KAPLAN MT445 FULL COURSE (DISCUSSION+QUIZES+ASSIGNMENT) LATEST 2016 FEBRUARY
Throughout this course, many discussion opportunities come up where you need to respond to other people's opinions and comments. Please take this opportunity to introduce yourself and to learn something about each other. Be sure to include the following information:
- Your name.
- Why you are taking this course?
- Any prior knowledge you may have about this topic.
- Your current and/or future educational goals.
- How you think this course will help you.
Click on the Respond button on the lower-left hand portion of this page to answer these questions on the Discussion Board. Take time to review the responses of your classmates and provide your feedback.
Topic 2We use economic concepts on a daily basis without even knowing it! When you decide whether or not to eat lunch at a restaurant or make a sandwich at home, you are making a decision based on the costs and benefits of those options. Economists use these same basic tools to examine economic issues. Think about one choice you made in the past several days and explain how this could be analyzed using economics concepts such as tradeoffs, opportunity costs, and marginal analysis.
Think about one choice you made in the past several days and explain how this could be analyzed using economics concepts such as tradeoffs, opportunity costs, and marginal analysis.
Discussion Checklist:
- How does the concept of “tradeoff” relate to “opportunity costs?”
- What is the difference between monetary and non-monetary opportunity costs?
- Why are opportunity costs based on a person’s tastes and preferences?
Topic 3
Comparative advantage dictates which good or service a particular region specializes in and exports to other regions. List one good or service that your home region specializes in and where it exports this good. Why is your region particularly good at the production of that good or service?
You have learned that changes in price or other factors such as income or number of sellers will impact the demand and supply sides of the market. Recall that changes in current price are illustrated by movement along the curve and cause changes in either “quantity demanded” or “quantity supplied.” Other factors will cause either the demand or supply curve to shift and are referred to as changes in “demand” or changes in “supply.”
Choose one of the followingand determine whether there is correct usage of the terms “demand,” “quantity demanded,” “supply” and “quantity supplied.” Why or why not?
a. The price of Burger King’s Whopper hamburger declines causing the demand for Whoppers to shift to the right.
b. Because of a shortage of potatoes, the supply of French fries decreases.
c. Wage labor in the peanut butter industry increases causing the quantity demanded for jelly to decrease.
d. In the six months following Hurricane Katrina, the quantity supplied of oil in the Gulf of Mexico declined by 25 %.
It is a snowy winter and snow shovel prices have increased. Suppliers increase supply to take advantage of these higher prices.
Higher education has become increasingly expensive. And although the rate of increase has declined, education now costs much more than it did. One of the ways the government controls prices is by setting a floor or a ceiling on the market. Explain what might happen in the market for higher education if the government placed a price ceiling on the cost of one undergraduate credit hour? Consider the following:
- Does it matter whether or not the ceiling is set above or below the equilibrium price?
- Who might benefit from this price restriction?
- Who might be harmed from this price restriction?
Explain your answers using economic theory.
When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of raising the price of gas? In other words, who is harmed by the tax? Who benefits from such a tax? Are low-income households disproportionately harmed as compared to high-income households? Why or why not?
Your decision to pursue a higher-level degree is based on investment in human capital. What are the marginal costs and benefits of pursuing additional education and the inherent risks associated with this decision?
KAPLAN MT445 UNIT 4 DISCUSSION LATEST 2016 FEBRUARY
You have learned a good deal about production costs and profit in this unit. You have also learned that accountants and economists calculate profit differently.
- Discuss the difference between how accountants and economists calculate profit giving example of costs each might use in this calculation.
- Will accounting profit and economic profit always be different?
- When might accounting profit and economic profit be the same?
Topic 2
Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale. Why do firms experience diseconomies of scale as they increase production volume? How might firms “avoid” experiencing diseconomies of scale and what does the long-run average cost curve look like when diseconomies of scale exist?
Describe an industry that would meet the conditions of a perfectly competitive industry:
- There are many buyers and sellers so neither side of the market has market power.
- The product provided to the market is identical across suppliers.
- There are no barriers to entry.
How do individual firms in a perfectly competitive industry respond to an increase in the market demand for the product? Would advertising by individual firms in this type of market provide any benefits?
In order to maximize profits, monopolies produce where: MARGINAL REVENUE = MARGINAL COST < MARKET PRICE. How does this compare to the profit maximization condition for perfectly competitive markets, and how do these differences contribute to deadweight loss in a monopoly market? Can you think of reasons why a monopoly might decide on their own to increase production and lower prices to earn an acceptable profit rather than maximize profits?
