devry eco312 full course latest july 2015 [ all discussions all assessment all homework and midterm ]

devry eco312 full course latest july 2015 [ all discussions all assessment all homework and midterm ]

Question # 00079444 Posted By: vikas Updated on: 07/03/2015 09:55 PM Due on: 08/09/2015
Subject Economics Topic General Economics Tutorials:
Question
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week 1

Opportunity Cost (graded)

Give an example of how the Principle of Opportunity Cost applies to your life. Think of a recent decision you made. It could be a decision as simple as whether to eat out or cook your own dinner, or it could be a decision to quit your job and go back to school. What alternatives did you consider? How did you arrive at your final decision? Did you implicitly weigh marginal cost and marginal benefit? How does the concept of opportunity cost apply to production possibilities curve (PPC) analysis? How can we use PPC analysis to examine what we do?

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Economic Systems (graded)

Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald’s, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale? How did the producers decide on the best combinations of resources to use? Who made those resources available, and why? How does the market determine who will get the goods and services? Who decides whether these particular products should continue to be produced and offered for sale? How do these decisions differ between capitalist and socialist systems?


week 2


Demand, Supply, and Market Equilibrium

Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected yourpurchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve and supply curve for this product. Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?








Price Elasticity of Demand

Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Is the Demand for this good Price elastic or Price inelastic? Justify your classification by talking about the determinants of elasticity as they apply to this product. Say price is on the rise for this product and you are the manager of a store, would you be thrilled to be selling this product? Under what circumstances would you want to own a business that sells this product? In other words, how does an increase in price for this good affect your Total Revenue? Using specific examples, relate the concepts of Cross Elasticity and Income Elasticity to this product.







week 3


A Firm’s Shut Down Decision (graded)

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate? Use hypothetical numbers to explain. Information you need to provide include--state the product you are selling, the price of the product, the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total and average variable costs. Then go ahead and make your decision. Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?




Market Structure Classification (graded)

Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your classification of the firm. Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm.






week4



GDP (graded)

Go to the Bureau of Economic Analysis website, www.bea.gov, and access the BEA interactively by selecting "National Accounts" and then "National Income and Product Account Tables." Select "Frequently Requested NIPA Tables," and find Table 1.1.1 on GDP. What is the current GDP growth rate for the U.S.? Examine the trend over the past few years. What trends interest you? What stage of the Business Cycle would the U.S. economy be in currently given the trends? Why might GDP not be considered an accurate measure of economic well-being of a country? Identify at least three limitations of GDP as a measure of economic well-being.

Unemployment and Inflation (graded)

Go to the Bureau of Labor Statistics website, www.bls.gov/news.release/empsit.toc.htm, and click on "Employment Situation Summary" to get the most up-to-date summary of unemployment in the U.S. or the "Employment Situation Summary Table A. Household data, seasonally adjusted." What interests or surprises you about the summary table? How does that rate compare with the rate in the previous month or quarter? Discuss the differences in unemployment rates by gender, age, education, etc.




week 5

Aggregate Demand and Aggregate Supply (graded)

Go to the BEA website www.bea.gov. On the left tab under Publications, go to the Interactive Data Tables. Select National Income and Product Accounts. From Table 1.1.6 and 1.1.7 examine all four components of GDP (C, I, G, and Xn). Which of these four components of AD declined the most during the 2007 and 2009 recession? Do you think an increase in government's spending (G) can boost the Aggregate Demand (AD) in a recession? Analyze why the economy may operate below full-employment GDP in the short run. How can the multiplier have a negative effect? What is the relationship between the multiplier and the marginal propensities? Explain.






Fiscal Policy (graded)

Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific, e.g., 9/11 attack, natural disaster, rise or fall in oil prices due to OPEC policies, consumer optimism or pessimism about an expected economic expansion or downturn, increase in government spending on healthcare, tightening of the legal and institutional environment, and so forth. What effect would this event have on AD or AS, other things being constant? What would be the resulting effect on equilibrium price level? Explain. What will be the effect of the different tools of fiscal policy to stabilize the economy? Give an example of a built-in stabilizer and explain how it would work to reduce this rise or fall in the level of AD.




week 6



Money and Banking (graded)

What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing? Securitization? TARP? What do these mean? How did mortgage-backed securities spread losses during the mortgage default crisis? How does TARP illustrate the problem of moral hazard? What did the Federal Reserve do during the financial crisis of 2008 and 2009? How did the recent financial crisis affect the financial services industry? What are some of the major provisions of the Wall Street Reform and Consumer Protection Act?




