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# Devry econ312n final exam latest 2016 june 24th all correct answers

Question # 00324882
Subject: Economics
Due on: 07/15/2016
Posted On: 06/25/2016 09:14 AM

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1

The Fed thinks that the economy is about to slip into recession and takes actions to lessen its severity. In the left graph, draw a curve that shows the change that the Fed makes to either the demand for money or the supply of money. Label it. Draw a point to show the new equilibrium quantity of money and interest rate. Show the effect in the right graph. Draw either a new SLF curve or DLF curve. Label it. Draw a point to show the new equilibrium quantity of loanable funds and interest rate.

2

The table shows the demand and supply schedules for on-campus housing

Rent quantity d quantity s

. 500 5,000 4,000

. 550 4,500 4,000

600 4,000 4,000

650 3,500 4,000

700 3,000 4,000

750 2,500 4,000

If the college puts a rent ceiling on rooms of \$700 a month, rent is the Rent demanded supplied and number of rooms (dollars per month) (rooms) rented is .The on-campus housing market is

3

The table shows a bank's balance sheet. The bank has no excess reserves and there is no currency drain. Suppose the bank sells \$2 million of government securities to the central bank in an open market

As soon as the sale happens, the bank can create million of new money. The bank's actual reserve ratio is

The total quantity of new money created when the bank has no excess reserves is million.

4

Rabbit farming is a perfectly competitive industry and all rabbit farms have the same cost curves. When the market price is \$37 a rabbit, farms maximize profit by producing 1,000 rabbits a week. At this output, average total cost is \$35 and average variable cost is \$15 a rabbit. Minimum average variable cost is \$11 a rabbit. If the price of a rabbit falls to \$11, the rabbit farmer will

produce the profit-maximizing output

shut down

continue to produce 1,000 rabbits a week

attempt to raise the price back to \$37 a rabbit

either shut down or produce the profit-maximizing output

5

When the Fed buys securities from a bank, a sequence of events begins. The events are listed below. Number each event in the order in which it occurs.

The quantity of money increases.

New money is used to make payments.

Banks lend excess reserves.

Excess reserves decrease but remain positive.

Some of the new money remains on deposit and some is a currency drain.

Desired reserves increase because deposits have increased.

Banks have excess reserves.

Bank deposits increase.

6

Tulip growing is a perfectly competitive industry and all tulip growers have the same cost curves. The market price of tulips is \$9 a bunch and each grower maximizes profit by producing 800 bunches a week. The average total cost of producing tulips is \$20 a bunch. Minimum average variable cost is \$7 a bunch, and the minimum average total cost is \$12 a bunch.

In the short run, each grower is incurring an economic loss

Because firms in the industry are some firms will the market in the long run. The number of tulip growers will

incurring an economic loss; enter and some firms will exit; increase or decrease depending on the relative number of entering and exiting firms

making an economic profit; exit and some firms will enter; decrease or increase depending on the relative number of exiting and entering firms

making an economic profit; enter; increase

making zero economic profit; shut down and exit; decrease r

incurring an economic loss; exit; decrease

7

A bank makes a profit by

setting the interest rate as close to zero as possible

. buying cash assets

lending at a higher interest rate than the interest rate it pays on its deposits

increasing its reserves

. lobbying the government to keep the interest rate high

8

The table shows a nation's marginal benefit and marginal cost schedules.

What is the marginal benefit from and the marginal cost of growing 3 pounds of bananas?

The marginal benefit from growing 3 pounds of bananas is 1 pound of coffee.

The marginal cost of growing 3 pounds of bananas is 3 pounds of coffee.

