Final

The accompany graph to pick the marginal cost average total cost and marginal revenue curves for a perfectly competitive firms move point a to identify the profit maximizing price and quantity for this firm

(12, 12)

Use the table to answer questions about demand for and supply for Blu-ray movies What is the equilibrium price per movie At a price of $12 per movie

10 A surplus of 20 movies occurs

In the graph the slope of the total cost for is calculated as ___ this value is also referred to as ___

TC/Q Marginal cost

Please each of the goods in the appropriate category according to elasticity of supply Perfectly inelastic supply, relatively inelastic supply, relatively elastic supply

Perfectly inelastic supply: land e=0 Relatively inelastic supply: parking structures e=.4 & strip malls e=.8 Relatively elastic supply: taco trucks e=1.6

A negative externality exist one ___ exceeds ___ The net effect of negative externality decreases ___ in results in ___

Social cost Private cost Both producer and consumer surplus is A deadweight loss to society

If Spain is said to have an absolute advantage over Mexico in production of leather this means they gave him the same resources

Spain can produce more leather than Mexico

This industry includes three firms from a infirm be in firm see use the marginal cost numbers for the sperm to graph the industry marginal cost

Positive line (30,20) (40,40) (50,60) (60,80)

Suppose that Ned can produce either potato chips or computer chips if he only gets to produce potato chips but he can produce 25 in a day if he only produces computer chips he can produce 15 a day drag the endpoints of a line to Paul his production possibility frontier PPF in the garage What is the opportunity crossing Peter chip productions in term potato chips over computer chips

Potato: 25 Computer: 50 1/2

The accompanying diagram to pics Alex demand for shoes If shoes cost $50 a pair how many pairs of shoes will Alex buy Alex decides to quit her part-time job working out of the student union adjust the graft to reflect any resulting change in her demands assuming that the shoes are normal good After quitting her job as shoes are still $50 a pair Alex will now buy how many pairs of shoes

5 Move the demand curve to the left 3

Papa Mel is an alfalfa farm in perfectly competitive industry use the information in the graphs to answer the questions How many bales should papa Mel produce to maximize his profit

6

Is the moon schedule for chicken feet in dim sum delicacy serve at some Chinese restaurants is shown in the table although some people find the texture strange others have developed a taste for it How many more chicken feet were demanded in 2008 at a price of three dollars a pound in 2008

6.2 Shift to the right

Uncle Zack farm has a cost and revenue as seen in the graph what is uncle Zack's profit maximizing output What price for uncle Zach receive per unit at the profit maximizing level of output Assuming that he maximize his profit how much will uncle Zach earn

7 3 14

Consider the graph which depicts a single competitive firm that wishes to maximize profit given its cost of production At which level of output will this firm maximize profits A profit maximizing firm will

7 Reduce the level of output such that marginal revenue equals marginal cost

The lease on Allison's apartment when will expire next month and she wants to move closer to campus there are two apartments that she likes both are close to campus and in her price range the first one is next door to the garage door local bands often practice late at night the second one is next-door to the donut shop that opens at 5 AM If she is a morning person and loves the smell of donuts she will be the donut shop as an If she likes to stay up late and loves listening to all kinds of music she will you the bands practicing as If her roommate hates loud music and the smell of donuts makes her sick she will reject both apartments due to what she considers

An external benefit External benefit An external cost

Sugarcane is vulnerable to the king beetle which can substantially reduce crop yields suppose of the new beetle resist species is developed in productivity increases as a result used terms for identify the effects on each other related factors As productivity increases the sugar will The quantity demanded for sugar will then Given the change in price of sugar the price of cookies will The price of honey also used as a sweetener will Responding changes in the sugar market the prices of textiles will

Decrease Increase Decrease Decrease Not change

The accompany graph represents the supply printer ink cartridge the current price of bank is $20 in indicated by the point on the supply curve suppose the price of cartridge increases to $24 illustrate on the graph how the market for ink cartridge changes The ____ cartridge has ___ by ___ billion

Keep the line where does that put move the dot to (7,24) Quantity supply Increase 2

You company graph market for electric vehicles it is expected that a bill giving a $12,500 tax credit for the purchase of an electric vehicle will be passed next month it is all over the news and there's enough support for to pass easily through the senate and the House of Representatives demonstration of the Call McGrath how the market for electronic vehicles will change immediately after the announcement of the bill will be passed next month

