ANSWER KEY Chapter 1 Chapter 1–1 II.D. the accumulation of those economic products that are tangible‚ scarce‚ useful‚ and transferable 1. scarcity of resources‚ which results from society not III.A. the market having enough resources to produce all of the things people would like to have III.B. the markets in which productive resources are bought and sold 2. A need is a basic requirement for survival and III.C. in product markets IV.A. the amount of output
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impact of an increase in the money supply? Answer Selected Answer: It leads to increased price level‚ but there is no change in real GDP. Correct Answer: It leads to increased price level‚ but there is no change in real GDP. Question 2 1 out of 1 points Which of the following would make the price level decrease and real GDP increase? Answer Selected Answer: Long-run aggregate supply shifts right. Correct Answer: Long-run aggregate supply shifts
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Problem Set 1 Gmt 201 Autumn‚ 2010 1. Consider the markets for DVD movies‚ TV screens‚ and tickets at movie theaters. a. For each pair‚ identify whether they are complements or substitutes: • • • DVDs and TV screens DVDs and movie tickets TV screens and movie tickets b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens. c. Draw two more diagrams to show how the change in the market for TV screens affects
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3- The owner of a car wash is trying to decide on the number of people to employ based on the following short production function: Q = 6 L – 0.5 L² Where Q = No. of car washes per hour L = No. of workers a- Generate a schedule showing TP‚AP‚MP.‚ then graph it. L | TPL | MPL | APL | 0 | 0 | 0 | - | 1 | 5.5 | 5.5 | 5.5 | 2 | 10 | 4.5 | 5 | 3 | 13.5 | 3.5 | 4.5 | 4 | 16 | 2.5 | 4 | 5 | 17.5 | 1.5 | 3.5 | 6 | 18 | 0.5 | 3 | 7 | 17.5 | -0.5 | 2.5 |
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Microeconomics (Fall 2014) Simon Bowmaker Problem Set 6 Submit at lecture (Monday‚ November 10) Write your answers on separate sheets of paper. Please include: your name your recitation teacher’s name day and time of the recitation NB: if your recitation takes place on Monday morning‚ you must submit your assignment to your teacher at the beginning of the recitation. 1. Assume a monopolist faces the following market demand: Q = 100 - 2P. The monopolist’s total cost function is TC = 5+8Q2. What
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Managerial Economics HW #4 (Chapter 5) 1.A firm can manufacture a product according to the production function Q F(K‚ L) K3/4L1/4 a. Calculate the average product of labor‚ APL‚ when the level of capital is fixed at 16 units and the firm uses 16 units of labor. How does the average product of labor change when the firm uses 81 units of labor? Saat (Capital) K = 16 (Labour) L = 16 Q = (16)0‚75(16)0‚25 Q = (8)(2) = 16 APL =Q/L =16/16=1. Saat K= 16 Q= 81 Q = (16)0‚75(81)0‚25 Q = (8)(3)
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Selected answer key for problem set 1 Econ262 C1.2 (i) There are 1‚388 observations in the sample. Tabulating the variable cigs shows that 212 women have cigs > 0. (ii) The average of cigs is about 2.09‚ but this includes the 1‚176 women who did not smoke. Reporting just the average masks the fact that almost 85 percent of the women did not smoke. It makes more sense to say that the “typical” woman does not smoke during pregnancy; indeed‚ the median number
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FIN532M: Financial Derivatives Problem Set 2 DUE DATE: Feb. 12‚ 2015 1. How can you differentiate the forward price from the value of a forward contract? (2 points) 2. Explain why an FRA can be viewed as an exchange of a floating rate of interest for a fixed rate of interest payments and how you can use FRA in mitigating risks. (4 points) 3. The standard deviation of monthly changes in the spot price of live cattle is 1.2 cents per pound. The standard deviation of monthly changes in the futures
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Managerial Economics Section A 1) a. Macroeconomics 2) c. Demand function 3) b. Arc elasticity 4) b. Consumer goods 5) c. The Indifference Curve 6) a. Future costs 7) c. Equilibrium 8) b. Gross national product 9) b. Product approach 10) c. GDP PART TWO: 1) The elasticity of one variable with respect to another between two given points. It is used when there is no general function to define the relationship of the two variables. Arc elasticity is also defined as the elasticity between two points
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CHAPTER 1 1. Internal expansion involves a normal increase in business resulting from increased demand for products and services‚ achieved without acquisition of preexisting firms. Some companies expand internally by undertaking new product research to expand their total market‚ or by attempting to obtain a greater share of a given market through advertising and other promotional activities. Marketing can also be expanded into new geographical areas. External expansion is the bringing together
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