In the short run in production a firm:

a.has at least one fixed input

b.can only change one input

c.has at most one variable input

d.can change all of its inputs

A firm’s production function describes the relationship between

a.inputs and cost of production

b.inputs and output

c.output and cost

d.output and revenue

If a firm’s expansion path curves upward at an increasing rate, this implies

a.it uses proportionately more labor than capital as output expands

b.its costs will be increasing at an increasing rate as output expands

c.its production function exhibits increasing returns to scale

d.it uses proportionately more capital than labor as output expands

Beer

Traditionally, Newland is a wine-drinking country. However, recent market research has shown that demand for beer in Newland is steadily growing. RichBrew Inc. Of Richland, one of the world's largest beer producers, therefore wants to increase its exports of specialty beers,

ordinary beer and non-alcoholic beer to Newland. Before its accession to the WTO, Newland limited the importation of beer of any kind to a meagre 50,000 hectolitres per year. This quantitative restriction was put into place in the late 1950s to protect the many winegrowers in Newland from competition from imported beer. The National Association of Wineries (NAW) was, and still is, a powerful lobby in Newland politics. Beer production in Newland has always been and remains small.

On accession to the WTO, Newland abolished the quantitative restriction on the importation of beer. However, around the same time, it revised its tax regime for alcoholic and non-alcoholic beverages. In addition to a value added tax (VAT) of 21 per cent ad valorem applied to all alcoholic beverages, the following excise tax rates currently apply: N$5 ppl on wine; N$6 ppl on ordinary beer; and N$15 ppl on specialty beers.

Non-alcoholic beer is not subject to excise tax. However, non-alcoholic beer is subject to a VAT of 21 per cent ad valorem whereas soft drinks are subject to a VAT of 15 per cent ad valorem. As stated above, all alcoholic beverages are subject to a 21 per cent VAT but resellers of imported alcoholic beverages are subject to more onerous VAT-related administrative requirements.

At the time of importation, the Newland Customs Service imposes a charge of N$0.5 per litre on alcoholic beverages that are, after importation, bottled in aluminium cans rather than glass bottles.

In Newland, beer, whether domestic or imported, may only be sold by licensed beer merchants; it may not be sold in supermarkets. No such restrictions exist on the sales of domestic or imported wine.

RichBrew Inc. not only wants to sell its beer in Newland's supermarkets, it also wants to establish a wholesale trade company in Newland as well as a network of retail shops to handle the distribution and sales of its beer. RichBrew has been told it can do neither because it is not a company incorporated in Newland.

Pursuant to the Fair Competition Act of 1991, imported as well as domestic beer and wine are subject to a minimum price requirement, annually set by the Ministry of Commerce of Newland. Furthermore, Newland prohibits the use of additives in lager while leaving the use of additives in specialty beers and wine unregulated.

In support of the national wine industry, Newland's National Federation of Restaurateurs, a government-sponsored organisation, has instructed its 10,000 members not to serve beer with traditional Newland dishes. Municipal authorities in Newland's main wine-producing region prohibit serving beer on weekends. Note also that, since the Armed Forces Reform Act of 1996, the armed forces of Newland are required by law to buy domestic alcoholic beverages to serve in army mess halls.

As stated above, beer production in Newland has always been and remains small. The Newland beer industry consists primarily of microbreweries, which produce beer in a more environment-friendly manner than RichBrew Inc. As part of its environmental policy, the Government of Newland intends to lower the excise tax on beer produced by microbreweries to N$5 ppl (instead of the N$6 ppl (for ordinary beer) and N$15 ppl (for specialty beer) currently applied). Also, the Government of Newland intends to give financial incentives (i.e. subsidies) to Newland-based beer merchants engaged in the retail selling of beer from microbreweries.

Finally, RichBrew Inc. has recently acquired a moribund brewery in Newland, and, in order to revive this brewery, it wants to employ in Newland brew masters from Richland. However, RichBrew Inc. has been informed that, under Newland's Regulated Professions Act of 1997, only brew masters with a degree obtained in Newland are allowed to work in Newland. Newland argues that brewmasters trained in Richland are not ‘like’ brewmasters trained in Newland.

You are an associate with the Brazilian law firm Nogueira Neto Avogados. Your firm has been hired by RichBrew Inc. to give legal advice on all the issues raised above. You have been instructed to limit your legal brief to the question of whether there are violations of the national treatment obligations under WTO law.

49. Which of the following is the most logically sound proof in favour of God’s existence?

(A) \Every society throughout human history has had some notion of God, and there-fore God must exist."

(B) \I feel God’s existence through the Holy Spirit, and therefore know that He exists."

(C) \Everything that begins to exist has a cause. The universe began to exist. There-fore, the universe has a cause, which I call God."

(D) \It is ridiculously unlikely that the universe just came into existence the way it is now, without some supernatural intervention. Therefore, God exists."

50. Which of the following NOT a method of incomplete induction?

(A) Via online surveys on SurveyMonkey.

(B) Online surveillance.

(C) Reading people’s diaries.

(D) Polling every single person you’re interested in.

51. The United States historically had the institution of slavery. This meant that there was a market for slaves. According to the textbook, what impact did Eli Whitney’s invention of the cotton gin have on the market for slaves?

(A) Supply increased.

(B) Supply decreased.