KAPLAN MT445 UNIT 6 DISCUSSION LATEST 2016 FEBRUARY
There are many dairy farmers in the world and also many Starbucks coffeehouses. Why does a Starbucks coffeehouse face a downward-sloping demand curve while a dairy farmer has a horizontal demand curve? What other suppliers might face a downward-sloping demand curve and what implications does this have for their advertising budget as compared to suppliers with horizontal demand curves?
How do barriers to entry impact the level of competition in a market? What might happen to market price as greater barriers to entry come into existence? Not all barriers to entry are created through market conditions. Barriers to entry, such as patents, licenses, or international trade restrictions, may be government imposed. How do government-imposed barriers such as patents impact consumers and suppliers in these markets?
KAPLAN MT445 UNIT 7 DISCUSSION LATEST 2016 FEBRUARY
Topic 1
The national income accounts measure productivity, spending, and income; but these accounts were not designed to measure economic welfare. Discuss aspects of economic welfare ignored in GDP. HINT: Do a “Google” search on the Genuine Progress Indicator and compare this with GDP in terms of measuring economic welfare.
What factors might contribute to a low growth rates in a country? Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic? Compare growth rates across countries by visiting The World Bank website (http://data.worldbank.org/indicator). How does GDP growth (GDP growth (annual %)) compare across developed countries such as the U.S. and poorer countries such as Nigeria. Why might growth rates of developed nations be lower than those of poorer countries?
Source: The World Bank. Retrieved from http://data.worldbank.org/indicator
KAPLAN MT445 UNIT 8 DISCUSSION LATEST 2016 FEBRUARY
Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?
Topic 2
In this unit, you discussed some of the problems associated with inflation. List one of these problems and describe a situation in which you encountered this problem.
KAPLAN MT445 UNIT 9 DISCUSSION LATEST 2016 FEBRUARY
In 2008, Federal Reserve Bank Chairman, Ben Bernanke, and U.S. Treasury Secretary, Henry Paulson, responded to the financial crisis by intervening in financial markets in unprecedented ways. Do you think this intervention was necessary? What are the consequences of this intervention? What might have happened if they had not intervened?
There is always debate regarding the structure of the current income tax system in the U.S. Many opponents of the current system argue that under its current structure, many wealthy households are able to avoid taxes and for most households, the tax system is simply too complicated and confusing. One solution that has been proposed is the “flat tax.” What are the benefits and detriments of replacing the current income tax system with a flat tax system? Who benefits and who might be harmed? What implications does the flat tax system have for tax preparation companies such as H&R Block?
KAPLAN MT445 UNIT 10 DISCUSSION LATEST 2016 FEBRUARY
Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantages for the country as a whole. Describe a recent foreign purchase. Do you think it is better to source from overseas or should tariffs be in place to protect American industries? Why or why not?
Topic 2
The Economist regularly publishes the Big Mac index to examine the validity of purchasing power parity. If purchasing power parity holds, a consumer should be able to take the same amount of money required to buy a Big Mac in the U.S. and buy a Big Mac in any other country. What are the reasons purchasing power parity may not hold? If the U.S. dollar depreciates against the euro and purchasing power parity holds, would a Big Mac in Europe become more or less expensive? Why? If purchasing power parity doesn’t hold, does an American tourist in Europe pay more or less for a Big Mac? Why?
Question 1. Question :
Which of the following statements is true about scarcity?
Scarcity refers to the situation in which unlimited wants exceed limited resources.
Scarcity is not a problem for the wealthy.
Scarcity is only a problem when a country has too large a population.
Scarcity arises when there is a wide disparity in income distribution.
Question 2. Question :
What does the term "marginal" mean in economics?
the edge of a market
an additional or extra
illegal
secondary
trivial
Question 3. Question :
Economics promote which of the following as the way to make the best decision?
Continue an enjoyable activity as long as you do not have to pay for it.
Continue an enjoyable activity until it is no longer enjoyable.
Continue an enjoyable activity until you cannot afford to pursue it.
Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost.
Question 4. Question :
Making "how much" decisions involve
calculating the total benefits of the activity and determining if you are satisfied with that amount.
calculating the total costs of the activity and determining if you can afford to incur that expenditure.
calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity.
determining the additional benefits and the additional costs of that activity.
Question 5. Question :
Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800
purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is the marginal cost of completing the task?
$200
$500
$1,000
$1,000 plus the value of her time
Question 6. Question :
Table 2-2
Table 2-2 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens.
