Econ Practice Final

The table provides daily data on Marla's Smoothie Shop. Use these data to answer the question. Total Rev (1,400), Total Cost (900), Avg. Rev. (7), Fixed Costs (200), Variable Costs (700), Quantity (200) What is Marla's profit margin?

$2.50

JoJo's company data is in the graph below. JoJo would exactly break even at which of the following output level?

15 (where ATC and Demand cross)

Which of the following tax systems is progressive? Corinne pays a 10% tax on the first $10,000 she earns plus a _____ tax on any additional income.

25%

Which of the following is NOT an example of price discrimination through the hurdle method?

All senior citizens are eligible to receive a 10% discount.

Suppose two Georgia Tech graduates, Arturo and Bianca, are interviewing for a data analyst job. Arturo's resume reads: "Major: Computer science, Minor: Economics" Bianca's resume reads: "Major: Computer science, Minor: Computing and theory" Which candidate's resume is stronger based on the economic theories we have learned in this class and why?

Arturo's b/c he has leverages complementary majors

Young Simba and Nala usually play in the safe Pridelands, but their Uncle Scar told them about a dangerous Elephant Graveyard and suggests they "stay away." Both Simba and Nala want to impress each other by being the "cool cat", but neither truly wants to go to the Elephant Graveyard. Whoever says that they want to play in the Elephant Graveyard will get a reputation of being a cool cat, but whoever says that they want to play in the Pridelands will get a reputation of being a scaredy-cat. Each of them has the opportunity to propose where they should play: Both Simba and Nala have symmetric preferences in order of most preferred (1) to least preferred (4): 1. Being the only cool cat. 2. Both being cool cats. 3. Both being scaredy-cats. 4. Being the only scaredy-cat. What is the Nash equilibrium of this game?

Both propose going to the Elephant Graveyard

Arturo makes and sells organic frozen yogurt with fresh fruit toppings. He wants to price discriminate according to a preference for organic food so that those with the most inelastic demand for organic food pay the highest price. To accomplish this, to which group should he give the discount coupons for his yogurt?

Customers of the local fast food restaurant

Why do average variable costs eventually rise if a company's output increases enough?

Diminishing marginal product occurs, causing average variable costs to rise.

The news reports that the US Postal Service may lay off workers next year. Which graph shows what happens to the labor market for postal workers this year?

Graph C (Decreased labor supply)

Which of these phenomena is a result of monopolistic competition?

In Midtown, there is a country music bar, a karaoke bar, a sports bar, a dive bar, and a high-class bar.

Which of the following is NOT one of the four key reasons that the government provides in-kind benefits rather than cash benefits?

In-kind benefits give the recipient the greatest flexibility to choose what matters most.

Nowhereville, USA has a population of five people who are voting between two candidates for mayor of their city. The two candidates only care about getting elected and will set up their political platforms to optimize their chances of getting elected. The following spectrum from "politically left" to "politically right" summarize the voter's positions: All voters vote for the candidate most similar to themselves, so the Nash equilibrium is for both candidates to try to appeal to the median voter C. Voter B wants to influence the candidates to move more leftward by changing her place on the spectrum. Which of the following actions by voter B influences the candidates to make a move to the left?

Influence voter C to move leftward

Which of the following policies to increase surplus for the poor is LEAST likely to reduce the incentive to work?

Reducing Taxes

You and your roommate are trying to meet up at a party. Before you went out partying you told your roommate that you wanted to go to the Stupid Party. Your roommate wanted to go to the Boring Party instead. You had not decided on what the plan would be ahead of time. Your cell phone is out of battery so you cannot coordinate. You both have to decide where to go without knowing where the other will go. Here are the possible outcomes: What is the Nash Equilibrium for the game?

You both go to the same party

Martin is a piano teacher who wishes to price discriminate across his students based on their household income. What would be a simple, verifiable characteristic for him to use as a proxy measure of income?

address

TikTok acts as a _____ for superstar earnings

complement

According to the Five Forces framework, the greater the _____ in an industry, the lower the _____ in the industry will be.

degree of rivalry; average profits

In the short run, a seller _____, but in the long run, _____.

faces a fixed number of rivals; the number of rivals can vary

Relative to a normal monopoly economic surplus is _____ compared to when there is perfect price discrimination.

higher

We've learned about three main ethical criteria (among others) for evaluating different economic outcomes: i. Efficiency criterion ii. Equity criterion iii. Pareto criterion An argument against regulating a natural monopoly because it would hurt the monopolist's profits appeals to which criteria?

iii

Suppose Atlanta implemented a minimum wage law in 2021. An economist studying the effect of the minimum wage law on employment compares the unemployment rate in 2020 and 2021. Which of the following strategies would most improve the analysis to help avoid bias?

including a control group in another city

The united states congress increases unemployment insurance. Wages rise because

labor supply decreases

A corrective tax designed to resolve a negative externality problem is typically set at an amount equal to the _____ cost.

marginal external

Price competition is most likely to occur in each of the following situations EXCEPT when: Correct!

market demand is rising

The least common market structures are

monopoly and perfect competition

Gretchen's Doughnuts is the only dessert company in Smallville, USA. The mayor notes that Gretchen's doughnuts constitutes a monopoly and decides to subsidize doughnut purchases to increase doughnut consumption. In the short run, this policy will

not enough info

The price elasticity of demand for a Georgia Tech degree is very low. Georgia Tech likely competes with other universities based upon what?

quality differentiation

Your firm has a reputation for being a great place to work. This would allow you to _____ to increase profits.

reduce wages

In the last 20 years, the number of people experiencing poverty in the United States has _____ and the number of people experiencing poverty globally has _____.

remained about the same; decreased

If there is diminishing satisfaction from income, then which of the following is true?

taking one dollar from the highest earner and giving it to the lowest earner will increase total satisfaction

When there is a monopolist, the total surplus maximizing price and quantity is determined by the intersection between

the demand curve and the marginal cost curve

When there is a monopolist, the profit maximizing price and quantity is determined by the intersection between

the marginal revenue curve and the marginal cost curve

In a perfectly competitive market, the firm's marginal revenue curve is

the market price

You are sharing a doughnut with your significant other. The game unfolds as follows: 1. The first mover cuts the doughnut into two portions 2. The second mover chooses which portion they would like Which of the following is true?

the second mover will have the adv.

Lower wages for data analysts would NOT cause

the supply curve to shift