國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost

Size: px
Start display at page:

Download "國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 1 0 3 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost"

Transcription

1 國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost 1. The short run is the time frame A. during which the quantities of all resources are fixed. B. that is less than a year. C. during which the quantities of some resources are fixed. D. during which the quantities of all resources are variable 2. Increasing marginal returns always occurs when the A. marginal product of an additional worker exceeds the marginal product of the previous worker. B. average product of an additional worker exceeds the average product of the previous worker. C. marginal product of an additional worker is less than the marginal product of the previous worker. D. average product of an additional worker is less than the average product of the previous worker. 3. Which of the following is correct about marginal and average products? A. When the marginal product is increasing, the average product must be increasing. B. When the marginal product exceeds the average product, the average product must be increasing. C. When the average product is increasing, the marginal product must be decreasing. D. When the marginal product is decreasing, the average product must be decreasing. 4. When the average product is at its maximum, A. the marginal product is increasing as output increases. B. he marginal product is negative. C. it is equal to the marginal product. D. total product is also at its maximum. 5. The average fixed cost curve A. is horizontal. B. is U-shaped. C. has an upside-down U shape. D. is always negatively sloped. 6. The total product is 10 units. The average total cost is $30 and the average fixed cost is $10. What is the amount of the total variable cost? A. $20 B. $200 C. $300 D. $10 7. If average variable costs increase as output increases, then A. marginal cost must be greater than average variable cost. B. total fixed cost must be increasing also. C. total cost must be constant. D. output must be zero. 8. Which of the following statements is true? A. In the long run, the average cost curve is always downward sloping. B. In the long run, the quantities of all inputs are fixed. C. In the long run, the firms' fixed costs are greater than its variable costs. D. In the long run, all costs are variable costs. 9. As output increases, economies of scale occur when the A. long-run average cost increases. B. long-run average cost decreases. C. short-run average total cost decreases. D. long-run average cost stays constant. 10. The statement, "price distributes goods and services to those that value them the most" refers to the function of price. A. rationing B. multiplicative C. store of value D. allocative 11. For entry into a particular perfectly competitive industry to occur, which of the following must be true? A. Accounting profits are equal to zero B. Accounting profits equal economic profits C. Economic profits are greater than zero D. Economic profits are equal to zero 1

2 12. The following graphs depict a perfectly competitive firm and its market. Assume that all firms in this industry have identical cost functions. Assume that the market is currently as shown in the graph on the left (i.e., price of $8). What is true of the number of firms? A. There are currently 30 firms in the industry, and that number will remain stable until there is a change in demand or in technology. B. There are currently ten firms in this industry, and that number will remain stable until there is a change in demand or in technology. C. It is impossible to tell how many firms currently exist in this industry, but you can tell that the number of firms is likely to increase in the near future. D. There are currently ten firms in this industry, and that number is likely to increase in the near future. 13. Which ordering best describes how a perfectly competitive industry would respond to a sudden increase in popularity of the product? The market demand function will shift to the right, causing the market: A. price to increase, and a new stable equilibrium to be established at a higher price and higher quantity. B. price to increase, and all firms in the industry will earn higher profits for the foreseeable future. C. price to increase. Increased profits will encourage new firms to enter, shifting the market supply function to the right. Long-run market equilibrium will be at a higher quantity than before the surge in popularity. D. price and quantity supplied to increase. Increased profits will encourage new firms to enter shifting the market supply function upward. Long-run market equilibrium will be at a lower quantity and higher price than before the surge in popularity. 14. Refer to the figure on the right. Suppose S 2 is the industry supply curve and all firms are producing at the profit maximizing quantity. What will happen to the supply curve in the long run? A. Quantity supplied will increase but stay on the S 2 curve. B. Supply will shift to S 1 C. Supply will shift to S. D. Quantity supplied will decrease but stay on S 2 curve. 15. Economic rent is: A. the amount you pay for an apartment in a free market. B. the payment made to suppliers of an input. C. the difference between the payment made to the supplier of an input and the supplier's reservation price. D. the same as the input supplier's reservation price. 16. The main source of economies of scale is A. better management. B. constant returns to plant size. C. specialization. D. increases in the labor force not matched by increases in the plant size. 17. The marginal product of labor is A. total product divided by labor. B. the change in total product divided by the increase in labor. C. total product minus the quantity of labor. D. output that does not meet quality specifications. II. Market 18. Price-setters face: A. perfectly elastic demand. B. more than perfectly elastic demand. C. perfectly inelastic demand. D. less than perfectly elastic demand. 2

3 19. In exchange for a share in the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus or at university events. Refer to the information above. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for: A. 75 cents because that is the market price. B. less than 75 cents because CheapFizz will have greater volume and so can sell for a lower price. C. more than 75 cents because demand for CheapFizz will shift to the left. D. more than 75 cents because other firms must exit the market. 20. The term "natural monopoly" refers to: A. government ownership of parks. B. industries with constant returns to scale. C. the desire of all firms to be monopolists. D. industries with economies of scale. 21. Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = $5, Quantity. Big Inc's total costs are TC = $4, Quantity. Refer to the information given above. When each firm produces 8 units has lower costs, and when each firm produces 12 units has lower costs. A. Big Inc; Mega Corp B. Mega Corp; Big Inc C. Big Inc; Big Inc D. Mega Corp; Mega Corp 22. Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = $5, Quantity. Big Inc's total costs are TC = $4, Quantity. Refer to the information given above. Average total costs for these firms: A. declines as quantity increases. B. increases as quantity increases. C. is constant for all quantities. D. declines as quantity increases for Mega Corp and increases as quantity increases for Big Inc. 23. The demand curve for a perfectly competitive firm is while the demand curve for a monopolist is. A. perfectly elastic; downward-sloping B. vertical; downward-sloping C. perfectly elastic; perfectly inelastic D. perfectly inelastic; perfectly elastic 24. This graph illustrates the demand faced by a firm. Refer to the figure on the right. The firm will charge a price of $8 only if: A. marginal cost is $8. B. marginal cost is $0. C. average total cost is $8. D. marginal cost is less than $ Refer to the figure on the right. The at the socially efficient level of output will be at the profit maximizing level of output. A. loss; smaller than B. profit; smaller than C. loss; larger than D. profit; larger than 3

