Economics

7. From the short run to the long run Aa Aa The following graph shows the econom

7. From the short run to the long run Aa Aa The following graph shows the economy in long-run equilibrium with real GDP equal to $10 billion and a price level of 100. PRICE LEVEL …

7. How asymmetric information prevents gains from trade Aa Aa Maria sees a class

7. How asymmetric information prevents gains from trade Aa Aa Maria sees a classified ad offering a used lawn mower for $20. On the opposite page, she sees a big color ad from a n…

7. How does the elasticity of supply and demand affect the price ceiling’s affec

7. How does the elasticity of supply and demand affect the price ceiling’s affect on producer and consumer surpluses? 8. If the price ceiling were removed, what would happen to th…

7. How does the term, \"contribution margin\", get its name? In other words, wha

7. How does the term, "contribution margin", get its name? In other words, what does it tell managers? 8. Should only variable product costs, variable period costs, or both types …

7. How large is the economy of Japan? Japanese GDP in 2007 was 517 trillion yen

7. How large is the economy of Japan? Japanese GDP in 2007 was 517 trillion yen (U.S. GDP again was $13.7 trillion). The exchange rate un 2007 was 118 yen per dollar. Contrary to …

7. Identify and explain, whether good X is a normal good or an inferior good; an

7. Identify and explain, whether good X is a normal good or an inferior good; an ordinary good or a Giffen good; a substitute or a complement for good Y, if the demand for good X …

7. If A is risk averse, (a) he is indifferent between receiving either $100 with

7.   If A is risk averse,        (a)   he is indifferent between receiving either $100 with certainty or the prospect of a .5 chance of $200 and a .5 chance of $75.        (b)   h…

7. If the interest rate in the market forloanable funds is above the equilibrium

7. If the interest rate in the market forloanable funds is above the equilibrium interest rate, we know that_______. (Points: 1)       there is a shortage of loanable funds       …

7. If the price level doubles and real output doesn\'t change, then nominal outp

7. If the price level doubles and real output doesn't change, then nominal output also doubles. 8. Inflation makes it less difficult to interpret the information conveyed by price…

7. If the price of a product decreases, we would expect: Demand to increase Quan

7. If the price of a product decreases, we would expect: Demand to increase Quantity supplied to decrease Supply to decrease Quantity supplied to increase 8. "Price" in the statem…

7. Import demand and export supply The following graph input tool shows the dome

7. Import demand and export supply The following graph input tool shows the domestic demand for and domestic supply of boots in the United States. Throughout the question, assume …

7. Imports, exports, and the trade balance The following table shows the approxi

7. Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 1975 through 1979 Year 1975 1976 1977 …

7. In a speech at the CFA Society of Nebraska in February 2007, William Poole, f

7. In a speech at the CFA Society of Nebraska in February 2007, William Poole, former Chairman of the St. Louis Federal Reserve said: Over most of the post-World War II period, th…

7. In contrast to development, growth refers to an increase in: A. productive ca

7. In contrast to development, growth refers to an increase in: A. productive capacity with no change in output. B. output with no change in productive capacity. C. output brought…

7. In the first segment from the video, \"Commanding Heights.\" the famed Latin

7. In the first segment from the video, "Commanding Heights." the famed Latin American cconomist Hernando de Soto tells the story of a coffee bean farmer from Tanzania, who when a…

7. In the following regression equation femalei is a dummy equal to one if indiv

7. In the following regression equation femalei is a dummy equal to one if individual i is female and 0 if individual i is a male, and wage is person i's hourly wage in dollars. w…

7. In the short run, when FDI increases in a country, the rental rate on capital

7. In the short run, when FDI increases in a country, the rental rate on capital will _____ and the wage rate will A) decrease; decrease B) increase; decrease C) increase; increas…

7. In the wage-setting relation, the nominal wage tends to decrease when A) the

7. In the wage-setting relation, the nominal wage tends to decrease when A) the price level increases. B) the unemployment rate decreases. C) unemployment benefits decrease. D) th…

7. Income elasticity of demand Aa Aa Data collected in the imaginary economy of

7. Income elasticity of demand Aa Aa Data collected in the imaginary economy of Tralfamadore reveals that a 12% decrease in income leads to the following changes: * A 5% increase …

7. Inflationary pressure is a growing problem for the economy. Therefore, the Fe

7. Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes …

7. Local Corporation invests in intrastate businesses. In Local\'s state, as in

7. Local Corporation invests in intrastate businesses. In Local's state, as in most states, the minimum number of direc- tors that must be present before a board can transact busi…

7. MRS and utility maximization Ginny lives in Dallas and loves to eat desserts.

7. MRS and utility maximization Ginny lives in Dallas and loves to eat desserts. She spends her entire weekly allowance on pudding and pie. A bowl of pudding is priced at $1.75, a…

7. MRS and utility maximization Hilary lives in Dallas and loves to eat desserts

7. MRS and utility maximization Hilary lives in Dallas and loves to eat desserts. She spends her entire weekly allowance on yogurt and pie. A bowl of yogurt is priced at $1.25, an…