Move demand curve to the left

Supposedly accompanying graph to pick some market for 1 pound bag of candy place the point labeling surplus to show the price that would generate surplus then determine the size of the excess surplus

Put the surplus line at seven - Surplus=6

Suppose that the demand curve Exhibit 2 points initially at price P0 the quantity is demanded Q0 price changes to p1 quantity demanded is Q1

Q1-Q0/ Q0+Q1/ 2 / P1-P0/ P0+P1/ 2

Maneete Is the general manager for an office supply store and is currently addressing the effects of various market changes the current price of ink is $20 suppose the price of cartridges increased to $24 determine how the market for ink cartridge change in response What occurs in the market for ink cartridges in response to the increase in price

Quantity supplied increases moving up into the right along the curb

The generator is a popular youth hostel in London located near Kings Cross the hotel provides a bed shower and breakfast in their nightly fee suppose of the quantity demanded a zero in the price is 90 per night and 91 the price is $10 per night quantity supplied to zero and the price is 10 and 100 and the price is 80 In the accompanying diagram used information to place a supply curve demand curve In equilibrium how many beds are rented What is the total surplus

Supply: $10/ beds 0 Demand: $90/ beds 90 50 2000

you have a part-time job that pays eight dollars per hour your manager has asked you to work for extra hours on Friday night they have already had plans for dinner and a movie with a friend on Friday night Under what conditions will you choose to work on Friday night consider the economic with thinking an answer this question also assume that you are rational and you can afford dinner and a movie

you value the extra pay more in the Friday night activities

Information to fix the marginal cost average total cost and marginal revenue curve for perfectly competitive firms the market price is currently $12 At what quantity should the farm produce If the farm produce the profit maximizing quantity how much will the firm make in total profit

12 units $32.40

Graph and table .10 ? ? 2 .20 ? .28 ? ? 5 ? 6 .79 ? ? 8 ? 9

1 .14 3 4 .40 .56 7 1.20 1.90

If market price exceeds ___ cost profit will be ___

Average Positive

The long run industry supply curve in ___ upward sloping The long run industry supply curve in ___ downward sloping

Increase in cost industry Decreasing cost industry

Graph shows the marginal cost average total cost and marginal revenue curve for a perfectly competitive firm How many units for the sperm produced to maximize profit What price with the firm receipt for each unit at the profit maximizing level output

12 12

Calculate the price elasticities for demand for Brenda's bakery zucchini bread with the price increases by 29% the quantity demanded changes by -54%

1.86

Use the table showing output in cost for Betty Lou's burritos to answer the question What is the marginal cost of going from two workers per day to three workers per day What is the marginal cost of going for four workers a day to five workers today

2.50 3.57

A farmer produces both beans and corn on her phone she must give up 16 bushels of corn to be able to get 6 bushels of beans and her opportunity cost of 1 bushel of being is

2.67 bushels of corn

Bill has discovered a method for purifying drinking water that is also clean the air bill needs Financial capital to produce and market his invention consider the graph of market for financial capital use this information to answer the questions How much financial will Bill borrow and invest on his own Suppose bill obtains a patent that allows him to gain the social return how much will Bill borrow and invest

20 30

Supposed to graph depicts the marginal cost curve to profit maximizing Texas cotton farmers Jesse and Neil sell their cotton in the same competitive market What's the market price is two dollars how many built cotton should each farmers produce Get on the calculated levels of output two dollars per bail for each farmer choose the answer that best characterizes the relationship between Jesse MC and Nils MC

200 100 MCNeal = MC jesse

Consider the label areas on the graph select every area on the graph that represents consumer surplus Select every area on the graph that represents producer surplus Select every area on a graph that represents social surplus

A B A&B

Which of these choices best describes the elimination principle New firms enter the market when existing firms in the market are earning

Above normal profits and some existing firms exit the market when existing firms are earning below normal profit

Which statement is false What is the marginal cost of the fifth unit based on the table

Cost that are small and unimportant with a little impact on profit are called marginal cost $20

System institutions can promote economic growth by increasing savings investment promoting the development of new technologies and ensuring resources flow to the most productive uses identify whether each institution encourages grow or restricts growth A competitive market system ___ economic growth Free trade ___ economic growth Protectionist trade policies ____ economic growth Heavy government regulation___ economic growth Patents and copyrights ___ economic growth Command face systems____ economic growth

