Economics

1) An interest rate cap: 2) The buyer of a put option agrees to: 3) The seller o

1) An interest rate cap: 2) The buyer of a put option agrees to: 3)The seller of a call option obligates themselves to: 4) A bank has long-term fixed rate loans that are funded wi…

1) An investment project costs $100,000 today and will return two payments, $50,

1)An investment project costs $100,000 today and will return two payments, $50,000 in 1 year and $75,000 in two years. Is this project worth considering? Select one: a. No, the ne…

1) Arbitrage: a) Is the act of to buying low in one market and selling high in a

1) Arbitrage:       a) Is the act of to buying low in one market and selling high in another market      b) Can force a seller to go back to uniform pricing       c) Can defeat di…

1) As incomes increase, the demand for food tends to increase less than proporti

1) As incomes increase, the demand for food tends to increase less than proportionately, suggesting that a.    the demand for food is sluggish b.   food is an inferior good c.    …

1) As new firms enter a monopolistically competitive industry, it can be expecte

1) As new firms enter a monopolistically competitive industry, it can be expected that: a.Profits of existing firms will fall. b.Market price will rise. c.Market demand will rise.…

1) As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 wa

1) As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 559.6 (using a base year of 1914 = 100). The CPI for Airfare in 2264 was 605.7. Based on this dat…

1) As we have seen throughout the semester, the government has very important ro

1) As we have seen throughout the semester, the government has very important roles to play in capitalism. Why would it make sense for a government to borrow money to then spend i…

1) Assets can be classified in 3 ways according to its liquidity. However, such

1) Assets can be classified in 3 ways according to its liquidity. However, such assets do not include homes, jewelry, vehicles, etc. Why? (use three sentences maximum) 2) People o…

1) Assume all fixed costs are sunk costs. If a profit maximizing firm does not p

1) Assume all fixed costs are sunk costs. If a profit maximizing firm does not produce any output in the short run, then it must be true that its A. total costs are zero. B. econo…

1) Assume that a monopolist faces the following demand curve: P=250-2Q Also assu

1) Assume that a monopolist faces the following demand curve: P=250-2Q Also assume that the total cost function is given as: TC=1/2 Q2 a) What would be the monopolist price and qu…

1) Assume that the market for soybeans is perfectly competitive. Currently, firm

1) Assume that the market for soybeans is perfectly competitive. Currently, firms growing soybeans are experiencing economic profits. In the long run, we can expect A) new firms t…

1) Assume that the neutrality of money is true for the short-run as well as the

1) Assume that the neutrality of money is true for the short-run as well as the long-run. If the economy is initially in general equilibrium and the central bank now enacts a cont…

1) Assume that the price elasticity of demand is .5 for a certain firm\'s produc

1) Assume that the price elasticity of demand is .5 for a certain firm's product. If the firm decreases price, the firm's managers can expect total revenue to: a) decrease. b) inc…

1) Assume that there are five oligopolists in the national carpet manufacturing

1) Assume that there are five oligopolists in the national carpet manufacturing industry and they collude in a cartel arrangement to act as a collective monoply. Explain for each …

1) Assume that there are five oligopolists in the national carpet manufacturing

1) Assume that there are five oligopolists in the national carpet manufacturing industry and they collude in a cartel arrangement to act as a collective monoply. Explain for each …

1) Assume that with employment and no changes in resources or technology, and ec

1) Assume that with employment and no changes in resources or technology, and economy can produce the following combination of capital goods (those, such as machinery, that are us…

1) Assume the Fed creates excess reserves in the banking system by buying govern

1) Assume the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad. This situation is…

1) Assume the Fed creates excess reserves in the banking system by buying govern

1) Assume the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad. This situation is…

1) Assume the following table shows the yields per acre of wine grapes and olive

1) Assume the following table shows the yields per acre of wine grapes and olive oil in two different countries. Country A and country Z. (Also assume that in each country the lab…

1) Assume the total cost function of your business is given by C(q) = 100+5q+q 2

1) Assume the total cost function of your business is given by C(q) = 100+5q+q2. Then, if the output is q = 10, the average total cost is 15 dollars 20 dollars 25 dollars 30 dolla…

1) Assume the total product of two workers is 110 and the total product of three

1) Assume the total product of two workers is 110 and the total product of three workers is 120. The third worker's average product is ________ while her marginal product is _____…

1) Assume there is a simple economy where people consume only 2 goods, food and

1) Assume there is a simple economy where people consume only 2 goods, food and clothing. Further assume that the market basket of goods used to compute the CPI consists of 100 un…

1) Assume you are a wheat farmer in North Central Kansas, you have fixed costs p

1) Assume you are a wheat farmer in North Central Kansas, you have fixed costs per acre of $84, variable cost per bushel is $3.64, and you produce 56 bushels per acre. -What is yo…

1) Assume you own a pizza shop close to the campus at Monroe College. You have o

1) Assume you own a pizza shop close to the campus at Monroe College. You have owned and operated your pizzeria for more than 10 years. During that time, your annual operating cos…

1) At the beginning of the year, an audio engineer quit his job and gave up a sa

1) At the beginning of the year, an audio engineer quit his job and gave up a salary of $ 175,000 per year in order to start his own business, Sound Devices, Inc. The new company …

1) Below is the market schedule for NFL Jerseys 150 Supply 120 90 -Demand 60 -su

1) Below is the market schedule for NFL Jerseys 150 Supply 120 90 -Demand 60 -supply Demand 30 20 40 50 30 Quantity of erseys 10 a) What is the equilibrium price and quantity? b) …