7. Many observers believe that the levels of pollution in our society are too hi

7. Many observers believe that the levels of pollution in our society are too high. A. If a society wishes to reduce overall pollution by a certain amount, whys is it efficient to…

7. Market structures Aa Aa For each of the following scenarios, determine which

7. Market structures Aa Aa For each of the following scenarios, determine which market model best describes the scenarlo. Then identfy the number of firms, the type of product, an…

7. Market structures For each of the following scenarlos, determine which market

7. Market structures For each of the following scenarlos, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the…

7. Market structures For each of the following scenarlos, determine which market

7. Market structures For each of the following scenarlos, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the…

7. Mary Joe has preferences for food X) and clothing (Y) governed by the followi

7. Mary Joe has preferences for food X) and clothing (Y) governed by the following utility function: U(X, Y) X*Y +X a. Are her preferences quasi-linear? Why or why not? Do her pre…

7. Mercantile Metalworks, Inc. manufactures wire carts for grocery stores. The p

7. Mercantile Metalworks, Inc. manufactures wire carts for grocery stores. The production manager at Mercantile wishes to estimate an empirical production unction for the assembly…

7. Money neutrality states that a change in the money supply affects variables o

7. Money neutrality states that a change in the money supply affects variables only. Most economists believe that money neutrality is a good description of how money affects the e…

7. Normal and inferior goods -Her income increased while the prices of theater a

7. Normal and inferior goods -Her income increased while the prices of theater and concert tickets stayed the same. -The prices of both theater and concert tickets decreased while…

7. One would expect that the demand for automobiles in Indonesia over the next 1

7. One would expect that the demand for automobiles in Indonesia over the next 15 years will be influenced, not just by the price of automobiles and household incomes, but also by…

7. One would expect that the demand for automobiles in Indonesia over the next 1

7. One would expect that the demand for automobiles in Indonesia over the next 15 years will be influenced, not just by the price of automobiles and household incomes, but also by…

7. Option contracts Aa Aa ApliMedCo is a biotechnology company. One of its main

7. Option contracts Aa Aa ApliMedCo is a biotechnology company. One of its main products is an injection medicine called Pliatris, which is administered every month during the win…

7. Other things being equal, what will happen to automakers profits if they are

7. Other things being equal, what will happen to automakers profits if they are able to sell more vehicles using battery packs and thereby scale up battery production? 8. Why do y…

7. Price discrimination and welfare Suppose Barefeet is a monopolist that produc

7. Price discrimination and welfare Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with no close substitutes. The following graph sh…

7. Price regulation of a natural monopolist Aa Aa Consider the local telephone c

7. Price regulation of a natural monopolist Aa Aa Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the comp…

7. Problems and Applications 7 A case study in the chapter describes a phone con

7. Problems and Applications 7 A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let's analyze the game b…

7. Problems and Applications Q6 Societies choose what share of their resources t

7. Problems and Applications Q6 Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve pri…

7. Problems and Applications Q7 A case study in the chapter describes a phone co

7. Problems and Applications Q7 A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let's analyze the game …

7. Problems and Applications Q7 A profit-maximizing firm in a competitive market

7. Problems and Applications Q7 A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6,…

7. Producer surplus for an Individual and a market Suppose the market for cheese

7. Producer surplus for an Individual and a market Suppose the market for cheesecake is a perfectly competitive market-that is, sellers take the market price as given. Marla owns …

7. Project risk refers to the variability in a project\'s NPW True False If any

7. Project risk refers to the variability in a project's NPW True False If any equipment is well maintained during its economic life, 0&M; costs generally do not increase as t…

7. Project risk refers to the variability in a project\'s NPW True/False If any

7. Project risk refers to the variability in a project's NPW True/False If any equipment is well maintained during its economic life, O&M; costs generally do not increase as t…

7. Providing free prescription medications for all those who need them demonstra

7. Providing free prescription medications for all those who need them demonstrates horizontal equity 8. vertical equity C. procedural equity D. distributional efficiency 8. The f…

7. Refe r to Figure 26-3. A shift of the demand curve from D 1 to D 2 is called

7. Refer to Figure 26-3. A shift of the demand curve from D1 to D2 is called 8. Refer to Figure 26-3. Which of the following movements shows the effects of the government 9. Refer…

7. Refer to the figure above. Suppose the firm is currently producing Q2 units.

7. Refer to the figure above. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units? A) Its profit increases by the size of the vertical …

7. Refer to the table above. a. What is the marginal product of labor for the fi

7. Refer to the table above. a. What is the marginal product of labor for the fifth worker? (1 pt.) b. If the market wage for each worker is $100 per day, how many workers will th…

7. Shifts in labor supply Assume that the information technology and consulting

7. Shifts in labor supply Assume that the information technology and consulting industries employ people with similar skills. Suppose an increase in the demand for consultants lea…

7. Short-run and long-run effects of a shift in demand Suppose that the chicken

7. Short-run and long-run effects of a shift in demand Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 300 mil…