Encourages Encourages Restrict Restrict Encourage Restrict

Below is the market for nonfat decaf latte straw the total producer surplus on the graph of the shaded areas labeled PS

Equilibrium over to the left down to the bottom of the supply line back to Equilibrium

The price that results when quantity demanded equals quantity supplied is most correctly called the A surplus exists

Equilibrium price When quantity supplied exceeds quantity demanded

The table shows information on the conditions of demand and supply for designer purses where the quantity of designer purse is measured in thousands place the prices into the correct category Equilibrium, surpluses, shortage

Equilibrium: 700 Surplus: 900, 1100 Shortage: 500

Suppose the accompanying graph to pick some market for 1 pound bag of candy place the point labeled excess supply to show the price that would generate an excess supply surplus then determine the size of the excess supply

Excess supply at seven Excess supply=6

Widgets are us uses a variety of different items to produce its world class widgets classify each item according to whether it generates an explicit or implicit cost for the firm Natural gas from the gas utility Production line workers How do you the current rental venue of the land which is our a spot 50 years ago for $10 Packing crates bought from a shipping company A purchase of a used car And office space rented for special projects Cost associated with fixing widgets under warranty The factory owned by widgets are us

Explicit Explicit Implicit Explicit Explicit Explicit Explicit Implicit

Design engineer is creating I am light fixtures after one particularly enlightened afternoon they decided to follow their dreams and open up a cupcake bakery please close by the varies cost Implicit cost, not a cost, explicit cost

Implicit cost: -The garage space used for baking that can no longer be rented out to a college student -The salary Alex earned and his previous job designing light fixtures Not a cost: Explicit cost: -supplies like sugar, butter and baking trays -The money they pay their neighbor six-year-old son to deliver cupcakes to their customers -Advertising space taken out on a social networking site

Suppose there are only two good produced in an economy phones in meals Maria adept add assembling electronics but has poor skills are preparing food Mike is an accomplished chef but it's not very skilled at assembling electronics currently Mike and Maria each work independently but they each produce both meals and phones however they are considering trading some other perspective outcome with each other but only if that would allow each person to become more prosperous Which statement is not true

Mike and Maria will both gain only if they trade the same number of phones for the same number of meals

Please evaluate the statements regarding price elasticity of supply The ability to store your finished products makes supply High barrier to entry makes supply

More elastic Less elastic

Consider the statement regarding elasticities Over longer periods of time demand tends to be With fewer substitutes demand tends to be Demand for Colgate tends to be__ then demand for toothpaste or dental hygiene products as a whole Demand for a luxury item tends to be

More elastic Less elastic More elastic More elastic

Which example best represents perfectly inelastic supply

Original paintings made by Leonardo da Vinci

Suppose that due to the rapid increase in population with children moving in for Mother's Day to the demand for teddy bears in Vermont increases dramatically eventually many of those families with children who move to Vermont Decide to move back to their home states due to personal aversion to snow and cold weather as a result a state wide demand for teddy bears decreases which lowers teddy bear prices using the chart please determine the order with invisible hand will lead events to occur as described

Price of teddy bears increases Supply of teddy bears increases New market equilibrium Price of teddy bears decreases Supply of teddy bears decreases

What is the price of corn crop produced in a perfectly calm industry increase 208% last year as demand for corn based ethanol fuel increase What do you expect to happen in the long run to the court industry given this recent success Suppose the farm in the market for bacon also perfectly competitive industry expected loss last quarter do to the people becoming increasingly concerned about how high fat diet negatively impact hell What do you expect to happen in the long run for the bacon industries

Profits will be equal to zero Profits will be equal to zero

The graph shows the market demand and supply curve for corn and assume it is perfectly competitive good suppose that it's discovered that corn farmers are earning positive profit Assuming all else remains the same show how the market response to this discovery in the grass

The demand curve shifts to the right

Classify each statement is true or false

True: -economic profit in accounting both make use of explicit cost -A firms economic profit can be different in accounting profit - implicit costs are related to a firms opportunity cost False: - The money that affirm spends on rent is an example of an implicit cost - affirms explicit costs are always larger than its implicit cost