4 26. Which of the following is not a characteristic of a perfectly competitive market structure? A. There are a very large number of firms that are small compared to the market. B. All firms sell identical products. C. There are no restrictions to entry by new firms D. There are restrictions on exit of firms. 27. In perfect competition A. the market demand curve and the individual's demand are identical. B. the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic. C. the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic. D. the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic. 28. All of the following can be used to compute average profit except A. marginal profit minus marginal cost. B. total profit divided by quantity. C. average revenue minus average total cost D. price minus average total cost. 29. The key characteristics of a monopolistically competitive market structure include A. many small (relative to the total market) sellers acting independently. B. all sellers sell a homogeneous product. C. barriers to entry are strong. D. sellers have no incentive to advertise their products. 30. A monopolistically competitive firm maximizes profit where A. price = marginal revenue. B. price > marginal cost. C. marginal revenue > average revenue. D. total revenue > marginal cost. 31. An oligopoly firm is similar to a monopolistically competitive firm in that A. both firms face the prisoner's dilemma. B. both operate in a market in which there are entry barriers. C. both firms have market power. D. both firms are in industries characterized by an interdependent firm. 32. Price discrimination A. is the practice of charging different prices to different customers based on a seller's personal preferences and prejudices. B. is the practice of charging different prices to different customers based on the different costs of supplying the product to different customers. C. is the practice of charging different prices to different customers when the price differences cannot be attributed to variations in cost. D. is the practice of giving preferential treatment to certain groups of customers based on their long-standing relationship to the producer. 33. Because a monopoly's demand curve is the same as the market demand curve for its product, A. the monopoly's marginal revenue equals its price. B. the monopoly is a price taker. C. the monopoly must lower its price to sell more of its product. D. the monopoly's average total cost always falls as it increases its output. 34. Suppose a competitive firm and a monopolist are both charging $5 for their respective outputs. You can infer that: A. the marginal benefit from an additional unit sold is $5 for both firms. B. the marginal benefit from an additional unit sold is $5 for the competitive firm and less than $5 for the monopolist. C. the marginal benefit from an additional unit sold is less than $5 for both firms. D. the competitive firm is charging too much and the monopolist too little. 4

5 Answers 1 C 9 B 17 B 25 C 33 C 2 A 10 A 18 D 26 D 34 B 3 A B 11 C 19 D 27 D 4 C 12 D 20 D 28 A 5 D 13 C 21 A 29 A 6 B 14 B 22 A 30 B 7 A 15 C 23 A 31 C 8 D 16 C 24 B 32 C 5

INTRODUCTORY MICROECONOMICS

INTRODUCTORY MICROECONOMICS INTRODUCTORY MICROECONOMICS UNIT-I PRODUCTION POSSIBILITIES CURVE The production possibilities (PP) curve is a graphical medium of highlighting the central problem of 'what to produce'. To decide what

More information

Chapter 13 Controlling Market Power: Antitrust and Regulation

Chapter 13 Controlling Market Power: Antitrust and Regulation Page 1 Chapter 13 Controlling Market Power: Antitrust and Regulation 1)Which of the following is an example of natural monopoly? A) a market for cable TV services B) a market for breakfast cereals C) a

More information

Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space on the last page.

Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space on the last page. Econ 101, Section 1, F09, Schroeter Final Exam, Red Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space on the last page. 1. Pete receives

More information

Econ 201 Lecture 17. The marginal benefit of expanding output by one unit is the market price. Marginal cost of producing corn

Econ 201 Lecture 17. The marginal benefit of expanding output by one unit is the market price. Marginal cost of producing corn Econ 201 Lecture 17 The Perfectly Competitive Firm Is a Taker (Recap) The perfectly competitive firm has no influence over the market price. It can sell as many units as it wishes at that price. Typically,

More information

a. Retail market for water and sewerage services Answer: Monopolistic competition, many firms each selling differentiated products.

a. Retail market for water and sewerage services Answer: Monopolistic competition, many firms each selling differentiated products. Chapter 16 1. In which market structure would you place each of the following products: monopoly, oligopoly, monopolistic competition, or perfect competition? Why? a. Retail market for water and sewerage

More information

Imperfect information Up to now, consider only firms and consumers who are perfectly informed about market conditions: 1. prices, range of products

Imperfect information Up to now, consider only firms and consumers who are perfectly informed about market conditions: 1. prices, range of products Imperfect information Up to now, consider only firms and consumers who are perfectly informed about market conditions: 1. prices, range of products available 2. characteristics or relative qualities of

More information

Monopoly. Announcements

Monopoly. Announcements Monopoly 1 1. Types of market structure 2. The diamond market 3. Monopoly pricing 4. Why do monopolies exist? 5. The social cost of monopoly power 6. Government regulation 2 Announcements We are going

More information

MICROECONOMICS II. "B"

MICROECONOMICS II. B MICROECONOMICS II. "B" Sponsored by a Grant TÁMOP-4.1.2-08/2/A/KMR-2009-0041 Course Material Developed by Department of Economics, Faculty of Social Sciences, Eötvös Loránd University Budapest (ELTE) Department