Monetary Policy and the Federal Reserve (graded)

What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed? Should the Fed remain independent from political authority or should the President and Congress have a say in their operations? Why? Why not? What is FOMC? What is the current Federal Funds Rate? How does the Fed implement monetary policy to manage the economy? At the last meeting of the FOMC, what was done to the federal funds rate--increased, decreased, or no change from previous meeting? Given the current state of the U.S. economy, should the Fed be using expansionary monetary policy or contractionary monetary policy? Why? Why Not?

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Free Trade (graded)

Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource differences. What are some examples of goods that the U.S. has comparative advantage in producing? Take a look at the tag of the shirt/dress/pants you are wearing today. Where was it made? Anyone wearing “Made in America” items of clothing today? We sometimes hear people say “Buy American." Why don't we? What is the basis of international trade? What are the benefits and the costs? Under what conditions would you advocate for trade restrictions?

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Foreign Exchange (graded)

What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What are freely floating exchange rates all about, and how do they work? How can the falling U.S. dollar impact your travel expenses? Why would a cheap dollar relative to other nations' currencies be good or bad for U.S. trade?





















Questionweek 1 assesment


(TCO 1) The primary focus of the study of economics is on

expanding the production of goods and services.

equalizing the distribution of consumer income and wealth.

making the most efficient use of scarce productive resources.

reallocating resources from consumption to production in the economy.

:

Question 2. Question :

(TCO 1) The basic economic problem is essentially one of deciding how to make the best use of

limited resources to satisfy limited economic wants.

limited resources to satisfy unlimited economic wants.

unlimited resources to satisfy unlimited economic wants.

unlimited resources to satisfy limited economic wants.

Question 3. Question :

(TCO 1) James wants to buy a book. The economic perspective suggests that James will buy the book if

the book will give him utility.

his income is high.

the marginal cost of the book is greater than its marginal benefit.

the marginal benefit of the book is greater than its marginal cost.

Question 4. Question :

(TCO 1) Which is not considered to be an economic resource?

Land (or natural resources)

Money

Labor

Tools and machinery

Question 5. Question :

(TCO 1) If an economy is producing at a point inside a production possibilities curve, then

the economy is efficient.

there is economic growth.

resources are unemployed.

resources are fully employed.

:

Question 6. Question :

(TCO 1) Which would not be characteristic of a capitalist economy?

Government ownership of the factors of production

Competition and unrestricted markets

Reliance on the market system

Free enterprise and choice

: 0 of 1

Comments:

Question 7. Question :

(TCO 1) The development of CDs and DVDs that significantly reduced the market for cassette tapes would be an example of

specialization.

derived demand.

roundabout production.

creative destruction.

Question 8. Question :

(TCO 1) The circular flow model

assumes that central planning is taking place.

illustrates how natural resources are created.

illustrates how money is created by the banking system.

illustrates the interdependence of businesses and consumers.

Question 9. Question :

(TCO 1) By free enterprise, we mean that

products are provided free to those who can't afford to buy them.

individual producers determine how to produce, but government agencies determine what will be produced.

individuals may obtain resources, organize production, and sell the resulting output in any legal way they choose.

individuals are free to produce those products that government agencies determine can be produced profitably.

Question 10. Question :

(TCO 1) Which is the main problem with the barter system of exchange? Barter

encourages self-interest and selfishness.

fosters specialization and division of labor.

requires a coincidence of wants.

undermines the right to bequeath.

Question 11. Question :

(TCO 1) Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert? Show your calculations

Question 12. Question :

(TCO 1) Identify some intrinsic qualities of capitalist and command economic systems. Identify two countries that practice each.




week 2



TCO 2) Economists use the term "demand" to refer to

a particular price-quantity combination on a stable demand curve.

the total amount spent on a particular commodity over a stipulated time period.

an upsloping line on a graph that relates consumer purchases and product price.

a schedule of various combinations of market prices and quantities-demanded.

Question 2. Question :

(TCO 2) In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by

an increase in the cost of making donuts.

an increase in the price of coffee.

consumers expecting donut prices to fall.

a change in buyer tastes.

Question 3. Question :

(TCO 2) Which of the following is most likely to be an inferior good?

Fur coats

Ocean cruises

Used clothing

Steak

Question 4. Question :

(TCO 2) The demand curve for a product might shift as the result of a change in

consumer tastes.

consumer incomes.

the prices of related goods.

All of these

Question 5. Question :

(TCO 2) The supply curve shows the relationship between

price and quantity supplied.

production costs and the amount demanded.

total business revenues and quantity supplied.

physical inputs of resources and the resulting units of output.

Question 6. Question :

(TCO 2) If the demand for bacon is relatively elastic, a 10% decline in the price of bacon will

decrease the amount demanded by more than 10%.

increase the amount demanded by more than 10%.

decrease the amount demanded by less than 10%.

increase the amount demanded by less than 10%.

