Econ 102 final (simple)
price ceiling effect of it?
Cap or max price can cause a shortage
(ch1 Nelson Esparza)Which of the following was NOT a way that the CARES act money was spent? Repaving Roads Housing Retention Grants Grants to Small Business Subsidized Child Care
Repaving Roads
Progressive tax
system in which marginal and average tax rates are higher for higher income
Price elasticity of demand formula
% change in quantity demanded / % change in price OR (⌂ Q/ ⌂ P) x (P avg/Q avg)
Price elasticity of demand
% change in quantity demanded due to a % change in price
(ch 6 stefanie ramirez) According to our discussion about EXIT in the interview, how long was the long run? 1 year 1 day 1 month 1 week
1 year
(ch 8 podcast: Iceland) When was the volcanic eruption that killed a quarter of the population of Iceland? 1783 1738 1387 1837
1783
From the Marie Martin interview: What was the price impact of the United Sierra merger? -5% 14% 0% 20%
14%
Which constitutional amendment permanently established the income tax in the U.S.? 23rd 16th 4th 1st
16th
Cutoff for a D- in the class?
55
(Ch 5 podcast tooth Fairy) Based on what Betsey Stevenson reported getting, what was the inflation adjusted amount the tooth fairy should give? About 3 dollars About 1 dollar About 5 dollars About 20 dollars
About 3 dollars
(Ch 4 Stephanie Ramirez) We can say that the increase in demand for pawnbrokers demonstrated that pawnbrokers and payday lenders were substitutes. Based on the discussion in the interview, this was primarily based on the ________ of payday loans after the regulation. Price Availability
Availability
fair returns pricing
P=ATC
Shutdown:
The short run decision to not produce anything during a specific period. MR<VC Price<AVC
Marginal product of labor
additional output for each additional unit of labor
how does a monopoly create DW loss?
by charging a price where MR>MC
price discrimination
charging different prices to different customers for the same product when the price differences are not due to differences in cost
ATC increases as out put increases
diseconomies of scale
human capital
each person's investment in themselves leading to the ability to be more productive
ATC falls as output increases
economies of scale
demand curve elasticity > 1
elastic
monopolist if p decreases and MR increases? (elsticity) if p decreases and MR decreases? (elasticity)
elastic, inelastic
Demand curve shifts left -> demand increase or decrease? P and Q?
less demand, P and Q decrease
monopoly what causes it?
one seller of a good with no close substitutes barriers to entry, externalities
(ch 6 stefanie ramirez) Pawn broking increase as payday lenders changed their business model Answer new firms entered the market
payday lenders changed their business model
order from most to least competitive monopolistic comp perfect comp monopoly oligopoly
perfect comp monopolistic comp oligopoly monopoly
differentiated products
similar but not identical goods slight = mopolistic comp or monopoly oligopoly
In the podcast, it was mentioned that some argue that dominant tech companies should be treated like utilities. Other than Google, one company was mentioned. What was it? Snapchat Instagram MySpace Facebook
(Ch 4 Stephanie Ramirez) In the interview, we discussed a regulation on payday lenders. What about payday lending was regulated? Hours Number of Firms Fees/Interest Rates Number of locations
Fees/Interest Rates
(ch 8 podcast: Iceland) What did Iceland Start Trading in the 19th century? Fish Potatoes Turnups Oil
Fish
(ch 7 podcast: foodbanks) How was the "fake money" distributed? Foodbanks that feed the least hungry people All places had the same amount of money A lottery Food banks that feed the most hungry people got the most money They bought the fake money with donations
Food banks that feed the most hungry people got the most money
in labor market: consumers ________labor firms _________ labor
supply demand