Refer to Table 2-2. What is George's opportunity cost of mowing a lawn?
half a garden cultivated
two lawns mowed
two-thirds of a garden cultivated.
one and a half lawns mowed
Question 7. Question :
The production possibilities frontier model shows that
if consumers decide to buy more of a product its price will increase.
a market economy is more efficient in producing goods and services than is a centrally planned economy.
economic growth can only be achieved by free market economies.
if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
Question 8. Question :
Figure 2-6
German auto producer, BMW currently produces two types of automobiles sports utility vehicles (SUVs) and coupes in its US plant. Since it opened in 1994, the company had made and continues to make several strategic production decisions. Figure 2-6 shows changes to its production possibilities frontier in response to some of these production strategies.
Refer to Figure 2-6. In response to changing consumer demands, BMW has cut back on the production of coupes and increased its production of SUVs. This strategy is best represented by
: movement from E to F in Graph A.
movement from G to H in Graph B.
movement from K to L in Graph C.
movement from J to H in Graph B.
Question 9. Question :
Figure 2-7
Figure 2-7 shows the production possibilities frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews.
Refer to Figure 2-7. Which country has a comparative advantage in the production of cashews?
Indonesia
They have equal productive abilities.
Pakistan
neither country
Question 10. Question :
Table 2-3
Table 2-3 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
Refer to Table 2-3. What is South Korea's opportunity cost of producing one pound of wheat?
5 digital cameras
60 digital cameras
20 digital cameras
0.05 units of a digital camera
1. Question : The law of demand implies, holding everything else constant, that
as the price of bagels increases, the quantity of bagels demanded will decrease.
as the price of bagels increases, the demand for bagels will decrease.
as the price of bagels increases, the quantity of bagels demanded will increase.
as the price for bagels increases, the demand of bagels will increase.
Question 2. Question : Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
An increase in consumer income.
A drought that sharply reduces barley output.
A decrease in consumer income.
Unusually good weather that results in a bumper crop of barley.
Question 3. Question : Buyers scrambled to secure stocks of Australian wool following a forecast of an 11 percent decline in wool production. What happens in the Australian wool market as a result of this announcement?
The demand curve for Australian wool shifts to the left in anticipation of higher prices in the future.
The demand curve for Australian wool shifts to the right in anticipation of higher prices in the future.
The supply curve for Australian wool shifts to the right in anticipation of higher prices in the future.
The supply curve for Australian wool shifts to the left in anticipation of lower quantities in the future.
Question 4. Question : George Gnat subscribes to a monthly pest control service for his home. Last week the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips. How is the market for pest control services affected by this?
There is an increase in the supply of pest control services.
There is a decrease in the demand for pest control services.
There is a decrease in the quantity supplied of pest control services.
There is a decrease in the supply of pest control services.
Question 5. Question : How does the increasing use of digital cameras affect the market for traditional camera film?
The demand curve for traditional camera film shifts to the right.
The supply curve for traditional camera film shifts to the left.
The supply curve for traditional camera film shifts to the right.
The demand curve for traditional camera film shifts to the left.
Question 6. Question : Table 4-3
Table 4-3 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
Refer to Table 4-3. If a minimum wage of $7.50 an hour is mandated, what is the quantity of labor supplied?
390,000
370,000
340,000
380,000
Question 7. Question : Figure 4-5
Refer to Figure 4-5. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
the deadweight loss is equal to economic surplus.
producer surplus equals consumer surplus.
the marginal benefit of each of the 20,000 units of iced tea equals $3.
marginal benefit is equal to marginal cost.
Question 8. Question : In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
The tax will shift the demand curve to the right by $5,000.
The tax will shift the demand curve to the left by $5,000.
The tax will shift both the demand and supply curve to the right by $5,000.
The tax will shift the supply curve to the left by $5,000.
Question 9. Question : In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is.
landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others.
because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent.
Question 10. Question : Figure 4-7
Figure 4-7 shows the demand and supply curves for the almond market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at Pf.
Refer to Figure 4-7. What area represents consumer surplus after the imposition of the price floor?
A + B + E
A + B
A + B + E + F
A
1. Question : The internet has made it easy for consumers to buy books online. As a result, many traditional booksellers like Barnes & Noble and Borders (starting in 2008) along with Amazon sell books on their websites. What effect will the internet have on the demand curve that any bookstore faces?
The demand facing a bookstore will become more elastic.
The demand facing a bookstore will become more inelastic.
The demand facing a bookstore becomes horizontal.
The price elasticity of demand remains unchanged; only the cross-price elasticity
changes.
Question 2. Question : Suppose the value of the price elasticity of supply is 4. What does this mean?
A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
For every $1 increase in price, quantity supplied increases by 4 units.
Comments:
Question 3. Question : Figure 6-4
Refer to Figure 6-4. Which of the following statements is true about the price elasticity of demand?
The elasticity coefficient is constant along the demand curve.