Question 7. Question :

(TCO 2) Suppose the price of local cable TV service increased from $16.20 to $19.80, and as a result, the number of cable subscribers decreased from 224,000 to 176,000. Use the Midpoint formula to find the answer. Along this portion of the demand curve, price elasticity of demand is

0.8

1.2

1.6

8.0

Question 8. Question :

(TCO 2) The concept of price elasticity of demand measures

the slope of the demand curve.

the number of buyers in a market.

the extent to which the demand curve shifts as the result of a price decline.

the sensitivity of consumer purchases to price changes.

Question 9. Question :

(TCO 2) The state legislature has cut Gigantic State University's appropriations. GSU's Board of Regents decides to increase tuition fees to compensate for the loss of revenue. The board is assuming that the

demand for education at GSU is elastic.

demand for education at GSU is inelastic.

coefficient of price elasticity of demand for education at GSU is unity.

coefficient of price elasticity of demand for education at GSU is greater than unity.

Question 10. Question :

(TCO 2) The demand for a necessity whose cost is a small portion of one's total income is

perfectly price inelastic.

perfectly price elastic.

relatively price inelastic.

relatively price elastic.

Question 11. Question :

(TCO 2) What is the Law of Supply? Why does the supply curve slope upwards?

Question 12. Question :

(TCO 2) Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.








week 3


(TCO 3) Which of the following is most likely to be an implicit cost for Company X?

Forgone rent from the building owned and used by Company X

Rental payments on IBM equipment

Payments for raw materials purchased from Company Y

Transportation costs paid to a nearby trucking firm

: 1 of 1

Comments:

Question 2. Question :

(TCO 3) The long run is characterized by

the relevance of the law of diminishing returns.

at least one fixed input.

insufficient time for firms to enter or leave the industry.

the ability of the firm to change its plant size.

Question 3. Question :

(TCO 3) Economists would describe the U.S. automobile industry as

purely competitive.

an oligopoly.

monopolistically competitive.

a pure monopoly.

Question 4. Question :

(TCO 3) A purely competitive seller is

both a "price maker" and a "price taker."

neither a "price maker" nor a "price taker."

a "price taker."

a "price maker."

Question 5. Question :

(TCO 3) Which of the following is a characteristic of pure monopoly?

Close substitute products

Barriers to entry

The absence of market power

"Price taking"

Question 6. Question :

(TCO 3) A natural monopoly occurs when

long-run average costs decline continuously through the range of demand.

a firm owns or controls some resource essential to production.

long-run average costs rise continuously as output is increased.

economies of scale are obtained at relatively low levels of output.

Question 7. Question :

(TCO 3) Under monopolistic competition entry to the industry is

completely free of barriers.

more difficult than under pure competition but not nearly as difficult as under pure monopoly.

more difficult than under pure monopoly.

blocked.

Question 8. Question :

(TCO 3) The term oligopoly indicates

a one-firm industry.

many producers of a differentiated product.

a few firms producing either a differentiated or a homogeneous product.

an industry whose four-firm concentration ratio is low.

Question 9. Question :

(TCO 3) Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?

Subway Sandwiches

US Steel

Ford Motor Company

Alcoa Aluminum

Question 10. Question :

(TCO 3) If the four-firm concentration ratio for industry X is 80

the four largest firms account for 80% of total sales.

each of the four largest firms accounts for 20% of total sales.

the four largest firms account for 20% of total sales.

the industry is monopolistically competitive.

Question 11. Question :

(TCO 3) In economics, how would you define the SHORT RUN, and what is the LONG RUN? How can you distinguish between the two?

Question 12. Question :

(TCO 3) Identify the primary characteristics of perfect competition and monopolistic competition. Give examples of each.






week 5


(TCO 6) Fiscal policy refers to the

manipulation of government spending and taxes to stabilize domestic output, employment, and the price level.

manipulation of government spending and taxes to achieve greater equality in the distribution of income.

altering of the interest rate to change aggregate demand.

fact that equal increases in government spending and taxation will be contractionary.

Question 2. Question :

(TCO 6) An economist who favors smaller government would recommend

tax cuts during recession and reductions in government spending during inflation.

tax increases during recession and tax cuts during inflation.

tax cuts during recession and tax increases during inflation.

increases in government spending during recession and tax increases during inflation.

Chapter 30.

Points Received: 1 of 1

Comments:

Question 3. Question :

(TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the

crowding-out lag

recognition lag

operational lag

administrative lag

Chapter 30.

Points Received: 1 of 1

Comments:

Question 4. Question :

(TCO 5) An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the

net export effect.

wealth effect.

real-balances effect.

multiplier effect.

Chapter 29.

Points Received: 1 of 1

Comments:

Question 5. Question :

(TCO 6) In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to

affect neither aggregate supply nor aggregate demand.

increase aggregate demand.

reduce aggregate demand.

reduce aggregate supply.