Which of the four options best represents specialization in its relationship with trade

comparative advantage

In anticipation of major hurricane hitting the gulf coast the quantity of gasoline sales rises from 375 million gallons to 435,000,000 gallons Based on this information what is the percentage change in gasoline sales please testify your answer to one decimal place and use the midpoint formula

14.8

The table contains information on the price per month in the monthly demand supply of online music streaming subscriptions What is the quantity demanded at $10.50 What is the quantity supplied at $10.50 At what price is the quantity supplied equal to 210,000

190 310 10.10

Suppose there are four firms in an industry in the table contains marginal cost of production for these for first at four levels of output If the price is $40 per unit how many unit to firm to produce to maximize profit Maximize profit across the industry each firms produce such that price equals to which variable

200 units Marginal cost

Lacy is in the market for a used lawnmower she's willing to pay $700 what is Lacy's economic surplus if she buys a lawn more for $450 If she's only willing to make a purchase if the price she pays is less than or equal to her willingness to pay she's following the

250 Rational rule

Suppose that Michelle buys a cappuccino from Falls Café and bakery for $4.25 wish I was willing to pay up to $7.75 with a cappuccino and Falls Café bakery was going to except $2.75 for the cappuccino based on this information answer the following questions Michelle's consumer surplus Paul's Café and bakery producer surplus

3.50 1.50

Christine and Paul are deciding how to split their time between writing music lyrics for the new album through PPS for 72 hours of work are shown Christine and Paul have written music for eight songs and lyrics for 12 songs for songs already have music when they are done they can go to private island and relax for all the hard work is it possible that they will use more than 72 hours Wednesday start writing lyrics music assuming they hired help pack for them in their plane is waiting outside their door how many hours can a board the plane with a relaxing island getaway Who is Christine is writing music for __ songs Paul is writing music for __ songs Christine is riding lyrics for __ songs Paul is writing lyrics for __ songs

96 hours 0 8 12 0

Assume Sophie Chad can both make candles and cookies and the only limited resources their time Who has the absolute advantage in making cookies Who has the absolute advantage in making candles Who has the comparative advantage in making cookies Who has the comparative advantage in making candles

Chad Neither Chad Sophie

For each of the scenarios calculate the surplus and indicate if it's a producer surplus or consumer surplus Alice is willing to spend $30 on a pair of jeans and has a coupon for $10 off food she found online she selects and purchases a pair of jeans which cost $35 pre-discount Nicole has a hockey puck from the 2010 winter Olympic games and put it for sale on eBay she will only sell the **** is the winning bid is greater than or equal to $500 after bidding close the last bid stand at $500 Claire is trying to sell her used calculus textbook online she asked for $150 or best offer and is willing to sell anything over $100 she is able to sell it for $125 Roy is willing to pay $2.50 for sports drinks he puts five dollars into the vending machine and pushes the button for the sports drink without noticing the prices increased to $2.75 until he comes to change back he gets

Consumer surplus $5 Producer surplus. $0 Producer surplus. $25 Consumer surplus $-.25

Label each scenario by deciding whether the opportunity cost is increased or decreased Emily is deciding between her two favorite restaurants one makes Indian food and the other makes Chinese food the Indian restaurant has just recent prices the opportunity cost of Chinese food has Jacob has a bagel or muffin for breakfast muffins are on sale so they cost one dollar less than usual the opportunity cost of eating a bagel has Taylor us to take time off of work to study since her wages increase from $10 an hour to $15 an hour the opportunity cost of studying has Justin decides to take the bus home from school instead of driving to school the price of gas is just decrease the opportunity cost of taking the bus has

Decreased Increase Increase Increase

What was the goods below are either sold perfectly competitive markets or in secondary markets that are also competitive suppose that the market or the secondary market starts an equilibrium for each scenario determine whether there would be an upward or downward pressure on the price immediately after the event An outbreak of mad cow disease causes Americans to obtain from eating beef An impending nuclear war causes people to stock up on Twinkies a popular snack cake provided by many companies The Nile river floods this year and exceptional amount of soil of silt resulting in increased crop of cotton Subzero weathers in New York where the Super Bowl is being played causes people to become disinterested in watching the Super Bowl why what happens to ticket prices in the scalping market

Downward pressure on price Upward pressure on price Downward pressure on price Downward pressure on price

Complete the sentences to illustrate how economist and accountants view profit differently Which statement is true Economic cost an accountant cost difference because Economist cost an accountant cost differ because