The elastic portion of straight-line downward sloping demand curve corresponds to the segment above the midpoint.
The inelastic portion of the demand curve corresponds to the segment above the midpoint.
At the midpoint of the demand curve, the elasticity coefficient is zero.
Question 4. Question : When demand is unit price elastic, a change in price causes total revenue to stay the same because
the percentage change in quantity demanded exactly offsets the percentage change in price.
buyers are buying the same quantity.
total revenue never changes with price changes.
the change in profit is offset by the change in production cost.
Question 5. Question : Consider the following pairs of items:
Which of the pairs listed will have a positive cross-price elasticity?
a and b only
c and d only
e only
a, b, and c only
Question 6. Question : Which of the following is a reason why some firms do not use commission pay?
It gives workers incentive to produce more.
It increases firm profits.
It is difficult to measure the output and attribute output to a particular worker.
The best workers stay and less productive workers leave.
Question 7. Question : Scenario: In academia, professors in some disciplines receive higher salaries than others. For example, professors teaching in business schools receive higher salaries than professors in the English department. Suppose in Unity College, assistant professors in the business school earn $Wb while assistant professors in the English department earn $We < Wb. Now suppose the government passes comparable worth legislation that requires academic institutions to pay all faculty the same salaries.
Following the passage of comparable worth legislation, Unity College responds by placing salaries at $Wabetween the two existing salaries. Which of the following is the result of the legislation?
The supply of English professors increase and the supply of business professors decrease.
The demand for English professors decrease and the demand for business professors increase.
There will be a surplus in the market for English professors and a shortage in the market for business professors.
There will be a surplus in the market for English professors and the market for business professors will not be affected.
Question 8. Question : Table 16-2
Refer to Table 16-2. What is the profit-maximizing quantity of labor that the firm should hire?
5 units
$4 units
$3 units
2 units
Question 9. Question : A decrease in the wage rate causes
an increase in the quantity of labor demanded.
a rightward shift of the firm's labor demand curve.
a leftward shift of the firm's labor demand curve.
a decrease in labor's productivity.
Question 10. Question : Suppose the government grants child care subsidies to mothers entering the labor force. What is likely to happen to the equilibrium wage and quantity of labor?
The equilibrium wage and the equilibrium quantity of labor rise.
The equilibrium wage and the equilibrium quantity of labor fall.
The equilibrium wage falls and the equilibrium quantity of labor rises.
The equilibrium wage rises and the equilibrium quantity of labor falls.
1. Question :
If the marginal cost curve is below the average variable cost curve, then
average variable cost is increasing.
average variable cost is decreasing.
marginal cost must be decreasing.
average variable cost could either be increasing or decreasing.
Question 2. Question :
The minimum efficient scale is
the level of output where diminishing returns have not set in yet.
the plant size that yields the most profit.
level of operation where long run average costs are lowest.
the smallest output level where the firm finally reaches productive efficiency.
Question 3. Question :
Which of the following is an implicit cost of production?
the loss in the value of capital equipment due to wear and tear
the salary you pay yourself for running your business
the utility bill paid to water, electricity, and natural gas companies
the interest you pay your mother for the money she loaned you to start your business
Question 4. Question :
Higher isocost lines correspond to higher
profits.
total costs of production.
input prices.
sales revenue.
Question 5. Question :
Which of the following is not a source of technological advancement for a producer?
better trained workers.
more efficient physical capital.
higher skill level of managers.
outsourcing some aspect of production.
Question 6. Question :
Which of the following is an example of a long run adjustment?
Your university offers Saturday morning classes next fall.
Ford Motor Company lays off 2,000 assembly line workers.
A soybean farmer turns on the irrigation system after a month long dry spell.
Wal-Mart builds another Supercenter.
Question 7. Question :
The explicit cost of production is also called
variable cost.
accounting cost.
direct cost.
overhead cost.
Question 8. Question :
If the average variable cost curve is above the marginal cost curve, then
marginal costs must be decreasing.
average variable costs must be increasing.
marginal costs must be increasing.
marginal costs can be either increasing or decreasing.
Question 9. Question :
What is the difference between "diminishing marginal returns" and "diseconomies of scale"?
Both concepts explain why marginal cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.
Both concepts explain why average total cost increases after some point but diminishing marginal returns applies only in the short run when there is at least one fixed factor, while diseconomies of scale applies in the long run when all factors are variable.
Diminishing marginal returns which applies only in the short run, when at least one factor is fixed, explains why marginal cost increases, while diseconomies of scale which applies in the long run, when all factors are variable, explains why average cost increases.
Diminishing marginal returns which applies only in the short run, when at least one factor is fixed, explains why average variable cost increases, while diseconomies of scale which applies in the long run, when all factors are variable, explains why average total cost increases.