Chapter 29.

Points Received: 1 of 1

Comments:

Question 6. Question :

(TCO 6) The consumption schedule directly relates

consumption to the level of disposable income.

saving to the level of disposable income.

disposable income to domestic income.

consumption to saving.

Chapter 27.

Points Received: 1 of 1

Comments:

Question 7. Question :

(TCO 6) The size of the MPC is assumed to be

less than zero.

greater than one.

greater than zero, but less than one.

two or more.

Chapter 27.

Points Received: 1 of 1

Comments:

Question 8. Question :

(TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?

Graph Description

An increase in expected returns on investment

An increase in productivity

A decrease in real interest rates

A decrease in consumer wealth

Chapter 29.

Points Received: 1 of 1

Comments:

Question 9. Question :

(TCO 6) The multiplier is

1/MPC.

1/(1 + MPC).

1/MPS.

1/(1 - MPS).

Chapter 27.

Points Received: 1 of 1

Comments:

Question 10. Question :

(TCO 5) The Federal budget deficit is found by

subtracting government tax revenues plus government borrowing from government spending in a particular year.

subtracting government tax revenues from government spending in a particular year.

cumulating the differences between government spending and tax revenues over all years since the nation's founding.

subtracting government revenues from the noninvestment-type government spending in a particular year.

Chapter 30.

Points Received: 1 of 1

Comments:

Question 11. Question :

(TCO 5) What effect would each of the following have on aggregate demand or aggregate supply? Explain.

Question :

(TCO 6) Explain how fiscal policy (making changes to government spending and taxes) would affect aggregate demand (AD).


week 6

(TCO 7) A $70 price tag on a sweater in a department store window is an example of money functioning as a

unit of account.

standard of deferred payments.

store of value.

medium of exchange.

Chapter 31

Points Received:

Comments:

Question 2. Question :

(TCO 7) Currency held in the vault of First National Bank is

counted as part of M1.

counted as part of M2, but not M1.

only counted as part of M1 if it was deposited into a checking account.

not counted as part of the money supply.

Chapter 31

Points Received:

Comments:

Question 3. Question :

(TCO 7) Answer the question on the basis of the following list of assets:

1. Large-denominated ($100,000 and more) time deposits

2. Noncheckable savings deposits

3. Currency (coins and paper money) in circulation

4. Small-denominated (less than $100,000) time deposits

5. Stock certificates

6. Checkable deposits

7. Money market deposit accounts

8. Money market mutual fund balances held by individuals

9. Money market mutual fund balances held by businesses

10. Currency held in bank vaults

Refer to the above list. The M1 definition of money comprises item(s)

6 only.

3, 4, and 6.

3 and 6.

3, 6, and 10.

Chapter 31

Points Received:

Comments:

Question 4. Question :

(TCO 7) Assume the Standard Internet Company negotiates a loan for $5,000 from the Metro National Bank and receives a checkable deposit for that amount in exchange for its promissory note (IOU). As a result of this transaction

the supply of money is increased by $5,000.

the supply of money declines by the amount of the loan.

a claim has been "demonetized."

the Metro Bank acquires reserves from other banks.

Chapter 32

Points Received:

Comments:

Question 5. Question :

(TCO 7) Overnight loans from one bank to another for reserve purposes entail an interest rate called the

prime rate.

discount rate.

federal funds rate.

treasury bill rate.

Chapter 32

Points Received:

Comments:

Question 6. Question :

(TCO 7) When a bank loan is repaid, the supply of money

is constant, but its composition will have changed.

is decreased.

is increased.

may either increase or decrease.

Chapter 32

Points Received:

Comments:

Question 7. Question :

(TCO 7) The asset demand for money

is unrelated to both the interest rate and the level of GDP.

varies inversely with the rate of interest.

varies inversely with the level of real GDP.

varies directly with the level of nominal GDP.

Chapter 33

Points Received:

Comments:

Question 8. Question :

(TCO 7) The equilibrium rate of interest in the market for money is determined by the intersection of the

supply of money curve and the asset demand for money curve.

supply of money curve and the transactions demand for money curve.

supply of money curve and the total demand for money curve.

investment demand curve and total demand for money curve.

Chapter 33

Points Received:

Comments:

Question 9. Question :

(TCO 7) The discount rate is the interest

rate at which the central banks lend to the U.S. Treasury.

rate at which the Federal Reserve Banks lend to commercial banks.

yield on long-term government bonds.

rate at which commercial banks lend to the public.

Chapter 33

Points Received:

Comments:

Question 10. Question :

(TCO 7) A restrictive monetary policy is designed to shift the:

aggregate demand curve rightward.

aggregate demand curve leftward.

aggregate supply curve rightward.

aggregate supply curve leftward.

Chapter 33.

