Reference no: EM1374393
1. If a 5 percent decrease in the price of long-distance phone calls leads to a 25 percent increase in the number of calls made, we can then conclude that the demand for long-distance phone calls at the current rate is ________.
a. elastic
b. inelastic
c. unitarily elastic
d. cannot be determined on the basis of data given
2. The concept of derived demand can best be illustrated by the statement:
a. An increase in the price of butter results in an increase in the demand for
margarine.
b. A decrease in the price of automobiles results in greater demand for automobiles, and the greater demand in automobiles results in greater demand for automobile windshields.
c. The demand curve is derived from the law of supply.
d. The demand for clothes depends upon buyers' incomes.
3. One way to view the law of diminishing marginal productivity is to say that ________________.
a. as more and more inputs (e.g., labor) are added to the production process, there will come a point where the marginal productivity will actually fall and even become negative
b. as more and more inputs are added to the production process, there will
not be a change to total productivity
c. adding inputs to the production process will cause marginal productivity to keep rising infinitely, because, like money, there can never be enough supplies
d. as more and more units of input are added, the total product becomes ever lower
4. The costs of a firm that vary with the level of production are called ___________.
a. fixed costs
b. total costs
c. variable costs
d. sunk costs
5. A perfect competitor can reap an economic profit ________________.
a. in the short term
b. in the long term
c. never
d. in both the short term and long term
|
Analysis of shifts in demand curves
: In 2005, APEX received a tax credit for production of its solar panels through the US Department of Energy's Energy Efficiency and Renewable Energy procurement plan.
|
|
Question related to monopolistic competition
: Do you think the overall level of R&D would rise or reduce over the next twenty to thirty years if the lengths of new patents were extended from twenty years to, say "forever"?
|
|
Question about demand and supply changes
: Most of us participate in the economy every day. As households, we can provide labor to companies or government in the input market and we are also consumers of goods and services in product market.
|
|
Fates of the two companies via a strategic audit
: Choose any KPIS based on your industry/interests and explain why the existing KPIs offer a partly-complete measure. For each KPI, come up with an extension that might offer a better and/or in-depth measure.
|
|
Concept of derived demand
: One way to view the law of diminishing marginal productivity is to say that, The concept of derived demand can best be illustrated by the statement:
|
|
Find changes on the equilibrium price
: Think the market for personal computers. Assume that the demand is constant : the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers.
|
|
Calculate the total tax bill
: Calculate the total tax bill for both low and high income individuals in both countries and fill in the table above with your results and what is the unemployment rate
|
|
Effects on exchange rate in british pound and japanese yen
: Suppose the government cuts its purchases through $120 billion. As a result, budget deficit is decreased by $40 billion, private domestic saving reduced by $10 billion,
|
|
Explain changes occur to demand, supply & quantity demanded
: The Wall Street Journal reported that recent law school graduates were having a very difficult time getting jobs in the legal profession. Many law schools said that ten to 20% of their graduates still had not found jobs.
|