Question 10. Question :
The law of diminishing marginal returns
explains why the average total cost and marginal cost curves are U-shaped in the short run.
explains why the average total cost, average fixed cost and the marginal cost curves are U-shaped in the short run.
causes average total costs to rise at a decreasing rate as output increases.
causes the difference between average total cost and average variable cost to get smaller as output increases.
Question 1. Question : If, as a perfectly competitive industry expands, it can supply larger quantities at the same long-run market price, it is
a constant-cost industry.
an increasing-cost industry.
a decreasing-cost industry.
a fixed-cost industry.
Question 2. Question : Which of the following describes a situation in which a good or service is produced at the lowest possible cost?
productive efficiency
allocative efficiency
marginal efficiency
profit maximization
Question 3. Question : A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run?
No, it should shut down because it is making a loss.
Yes, it should continue to produce because its price exceeds its average fixed cost.
Yes, it should continue to produce because it is minimizing its loss.
There is insufficient information to answer the question.
Question 4. Question : If, as a perfectly competitive industry expands, it can supply larger quantities only at a higher long-run equilibrium price, it is
: a constant-cost industry.
an increasing-cost industry.
a decreasing-cost industry.
a fixed-cost industry.
Question 5. Question : Figure 11-6
Figure 11-6 shows cost and demand curves facing a profit-maximizing perfectly competitive firm.
Refer to Figure 11-6. At price P3, the firm would
lose an amount equal to its fixed costs.
lose an amount more than fixed costs.
lose an amount less than fixed costs.
break even.
Question 6. Question : Because a monopoly's demand curve is the same as the market demand curve for its product,
the monopoly's marginal revenue equals its price.
the monopoly is a price taker.
the monopoly must lower its price to sell more of its product.
the monopoly's average total cost always falls as it increases its output.
Question 7. Question : When a proposed merger between two companies is reviewed by the government, the relevant market is defined by
whether or not there are close substitutes for the products of the two firms.
how elastic the demand is for each firm's product.
counting the number of firms that are produce the same product.
how much advertising is done in the industry.
Question 8. Question : Governments grant patents to encourage
research and development on new products.
competition.
low prices.
firms to form public enterprises.
Question 9. Question : A Herfindahl-Hirschman Index is calculated by
summing the amount of sales by the four largest firms and dividing by total industry sales.
dividing the number of firms wanting to merge by the total number in the industry.
summing the squares of the market shares of each firm in the industry.
summing the advertising expenditures of the firms that want to merge by total industry advertising expenditures.
Question 10. Question : Governments grant patents to
compensate firms for research and development costs.
encourage competition.
encourage low prices.
encourage firms to reveal secret production techniques.
KAPLAN MT445 UNIT 6 QUIZ LATEST 2016 FEBRUARYQuestion 1. Question : One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying. Which of the following is not a response you might offer her?
Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences.
Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations.
Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand.
Question 2. Question : Figure 12-3
Figure 12-3 shows short run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
Refer to Figure 12-3.What is the area that represents the total revenue made by the firm?
0P0aQa
0P1bQa
0P2cQa
0P3dQa
Question 3. Question : Table 12-3
Table 12-3 shows the firm's demand and cost schedules for a firm in monopolistic competition.
Refer to Table 12-3. What is the amount of the firm's loss at its optimal output level?
$0
$31
$45
$50
Question 4. Question : Figure 12-6
Refer to Figure 12-6. What is the amount of excess capacity?
Q4 - Q3 units
Q4 - Q2 units
Q3 - Q2 units
Q3 - Q1 units
Question 5. Question : What type of demand curve does a monopolistically competitive firm face?
Horizontal
Vertical
Downward sloping
Upward sloping
Question 6. Question : Table 13-4
Table 13-4 shows the payoff matrix for Wal-Mart and Target from every combination of pricing strategies for the popularPlayStation 3. At the start of the game each firm charges a low price and each earns a profit of $7,000.
Refer to Table 13-4. For each firm, is there a better outcome than the current situation in which each firm charges the low price and earns a profit of $7,000?
Yes, the firms can implicitly collude and agree to charge a higher price.
No, there is no incentive for each firm to consider any other strategy.
No, any other strategy hurts consumers.
Yes, each firm can implicitly agree to increase output and not to deviate from a low price.
Question 7. Question : Each member of OPEC can increase its income by selling more oil than its output quota because
by selling more at OPEC's cartel price, a member will automatically earn more income.
each member's demand is more elastic than the total demand for oil.
the demand for oil is inelastic, total revenue increases.
the demand for oil is perfectly elastic.