Points Received:

Comments:

Question 11. Question :

(TCO 7) Explain what is meant by fractional reserve banking. Relate this to money creation and risk to the bank.

Question 12. Question :

(TCO 7) Describe what changes in the Fed’s major policy tools lead to [a] expansionary and [b] restrictive or contractionary monetary policies.


week 7

Question 1. Question :

(TCO 8) The United States' most important trading partner quantitatively is

China.

Canada.

Mexico.

Japan.

Question 2. Question :

(TCO 8) The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the

International Monetary Fund (IMF).

World Trade Organization (WTO).

Common Market Organization (CMO).

International Trade Commission (ITC).

Question 3. Question :

(TCO 9) The current account in a nation's balance of payments includes

its goods exports and imports, and its services exports and imports.

foreign purchases of domestic assets.

purchases of foreign assets.

All of these

: Chapter 38

Points Received: 1 of 1

Comments:

Question 4. Question :

(TCO 9) If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen, then the dollar price of the yen is

$.005.

$.05.

$.50.

$5.

: Chapter 38

Points Received: 1 of 1

Comments:

Question 5. Question :

(TCO 9) In terms of individual nations, the largest U.S. trade deficit is with

Japan.

Mexico.

China.

Canada.

: Chapter 38

Points Received: 1 of 1

Comments:

Question 6. Question :

(TCO 9) When the U.S. dollar decreases in value relative to foreign currencies the:

Demand for U.S. exports will decrease

Supply of U.S. exports will decrease

Demand for U.S. exports will increase

Supply of U.S. exports will remain constant

: Chapter 38

Points Received: 1 of 1

Comments:

Question 7. Question :

(TCO 8) The primary gain from international trade is

increased employment in the domestic-export sector.

more goods than would be attainable through domestic production alone.

tariff revenue.

increased employment in the domestic-import sector.

: Chapter 37

Points Received: 1 of 1

Comments:

Question 8. Question :

(TCO 8) Refer to the graphs below. Stanville has a comparative advantage in producing

Graph Description

Product A.

Product B.

both Product A and B.

neither Product A nor B.

: Chapter 37

Points Received: 1 of 1

Comments:

Question 9. Question :

(TCO 9) Which one of the following is not one of the so-called G8 Nations?

Japan

Canada

United States

China

: Chapter 38

Points Received: 1 of 1

Comments:

Question 10. Question :

(TCO 8) In recent years the United States has

exported more services abroad than it has imported.

had a small goods trade surplus with Japan.

had a large goods trade surplus with the rest of the world.

maintained an overall trade surplus (goods and services combined) with the rest of the world.

: Chapter 37

Points Received: 1 of 1

Comments:

Question 11. Question :

(TCO 8 and 10) Explain some of problems with the argument that trade protection is needed to protect American jobs.

Question 12. Question :

(TCO 9) What effect might the depreciation of the U.S. dollar relative to the Japanese yen have on imports and exports to and from each country?





Homework

Question: Antitrust Practices and Market Power

Research authoritative articles using the news and the DeVry Online Library (http://library.devry.edu) for a recent case of antitrust investigation. You are free to choose a case from any industry and any part of the world. Based on the case you have selected, answer the following questions.

  1. Why was/were the firm(s) investigated for antitrust behavior?
  2. Identify some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigated.
  3. Given your research and findings, are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position.
  4. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society.

Based on your findings to the questions listed above, write a report with a minimum of 300 words in essay format in APA style (use theAPA template in Doc Sharing), using correct economic terms covered in the discussions. If you ONLY write 300 words, you probably won’t be able to fully answer the questions.

Key concepts to include in your paper include the following.

  • Monopoly Market Structure
  • Oligopoly Market Structure
  • Barriers to Entry Into the Market
  • Natural Monopoly
  • Government Monopoly
  • Downward Sloping Demand Curve
  • Economies of Scale
  • Price Fixing
  • Collusion
  • Monopoly Pricing
  • Price Maker
  • Market Power
  • Economic Profits
  • Imperfect Competition
  • Rent-Seeking Behavior
  • X-Inefficiency
  • Deadweight Loss to Society
  • Marginal Cost
  • Marginal Revenue
  • Antitrust

You must use at minimum at least one article from the DeVry Online Library. Note: Although your textbook is a good source of knowledge, it is NOT an article andcannot be the only sourcefor the assignment. Cite all your references in APA format. You can use the Citations & Bibliography function of Microsoft Word, which is found under the References tab.

Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial.