Economic profit is typically lower than accounting profit Accountants include only explicit cost Economist include both explicit and implicit cost

Labels of demand is elastic unit elastic or any elastic for each scenario use the midpoint method one of the applicable to calculate the price elasticity of demand Contain yourself a plastic container company raises the price of signature lunchbox container from three dollars to four dollars as a result the quantity sold dropped from 20,000 to 15,000 Economist working for the US have determined that the elasticity demanded for gasoline is .5 Capital metro decide to increase busfare rate from four dollars to $4.40 consequently the number of passengers drops from the average 70,000 miles today to an average of 58,000 riders a day

Elastic Unit elastic Inelastic

Command-and-control t or f Command-and-control is always the best option when it comes to reducing the amount of pollution Under command and control the government has the option to specify the technology that firms most used in production Command and control is subject to political considerations Command-and-control is more flexible than market based regulations A limitation of a command control is that a firm has no incentive to remove additional pollution once they are within the legal pollution limits One option with command and control is for the government to decide on a specific amount of pollution that a firm can legally omit

False True True False True True

Each of the statements showing is characteristic of a phrase in the development of a competitive market industry please classify each statement as a cause of firms existing the market the number of farms in the market remaining stable or firms and drink the market Firms exit the market, number of firms remain stable, firms enter the market

Firms exit the market: Price is less than average cost, firms earn an economic loss Number of firms remain stable: no firms are an economic profit Firms enter the market: Price is greater than average cost, firms earn both economic profit and accounting profit

Louis and Maria just purchased a piece of land and a tractor they plan to start growing and selling organic jalapeño peppers they have heard that the market for organic jalapeño peppers is perfectly competitive What does that mean in terms of long run profit Louis and Maria want to know the quantity they should produce to maximize profit as their economic advisor you recommend that they

Firms will earn zero economic profits in the long run Produce until marginal cost is equal to marginal revenue

Which Of the descriptions are examples of song cost of the examples of the place Is a Sunkcost is not a sunkcost

Is a sunk cost: The cash paid for the delicious burritos you ate yesterday The cash your friend paid for her last haircut that she absolutely adores Is not a sunk cost: The income you earned last week at your job Income your earn after college graduation The money you will pay two months from now for the next month power bill The amount of money you save for the books you need for next semester Income you earned today

The four categories present potential response to solving externalities classify each response in the category that best matches it it is possible that a category may end up with more than one scenario Laws, rules and regulations , cap and trade, corrective taxes and subsidies, private bargaining

Laws rules and regulations: -Government requires that auto manufacturers use a new cleaner technology in producing cars -Government requires an auto manufactures limit pollution to a specific threshold Cap and trade: -auto manufacturers are allowed to pollute as much as they wish provide that they have purchased a sufficient number of pollution vouchers Corrective taxes and subsidies: - an auto manufacturer is charged a fee per unit of pollution emitted into the river Private bargaining: - A steel mill pays nearby homeowners to compensate for them noise they must put up with as a result of the steel manufacturing process

Assume that you buy nonrefundable tickets to a basketball game for $40 after the third inning your team is losing 22 zero and you are no longer enjoying the game you realize if you left the game you could go to work early and pick up an extra $25 should you leave or stay at the game

Leave and work

Determine which economic principles illustrated by each scenario The owner of a snow cone trailer realizes that the demand for snow cone is low during the winter and closes up shop until temperature is warm back up near the summertime The local river has so much pollution that three eyed fish are forming regulations are therefore enacted to limit the amount of chemicals dumped into the river Add a high-end restaurant the restaurant owner has one chip at the meat station one chef at the vegetable station and one chef who has an artistic I played the food she's given the result of this increase service fee enabling the kitchen to serve more customers in an evening During the summer a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide as a result prices fall to compensate for the surplus and consumers enjoy the fruit of the farmers labor

Market efficiency Government intervention Specialization Equilibrium

Producer surplus is different between the Producer surplus is shown graphically as the area

Market price in the minimum price a seller is willing to accept Above the Supply curve and below market price

The supply schedule contains individual supply curves for only two firms in a hypothetical market for stuffed animals use the schedule to answer the questions A third firm would mean With two farms in the market the market quantity supplied at two dollars is