Question 8. Question : An example of a barrier to entry is
product differentiation.
high profits.
superior technological knowledge.
increasing marginal costs
Question 9. Question : In an oligopoly market
the pricing decisions of all other firms have no effect on an individual firm.
individual firms pay no attention to the behavior of other firms.
advertising of one firm has no effect on all other firms.
one firm's pricing decision affects all the other firms.
Question 10. Question : The DeBeers Company of South Africa was able to block competition through
economies of scale.
ownership of an essential input.
government-imposed barriers.
differentiating its product.
KAPLAN MT445 UNIT 7 QUIZ LATEST 2016 FEBRUARY1. Question : The size of the underground economy would tend to decrease if the government of a country
decreased government regulations on businesses.
made over-the-counter drugs illegal.
increased income tax rates.
increased business taxes.
Question 2. Question : The informal sector can be a significant drag on the economies of developing countries because the firms in the informal sector
produce goods and services no one wants.
sell their goods and services to citizens in other countries.
tend to be smaller and have less capital than firms acting legally.
employ illegal immigrants from other countries.
Question 3. Question : The GDP deflator is the
difference between real GDP and nominal GDP multiplied by 100.
difference between nominal GDP and real GDP multiplied by 100.
ratio of real GDP to nominal GDP multiplied by 100.
ratio of nominal GDP to real GDP multiplied by 100.
Question 4. Question : Long-run economic growth requires all of the following except
technological change.
increases in capital per hour worked.
government provision of secure property rights.
political instability.
Question 5. Question : If consumers decide to be more frugal and save more out of their income, then this will cause
a shift in the supply for loanable funds to the right.
a shift in the supply for loanable funds to the left.
a movement along the supply for loanable funds curve to the right.
a movement along the supply for loanable funds curve to the left.
Question 6. Question : Which of the following will increase investment spending in the economy, all else being equal?
an increase in the federal government surplus
an increase in the budget deficit
an increase in consumer dissavings
an increase in transfer payments
Question 7. Question : Extensive economic growth ________ output per worker at a(n) ________ rate due to diminishing marginal returns.
increases; decreasing
decreases; decreasing
increases; increasing
decreases; increasing
Question 8. Question : In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million. What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $12 million, assuming no technological change and no change in the hours of work?
GDP would increase further, but by less than $1 million.
GDP would increase further by exactly $1 million.
GDP would increase further by more than $1 million
GDP would increase further by exactly $4 million.
Question 9. Question : Barry Eichengreen published a book that argues that Europe's early post WWII growth was not sustainable because
Europe is good at "extensive" growth but not "intensive" growth.
Europe is good at "intensive" growth but not "extensive" growth.
Europe is good at finding new products and new ways of doing things.
Europe is not very good at producing more of what it already knows how to make.
Question 10. Question : When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing
diminishing returns.
negative returns.
accelerating returns.
decreasing production.
KAPLAN MT445 UNIT 8 QUIZ LATEST 2016 FEBRUARY1. Question : A lumberjack loses his job because timber cutting restrictions are imposed by the EPA to protect the spotted owl habitat. This lumberjack would be
frictionally unemployed.
cyclically unemployed.
structurally unemployed.
seasonally unemployed.
Question 2. Question : The labor force equals the number of people
employed.
unemployed.
employed plus unemployed.
in the working-age population.
Question 3. Question : Suppose that at the beginning of a loan contract, the real interest rate is 4% and expected inflation is currently 6%. If actual inflation turns out to be 7% over the loan contract period, then
borrowers gain 1%.
lenders gain 1%.
borrowers lose 3%.
lenders gain 3%.
Question 4. Question : Productivity gains in the United States since 1995 have been ________ productivity gains in other leading industrial nations.
the same as
lower than
higher than
more variable than
Question 5. Question : In the United States, the annual growth rate of real GDP per hour worked between 1995 and 2006 averaged
2.3%.
6.9%.
-0.3%.
10.2%.
Question 6. Question : If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%, which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.
Real GDP per capita in the United States will always be 1.9% higher than real GDP per capital in Bolivia.
The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time.
The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion.
Question 7. Question : If the consumption function is defined as C = 5,500 + .9Y, what is the autonomous level of consumption expenditure?
$5,500
$4,950
$6,111
$6,050
Question 8. Question : The difference between GDP and disposable income is
national income.
actual investment spending.
net taxes.
unplanned investment spending.