1) Bill purchased a residential building and the land it sits on for $250,000 fo

1) Bill purchased a residential building and the land it sits on for $250,000 for his business. The land is worth $50,000 and building $200,000. Bill completed the purchase on 30t…

1) Bob White is conducting research on monthly expenses for dependent variable i

1) Bob White is conducting research on monthly expenses for dependent variable is monthly expenses for medical care while his independent and insurance type (government funded, pr…

1) Both theory and experience suggest that (fill in the blank) leads to lower vo

1) Both theory and experience suggest that (fill in the blank) leads to lower volatility in both money supply growth and inflation. having no central bank having a central bank wi…

1) Brimmo Motorcycles Inc., a U.S.-based firm, manufactures and sells electric m

1) Brimmo Motorcycles Inc., a U.S.-based firm, manufactures and sells electric motorcycles both domestically and internationally. A sudden and unexpected depreciation of the U.S. …

1) Can the Federal Government discriminate among states when setting tax rates?

1) Can the Federal Government discriminate among states when setting tax rates? What document provides the answer to this question? (As an example of the previous point, include a…

1) Capitalism (A) In the Wealth of Nations, Adam Smith proposes that among the f

1) Capitalism (A) In the Wealth of Nations, Adam Smith proposes that among the first economic exchanges were when a hunter killed a beaver but wanted to eat venison (from a deer).…

1) Carefully define the liquidity effects of money supply (M2) to interest rate.

1) Carefully define the liquidity effects of money supply (M2) to interest rate. 2) Identify the periods when the liquidity effects of money supply was very weak while the expecte…

1) Changes in aggregate suply: List three factos that can change theeconomy\'s p

1) Changes in aggregate suply:     List three factos that can change theeconomy's potential output.     What is the impact of shifts of theaggregate demand curve on potential outp…

1) China and Germany can each produce mp3 players and CD players. China can prod

1) China and Germany can each produce mp3 players and CD players. China can produce a maximum of 60 each. Germany can produce 70 mp3 players or 40 CD players. How should they trad…

1) Common econometric issues that come up in the Environmental Kuznets Curve (EK

1) Common econometric issues that come up in the Environmental Kuznets Curve (EKC) literature are the problems of omitted variable bias and simultaneous bias. Both omitted variabl…

1) Consider a consumer who is choosing among combinations of two goods: cookies

1) Consider a consumer who is choosing among combinations of two goods: cookies (c) and donuts (d). A bundle of c cookies and d donuts is given by (c, d). Assume that both c and d…

1) Consider a consumer who is choosing among combinations of two goods: cookies

1) Consider a consumer who is choosing among combinations of two goods: cookies (c) and donuts (d). A bundle of c cookies and d donuts is given by (c, d). Assume that both c and d…

1) Consider a currency Swap between firm A and firm B. Firm A is able to borrow

1) Consider a currency Swap between firm A and firm B. Firm A is able to borrow in the European market at 5 percent per annum (fixed rate) and at the American market at the London…

1) Consider a transportation service industry in which the firm’s cost function

1) Consider a transportation service industry in which the firm’s cost function exhibits IRTS. Determine whether the following remark is true or false and briefly explain your ans…

1) Consider an economy described by the production function: Y = F (K, L ) = K1/

1) Consider an economy described by the production function: Y = F (K, L ) = K1/2L1/2 where the depreciation rate is and the population growth rate is n. a) Find the per worker pr…

1) Consider an economy where, consumer’s utility function is given as U(C,L)=C-(

1) Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The …

1) Consider an economy with two goods--broccoli and peas. Each head of broccoli

1) Consider an economy with two goods--broccoli and peas. Each head of broccoli costs $2 and each bag of peas costs $1. George has a budget of $20 to spend on broccoli and peas. B…

1) Consider the following in the context of the quantity equation and the ASAD m

1) Consider the following in the context of the quantity equation and the ASAD model where the shortrun supply curve is horizontal and the long run supply curve is vertical. Suppo…

1) Consider the inverse demand function for good X below PX = 30 - 0.005X + 0.15

1) Consider the inverse demand function for good X below PX = 30 - 0.005X + 0.15PY Where X refers to the quantity of commodity X, PX and PY are the prices of good X and Y respecti…

1) Consider the market for a particular type of bolt described by the following

1) Consider the market for a particular type of bolt described by the following equations: a) Find the equilibrium price and equilibrium quantity transacted in this market b) If t…

1) Consider the wage elasticity of demand for waiters and waitresses. For the fo

1) Consider the wage elasticity of demand for waiters and waitresses. For the following, discuss whether that will make the elasticity more or less inelastic. Explain which of the…

1) Consider this statement: “Good news does existfor the industry such as the in

1)        Consider this statement: “Good news does existfor the industry such as the increasing per capita consumption offruits and vegetables and the sector’s projected growth in…

1) Contractionary fiscal policy is designed to increase aggregate demand. Is des

1) Contractionary fiscal policy is designed to increase aggregate demand. Is designed to decrease aggregate demand. Is designed to increase aggregate supply. Is designed to decrea…

1) Contrary to the orthodox position supporting laissez-faire policies, John May

1) Contrary to the orthodox position supporting laissez-faire policies, John Maynard Keynes, who “violently opposed laissez-faire” advocated government intervention with an argume…