Market supply increases 5700

If Mary can bake more cakes in one day then sarah can bake in one day then

Mary has an absolute advantage and baking cake

Choose the correct price elasticities label for each pair of goods assume this involves demand for the total of all people currently residing in Canada United States and Mexico Cosmetic surgery ___ emergency surgery A cheeseburger at 7 PM at a 24 hour restaurant ___ A cheeseburger at 2 AM at a 24 hour restaurant Monthly electric consumption ___ yearly electric consumption All cars ___ Red cars The wall street journal ___ Wall street journal at the airport

More elastic More elastic Less elastic Less elastic More elastic

Below is the hypothetical supply in the man diagram for iron supplements in Brazil with positive externalities Move E one to the market equilibrium Move E2 to the social optimal equilibrium

Move E1 (400, 1.5) Move E2 (600, 2.5)

Use the accompanying graph below to answer the questions about market for Apple's current generation iPhone Move the supply and or demand curve to illustrate how across-the-board cut in prices of all apples on the Apple app Stor affect the market for iPhones Move the supply and or demand curve to illustrate how a decrease in the price of Samsung current galaxy smart phones impact the market for iPhones The price of iPhones in a is now The price of iPhones in b is now The shift in a is due to a change in the price of a This shift in the is due to a change in the price of a

Move the demand curve to the right Move the demand curve to the left 600 400 Complementary good Substitute good

Do US government has subsidize ethanol production since 1978 with the advent of affordable electric cars policymakers are considering whether to allow the subsidy to expire the company graph represents the market for ethanol move the supply or demand curves to show how the reducing the subsidy will fact the ethanol market Equilibrium price Equilibrium quantity

Move the supply curve to the left Increases Decreases

Juan Valdez coffee farmer in Columbia sells coffee to a café emporium a US farm with specializes in gourmet coffee blend What must be true of this arrangement What can we infer from the fact that one voluntarily entered into a contract with Café emporium

None these statements must be true One is better off as a result of his deal with Café emporium

For each example listed decide if a good is a normal good important inferior good make sure your answer from your perspective of the individual or individual doing the buying or consuming Billy's mom increases his weekly allowance by five dollars as a result Billys increases the number of apps he downloads on a smart phone smart phone apps are a Susan gets a 15% performance bonus at work she can finally stop eating so many frozen pizzas and eat something more tasty frozen pizzas are Mike is an appliance salesman refrigerator sales in a store have fallen and so has his commission Mike decides to switch from name brand cereals to generic cereals generic cereals is in Hairstylist Molly loses a few of her clients Molly cuts back on the number of smoothies she buys during the week smoothies are

Normal good Inferior good Inferior good Normal good

Use the shaded triangle to show the deadweight loss associated with external benefits depicted on the graph

One corner is that the cross of the supply and demand internal another point is the cross between demand social and supply in the last appointment is at the top of the demand social person in line for the first point

The graph depicts the market for good that creates a negative externality move the triangle labeled DWL to illustrate the deadweight loss associated with the market equilibrium quantity

One point starts at where the demand curve and the supply internal cross another point is where the demand and supply social cross in the last point is on the supply social above the supply internal demand point

Sport life as a company that produces water enhance with electrolytes in this market there are many firms entry and exit is relatively easy in farms sell homogeneous production Sport life is a farm in which market structure Refer to the table to determine how many gallons of water sport life to produce in order to maximize profit

Perfect competition 3

How much education create positive externalities use the company graph which represents a hypothetical market college-educated to answer the question that follows MSB stand for marginal social benefit MPV stand for Marshall private benefit an NPC stand for marginal private calls Move point E to fix equilibrium outcome The government wanted to subsidize college-educated how much credit subsidizing students receive the socially optimal level of education

Place E (50,40) 30000

Suppose the accompanying graph to pick the market for 1 pound bag of candy place the label excess demand at a price that would generate the excess demand or shortage then determine the size of excess demand

Place the excess demand at three Excess demand=4

Supposed to be accompanying graph to take some market for 1 pound bag of candy and place the labor shortage at a price that would generate a shortage and then determine its size

Place the shortage at three Shortage= 4

Below or to supply curves with differentiating elasticities first move .8 the perfectly inelastic supply curve and move point be perfectly elastic supply curve next place each characteristic of supply curves in the appropriate category

Point a on the Y axis Point B on the x axis Perfectly inelastic: quantity supplied does not respond to changes in price, shift in demand will not elect a change in quantity supplied Perfectly elastic: quantity supplied is hypersensitive to changes in price, A shift in a man will elect a large response in quantity supplied