Question 9. Question : Investment spending ________ during a recession, and ________ during an expansion.
declines; increases
increases; declines
increases; increases
declines; declines
Question 10. Question : Which of the following leads to a decrease real GDP?
an increase in government spending
an increase in the inflation rate in other countries, relative to the inflation in the U.S.
an increase in interest rates
households have increasingly optimistic expectations about future income
KAPLAN MT445 UNIT 9 QUIZ LATEST 2016 FEBRUARY
1. Question :
Suppose Warren Buffet withdraws $1 million from his checking account at Chase Manhattan Bank. If the reserve requirement ratio is .2 what is the maximum change in deposits in the banking system?
-$5 million
-$4 million
$5 million
$5 million
-$200,000
Question 2. Question :
People hold money as opposed to financial assets because money
earns interest.
is perfectly liquid.
earns no interest.
earns a higher return than other financial assets.
Question 3. Question :
The largest proportion of M1 is made up of
currency.
checking account deposits.
traveler's checks.
savings account deposits.
time deposits.
Question 4. Question :
Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 8 percent, then the bank can make a maximum loan of
$0.
$2 million.
$8 million.
$10 million.
Question 5. Question :
Scenario 25-2
Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
Refer to Scenario 25-2. Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your backyard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
$0.
$50.
$500.
$5,000.
Question 6. Question :
Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect. Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________.
less; less
less; more
more; less
more; more
Question 7. Question :
The government purchases multiplier equals the change in ________ divided by the change in ________.
government purchases; equilibrium real GDP
equilibrium real GDP; government purchases
government purchases; consumption spending
consumption spending; government purchases
Question 8. Question :
Figure 27-3
Refer to Figure 27-3. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the president and the Congress would most likely pursue
expansionary fiscal policy.
contractionary fiscal policy.
expansionary monetary policy.
contractionary monetary policy.
expansionary automatic stabilizers.
Question 9. Question :
Which of the following would be classified as fiscal policy?
The federal government passes tax cuts to encourage firms to reduce air pollution.
The Federal Reserve cuts interest rates to stimulate the economy.
A state government cuts taxes to help the economy of the state.
The federal government cuts taxes to stimulate the economy.
States increase taxes to fund education.
Question 10. Question :
Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.
higher; higher
higher; lower
lower; higher
lower; lower
KAPLAN MT445 UNIT 10 QUIZ LATEST 2016 FEBRUARYQuestion 1. Question :
If Japanese workers are more productive than French workers then trade between Japan and France
can take place only if France has an absolute advantage in producing a good or service Japanese buyers want.
cannot take place because Japanese goods and services will be less expensive than French goods and services.
cannot take place until French workers become more productive.
will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.
Question 2. Question :
The gold standard is an example of
a floating exchange rate system.
a managed float exchange rate system.
a fixed exchange rate system.
a flexible exchange rate system.
Question 3. Question :
The current exchange rate system in the United States is best described as a
silver standard.
managed float exchange rate system.
fixed exchange rate system.
gold standard.
Question 4. Question :
Assume that China has a comparative advantage in producing corn and exports corn to Japan. We can conclude that
China also has an absolute advantage in producing corn relative to Japan.
China has a lower opportunity cost of producing corn relative to Japan.
Japan has an absolute disadvantage in producing corn relative to China.
Labor costs are higher for corn producers in Japan than in China.
Question 5. Question :
If inflation in Russia is higher than it is in the United States,
the purchasing power of the ruble in buying Russian goods will rise relative to the dollar.
the value of the dollar will rise in the long run.
the value of the ruble will rise in the long run.
Both A and C are correct.
Question 6. Question :
Which of the following is not a source of comparative advantage?
relative abundance of labor and capital
technology
climate and natural resources
a strong foreign currency exchange rate
Question 7. Question :
Examples of ________ show how trade between two countries can make each better off.
absolute advantage
comparative advantage
autarky
trade barriers
Question 8. Question :
Absolute advantage is
the ability to produce more of a good or service than competitors when using the same amount of resources.
the ability to produce higher quality goods compared to one's competitors.
the ability to produce a good or service at a higher opportunity cost than one's competitors.
the ability to produce more of a good or service than competitors that have more resources.
Question 9. Question :
What factors are not important in determining exchange rate fluctuations in the long run?
relative price levels across countries
relative rates of productivity growth across countries
preferences for domestic and foreign goods across countries
speculating in currency markets
Question 10. Question :
Refer to Figure 30-4
.
The equilibrium exchange rate is originally at A, $3/pound. Suppose the British government pegs its currency at $4/pound. Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2. If the government abandons the peg, the equilibrium exchange rate would be
$4/pound.
$3/pound.
$2/pound.
less than $2/pound.
KAPLAN MT445 UNIT 1 ASSIGNMENT LATEST 2016 FEBRUARY
Unit 1 Assignment
Student Name:
Please answer the following questions located in the template document. Submit the file as a Microsoft® Word® document to the Dropbox when completed.
