Description
QUESTION 1
Refer to the graph below for the attached questions. (12 points; 3 points each).(1) Moving from Point A to Point B, what is the point price elasticity of demand? What is the dollar change in total revenue? Your answer: Elasticity: (Round your answer to one decimal place, unless your answer is an integer.) Dollar change: (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)(2) Assuming that the demand curve is for a monopoly, what are the revenue maximizing quantity and price? Your answer: Quantity: (Do NOT include words; Round your answer to one decimal place, unless your answer is an integer.) Price: (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)(3) Assuming that the monopoly’s AC=MC=2 (constant), what are the monopoly’s profit maximizing quantity and price?Your answer: Quantity: (Do NOT include words; Round your answer to one decimal place, unless your answer is an integer.) Price: (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)(4) Assume that this were a perfectly competitive market and each firm’s MC = 2. What would be the market equilibrium price? Compared with perfect competition, what is the deadweight loss caused by the monopoly?Your answer: Market price: (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)Deadweight loss: (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)
12 points
QUESTION 2
Refer to the graph below (12 points; 3 points each).Only one choice is correct for each question and your answers for the following questions should be a, b, c or d. (1) At Point a, what is the price elasticity of demand? Your Answer: (fill in “a”, “b”, or “c”) a. >1 b. =1 c. <1(2) At Point b, Your Answer: (fill in “a”, “b”, or “c”) a. MR>0 b. MR= 0 c. MR<0(3) At Point c, Your Answer: (fill in “a”, “b”, or “c”) a. total revenue is increasing. b. total revenue is decreasing. c. total revenue is not changing.(4) At Point b, Your Answer: (fill in “a”, “b”, “c”, or “d”) a. average revenue is maximized. b. profit is maximized. c. total revenue is maximized. d. marginal revenue is maximized.
12 points
QUESTION 3
For a particular product, Country A’s supply and demand are represented by the following functions: Qs = 2 + P; Qd= 52 P. Suppose Country A is a small country (it takes the world price as given) and the world price is $10 (PW = $10).Numerical answers are required for the questions. (12 points; 3 points each)(1) If the government of Country A imposes a 100% tariff on the imports, how much does Country A import?Your answer: units (Do NOT include words; Round your answer to one decimal place, unless your answer is an integer.)(2) Moving from free trade to the 100% tariff, by how much does the consumer’s surplus change? (Positive number means a gain; a negative number means a loss)Your answer: $ (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)(3) Moving from free trade to the 100% tariff, by how much does the producer’s surplus change? (Positive number means a gain; a negative number means a loss)Your answer: $ (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)(4) What is the deadweight loss for Country A caused by the tariff?Your answer: $ (Do NOT include “$”; Round your answer to one decimal place, unless your answer is an integer.)
12 points
QUESTION 4
Which of the following is TRUE about the market economy?
3 points
QUESTION 5
Which of the following statement is CORRECT about a firm’s shutdown condition?
3 points
QUESTION 6
Which of the following is NOT true about a perfectly competitive market?
3 points
QUESTION 7
Perfectly competitive firms are described as _______ and face _______ demand curves.
3 points
QUESTION 8
Which of the following is NOT true about a monopoly?
3 points
QUESTION 9
Under monopolistic competition, prices are ______ marginal costs, which lead to ______.
3 points
QUESTION 10
The zero-profit point for a firm in a perfectly competitive market will occur where:
3 points
QUESTION 11
Which of the following is NOT consistent with what we learned in the course?
3 points
QUESTION 12
Which of the following is NOT a correct description of the marginal principles?
3 points
QUESTION 13
The Lorenz curve ________; the further away of the actual income distribution curve from the absolute equality curve, the ___the inequality.
3 points
QUESTION 14
Which of the following does NOT represent a market failure?
3 points
QUESTION 15
Most favored nations (MFN) treatment basically means:
3 points
QUESTION 16
Which of the following statement is NOT consistent with our analysis of supply and demand? (Note: In each statement, we assume everything else is unchanged.)
3 points
QUESTION 17
Based on the trade theories we have discussed in the course, which of the following statement is NOT true?
3 points
QUESTION 18
Refer to the graph below. Which line represents the consumption possibilities in Country II with free trade?
3 points
QUESTION 19
Which of the following is NOT a main economic function of the government in a market economy?
3 points
QUESTION 20
Refer to the table below for the input and output information for a firm.Your answer: $ (Do NOT include words or “$”; Round your answer to one decimal place, unless your answer is an integer.)
3 points
QUESTION 21
Refer to the graph below for a monopoly.CONSISTENT with the information provided in the graph and the concepts of a monopoly?
QUESTION 22
Briefly comment on the following statement: “The first law of economics is scarcity, and the first law of politics is to disregard the first law of economics”.
5 points
QUESTION 23
Define the major market structures in the economy and briefly describe their major differences.
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sam 2023-02-15 23:39:56 2023-02-15 23:39:56 Answer economics MCQs and Short answers, economics homework help