Oreo and Hyrox are trademarked brands. We would expect trademarks to be most important in which market structure? Monopolistic competition Oligopoly Monopoly Perfect Competition
Monopolistic competition
(Ch 9 Ashley Langer) According to the interview with Doug Webber, what was closest to the average net amount that a student at a school like UNR spends on tuition these days (after financial aid)? $3000 $25000 $500 $1000
$3000
Scenario: Suppose there are only two firms in an industry, and their products are perfect substitutes for each other. Each firm had a fixed marginal cost of $5 and zero fixed cost of operation. The highest the consumers of this product are willing to pay for it is $10, and there are 200 consumers in this market.Refer to the scenario above. Suppose Firm 1 and Firm 2 have to come up with a pricing strategy simultaneously. In this case, Firm 1 will charge ________, and firm 2 will charge ________. $10; $10 $5; $10 $5; $5 $10; $5
$5; $5
When was it that Hydrox originally stopped production? 1999 2009 1880 1982
1999
How much was Google fined by the EU? 24 Billion Euros 2.4 Billion Euros They were not fined 2.4 Million Euros
2.4 Billion Euros
(Ch 4 Stephanie Ramirez) In the interview, we discussed a regulation on payday lenders. When was this regulation passed? 2007 2011 2008 2018
2008
(Ch 5 podcast tooth Fairy) What was the median amount of money given by the tooth fairy according to the Delta Dental survey? 4.66 6.46 6.44 20
4.66
(Ch 5 podcast tooth Fairy) What did Betsey Stevenson say that she used to get from the tooth fairy as a kid? 50 cents 5 dollars 20 dollars $4.66
50 cents
(ch 6 podcast helium) With auctions, the price of helium increase from 1 to 3 65 to 119 115 to 254 2600 to 23000
65 to 119
Exit: Exit if:
A Long run decision to leave the market. Price is less than ATC, or likewise, if total revenue is less than total cost.
(ch 7 podcast: foodbanks) What solved the "pickle problem" for the food banks? Cheaper Transportation A Market More Donations Price Controls
A Market
(ch 2 Douglas Weber) How can we best describe the type of economic study that he and his coauthors conducted? A Natural Experiment A Controlled Experiment A Lab Experiment Correlation but not Causation
A Natural Experiment
(ch 6 stefanie ramirez) Approximately how long did it take for new firms to enter? A year A month A day A week
A month
An example of government failure is ________. the slowness of bureaucracies political corruption bureaucratic inefficiency All of these
All
(ch 6 stefanie ramirez) What describes what happened to payday lenders (in terms of chapter six vocabulary) Nothing Exit Shutdown Entry
Exit
(ch 8 podcast: Iceland) In the terminology of Chapter 8, we can say that Iceland developed because of what economic principle? Comparative Advantage Inflation Equilibrium Supply
Comparative Advantage
(Ch 9 Ashley Langer) sing higher tolls during peak travel times in cities and peak fees for airplane takeoff and landing slots is an example of____________________ Congestion pricing Carbon tax Social welfare Positive externality
Congestion pricing
ATC doesn't change in response to output
Constant returns to scale
From the Marie Martin Interview: When antitrust regulators consider consumer welfare, what is it that they are primarily considering? Consumer Surplus The Number of Firms Firms Profts Equity
Consumer Surplus
(ch 3 Amber Quershi Urrutia) According to the interview, in the model of major choice, people have different optimal majors because of Different preferences Different options Different budgets Different prices
Different preferences
(ch 3 Amber Quershi Urrutia) Which of the following factors was NOT discussed as a factor in major determination? Differential tuition rates The number of classes you would need to take How much the major would pay over the lifetime What your parents think of a major
Differential tuition rates
Can a monopoly ever be good for society?
Evidence suggests that market power can be an important factor in innovation.