1. Analyze whether each of the following is primarily a microeconomic or a macroeconomic issue:
i. Setting the price for a cup of coffee.
ii. Measuring the impact of tax policies on total household spending in the economy
iii. A household’s decision regarding whether or not to go on vacation
iv. A worker’s decision regarding which job to accept
v. Designing government policies to address issues with the social security program
2. Explain why each of the following is either a positive or normative economic statement.
i. A 40-cent-per-pack tax on cigarettes will reduce teenage smoking by 10 percent.
ii. The federal government should spend more on diabetes research.
iii. Rising paper prices will increase book prices.
iv. The price of bagels at Bruegger’s is too high.
3. Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward, outward, or not at all?
i. A decrease in the average length of annual vacations
ii. An increase in immigration of foreign workers to the U.S.
iii. An increase in the average retirement age
iv. The migration of skilled workers to Europe
4. Identify whether each of the following would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to accept work outside the home). Briefly explain your answers.
a. Higher unemployment rates.
b. Lower average wages.
c. Higher demand for labor.
d. Lower income tax rates on wages earned.
Directions for Submitting your Assignment
Complete your Assignment in this Microsoft Word® document and save it as Username-MT445Assignment-Unit#.doc (Example:TAllen-MT445Assignment-Unit1.doc). Submit your file by selecting the Unit 1: Assignment Dropbox by the end of Unit 1.
Unit 1 Assignment | ||
Content and Analysis | Points Possible | Points Earned |
Problem #1 Analyze whether each of the following is primarily a microeconomic or a macroeconomic issue (i. – v.) | 10 | |
Problem #2 Explain why each of the following is either a positive or normative economic statement (i. – iv.) | 8 | |
Problem #3 Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward, outward, or not at all? (i. – iv.) | 8 | |
Problem #4 Identify whether each of the following would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to accept work outside the home). Briefly explain your answers. (a – d) | 8 | |
Writing Style, Grammar, and APA Format. | 6 | |
Total | 40 |
Unit 2 Assignment
Student Name:
Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.
1. Analyze what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):
a. The price of Coke decreases.
b. Average household income falls from $50,000 to $43,000
c. There are improvements in soft-drink bottling technology.
d. The price of sugar increases and the Pepsi launches an extremely successful advertising campaign.
2.
a. Analyze the following demand and supply equations. What is market equilibrium price? What is market equilibrium quantity?
Demand: Qd = 100 – 4P
Supply: Qs = 10 + 6P
b. Assume the government places a price ceiling at $7 in the market. What is quantity demanded? What is quantity supplied? Is there a shortage or a surplus?
3. Using the diagram below, answer the following questions:
a. How much is the per-unit tax on cigarettes?
b. What price do consumers pay after the tax?
c. How much tax revenue is collected?
d. What is the amount of deadweight loss?
Directions for Submitting your Assignment
Complete your Assignment in this Microsoft Word document and save it as Username-MT445Assignment-Unit#.doc (Example:TAllen-MT445Assignment-Unit2.doc). Submit your file by selecting the Unit 2: Assignment Dropbox by the end of Unit 2.
Unit 2 Assignment | ||
Content and Analysis | Points Possible | Points Earned |
Problem #1 Analyze what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well). (a-d) | 8 | |
Problem #2 Analyze the following demand and supply equations. (a-b) | 10 | |
Problem #3 Using the diagram, answer the following questions regarding cigarette taxation. (a-d) | 16 | |
Writing Style, Grammar, and APA Format. | 6 | |
Total | 40 |
Unit 3 Assignment
Student Name:
Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.
1.Is the price elasticity of demand for gasoline more elastic over a shorter or a longer period of time? Explain.
2. Is the price elasticity of supply, in general, more elastic over a shorter or a longer period of time? Explain.
3.Why is the supply curve for labor usually upward sloping?
4. In the graph below, assume that the market demand curve for labor is initially D1. Answer the following questions.
a. What are the equilibrium wage rate and employment level?
b. Assume that the price of a substitute resource decreases, other things constant. What happens to demand for labor?
What are the new equilibrium wage rate and employment level?
c. Suppose instead that demand for the final product increases, other things constant. Using labor demand curve D1 as your starting point, what happens to the demand for labor?
What are the new equilibrium wage rate and employment level?
d. Assume this industry is dominated by non-union workers. How would the equilibrium wage compare to that earned in a similar industry with similarly skilled union workers? Explain.
5.Use the following data to an
-
Rating:
5/
Solution: KAPLAN MT445 FULL COURSE (DISCUSSION+QUIZES+ASSIGNMENT) LATEST 2016 FEBRUARY