. It offers firms a tax break on profits earned in NJ over the next 10 years. How could you empirically test whether this tax break has any effect?

Discuss how a layperson's view of trade differs from the view of economists. List and explain at least two examples

Developing A Program For Prevention of STDS For this exercise, you need to play the role of an HIV/AIDS prevention specialist and help design a program for your culture to promote condom use. You need to answer the following questions: 1. What are some of the cultural barriers that might inhibit condom use? Are any of them similar to those in Mexico? 2. What are some measures that you would suggest to help people who are sexually active overcome these barriers?

1. What factors caused American business to develop into a mixed economic system rather than some other type of economic system?
2. Discuss this statement: “Business competition encourages improved product quality and increased customer satisfaction.”

Differentiate between resources are not used effectively and they are not used sustainably.

In Chapter 8 of his book, Osberg writes, “When robots can make the robots that can do most of our current jobs, the “Age of Abundance” will be technically possible. It will then be technically feasible for all people to enjoy a full material standard of living and also enjoy many more hours of leisure in which to develop the full potential of their unique personalities.”

While this sounds like the dawning of a utopia, what are the challenges such technological improvement will have on our ability to ensure equitable prosperity? Discuss.

One of the key ways a firm may be a monopoly is through patent protection. Perhaps many of you heard of the infamous case of Martin Shkreli's price hike of a drug called Daraprim from $12.50 to $750 almost overnight (Links to an external site.). Specifically answer this prompt: Should there be a price ceiling placed on patented products? Why or why not? If so, how exactly would you set the price ceiling? Consider the incentives that such a policy may have in the short and long term.

A yes/no/maybe answer to the question with an explanation of your reasoning.Include a detailed and accurate application of one or more of the concepts: patent, legal barriers to entry, economic profit in the short run and long run.

8a.  Until fairly recently, the FED did not pay interest on bank reserves but a few years ago the FED changed its policy and currently pays interest on bank reserves.  Under its original policy, for every $100 in checkable deposits how much did banks sacrifice in lost interest income due to reserve requirements if a bank charged 11% on their loans to the public when the required reserve ratio was set at 8%?  

8b.  For every $100 in checkable deposits, how much would a bank lose in interest income (opportunity cost) due to reserve requirements if banks charged 16% on their loans to the public when the required reserve ratio was 15%?  Finally, if you were an investor holding shares of common stock in a commercial bank, how are bank profits (and therefore your returns) affected by changes in the required reserve ratio?  Similarly, how are bank profits affected by changes in the market interest rates which your bank charges on loans to the public?  

Assume an economy is in long-run macroeconomic equilibrium. The stock market suddenly declines significantly.

- What curve is affected and which way would it shift?

- Explain how the economy will “self-correct” and the reasons why?

- What ‘gap’ is created by the shift in the curve? (recessionary or inflationary gap)

- What would be the appropriate monetary and fiscal policy response be to the station?

T or F

36. GDP= C + I + G + NX; I REPRESENTS CORPORATE INVESTMENTS AND CONSUMERS BUYING

HOUSES FOR THEIR FIRST TIME.

37. PUBLIC TRANSFER PAYMENTS INCLUDES SOCIAL SECURITY, UNEMPLOYMENT

COMPENSATION, AND AUNT TINA GIVING HER FAVORITE NEPHEW $ 250,000.

38. NOMINAL GDP= GDP - INFLATION.

39. DISCRETIONARY INCOME= DISPOSAL INCOME + (EXPENSES – 0) x 1.0.

40. STAGFLATION IS THE WORST OF ATIONS AFTER HYPERINFLATION.

41. MUTUAL FUNDS ARE A POOL OF MANY INVESTMENTS AND GIVES DIVERSIFICATION. THEY

ARE NOT SAFE.

42. THE UNEMPLOYED INCLUDES EVERYONE WITHOUT A JOB AND ARE LOOKING FOR A JOB

DURING THE LAST 4 WEEKS.

1. From society’s perspective, is it better for a market to be served by one firm - a price-setting monopoly, or by many small price-taking firms? Discuss.

2. Explain what monetary policy is, how it is implemented in Australia by the Reserve Bank of Australia, and what type of monetary policy you would recommend the RBA to implement at this point in time.

Please read carefully.

Your younger sister wants to start a business that sells a product in the UAE. She found a supplier in France who can provide her with one of these products:

- Coffee (for 5 dhs/coffee bag)

- Mascara (for 5 dhs/mascara)

From your own words and understanding of entrepreneurial marketing. There is not right or wrong answer as long as you provide good reasons from your understanding of entrepreneurial marketing.

1. Which product do you advise her to sell? (0.5 point)

2. Why? (1 point)

3. Which approach of pricing do you advise her to follow? What price do you suggest? why?  provide complete explanation with example (1.5 points)

4. which approach of selling you advise her to use (direct or indirect) And why? Where do you advise her to sell? and Why? provide complete explanation with example (2 points)

Provide complete long answers with explanation. Avoid short points, show me your understanding.