Suppose that nurse chips or computer chips if you only produce potato chips you can produce 12 and a day if he only produces computer chipset produce 16 of the day drag the endpoints of the lying to plot his production possibility frontier PBS on the graph What is the opportunity cost of potato chips production in terms of computer chips

Potato - 12 computer - 16 4/3

Suppose that a firm and long run equilibrium and the demand for products decreases arrange the events in order in which they occur after demanded the creases until price returns to long run equilibrium

Price decreases Firms exit Supply decreases Price increases

In 2008 Besteria was a 10-year-old quadrillion air living in Zimbabwe he was literally rolling in money in fact the Syria has so much money and he decided to make cards out of billion dollar bills instead of putting the money into the bank to earn interest none of mysterious friends bothered to save their money either Rupert was the series American penpal and heard of the Syria story and was extremely confused he was taught that Zimbabwe was one of the poor countries in the world or at least substantially poor than the US which statement best explains this phenomenon

Rapid rise in price levels made Zimbabwe dollar near worthless in terms of purchasing power

Consider to competitive industry is the pizza industry in the basketball industry in order to produce their respective goods both industries need labor and capital suppose that last year both industries earn a profit but the bat industry earned higher profit in the pizza industry How will each industry profitability affect the flow of labor and capital Which of the statements is true about the balance of industries in the long run

Shift from the pizza industry to the baseball industry because it is more profitable All harmful or normal profit

The table shows the ton of steel number of computers and worker can produce per month in Germany and South Korea use this table to answer the questions Germany should

Specialize in steel production export steel and import computers

The following table indicates the labor hours needed to produce one unit of output Kate has comparative advantage in ___ and Mary has comparative advantage in ____

Sweaters Dresses

Suppose that the government is concerned about climate change and therefore wants to reduce carbon emissions Which is least likely to reduce carbon emissions

The government Issuing carbon permits to polluting firms where firms are able to acquire an unlimited number of permits at no cost

Consumer surplus is equal to the difference between Consumer surplus is shown graphically as the area

The maximum price a buyer is willing to pay in the market price Under the demand an above the market price

For each scenario determine whether the resulting changes will affect the supply curve the demand curve or both The price of goose feathers in input for pillows increases sharply in the market for pillows Researchers develop a higher yielding inspect repellent strain of rice in the market for rice Michael is fired from his job after working there for over 20 years and it's out less as a result for the market for restaurants

The supply curve shifts The supply curve shifts The demand curve shifts

The table shows morality rates expressed as the number of children per thousand lives births that die yearly for children in various countries along with the countries GDP per capita and economic measure of relative standard of living in 2005 Based on this information what conclusions can be made

The wealthiest countries have the lowest mortality rates

Kathy is selling homemade earrings she creates the earrings for a cost of two dollars per pair and can sell them for $15 for a pair Assume she sells 20 pairs of earrings in one day given this information select the term that correct lead corresponds to the given dollar amounts $2 x $20= $40 is $15 x $20= $300 is $300 - $40= $260 is

Total cost Total revenue Profit

The country of Sabora currently being all international trade Sabor makes high-quality spheres and is currently producing as many spears as the local population wishes to buy at $50 each other countries currently producing so spears $125 each. The newly elected president of Sabora decides to allow international trade for the first time in Sborz existence they will begin trade next year suborn spheres will make a happily engaged and trade assume there is a free trade in the Sabora was so all the spheres they make indicate which statements are true after trade is liberalization A greater quantity of Sakura spheres are supplied at a higher price There will be movement along Sabora supply curve Deborah supply curve will shift to the left Sabor supply curve will shift to the right Sabor a sphere prices for lower for the same quantity A greater quantity of sobor spears are supplied at the same price When internatio

True True False False False False Will increase

The table presents information about the productivity of digital cameras and personal computers in the US and Japan the data are presented in units of output per hour of work uses information to answer the questions Who has an absolute advantage in producing digital cameras Who has an absolute advantage in producing computers Who has a comparative advantage in producing digital cameras Who has a comparative advantage in producing computers

US Japan US Japan

For firms imperfectly competitive markets long-run economic profits are ___ because firms will ___ The market and profit are negative and ___ The market if profits are positive

Zero Exit Enter