Bananas (pounds of coffee per (pounds) pound of bananas)

1 2 3 3 2 1 1 2 3

9

Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 14 DVDs when the price of a DVD is \$6.00, 11 DVDs when the price of a DVD is \$8.00, and 8 DVDs a month when the price of a DVD is \$10.00. Robert buys 21 DVDs a month when the price of a DVD is \$6.00, 8 DVDs when the price of a DVD is \$8.00, and zero DVDs when the price of a DVD is \$10.00. In the market for DVDs, the quantity demanded

at \$8.00 a DVD is 11 DVDs a month

increases as the price falls

increases as the price rises

at \$8.00 a DVD is 8 DVDs a month

\$6.00 a DVD is less than the quantity demanded at \$8.00 a DVD

10

Tony and Patty produce skis and snowboards. The tables show their production possibilities. Each week Tony produces 4 snowboards and 8 skis and Patty produces 15 snowboards and 30 skis. Tony and Patty decide to specialize and trade.

specializes in snowboards and produces

specializes in skis and produces

Tony, 20 snowboards; Patty; 60 skis

B. Tony, 60 snowboards; Patty; 20 skis O

c. Patty; 15 snowboards; Tony, 8 skis

D. Tony, 4 snowboards; Patty; 30 skis

E Patty; 30 snowboards; Tony, 10 skis

The number of snowboards produced by . The number of skis produced

Tony's Production Possibilities Snowboards (per week) Skis (per week) 20 and 0 16 and 2 12 and 4 8 and 6 4 and 8 0 and 10

Patty's Production Possibilities

Snowboards Skis (per week) (per week) 30 and 0 15 and 30 0 and 60

11

The graph shows the demand for on-campus student housing at the University of Idaho in Moscow, Idaho. The college has 6,000 rooms for rent.

If a rent ceiling of \$125 a week is strictly enforced and there is no black market,

students who cannot find on-campus housing gain because it's more fun to live off campus

the university gains because it doesn't have any empty rooms on campus

the university gains and the owners of off-campus housing lose

students who get the cheaper on-campus housing gain and the university and those students who cannot find on-campus housing lose

Rent (dollars per week)

175- 150- 125- 100- 75- 50-

25 4500 6000 7500 9000 10500 12000 Quantity (rooms)

12

Once a month, the Bureau of Statistics calculates the Consumer Price Index, which is a measure of the consumers for a fixed basket of consumer goods and services.

Price; average of the prices paid by urban

Labor; non-discounted prices paid by urban

Price; prices paid by all

Labor; average of the prices paid by urban

13

List the sequence of events in the transmission from a rise in the federal funds rate to a change in the inflation rate. Number the items below from 1 through 8.

Consumption expenditure, investment, and net exports decrease.

The quantity of money and supply of loanable funds decrease.

Aggregate demand decreases.

The long-term real interest rate rises.

The Fed raises the federal funds rate.

Other short-term interest rates rise and the exchange rate rises.

Real GDP growth rate decreases.

Inflation rate decrease

14

The graph shows the demand curve for blankets and the market price of a blanket. Draw a point to show the quantity of blankets bought and the price paid. Draw a shape that represents the consumer surplus from the blankets bought. Label it. Draw a shape that represents the amount paid for the blankets bought. Label it.

The consumer surplus equals \$.

The total amount paid for the quantity bought is \$ .

The total benefit from the blankets bought is \$ .

Price (dollars per blanket) 90 75 60

45

30

15

0 0 20 40 60 80 Quantity (blankets per day)

Checkpoint Test Score: 99.35% (228.5 of 2:

Consumer surealet

price D Amount paid

>>> Draw only the objects specified in the question.

15

Review: Final Exam

You must do your homework but you also want to check your emails.

You think hard about how to allocate the next hour between doing problem sets and reading email.

You decide to spend the first 55 minutes studying and the remaining 5 minutes dealing with your emails.

Your decision is an example of

A good time management

B. making a choice such that the marginal cost exceeds the marginal benefit

C making a choice at the margin

D misallocating your time

q.16

National comparative advantage arises from the differences in ________ across countries.

the money cost of production

population

opportunity cost

technology

q- If country A has a comparative advantage in the production of automobiles and country B has a comparative advantage in the production of boats

both countries will gain if country A exports automobiles to country B and country B exports boats to country A

B. only one country will gain, and that country is the one that uses the most up-to-date technology 0

c. both countries will gain if country B exports automobiles to country A and country A exports boats to country B O

D. only one country will gain, and that country is the one that has the lowest wage rates

Q 17

When Yvonne's income increases by 3 percent, her demand for tickets to professional football games increases by 6 percent.