From the Marie Martin Interview: Generally how do antitrust regulators react to a complaint from one firm being harmed by another firm? By protecting the smaller firm Generally not getting involved unless consumers and the market as a whole were harmed By protecting the larger firm By punishing both firms
Generally not getting involved unless consumers and the market as a whole were harmed
What did the European regulators decide? Google had to purchase the competing companies Google had to pay damages to the competing companies Google has to give equal treatment to all comparison shopping services Google shopping had to shut down
Google has to give equal treatment to all comparison shopping services
Professor Trevon Logan described one key way to lower tax avoidance as Having high taxes Increasing the size of the IRS Having a more simple tax system Having a complex tax system
Having a more simple tax system
(ch 7 podcast: foodbanks) Why was one of the food bank workers interested in bidding on syrup? He was anticipating the price of syrup going up No answer text provided. He had a lot of pancake mix His food bank had a large increase in clients because of the recession
He had a lot of pancake mix
In the interview Marie Martin mentioned that in recent years, a very large number of Conduct Cases involved which industry? Technology Utilities Health Care Agriculture
Health Care
Back when Oreo and Hydrox were competing, suppose that each cookie sold for the same price. What would you expect to happen if the price of Hydox went up? Nothing Hydrox would lose all of their customers to Oreo Hydrox would lose some, but not all, of the customers to Oreo
Hydrox would lose some, but not all, of the customers to Oreo
how does elasticity of demand effect who bears tax incidents?
If elasticities between the producer and consumer and producer are the same then they will bear the burden equally if prod or cons is more inelastic, they will bear more burden
(Ch 5 podcast tooth Fairy) Justin Wolfers said that one explanation for the increase in tooth fairy payments was related to which concept that we covered in Chapter 5? Income Elasticity of Demand Cross Price Elasticity of Demand Price Elasticity of Demand Consumer Surplus
Income Elasticity of Demand
Federal taxes come from? (4)
Individual income tax 47% corporate income tax 10% social ins tax 34% other 9%
What is the key question in antitrust law? Did the company drive other companies out of the market because they were better? Does the company control more than 80% of the market? Is the power using its power to charge higher prices or reduce output?
Is the power using its power to charge higher prices or reduce output?
(ch1 Nelson Esparza) Based on the interview, how could we describe the opportunity cost of money spent on subsidized rent? Less money for childcare Less roads Less COVID testing
Less money for childcare
Which of the following statements is true? The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus. The broader interests of societies are met more often in a command system than in a market system. Market economies minimize waste and provide incentives for all market participants to promote their own interests. The coordination of different economic agents and bringing them together to trade is a central problem of a free market economy.
Market economies minimize waste and provide incentives for all market participants to promote their own interests.
(Ch 5 podcast tooth Fairy) According to what Wolfers said about the income elasticity, we can conclude that (given our definitions from class), the amount of money parents give to their kids through the tooth fairy) is what kind of good? Normal and Luxury Normal and Necessity Inferior
Normal and Luxury
(Ch 4 Stephanie Ramirez) In the interview, we discussed a regulation on payday lenders. Where was this regulation passed? Arizona Nevada California Ohio
Ohio
(ch 2 Douglas Weber) From which state did Doug Webber get his data on the effect of college on earnings? Ohio Pennsylvania Nevada California
Ohio
(Ch 4 Stephanie Ramirez) In the interview, we discussed a regulation on payday lenders. To which industry did consumers shift to after payday lenders' services were no longer available? Traditional Banks Pawnbrokers Title lenders Credit Unions
Pawnbrokers
(Ch 9 Ashley Langer) Which best describes what Ashley Langer said about gas versus miles taxes? Rural drivers are differently affected because they drive more miles than urban drivers Rural drivers were not affected by these taxes Urban drivers were not affected by these taxes
Rural drivers are differently affected because they drive more miles than urban drivers
Professor Trevon Logan described how income taxes can be used as a tool to encourage certain behaviors. Which activity did he NOT mention? Saving for Health Care Expenses Saving For Retirement Increasing Homeownership
Saving for Health Care Expenses
(ch 8 podcast: Iceland) How did Iceland "export electricity"? Smelting Aluminum Underwater cables that were very dangerous for fish Batteries
Smelting Aluminum
(ch 2 Douglas Weber) What type of students did he use to "identify" (find the causal effect for) the returns to a college degree? Students on academic probation Students receiving scholarships Honors students Economics majors only
Students on academic probation
(ch 3 Amber Quershi Urrutia) What is the result IN THE DATA about major choice in a recession? Students tended to choose higher paying majors Students did not change their choices Students chose lower paying majors Students were less likely to finish college
Students tended to choose higher paying majors
Supply curve shifts right -> supply increase of decrease? P and Q?