More information

a. What is the total revenue Joe can earn in a year? b. What are the explicit costs Joe incurs while producing ten boats?

a. What is the total revenue Joe can earn in a year? b. What are the explicit costs Joe incurs while producing ten boats? Chapter 13 1. Joe runs a small boat factory. He can make ten boats per year and sell them for 25,000 each. It costs Joe 150,000 for the raw materials (fibreglass, wood, paint, and so on) to build the ten

More information

Chapter 7. a. Plot Lauren Landlord's willingness to pay in Exhibit 1. Exhibit 1. Answer: See Exhibit 6. Exhibit 6

Chapter 7. a. Plot Lauren Landlord's willingness to pay in Exhibit 1. Exhibit 1. Answer: See Exhibit 6. Exhibit 6 Chapter 7 1. The following information describes the value Lauren Landlord places on having her five houses repainted. She values the repainting of each house at a different amount depending on how badly

More information

Example 1: Suppose the demand function is p = 50 2q, and the supply function is p = 10 + 3q. a) Find the equilibrium point b) Sketch a graph

Example 1: Suppose the demand function is p = 50 2q, and the supply function is p = 10 + 3q. a) Find the equilibrium point b) Sketch a graph The Effect of Taxes on Equilibrium Example 1: Suppose the demand function is p = 50 2q, and the supply function is p = 10 + 3q. a) Find the equilibrium point b) Sketch a graph Solution to part a: Set the

More information

14.01 Principles of Microeconomics, Fall 2007 Chia-Hui Chen October 15, 2007. Lecture 13. Cost Function

14.01 Principles of Microeconomics, Fall 2007 Chia-Hui Chen October 15, 2007. Lecture 13. Cost Function Short-Run Cost Function. Principles of Microeconomics, Fall Chia-Hui Chen October, ecture Cost Functions Outline. Chap : Short-Run Cost Function. Chap : ong-run Cost Function Cost Function et w be the

More information

The New Trade Theory. Monopoly and oligopoly in trade. Luca De Benedictis 1. Topic 3. 1 University of Macerata

The New Trade Theory. Monopoly and oligopoly in trade. Luca De Benedictis 1. Topic 3. 1 University of Macerata The New Trade Theory Monopoly and oligopoly in trade Luca De Benedictis 1 1 University of Macerata Topic 3 A new generation of models Main characteristics and insights: Countries do not trade, rms do.

More information

Cybersecurity, industrial organization, and competition policy

Cybersecurity, industrial organization, and competition policy Cybersecurity, industrial organization, and competition policy Michael Riordan Columbia University 7/5/14 CRESSE 2014 1 7/5/14 CRESSE 2014 2 C Chinese Army Unit Is Seen as Tied to Hacking Against U.S.

More information

Chapter 4 Specific Factors and Income Distribution

Chapter 4 Specific Factors and Income Distribution Chapter 4 Specific Factors and Income Distribution Chapter Organization Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from

More information

The Specific-Factors Model: HO Model in the Short Run

The Specific-Factors Model: HO Model in the Short Run The Specific-Factors Model: HO Model in the Short Run Rahul Giri Contact Address: Centro de Investigacion Economica, Instituto Tecnologico Autonomo de Mexico (ITAM). E-mail: rahul.giri@itam.mx In this

More information

Chapter 10 COMPETITIVE MARKETS QUESTIONS & ANSWERS

Chapter 10 COMPETITIVE MARKETS QUESTIONS & ANSWERS Chapter 10 COMPETITIVE MARKETS QUESTIONS & ANSWERS Q10.1 Historically, the Regional Bell Operating Companies (RBOCs) had a monopoly on the provision of local voice phone service. Regulation has now been

More information

MANAGEMENT STUDIES (MBA) DETAILED SYLLABUS FOR PART A & B PART A GENERAL PAPER ON TEACHING AND RESEARCH APTITUDE

MANAGEMENT STUDIES (MBA) DETAILED SYLLABUS FOR PART A & B PART A GENERAL PAPER ON TEACHING AND RESEARCH APTITUDE MANAGEMENT STUDIES (MBA) DETAILED SYLLABUS FOR PART A & B PART A GENERAL PAPER ON TEACHING AND RESEARCH APTITUDE PART-B I - Managerial Economics Nature and scope of Managerial Economics. Importance of

More information

Chapter 4 Specific Factors and Income Distribution

Chapter 4 Specific Factors and Income Distribution Chapter 4 Specific Factors and Income Distribution Chapter Organization Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from

More information

Learning Objectives. Essential Concepts

Learning Objectives. Essential Concepts Learning Objectives After reading Chapter 3 and working the problems for Chapter 3 in the textbook and in this Workbook, you should be able to: Employ marginal analysis to find the optimal levels of activities

More information

There is no difference when everyone is identical. All systems are equal

There is no difference when everyone is identical. All systems are equal PART I: Short Answer 5 marks each 1) What is the difference between an ambient and emissions standard; and what are the enforcement issues with each? Ambient set an air/water quality level. It is the true

More information

Health Economics. University of Linz & Demand and supply of health insurance. Gerald J. Pruckner. Lecture Notes, Summer Term 2010

Health Economics. University of Linz & Demand and supply of health insurance. Gerald J. Pruckner. Lecture Notes, Summer Term 2010 Health Economics Demand and supply of health insurance University of Linz & Gerald J. Pruckner Lecture Notes, Summer Term 2010 Gerald J. Pruckner Health insurance 1 / 25 Introduction Insurance plays a