Yvonne's demand for tickets is income _________ . For Yvonne, football tickets are ________ good.

elastic; a normal

elastic; an inferior

inelastic; a normal

inelastic; an inferior

q 18

Tiny is a small, isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could. The May Intelligencer is the only source of news. The graph shows the marginal cost of printing the May Intelligencer and the market demand for it. The 7Jny Intelligencer is a profit-maximizing, single-price monopoly. What is the efficient number of copies of the newspaper and what is the price at which the efficient number of copies could be sold?

The efficient number of copies of the May Intelligencer is 250 and the price at which this number could be sold is 50 cents a copy

Q19

The BLS reported that in November 2016, the labor force was 158.5 million, employment was 151.0 million, and the working-age population was 253.2 million.

Calculate the unemployment rate and the labor force participation rate.

Q20

The graph shows the market for orange pickers in Florida. What is the equilibrium wage rate and the equilibrium quantity of pickers employed?

Q21

Mark's Mineral Springs is a single-price monopoly.

The table shows the demand schedule for Mark's spring water (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3).

Calculate Mark's total revenue and marginal revenue schedules.

Q22

A multiplex cinema in downtown Minneapolis is a monopoly.

True

False

Amazon. com, the on-line bookstore is a monopoly.

True

False

Costco, the discount retailer is a monopoly.

True

False

The only shoe-shine stand licensed to operate at an airport is a monopoly.

True

False

The U.S. Postal Service is a monopoly.

True

False

Q23

Every day, we make many choices. We can't avoid having to make choices because

a.we can't find enough things to do to fill our day

b. there is too much available

c. there is too much variety

D. there are too many TV channels

E. we can't afford to buy all the things we'd like

Q24

The table gives information about a nation's labor force. What is the number not in the labor force?

Labor Market Data

Working-age population 223.4 million Labor force 147.4 million Unemployed 8.1 million

Q25

A department store in a large downtown Houston shopping mall is a monopoly.

True

False

Tiffany, the upscale jeweler is a monopoly.

True

False

Wal-Mart, the national department store chain is a monopoly.

True

False

The only shoe-shine stand licensed to operate at an airport is a monopoly.

True

False

The U.S. Postal Service is a monopoly.

True

False

Q26

Will runs a hot dog cart at the sports stadium. Will has no skills, no job experience, and no alternative employment.

Entrepreneurs in the hot dog cart business earn \$20,000 a year. Will pays the rent of \$2,000 a year, and his total revenue is \$25,000 a year. He borrowed \$500 at 10 percent a year to buy equipment. At the end of one year, Will was offered \$300 for his business and all its equipment.

Will's explicit costs are____. Will's implicit costs are_____. Will's economic profit in the first year is _____dollars.

Q27

For consumers, T-shirts and tank tops are substitutes.

If the price of a T-shirt increases, the demand for tank tops will ________

increase or decrease, but the demand for T-shirts will not change

decrease, and the demand curve for tank tops will shift leftward

increase, and the demand curve for tank tops will shift rightward

not change, but there will be a movement along the demand curve for tank tops

q28

Explain the change in aggregate demand when government expenditure on national defense increases by \$100 billion. Aggregate demand by \$100 billion.

A. increases; exactly

B. decreases; less than

C. increases; more than

D. increases; less than

E. decreases; more than

Q29

In December 2000, currency and traveler's checks held by individuals and businesses was \$ 539 billion; checkable deposits owned by individuals and businesses were \$ 548 billion; savings deposits were \$1,878 billion; small time deposits were \$1,045 billion; and money market funds and other deposits were \$921 billion.

Calculate MI and M2 in December 2000.

MI in December 2000 is ___billion.

M2 in December 2000 is ____billion.

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#### Devry econ312n final exam latest 2016 june 24th all correct answers

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