See the Syllabus section "Due Dates for Assignme





week 6


Homework

Question: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

  1. Write your individual answers to the questions listed above together in essay format (minumum of 300 words combined in APA style), using correct economic terms covered in the discussions. If you only write 300 words, you probably won't be able to fully answer the questions. Use the APA Template in Doc Sharing as a guide. You will also find the grading rubric for this assignment in Doc Sharing.
  2. Key concepts to include in your paper--data trends on unemployment, inflation, GDP growth, expansionary fiscal policy tools, FOMC, easy money policy tools and other terms from this class.
  3. You must use at least one article. Note: The textbook is not an article and cannot be the only source for the assignments. Use the DeVry Library as a resource for finding your references.

Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read thesestep-by-step instructions or watch this Dropbox Tutorial.

See the Syllabus section "Due Dates for Assignmen






midterm




Question

Question 1. Question : (TCO 1) As a consequence of the condition of scarcity

there is never enough of anything.

production has to be centrally planned.

things which are plentiful have relatively high prices.

individuals and communities have to make choices from among alternatives.

Chapter 1

Points Received:

Comments:

Question 2. Question : (TCO 1) The idea in economics that "there is no free lunch" means that

businesses would go bankrupt if they offered free lunches.

the thought of a free lunch is often better than the reality of consuming it.

there are opportunity costs involved when scarce resources are used up for "free" lunches.

businesses use free lunches to attract customers but this advertising practice is inefficient.

Chapter 1

Points Received:

Comments:

Question 3. Question : (TCO 1) Which situation would most likely cause a nation's production possibilities curve to shift inward?

The construction of more capital goods

An increase in discrimination based on race

An increase in the number of skilled immigrant workers

The destruction from bombing and warfare in a losing military conflict

Chapter 1

Points Received:

Comments:

Question 4. Question : (TCO 1) Which expression is another way of saying "marginal cost"?

Scarce resources

Additional cost

Opportunity cost

Unrecognized cost

Chapter 1

Points Received:

Comments:

Question 5. Question : (TCO 1) Which would not be considered as a capital resource of a business by an economist?

A van used by a mother to transport the family around

An office computer used by an accountant

A crane used by a building contractor

A razor used by a barber

Chapter 1

Points Received:

Comments:

Question 6. Question : (TCO 1) The economy of Germany would best be classified as:

a command system.

socialism.

pure capitalism.

a market system.

Chapter 2.

Points Received:

Comments:

Question 7. Question : (TCO 1) Markets in which firms sell their output of goods and services are called

resource markets.

product markets.

command markets.

mixed markets.

Chapter 2

Points Received:

Comments:

Question 8. Question : (TCO 1) Consumers express self-interest when they

seek the lowest price for a product.

reduce business losses.

collect economic profits.

search for jobs with the highest wages.

Chapter 2

Points Received:

Comments:

Question 9. Question : (TCO 1) Which is one of the five fundamental questions that need to be dealt with in any economic system?

What makes the rate of unemployment low?

Who will be the richest group in the economy?

What goods and services will be produced?

How high should the prices of goods and services be?

Chapter 2

Points Received:

Comments:

Question 10. Question : (TCO 1) A major problem with state ownership of resources is that it does not

allow for the full use of central economic planning.

let state enterprises buy resources used to make products.

let state enterprises sell products produced with those resources.

give incentives for individuals to make the best use of those resources.

Chapter 2

Points Received:

Comments:

Question 11. Question : (TCO 2) An increase in product price will cause:

quantity demanded to decrease.

quantity supplied to decrease.

quantity demanded to increase.

the supply curve to shift to the left.

Chapter 3.

Points Received:

Comments:

Question 12. Question : (TCO 2) At the point where the demand and supply curves intersect

the buying and selling decisions of consumers and producers are inconsistent with one another.

the market is in disequilibrium.

there is neither a surplus nor a shortage of the product.

quantity demanded exceeds quantity supplied.

Chapter 3

Points Received:

Comments:

Question 13. Question : (TCO 2) Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices.

The quality of rental housing declines as landlords lack the funds and incentive to maintain properties.

Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled.

All of the above are consequences of rent controls.

Chapter 3

Points Received:

Comments:

Question 14. Question : (TCO 2) A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n)

increase in the price and quantity of new homes.

decrease in the price and quantity of new homes.

increase in the price of new homes and decrease in quantity.

decrease in the price of new homes and increase in quantity.

Chapter 3

Points Received:

Comments:

Question 15. Question : (TCO 2) If Product Y is an inferior good, a decrease in consumer incomes will

make buyers want to buy less of Product Y.

not affect the sales of Product Y.

shift the demand curve for Product Y to the left.

shift the demand curve for Product Y to the right.

Chapter 3

Points Received:

Comments:

Question 16. Question : (TCO 2) If the price-elasticity coefficient for a good is .75, the demand for that good is described as

normal.

elastic.

inferior.

inelastic.