More information

Foreclosure, Entry, and Competition in Platform Markets with Cloud

Foreclosure, Entry, and Competition in Platform Markets with Cloud Foreclosure, Entry, and Competition in Platform Markets with Cloud Mark J. Tremblay Department of Economics Michigan State University E-mail: trembl22@msu.edu August 27, 2015 Abstract Platforms in two-sided

More information

Bundling in Cable Television: A Pedagogical Note With a Policy Option. Keith Brown and Peter J. Alexander Federal Communications Commission, USA

Bundling in Cable Television: A Pedagogical Note With a Policy Option. Keith Brown and Peter J. Alexander Federal Communications Commission, USA K. Bundling Brown and in Cable P. J. Alexander Television Bundling in Cable Television: A Pedagogical Note With a Policy Option Keith Brown and Peter J. Alexander Federal Communications Commission, USA

More information

Universidad de Montevideo Macroeconomia II. The Ramsey-Cass-Koopmans Model

Universidad de Montevideo Macroeconomia II. The Ramsey-Cass-Koopmans Model Universidad de Montevideo Macroeconomia II Danilo R. Trupkin Class Notes (very preliminar) The Ramsey-Cass-Koopmans Model 1 Introduction One shortcoming of the Solow model is that the saving rate is exogenous

More information

Should New Merger Guidelines Give UPP Market Definition?

Should New Merger Guidelines Give UPP Market Definition? December 2009 (Release 1) Should New Merger Guidelines Give UPP Market Definition? Richard Schmalensee Massachusetts Institute of Technology & LECG www.competitionpolicyinternational.com Competition Policy

More information

5. International Factor Mobility and Multinational Firms 5.1 Introduction (add)

5. International Factor Mobility and Multinational Firms 5.1 Introduction (add) S.1 5.1 Introduction (add) Most trade theories assume that a single firm, residing in one country, produces a certain good which can then be exported. Empirically seen, many firms produce a good in different

More information

Mitigating Hold-up Through Complementarities and Refunds

Mitigating Hold-up Through Complementarities and Refunds Mitigating Hold-up Through Complementarities and Refunds Jenny R. Hawkins Oberlin College, Department of Economics October 31, 212 Abstract: Many valuable composite goods or property rights exist only

More information

1 Economic Application of Derivatives

1 Economic Application of Derivatives 1 Economic Application of Derivatives deriv-applic.te and.pdf April 5, 2007 In earlier notes, we have already considered marginal cost as the derivative of the cost function. That is mc() = c 0 () How

More information

Chapter 4. Specific Factors and Income Distribution

Chapter 4. Specific Factors and Income Distribution Chapter 4 Specific Factors and Income Distribution Introduction So far we learned that countries are overall better off under free trade. If trade is so good for the economy, why is there such opposition?

More information

Q D = 100 - (5)(5) = 75 Q S = 50 + (5)(5) = 75.

Q D = 100 - (5)(5) = 75 Q S = 50 + (5)(5) = 75. 4. The rent control agency of New York City has found that aggregate demand is Q D = 100-5P. Quantity is measured in tens of thousands of apartments. Price, the average monthly rental rate, is measured

More information

The Supply of Medical Care, The Market for Health Insurance and Market Competition. Lecture 25. Economics 157 Health Economics Summer 2003

The Supply of Medical Care, The Market for Health Insurance and Market Competition. Lecture 25. Economics 157 Health Economics Summer 2003 The Supply of Medical Care, The Market for Health Insurance and Market Competition Lecture 25 Economics 157 Health Economics Summer 2003 Lectures 25; Graphic 25 No. 1 Announcements (1) Tuesday 080503:

More information

ECO364 - International Trade

ECO364 - International Trade ECO364 - International Trade Chapter 2 - Ricardo Christian Dippel University of Toronto Summer 2009 Christian Dippel (University of Toronto) ECO364 - International Trade Summer 2009 1 / 73 : The Ricardian

More information

CHAPTER 2 BASIC REAL ESTATE ECONOMICS

CHAPTER 2 BASIC REAL ESTATE ECONOMICS CHAPTER 2 BASIC REAL ESTATE ECONOMICS INTRODUCTION REAL ESTATE DEMAND REAL ESTATE DEMAND CONCEPTS DEMAND SENSITIVITY TO PRICE/RENT CHANGES: PRICE ELASTICITY OF DEMAND Impact of Actual Price Changes vs

More information

chapter: Solution Solution The Rational Consumer

chapter: Solution Solution The Rational Consumer S11-S156_Krugman2e_PS_Ch1.qxp 9/16/8 9:21 PM Page S-11 The Rational Consumer chapter: 1 1. For each of the following situations, decide whether Al has increasing, constant, or diminishing marginal utility.

More information

Recitation #4 Week 02/02/2009 to 02/08/2009 Chapter 5: The Market Strikes Back

Recitation #4 Week 02/02/2009 to 02/08/2009 Chapter 5: The Market Strikes Back Recitation #4 Week 02/02/2009 to 02/08/2009 Chapter 5: The Market Strikes Back Problems and Exercises 1. A price ceiling is implemented in the market for housing in Metropolitan City, where all housing

More information

Supply and demand. Supply and demand. Roll the phrase around in your

Supply and demand. Supply and demand. Roll the phrase around in your 4 Supply and Demand After reading this chapter, you should be able to: 1. Explain the law of demand and what it implies. a. Distinguish a change in demand from a change in quantity demanded. b. Draw a

More information

Paper F5. Performance Management. Monday 2 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F5. Performance Management. Monday 2 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Performance Management Monday 2 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Formulae

More information

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure Chapter 7. Methods of Financial Forecasting: Integrated Financial Modeling Questions and Problems 1. The cash cycle is the time between when