(C) Demand increased.

(D) Demand decreased.

53. It is a Friday night, and you have an option between three distinct activities:

1. Enjoying a long walk with your dog.

2. Re-watching Game of Thrones.

3. Working out with your bros until you get pumped. You hate Game of Thrones, but enjoy the other two activities; working out is your favourite. What is your opportunity cost of watching Game of Thrones?

(A) The pleasure from watching Game of Thrones.

(B) The pleasure from walking your dog.

(C) The pleasure from working out.

(D) The combined pleasure of all three activities.

54. The actress Betty White will probably die soon. What effect does this have on the market for Betty White memorabilia today?

(A) Supply increases.

(B) Supply decreases.

(C) Demand increases.

(D) Demand decreases.

55. Which of the following is the best example of inductive thinking?

(A) A mathematical proof of the Pythagorean Theorem.

(B) \All dogs are mammals. Tony is a dog. Therefore, Tony is a mammal."

(C) I hate Mondays.

(D) I asked around, and Brock University is where all the beauties are.

describe economy as a whole, from the 10 principles of economy 8,9 and 10 and give an example

For their economic class, students are asked to form pairs to complete an assignment. The professor asks them to work together but to turn only one copy of the problem set. Johnny and Kristen, two students of the class, decide to work together. Both of the students value the assignment. However, because Kristen and Johnny received different grades at the exam, they do not value the assignment the same way: Kristen would receive a payoff of 10 if the assignment is completed, while Johnny would receive a payoff of 15. In case the assignment is not completed, they would both receive zero payoff. The students can choose to work or not on the assignment. If both students work, it will take them 5 hours each. If only one of them work, it will take this student 12 hours to complete the assignment by itself. If none of them work, the assignment will not be completed. We assume that each hour of work costs one unit of payoff to students. Moreover, students cannot change partners.

We consider first this game as a static game in which students decide simultaneously whether to work on the assignment.

1. Write down the normal form of the game. Make sure to include the players, actions and payoffs.

2. Do Kristen or Johnny have a dominant strategy? Explain. 3. What is the Nash equilibrium of the game

3. What is the Nash equilibrium of the game.

Consider the following information about perfectly competitive firms selling milk.

Demand in the market is shown in the table below

Each producer in the market has the following costs

a. Compute each producer’s marginal cost and average total cost for 1 to 5 gallons.

b. The price of a gallon of milk is now $10. How many gallons are sold? How many gallons does each producer make? How many producers are there? How much profit does each producer earn?

c. Is the situation described in part (b) a long-run equilibrium? Why or why not?

Suppose: • the firm is required to reimburse the neighbors for pollution damage

• there are no transactions costs, and

• it is impossible for the neighbors to move.

8. What quantity does the firm produce and why?

Suppose: • transactions costs are so high that negotiation is impossible

• it would cost the neighbors $6 to move.

• there is no legal penalty for pollution.

9. Do the neighbors move? Why or why not? What is the social gain?

1. If wage decreases relative to the price capital, then the effects of this on the demand for capital is inconclusive.

   True

   False

1.5 points   

QUESTION 19

1. Assume that labor and capital are imperfect substitutes. Then the marginal rate of technical substitution (MRTS) of an isoquant is decreasing.

   True

   False

1. According to the substitution effect, an increase in the wage will increase the marginal cost of production, leading to an increase in output.

   True

   False

1.5 points   

QUESTION 16

1. If demand for labor is inelastic, then the percentage change in wage is less than the percentage change in employment.

   True

   False

1.5 points   

QUESTION 17

1. The initial effect from technological change is to reduce the demand for labor.

   True

   False

Explain the long run economic profit earned by each of the four market models. Explain how the concept of economic profit might help explain the rationale for the government’s granting of monopolies to those firms that protect their product with a patent. Please use your own words do not copy and paste a texbook solution.

Question 1 options:

The “prime” interest rate is the rate that banks charge their best customers. Nominal interest rates and inflation rates are given in the following table.

Question 1 options:

The “prime” interest rate is the rate that banks charge their best customers. Nominal interest rates and inflation rates are given in the following table.

a. In which of the years given would it have been best to be a lender? Year = ? when the Real Interest Rate was ? %
b. In which of the years given would it have been best to be a borrower? Year = ? when the Real Interest Rate was ? %.

2.Question 2 options:

Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.

Ethiopia = $?

Costa Rica = $?

The per capita GDP of ? is much lower than that of ? by ?

3.Question 3 options:

The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 20 koruny/U.S. dollar. The Czech population is 20 million.

What is the GDP per capita of the Cz

Per capita GDP =

Per capita GDP in U.S. dollars = $

ech Republic expressed in U.S. dollars?

• Innovation and physical capital are 2 of the 4 factors of production. Discuss some specific ways that 1 of the following laws increased the productivity of 1 or both of these factors of production:
  • 1862 Pacific Railway Act
  • 1956 Federal Aid Highway Act
  • 1946 Federal Airport Act
• What other examples of economic concentration can you share?
• What are the risks and advantages to economic concentration?
• How has economic concentration influenced your industry?

Explain the effectiveness of monetary policy when capital mobility is zero (Use IS-LM-BP curves to answer the above questions)

What is your perspective of Dr. King's involvement in the Albany movement? How much credit do you feel Septima Clark deserves?