OC userin Economics·19 Dec 20177) Which one of the following is a part of the opportunity cost of attending college for an individual who lives on their own? A) cost of clothing B) cost of transportation C) cost of renting movies D) cost of tuition E) cost of meals
OC userin Economics·22 Dec 201750) Which of the following statements are true? I. Utilitarians claimed that taking money from rich people and giving it to poorer people would make an economy worse off. II. Utilitarians took into account the costs of making income transfers. III. The "big tradeoff" is between efficiency and equity. A) II and III B) I and III C) I and II D) I, II, and III E) III only
OC userin Economics·20 Dec 201723. The government places a $30 per unit tax on the buyers of widgets. At the new equilibrium, the price received by sellers will be: A) $120 B) $123 C) $126 D) $129 E) $132 F) $135 G) $138 H) $141 1) $144 J) $147 K) $150 L) $153 M) $156 N) $159 0) $162 P) $165 Q) $168 R) $171 S) $174 T) $177 U) $180 V) $183 W) $240 X) $1500 Y) $3000 Z) none of the above
OC userin Economics·19 Dec 2017Question 4. (15 marks) Suppose supply is given by q = 2 + p and demand by q = 10 – 2p. (a) Plot these curves with p on the vertical axis, showing the slopes and all horizontal and vertical intercepts. (b) Using the information from Question 3 calculate the equilibrium quantity and price. (C) Suppose the demand curve shifts such that q = 15 - 2p. Compute the new equilibrium price and quantity. Show this on your graph.
OC userin Economics·19 Dec 20173. Suppose the government has imposed a price ceiling on cellular phones. Which of the following events could transform the price ceiling from one that is binding to one that is not binding? a. Cellular phones become more popular. b. Traditional land line phones become more expensive. C. The components used to produce cellular phones become more expensive. @ A technological advance makes cellular phone production less expensive.
OC userin Economics·18 Dec 2017Use the figure below to answer the following questions. Price (dollars per unit) B HE.................. 50 100 150 200 250 Quantity (units) Figure 3 7) Refer to Figure 3. If the level of output is 200 units, the deadweight loss is area A) DCE B) ACH. C) ACG. D) HCG E) BCF
OC userin Economics·18 Dec 201723) The theory of the firm is based on the following two key assumptions: A) Firms seek to become as large as possible, and they seek to maximize total revenue. B) Each firm has a highly diversified product line, and this necessarily leads to profit maximization. C) Firms seek to maximize profit, and to distribute the maximum value fairly. D) Firms seek to maximize profits, and the firm is a single, consistent decision-making unit. E) Firms seek to maximize revenues, and to maximize undistributed profits.
OC userin Economics·19 Dec 20171. When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell by 4 percent, and the sale of dips (like salsa and bean dip) fell by 8 percent. This set of facts indicates that a. the cross price elasticity between tortilla chips and dips is 0.8, so the two are substitutes. b. the cross price elasticity between tortilla chips and dips is 0.4, so the two are complements. c. the cross price elasticity between tortilla chips and dips is 0.8, so the two are complements. d. the cross price elasticity between tortilla chips and dips is 0.4, so the two are substitutes.
OC userin Economics·18 Dec 201719. How much profit or loss do firms in the industry make in this new short-run equilibrium? (A)-$256 (B)-$144 (C)-$72 (D) -$32 (E) $0 (F) +$32 (G) +$72 (H) +$ 144 (1) +$256 (J) none of the above
OC userin Economics·18 Dec 201714. Which of the following is not a characteristic of the Two-Part Tariff? a) price equals average cost b) consumer surplus is zero c) the efficiency loss is zero d) price equals marginal cost
OC userin Economics·19 Dec 2017Question 12: The provincial sales tax is a tax on goods. Some people say that the GST, a tax on both goods and services, is a better tax. The following graph illustrates what would happen, if all provincial sales taxes were replaced with the provincial GST, for a consumer choosing Books and Haircuts (service). Here lo and I are the Indifference curves or the two products; BL are the budget lines. BL VE.COM 5 10 15 20 25 30 35 a) Label the x axis and y axis on the above graph. b) BLo represents the budget line for (GST or Provincial tax) c) How did the consumer choice of goods change with change in the tax structure? a. Consumption choice with Provincial Tax: haircut and books b. Consumption choice with GST: haircut and books d) In the above graph show the substitution and Income effect as a result of a change in relative prices. Explain how the consumption changed as a result of substitution effect and the income effect.
OC userin Economics·19 Dec 2017Supply Price of X - --- --/1_LI IT Demand Q1 02 03 04 05 Quantity of X FIGURE 3-3 26) Refer to Figure 3-3. At a price of P1 there would be excess supply equal to A) 0 B) Qi Q5 C) Q2 04 D) Q1 Q2 E) 04 05
OC userin Economics·19 Dec 201758) If, as shown in the diagram, the household still saves 350K when the interest rate increases to r' = 40%, then present consumption Cp is an) good and future consumption CF is a(n) good. A) normal; normal B) inferior, normal C) normal; inferior D) inferior; inferior E) inferior Giffen, inferior Giffen
OC userin Economics·17 Dec 201727) When economists say that a firm is a price taker they mean that A) the firm initially takes price as given and tries to influence it through advertising. B) the firm can alter its rate of production and sales without affecting the market price of the product. C) at the price prevailing in the market, the firm will be willing to sell an infinite quantity. D) the demand curve that the firm faces is perfectly inelastic. E) the firm can alter the market price as it changes its rate of production.
OC userin Economics·17 Dec 20176. You are told that the economy is producing efficiently and has chosen to produce and consume 2 units of X and 22.5 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of X as: A) 1.4 C) 3.0 D) 4.8 E) 5.0 F) 5.8 H) 6.4 I) 7.2 J) none of the above B) 2.8