More information

Information Exchanges Among Firms and their Impact on Competition*

Information Exchanges Among Firms and their Impact on Competition* Information Exchanges Among Firms and their Impact on Competition* Kai-Uwe Kühn Xavier Vives Institut d'anàlisi Econòmica (CSIC) Barcelona June 1994 Revised December 1994 *We are grateful to Paco Caballero,

More information

Unit 9: Utility, Externalities, and Factor Markets Lesson 4: Externalities

Unit 9: Utility, Externalities, and Factor Markets Lesson 4: Externalities Unit 9: Utility, Externalities, and Factor Markets Lesson 4: Externalities Objectives: - Define externality - Draw negative and positive externality graphs. - Explain the remedies for positive and negative

More information

This paper is not to be removed from the Examination Halls

This paper is not to be removed from the Examination Halls This paper is not to be removed from the Examination Halls UNIVERSITY OF LONDON EC2065 ZA BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diplomas

More information

N08/3/BUSMT/SP2/ENG/TZ0/XX/M MARKSCHEME. November 2008 BUSINESS AND MANAGEMENT. Standard Level. Paper 2. 16 pages

N08/3/BUSMT/SP2/ENG/TZ0/XX/M MARKSCHEME. November 2008 BUSINESS AND MANAGEMENT. Standard Level. Paper 2. 16 pages N08/3/BUSMT/SP2/ENG/TZ0/XX/M MARKSCHEME November 2008 BUSINESS AND MANAGEMENT Standard Level Paper 2 16 pages 2 N08/3/BUSMT/SP2/ENG/TZ0/XX/M This markscheme is confidential and for the exclusive use of

More information

Question 1a of 30. Question 1b of 30. Question 1c of 30. Exam: U.S. and Global Economics

Question 1a of 30. Question 1b of 30. Question 1c of 30. Exam: U.S. and Global Economics Exam: U.S. and Global Economics Question 1a of 30 ( 1 The game of economics 242917 ) Question: Economic decisions involve doing what with resources to produce goods and services for people to consume?

More information

Mid-Term Exam Practice Set and Solutions.

Mid-Term Exam Practice Set and Solutions. FIN-469 Investments Analysis Professor Michel A. Robe Mid-Term Exam Practice Set and Solutions. What to do with this practice set? To help students prepare for the mid-term exam, two practice sets with

More information

Markets. Chapter MOBILES GO GLOBAL LEARNING OBJECTIVES

Markets. Chapter MOBILES GO GLOBAL LEARNING OBJECTIVES Markets LEARNING OBJECTIVES LO 3.1 LO 3.2 LO 3.3 LO 3.4 LO 3.5 LO 3.6 LO 3.7 Identify the defining characteristics of a competitive market. Draw a demand curve and describe the external factors that determine

More information

Value Based Questions

Value Based Questions Subject : Economics Class : XII Value Based Questions PART A : INTRODUCTORY MICROECONOMICS Unit-I Introduction to Microeconomics 1. India is a labour abundance and capital scarce economy. Which technique

More information

The Economics of Competition (Law)

The Economics of Competition (Law) Justus-Liebig-University Giessen -2- Johannes Paha is a research associate at the Chair for Industrial Organization, Regulation and Antitrust (VWL 1) Justus-Liebig-University Giessen Licher Straße 62 D-35394

More information

Chapter 1 Linear Models page Linear Models Part 1 2 Linear Models Activities 1 17 Linear Models Part 2 21 Linear Models Activities 2 28

Chapter 1 Linear Models page Linear Models Part 1 2 Linear Models Activities 1 17 Linear Models Part 2 21 Linear Models Activities 2 28 Table of Contents Chapter 1 Linear Models page Linear Models Part 1 Linear Models Activities 1 17 Linear Models Part 1 Linear Models Activities 8 Chapter Linear Programming Linear Programming Part 1 34

More information

During the 2000 presidential campaign, George W. Bush promised that he. Import Tariffs and Quotas under Perfect Competition

During the 2000 presidential campaign, George W. Bush promised that he. Import Tariffs and Quotas under Perfect Competition Import Tariffs and Quotas under Perfect Competition I take this action to give our domestic steel industry an opportunity to adjust to surges in foreign imports, recognizing the harm from 50 years of foreign

More information

Chapter 17. Network Effects

Chapter 17. Network Effects From the book Networks, Crowds, and Markets: Reasoning about a Highly Connected World. By David Easley and Jon Kleinberg. Cambridge University Press, 2010. Complete preprint on-line at http://www.cs.cornell.edu/home/kleinber/networks-book/

More information

Econ 149: Health Economics Problem Set IV (Extra credit) Answer Key

Econ 149: Health Economics Problem Set IV (Extra credit) Answer Key Econ 149: Health Economics Problem Set IV (Extra credit) Answer Key 1. Your utility function is given by U = ln(4c), where C is consumption. You make $30,000 per year and enjoy jumping out of perfectly

More information

Demand for Health Insurance

Demand for Health Insurance Demand for Health Insurance Demand for Health Insurance is principally derived from the uncertainty or randomness with which illnesses befall individuals. Consequently, the derived demand for health insurance

More information

Cash Settlement, Price Manipulation, and the Modigliani-Miller Theorem

Cash Settlement, Price Manipulation, and the Modigliani-Miller Theorem Cash Settlement, Price Manipulation, and the Modigliani-Miller Theorem Albert S. Kyle Robert H. Smith School of Business University of Maryland Very Preliminary First Draft May 1, 2007 Please do not quote

More information

IMPROVING NETWORK SECURITY THROUGH CYBER-INSURANCE. Ranjan Pal

IMPROVING NETWORK SECURITY THROUGH CYBER-INSURANCE. Ranjan Pal IMPROVING NETWORK SECURITY THROUGH CYBER-INSURANCE by Ranjan Pal A Dissertation Presented to the FACULTY OF THE USC GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements

More information

Labor Market Effects of Employer-Provided Health Insurance

Labor Market Effects of Employer-Provided Health Insurance Labor Market Effects of Employer-Provided Health Insurance Katerina Sherstyuk, Yoav Wachsman and Gerard Russo RRH: SHERSTYUK, WACHSMAN & RUSSO: HEALTH INSURANCE This research was funded in part through

More information

Practice Problems on Money and Monetary Policy

Practice Problems on Money and Monetary Policy Practice Problems on Money and Monetary Policy 1- Define money. How does the economist s use of this term differ from its everyday meaning? Money is the economist s term for assets that can be used in

More information

Market Power and Pricing Strategies

Market Power and Pricing Strategies Market Power and Pricing Strategies Y 10 ou ve no doubt noticed many places where you can receive price discounts if you show your student ID. Commonly discounted goods include movie admissions, clothing

More information

For example, someone paid $3.67 per share (or $367 plus fees total) for the right to buy 100 shares of IBM for $180 on or before November 18, 2011

For example, someone paid $3.67 per share (or $367 plus fees total) for the right to buy 100 shares of IBM for $180 on or before November 18, 2011 Chapter 7 - Put and Call Options written for Economics 104 Financial Economics by Prof Gary R. Evans First edition 1995, this edition September 24, 2011 Gary R. Evans This is an effort to explain puts

More information

Spring 2015: Gordon State College. Barnesville, GA Online Course: Econ 2106 Microeconomics. Course Meeting Time and Location: Internet (D2L)

Spring 2015: Gordon State College. Barnesville, GA Online Course: Econ 2106 Microeconomics. Course Meeting Time and Location: Internet (D2L) Spring 2015: Gordon State College. Barnesville, GA Online Course: Econ 2106 Microeconomics Course Meeting Time and Location: Internet (D2L) Tentative Syllabus- will have some changes as semester begins

More information

Urban Economics. Land Rent and Land Use Patterns PART II. 03.06.2009 Fachgebiet Internationale Wirtschaft Prof. Dr. Volker Nitsch Nicolai Wendland

Urban Economics. Land Rent and Land Use Patterns PART II. 03.06.2009 Fachgebiet Internationale Wirtschaft Prof. Dr. Volker Nitsch Nicolai Wendland Urban Economics Land Rent and Land Use Patterns PART II Housing Prices To assess the variation of housing prices within a city, we focus on commuting as the key determinant for residential location decisions.

More information

Management Accounting and Decision-Making

Management Accounting and Decision-Making Management Accounting 15 Management Accounting and Decision-Making Management accounting writers tend to present management accounting as a loosely connected set of decision making tools. Although the

More information

Syllabus MBA 501 Managerial Economics Fall 2011

Syllabus MBA 501 Managerial Economics Fall 2011 Contact Information Syllabus MBA 501 Managerial Economics Fall 2011 Instructor: Professor Joseph A. Petry Office: 116 David Kinley Hall Office Phone: (217) 333-4260 E-mail: jpetry@illinois.edu Office Hours:

More information

Health Economics. University of Linz & Information, health insurance and compulsory coverage. Gerald J. Pruckner. Lecture Notes, Summer Term 2010

Health Economics. University of Linz & Information, health insurance and compulsory coverage. Gerald J. Pruckner. Lecture Notes, Summer Term 2010 Health Economics Information, health insurance and compulsory coverage University of Linz & Gerald J. Pruckner Lecture Notes, Summer Term 2010 Gerald J. Pruckner Information 1 / 19 Asymmetric information

More information

CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING

CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING CHAPTER 28 RECEIVABLES MANAGEMENT AND FACTORING Q.1 Explain the objective of credit policy? What is an optimum credit policy? Discuss. A.1 The objective of credit policy is to promote sales up to that

More information

MA Macroeconomics 10. Growth Accounting

MA Macroeconomics 10. Growth Accounting MA Macroeconomics 10. Growth Accounting Karl Whelan School of Economics, UCD Autumn 2014 Karl Whelan (UCD) Growth Accounting Autumn 2014 1 / 20 Growth Accounting The final part of this course will focus

More information

HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401)

HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401) HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401) VI. INVESTIGATION TECHNIQUES FOR FRAUDULENT FINANCIAL STATEMENT ALLEGATIONS Financial Statement Analysis Financial statement

More information

Econ 2113 Test #1A Pledge: I have neither given or received aid on this exam. Signature:

Econ 2113 Test #1A Pledge: I have neither given or received aid on this exam. Signature: Econ 2113 Test #1A Dr. Rupp Fall 2009 Name: Pledge: I have neither given or received aid on this exam. Signature: Multiple Choice Identify the letter of the choice that best completes the statement or

More information

A dynamic auction for multi-object procurement under a hard budget constraint

A dynamic auction for multi-object procurement under a hard budget constraint A dynamic auction for multi-object procurement under a hard budget constraint Ludwig Ensthaler Humboldt University at Berlin DIW Berlin Thomas Giebe Humboldt University at Berlin March 3, 2010 Abstract

More information

On studying business models in mobile social networks based on two-sided market. 06/04/2015 Hansol Kim

On studying business models in mobile social networks based on two-sided market. 06/04/2015 Hansol Kim On studying business models in mobile social networks based on two-sided market 06/04/2015 Hansol Kim On studying business models in mobile social networks based on two-sided market Y. Wang Jiangsu Key

More information

Real-Time Pricing and Demand Side Participation in Restructured Electricity Markets