Supply decrease, P decrease, Q increase When P decreases, more supply available
Supply curve shifts left -> supply increase or decrease? P and Q?
Supply decrease, P increase, Q decrease When P increases, less supply available
Which war lead to the first income tax in the U.S.? The Civil War Spanish-American War War of 1812 Revolutionary War
The Civil War
(ch 6 stefanie ramirez) Which side of the overall market for short term loads was changed by the regulation? The Demand Side The Supply Side Neither
The Supply Side
Which of the following markets is likely to be perfectly competitive? The market for shower gel The market for wheat The market for patented nuclear medicines The market for smart phones
The market for wheat
Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market? The monopolist's marginal costs and the buyers' willingness to pay for the good The buyers' demand for a close substitute of the product sold in the market The monopolist's marginal revenue and the tax levied on the sale of the good The monopolist's marginal costs only
The monopolist's marginal costs and the buyers' willingness to pay for the good
(ch 6 podcast helium) What best describes what happened when the government started selling the stockpile helium at a fixed price? No answer text provided. The price was too high and consumers could no longer afford helium. The price was lower than ATC for firms, drawing new firms into the market The price was lower than ATC, causing private helium producing firms to exit the market
The price was lower than ATC, causing private helium producing firms to exit the market
Which of the following is an effect of imposing a tariff on an imported good? The domestic price of the imported product decreases. The quantity of domestic production increases. The tariff imposed on an exported good must be adjusted. The quantity of domestic production decreases.
The quantity of domestic production increases.
(ch1 Nelson Esparza) How did Nelson describe the opportunity cost of a decision (i.e. number one tradeoff) The thing you WOULD be doing (rather than all the things you COULD be doing) The thing you COULD be doing (rather than all the things you WOULD be doing) The most costly option The lowest cost option
The thing you WOULD be doing (rather than all the things you COULD be doing)
(ch 3 Amber Quershi Urrutia) According to the THEORY in Amber Qureshi Urrutia's research, what should happen to major choice when there is a recession? We can't tell from theory Students will choose higher paying majors Students will choose lower paying majors
We can't tell from theory
causation
When one thing directly affects another.
Correlation
When two things are related.
According to the podcast, which war lead to the middle class beginning to pay the income tax? Civil War World War I World War II Vietnam War
World War II
how to find HHI
square the market power of each firm and then find the sum of all of those
Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by ________. a higher price and the same quantity a lower price and the same quantity a lower price and quantity the same price and quantity
a higher price and the same quantity
The equity-efficiency trade-off is best represented by ________. a regressive tax system the absence of government intervention policies that achieve full efficiency and full consumer surplus a progressive tax system
a progressive tax system
Acquisitions by large tech platforms where there are risks of ___________________ effects like those posed by Amazon's acquisition of Whole Foods _______________ be permitted." anti-competitive, should not__ anti-competitive, should competitive, should not competitive, should
anti-competitive, should not
The European Union often uses its _________________ powers to protect EU-based firms from ______________________ competition, rather than to promote greater competition in European markets antitrust, international veto, domestic antitrust, domestic veto, international
antitrust, international
statistical discrimination
arises due to expectations about a group of people based on data
taste-based discrimination
arises due to people's prejudices against a group of people
equity-efficiency trade-off
balance between enuring an equitable allocation of resources (equity) and increasing social surplus or total output (efficiency)
second degree price discrimination
consumers being charged different prices based on the characteristics of the purchase (buying in bulk is cheaper)
third degree price discrimination
consumers charged different prices based on customer or location characteristics (student discount)
a firm should hire workers until
cost of worker = what they make you Workers have to make the firm more than they cost
Tarriffs cause increase or decrease in social surplus?