Chapter 4

Points Received:

Comments:

Question 17. Question : (TCO 2) Demand is said to be inelastic when

an increase in price results in a reduction in total revenue.

a reduction in price results in an increase in total revenue.

a reduction in price results in a decrease in total revenue.

the elasticity coefficient exceeds one.

Chapter 4

Points Received:

Comments:

Question 18. Question : (TCO 2) You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:

increase the price of the software.

decrease the price of the software.

hold the price of the software constant.

increase the supply of the software.

Chapter 4

Points Received:

Comments:

Question 19. Question : (TCO 2) A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is

unity.

elastic.

inelastic.

perfectly elastic.

Chapter 4

Points Received:

Comments:

Question 20. Question : (TCO 2) When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition

have elastic demand and students who use financial aid have inelastic demand.

have inelastic demand and students who use financial aid have elastic demand.

view a college education as an inferior good and students who use financial aid view it as a normal good.

view a college education as a normal good and students who use financial aid view it as an inferior good.

Chapter 4

Points Received:

Comments:

Question 21. Question : (TCO 3) Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours. You value your time at $11 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is

$40.

$55.

$110.

$165.

Chapter 7

Points Received:

Comments:

Question 22. Question : (TCO 3) If a firm's revenues just cover all its opportunity costs, then

normal profit is zero.

economic profit is zero.

total revenues equal its explicit costs.

total revenues equal its implicit costs.

Chapter 7

Points Received:

Comments:

Question 23. Question : (TCO 3) The long run is a period of time, or a time frame, in which

all resources are fixed.

the level of output is fixed.

the amount of all resources can be varied.

the capacity of the production plant is fixed.

Chapter 7

Points Received:

Comments:

Question 24. Question : (TCO 3) Variable costs are

sunk costs.

costs that change every day.

costs that change with the level of production.

the change in total cost due to the production of an additional unit of output.

Chapter 7

Points Received:

Comments:

Question 25. Question : (TCO 3) Marginal cost can be defined as the

change in total fixed cost resulting from one more unit of production.

change in total variable cost resulting from one more unit of production.

change in average total cost resulting from one more unit of production.

change in average variable cost resulting from one more unit of production.

Chapter 7

Points Received:

Comments:

Question 26. Question : (TCO 3) A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should

keep the hamburger on the menu because they've spent so much money and time developing and promoting the product.

spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time.

pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost.

keep trying to sell the hamburger so that people who developed and promote it have a job with the company.

Chapter 7

Points Received:

Comments:

Page: 1 2

* Times are displayed in (GMT-07:00) Mountain Time (US & Canada)

(TCO 3) Which market model assumes the least number of firms in an industry?

Monopolistic competition

Pure competition

Pure monopoly

Oligopoly

Chapter 8

Points Received:

Comments:

Question 2. Question : (TCO 3) In which two market models would advertising be used most often?

Pure competition and monopolistic competition

Pure competition and pure monopoly

Monopolistic competition and oligopoly

Pure monopoly and oligopoly

Chapter 8

Points Received:

Comments:

Question 3. Question : (TCO 3) The production of agricultural products such as wheat or corn would best be described by which market model?

Monopolistic competition

Pure competition

Pure monopoly

Oligopoly

Chapter 8

Points Received:

Comments:

Question 4. Question : (TCO 3) In pure competition, the demand for the product of a single firm is perfectly

elastic because the firm produces a unique product.

inelastic because the firm produces a unique product.

elastic because many other firms produce the same product.

inelastic because many other firms produce the same product.

Chapter 8

Points Received:

Comments:

Question 5. Question : (TCO 3) T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should

shut down in the short run.

decrease output to 2,500 units.

ontinue to produce 3,000 units.

increase output to 3,500 units.

Chapter 8

Points Received:

Comments:

Question 6. Question : (TCO 3) If a purely competitive firm is producing at an output where marginal revenue exceeds marginal cost, the firm will increase its profit by

reducing production to the point where variable costs are minimized.

reducing production to the point where unit costs are minimized.

reducing its output and simultaneously increasing its price.

increasing its output.

Chapter 8

Points Received:

Comments:

Question 7. Question : (TCO 3) The short-run supply curve for a competitive firm is the

entire MC curve.

segment of the MC curve lying below the AVC curve.

segment of the MC curve lying above the AVC curve.

segment of the AVC curve lying to the right of the MC curve.

Chapter 8

Points Received:

Comments:

Question 8. Question : (TCO 3) Which phrase would be most characteristic of pure monopoly?

Close substitutes

Efficient advertiser

Price taker

Single seller

Chapter 10

Points Received:

Comments:

Question 9. Question : (TCO 3) Natural monopolies result from

patents and copyrights.

pricing strategies.

extensive economies of scale in production.

control over an essential natural resource.