Real-Time Pricing and Demand Side Participation in Restructured Electricity Markets Real-Time Pricing and Demand Side Participation in Restructured Electricity Markets Robert H. Patrick Frank A. Wolak Graduate School of Management Department of Economics Rutgers University Stanford University

More information

Demand and supply of health insurance. Folland et al Chapter 8

Demand and supply of health insurance. Folland et al Chapter 8 Demand and supply of health Folland et al Chapter 8 Chris Auld Economics 317 February 9, 2011 What is insurance? From an individual s perspective, insurance transfers wealth from good states of the world

More information

Theory of the Firm. Winter Semester 2009 / 2010. - Economics of Strategy - Prof. Dr. Christian Ernst

Theory of the Firm. Winter Semester 2009 / 2010. - Economics of Strategy - Prof. Dr. Christian Ernst - Economics of Strategy - Winter Semester 2009 / 2010 Contents I. Introduction & Basics I.I Introduction: Strategy and Economics Why do we adopt an Economics Perspective? The need for principles I.II Economic

More information

Determinants of short-term debt financing

Determinants of short-term debt financing ABSTRACT Determinants of short-term debt financing Richard H. Fosberg William Paterson University In this study, it is shown that both theories put forward to explain the amount of shortterm debt financing

More information

building superior brands... accountably

building superior brands... accountably building superior brands... accountably with a special focus on accountability of promotional expenses and investments Frans Cornelis Group CMO - Randstad Holding nv Het Grote Marketing Congres - the principles

More information

Capital in the 21 st century

Capital in the 21 st century Capital in the 21 st century Thomas Piketty Paris School of Economics The Hague, November 5 2014 This presentation is based upon Capital in the 21 st century (Harvard University Press, March 2014) This

More information

Exploring different measures of wage flexibility in a developing economy context: The case for Turkey

Exploring different measures of wage flexibility in a developing economy context: The case for Turkey Exploring different measures of wage flexibility in a developing economy context: The case for Turkey Ipek Ilkkaracan Ajas Istanbul Technical University Haluk Levent Galatasaray University Sezgin Polat

More information

Chapter 14. Working Capital Policy

Chapter 14. Working Capital Policy Chapter 14 Working Capital Policy 1 Learning Outcomes Chapter 14 Discuss why working capital is needed and how working capital accounts are related. Describe the cash conversion cycle and how it can be

More information

What you will learn: UNIT 3. Traditional Flow Model. Determinants of the Exchange Rate

What you will learn: UNIT 3. Traditional Flow Model. Determinants of the Exchange Rate What you will learn: UNIT 3 Determinants of the Exchange Rate (1) Theories of how inflation, economic growth and interest rates affect the exchange rate (2) How trade patterns affect the exchange rate

More information

Lesson 7 Should We Allow a Market For Transplant Organs?

Lesson 7 Should We Allow a Market For Transplant Organs? Lesson 7 Should We Allow a Market For Transplant Organs? The students analyze four policies for dealing with the shortage of kidneys to transplant and debate the ethical strengths and weaknesses of the

More information

EMPIRICAL MACRO PRODUC TION FUNCTIONS SOME METHODOLOGICAL

EMPIRICAL MACRO PRODUC TION FUNCTIONS SOME METHODOLOGICAL - SaBHBBI ^ m v > x S EMPIRICAL MACRO PRODUC TION FUNCTIONS SOME METHODOLOGICAL COMMENTS by Sören Wibe Umeå Economic Studies No. 153 UNIVERSITY OF UMEÅ 1985 ISSN 0348-1018 - 1 - EMPIRICAL MACRO PR ODUCTION

More information

Market Opening in Local District Heating Networks

Market Opening in Local District Heating Networks Market Opening in Local District Heating Networks Linda Wårell, Economics Unit, Luleå University of Technology, +46-920-492078, linda.warell@ltu.se Thomas Sundqvist, Swedish Competition Authority, +46-8-7001513,

More information

Federal Reserve Bank of St. Louis Review, May/June 2005, 87(3), pp. 359-74. 1 Craig (2003) notes that over 700 cities worldwide use two-rate

Federal Reserve Bank of St. Louis Review, May/June 2005, 87(3), pp. 359-74. 1 Craig (2003) notes that over 700 cities worldwide use two-rate An Introduction to Two-Rate Taxation of Land and Buildings Jeffrey P. Cohen and Cletus C. Coughlin When taxing real property at the local level in the United States, land and improvements to the land,

More information

Relative prices and Balassa Samuleson e ect

Relative prices and Balassa Samuleson e ect Relative prices and Balassa Samuleson e ect Prof. Ester Faia, Ph.D. Johann Wolfgang Goethe Universität Frankfurt a.m. March 2009 rof. Ester Faia, Ph.D. (Johann Wolfgang Goethe Relative Universität prices

More information

Specific Factors and Heckscher-Ohlin: An Intertemporal Blend

Specific Factors and Heckscher-Ohlin: An Intertemporal Blend Specific Factors and Heckscher-Ohlin: An Intertemporal Blend Ronald W. Jones University of Rochester Two of the standard workhorse models used in discussing competitive equilibrium in the pure theory of

More information

CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 MODULE 2: ETHICS AND REGULATION 6 MODULE 3: INPUTS AND TOOLS 8 MODULE 4: INVESTMENT INSTRUMENTS 12

CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 MODULE 2: ETHICS AND REGULATION 6 MODULE 3: INPUTS AND TOOLS 8 MODULE 4: INVESTMENT INSTRUMENTS 12 SYLLABUS OVERVIEW 1 CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 CHAPTER 1 The Investment Industry: A Top-Down View MODULE 2: ETHICS AND REGULATION 6 CHAPTER 2 CHAPTER 3 Ethics and Investment Professionalism