decrease
The socially optimal price is to set the price for a regulated monopolist ________. equal to average total cost equal to minimum average variable cost equal to marginal cost greater than marginal revenue
equal to marginal cost
A monopolistic competitor earns zero economic profits if it charges a price that is ________. equal to the average total cost of production equal to the marginal cost of production higher than the average total cost of production lower than the marginal cost of production
equal to the average total cost of production
first-degree price discrimination
firm charges the max a consumer is willing to pay (auction)
The value of the marginal product of labor is the ________. labor supply schedule facing the firm firm's labor demand schedule firm's marginal revenue schedule firm's marginal cost schedule
firm's labor demand schedule
efficiency
get the most out of scarce resources Maximize surplus
The automobile industry in Petrovia has a Herfindahl-Hirschman Index of 5,600. This implies that the automobile industry in Petrovia is ________. perfectly competitive dominated by a few buyers moderately concentrated highly concentrated
highly concentrated
market supply of labor
horizontal sum of each individual supply
The difference between an oligopoly with differentiated products and a monopolistic competition is ________. how many inputs firms use how many products firms produce how much influence firms have over prices how many firms there are in the market
how much influence firms have over prices
(ch1 Nelson Esparza) Nelson described Economics as being a social science because it is based off of
human behavior
Economics is the study of
human behavior related to choices; how agents make choices among scarce resources and how these choices affect society.
homogenous goods
identical goods, perfect substitutes Perfect comp oligopoly
skill based technological change consequences?
increase in productivity of skilled workers relative to that of unskilled drives increase in wage discrimination over time
one reason economists don't favor protectionism is because?
increases prices for consumers and decreases social surplus
industry specific human capital
increases productivity for entire industry
Firm-specific human capital
increases the productivity for just hiring firm
demand curve elasticity <1
inelastic
Consumer sovereignty
is the view that choices made by a consumer reflect his or her true preferences, and outsiders, including the government, should not interfere with these choices
Paternalism
is the view that consumers do not always know what is best for them, and the government should encourage or induce them to change their actions.
A socially optimal price regulation will NOT work if marginal cost is ________. less than average fixed cost less than average total cost greater than average total cost greater than average fixed cost
less than average total cost
Social surplus and price of perfect comp
maximized P=MR=MC
what is HHI
measure of market concentration to determine the degree of competition
how does monopoly behave differently than perfect comp from a market perspective
monopoly set price above the point where mr=mc which causes surplus not to be maximized
Demand curve shifts right -> demand increase or decrease? p and q?
more demand, P and Q increase
Raising the top federal marginal tax on earned personal income to 70% would raise substantially _________________ revenue without _______________ economic activity. lesser, lowering more, increasing the same, the same more, lowering
more, lowering
(Ch 9 Ashley Langer) Carbon dioxide emissions produce _________________ externalities and a federal carbon tax (according to Brooking's Institution) would involve ________________ harmful net distortions to the US economy than a tax _______________ that generated the same revenue by raising marginal tax rates on labor income across the board. negative, fewer, increase positive. fewer, increase negative, higher, increase negative, fewer, decrease
negative, fewer, increase
Social surplus and price of monopolistic comp
not maxed P>MR=MC
Social surplus and price of monopoly
not maxed P>MR=MC
Social surplus and price of oligopoly
not maxed p>MR=MC OR P=MR=MC
2 things that shift labor demand curve
price of the good firm produces technology used in production
Raising the top federal marginal tax on earned personal income to 70% (and holding the rest of the current tax code, including the top bracket definition, fixed) would _____________ the federal revenue and _________________ the state revenue from tax.
raise, raise
Advances in computing power are an example of ________ technological changes. skill-biased labor-saving labor-complementary unskilled-biased
skill-biased
Under Bertrand competition, ________. the Nash equilibrium is monopoly pricing the Nash equilibrium is marginal cost pricing (the perfectly competitive outcome) there are multiple Nash equilibria there is no set of strategies that lead to a Nash equilibrium
the Nash equilibrium is marginal cost pricing (the perfectly competitive outcome)
demand curve elasticity = 1
unit elastic
VMPL
value marginal product of labor = Mp x output price
marginal benefit of leisure =
wage wage is a reflection of how much it costs to get a person to do the job rather than having leisure time
compensating wage differentials
wage premiums necessary to attract workers into unattractive occupations