Chapter 10

Points Received:

Comments:

Question 10. Question : (TCO 3) The demand curve confronting a nondiscriminating, pure monopolist is

horizontal.

the same as the industry's demand curve.

more elastic than the demand curve confronting a competitive firm.

derived by vertically summing the individual demand curves for the buyers.

Chapter 10

Points Received:

Comments:

Question 11. Question : (TCO 3) Which would definitely not be an example of price discrimination?

A theater charges children less than adults for a movie.

Universities charge higher tuition for out-of-state residents.

A doctor charges for services according to the income of patients.

An electric power company charges less for electricity used during off-peak hours when production costs are lower.

Chapter 10

Points Received:

Comments:

Question 12. Question : (TCO 3) In which industry is monopolistic competition most likely to be found?

Utilities

Agriculture

Retail trade

Mining

Chapter 11

Points Received:

Comments:

Question 13. Question : (TCO 3) Which set of characteristics below best describes the basic features of monopolistic competition?

Easy entry, many firms, and standardized products

Barriers to entry, few firms, and differentiated products

Easy entry, many firms, and differentiated products

Easy entry, few firms, and standardized products

Chapter 11

Points Received:

Comments:

Question 14. Question : (TCO 3) In an oligopolistic market there are

many buyers.

few buyers.

few sellers.

many sellers.

Chapter 11

Points Received:

Comments:

Question 15. Question : (TCO 3) A high concentration ratio indicates that

the industry is highly profitable.

the industry is highly competitive.

many firms produce most of the output in an industry.

few firms produce most of the output in an industry.

Chapter 11

Points Received:

Comments:

Question 16. Question : (TCO 3) A cartel is

a form of covert collusion.

legal in the United States.

always successful in raising profits.

a formal agreement among firms to collude.

Chapter 11

Points Received:

Comments:

Question 17. Question : (TCO 1) Money is not an economic resource because

money, as such, does not produce anything.

idle money balances do not earn interest income.

it is not scarce.

money is not a free gift of nature.

Chapter 1

Points Received:

Comments:

Question 18. Question : (TCO 1) Refer to the diagram which refers to the Circular Flow Model in Chapter 2. Arrows (1) and (3) are associated with

Graph Description

the money market.

the resource market.

the product market.

international trade.

Chapter 2

Points Received:

Comments:

Question 19. Question : (TCO 2) Refer to the diagram. A decrease in demand is depicted by a

Graph Description

move from Point x to Point y.

shift from D1 to D2.

shift from D2 to D1.

move from Point y to Point x.

Chapter 3

Points Received:

Comments:

Question 20. Question : (TCO 2) Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game

Price per Ticket Quantity Demanded

$13 1,000

11 2,000

9 3,000

7 4,000

5 5,000

3 6,000

varies inversely with ticket prices.

varies directly with ticket prices.

is perfectly inelastic.

is perfectly elastic.

Chapter 4

Points Received:

Comments:

Question 21. Question : (TCO 2) Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession?

Dinner at a nice restaurant (+1.8)

Chicken purchased at the grocery store for preparation at home (+0.25)

Facial tissue (+0.6)

Plasma-screen and LCD TVs (+4.2)

Chapter 4

Points Received:

Comments:

Question 22. Question : (TCO 3) In the diagram Curves 1, 2, and 3 represent

Graph Description

average variable cost, marginal cost, and average fixed cost, respectively.

total variable cost, total fixed cost, and total cost, respectively.

total fixed cost, total variable cost, and total cost, respectively.

marginal product, average variable cost, and average total cost, respectively.

Chapter 7

Points Received:

Comments:

Question 23. Question : (TCO 1) Refer to the diagram. If society is producing nine units of bicycles and four units of computers and it now decides to increase computer output to six, the cost

Graph Description

will be four units of bicycles.

will be two units of bicycles.

will be zero because unemployed resources are available.

of doing so cannot be determined from the information given.

Chapter 1

Points Received:

Comments:

Question 24. Question : (TCO 3) What type of barrier to entry was used by De Beers throughout much of its history to maintain its monopoly position?

Patent protection

Government regulation

Economies of scale

Ownership of an essential resource

Chapter 10

Points Received:

Comments:

Question 25. Question : (TCO 3) a.) Do you agree or disagree with the statement that: "A monopolist always charges the highest possible price."? Explain. b.) Why can't an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely competitive market?

Question 26. Question : (TCO 2) Evaluate how the following situations will affect the demand curve for iPods.

(a) Income statistics show that income of 18–25-year-olds have increased by 10 percent over the last year.

(b) Efforts of music artists wanting greater protection of their music result in more stringent enforcement of copyrights and the shutdown of numerous illegal downloading sites.

(c) Believing that it has significant control of the market for portable digital music players, Apple decides to raise the price of iPods with the goal of increasing profits.

(d) The price of milk decreases.

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