More information

The Long-Term Impact of Wind Power on Electricity Prices and Generating Capacity

The Long-Term Impact of Wind Power on Electricity Prices and Generating Capacity Department of Economics The Long-Term Impact of Wind Power on Electricity Prices and Generating Capacity Department of Economics Discussion Paper 11-09 Richard Green Nicholas Vasilakos The Long-term Impact

More information

SMALL BUSINESS MANAGEMENT Vanguard University School for Professional Studies Degree Program

SMALL BUSINESS MANAGEMENT Vanguard University School for Professional Studies Degree Program SMALL BUSINESS MANAGEMENT Vanguard University School for Professional Studies Degree Program Weekly Quiz -- Small Business Management: Entrepreneurship and Beyond, 5th Edition. Each correct multiple-choice

More information

A few differences between competition law enforcement and industry regulation. Fiona Scott Morton Yale School of Management

A few differences between competition law enforcement and industry regulation. Fiona Scott Morton Yale School of Management A few differences between competition law enforcement and industry regulation Fiona Scott Morton Yale School of Management Policy question: Can antitrust enforcement achieve the same beneficial outcomes

More information

ESMT BUSINESS BRIEF. Exploitative Abuses. Lars-Hendrik Röller, ESMT. ESMT No. BB-107-002 ISSN 1866 4024

ESMT BUSINESS BRIEF. Exploitative Abuses. Lars-Hendrik Röller, ESMT. ESMT No. BB-107-002 ISSN 1866 4024 Business Brief Consolidation Index: Critical Success Factors for Industry Consolidation 1 ESMT No. BB-107-002 ESMT BUSINESS BRIEF Lars-Hendrik Röller, ESMT ISSN 1866 4024 2 Business Brief Consolidation

More information

e-commerce adoption and business impact: a progress report

e-commerce adoption and business impact: a progress report e-commerce adoption and business impact: a progress report Tony Clayton and Kathryn Waldron Economic Analysis and Satellite Accounts division, Office for National Statistics Room D4/19 1 Drummond Gate

More information

6. Optimal Corrective Taxes

6. Optimal Corrective Taxes 6. Optimal Corrective Taxes 6.1 Introduction The source of inefficiency associated with any externality is the absence of pricing. The external effect is external precisely because the source agent does

More information

Practice Test of. Economics -1-

Practice Test of. Economics -1- Practice Test of Economics -1- 1. The study of how firms, nations, and individuals best allocate their limited resources is called what? A. Circular Economic Activity B. Economics C. Factoring Production

More information

1.3. Maximum or Minimum of a Quadratic Function. Investigate A

1.3. Maximum or Minimum of a Quadratic Function. Investigate A < P1-6 photo of a large arched bridge, similar to the one on page 292 or p 360-361of the fish book> Maximum or Minimum of a Quadratic Function 1.3 Some bridge arches are defined by quadratic functions.

More information

1. If net capital outflow is positive, then: A. exports must be positive. B. exports must be negative.

1. If net capital outflow is positive, then: A. exports must be positive. B. exports must be negative. 1. If net capital outflow is positive, then: A. exports must be positive. B. exports must be negative. C. the trade balance mustbe positive. D. the trade balance mustbe negative. 2. In a small open economy,

More information

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates

Corporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates Corporate Credit Analysis Arnold Ziegel Mountain Mentors Associates I. Introduction The Goals and Nature of Credit Analysis II. Capital Structure and the Suppliers of Capital January, 2008 2008 Arnold

More information

ECO 352 Spring 2010 No. 7 Feb. 23 SECTOR-SPECIFIC CAPITAL (RICARDO-VINER) MODEL

ECO 352 Spring 2010 No. 7 Feb. 23 SECTOR-SPECIFIC CAPITAL (RICARDO-VINER) MODEL ECO 352 Spring 2010 No. 7 Feb. 23 SECTOR-SPECIFIC CAPITAL (RICARDO-VINER) MODEL ASSUMPTIONS Two goods, two countries. Goods can be traded but not factors across countries. Capital specific to sectors,

More information

CHAPTER 8 WHEN REVENUE IS RECOGNIZED RECOGNIZED HOW REVENUE IS REVENUE CYCLE: SALES, RECEIVABLES, AND CASH

CHAPTER 8 WHEN REVENUE IS RECOGNIZED RECOGNIZED HOW REVENUE IS REVENUE CYCLE: SALES, RECEIVABLES, AND CASH CHAPTER 8 REVENUE CYCLE: SALES, RECEIVABLES, AND CASH 1 WHEN REVENUE IS RECOGNIZED Revenue should be recognized when two criteria are met: The promised work has been substantially completed Cash, or a

More information

Macroeconomia 9/ed R. Dornbusch, S. Fischer, R. Startz Copyright The McGraw-Hill Companies CHAPTER 1 INTRODUCTION

Macroeconomia 9/ed R. Dornbusch, S. Fischer, R. Startz Copyright The McGraw-Hill Companies CHAPTER 1 INTRODUCTION CHAPTER 1 Chapter Outline Introduction to macroeconomics The long run and short run Economic models and the real world A first look at the AD-AS framework Unemployment and inflation Actual and potential

More information

ESCO Financing. State of Israel Ministry of National Infrastructure. Pierre Baillargeon. March 2007 ECONOLER INTERNATIONAL

ESCO Financing. State of Israel Ministry of National Infrastructure. Pierre Baillargeon. March 2007 ECONOLER INTERNATIONAL ESCO Financing State of Israel Ministry of National Infrastructure Pierre Baillargeon March 2007 Agenda Evaluation of the EE market Introduction to the ESCO concept Introduction to performance contracts

More information