Economics ECON S - 1920 Chapter : first-sit-2019-full-explanation-_Economics-and-Business_-winter-2021_

Many television shows, movies, and songs can be downloaded for free on the Internet. Much of this material is copyrighted and was expensive to produce. Much of it is available for a fee through a legitimate site. Should you pay to download an episode of your favorite television show or a song, or is it acceptable to take it for free from a website? What is your ethical obligation?

Which of the following could shift the demand curve for music CDs to the left? Question 2 options:

A) A rise in the price of CD's.

B) A rise in people's incomes.

C) A fall in the cost of manufacturing CD's.

D) A fall in the price of downloading digital music files.

The horizontal sum of all the individual demand schedules for lumber Question 3 options:

A) is the market demand for lumber.

B) is the market supply for lumber.

C) will usually be a vertical line.

D) must be an upward sloping curve.

A movement along the demand curve for automobiles is caused by a change in Question 4 options:

A) the price of automobiles.

B) the price of gasoline.

C) the price of steel.

D) consumer's incomes

Which of the following would increase the demand for movie video rentals? Question 5 options:

A) The cost of producing movies rises dramatically.

B) New video rental stores are opened in the community.

C) Local officials levy a new tax on video rentals.

D) Prices on VCR and DVD players fall by 20 percent.

According to the law of supply, there is a direct relationship between the quantity supplied of a good and the Question 6 options:

A) number of sellers.

B) costs of resources.

C) technology used to produce the good.

D) price of the good.

Which of the following would increase the quantity supplied of books but have no impact on the supply of books? Question 7 options:

A) An increase in the price of books.

B) An increase in the cost of paper.

C) An increase in the number of area bookstores.

D) An increase in the royalties paid to authors.

Which of the following would cause a decrease in the supply of 35mm film? Question 8 options:

A) A fall in the price of 35mm film.

B) A fall in the price of developing 35mm film.

C) The introduction of new digital cameras that do not use 35mm film.

D) An increase in the cost of manufacturing 35mm film.

f the price of tea is below its equilibrium level, then Question 9 options:

A) the demand for tea will decrease.

B) the market for tea has cleared.

C) sellers will be stuck with unsold tea.

D) there is a shortage of tea.

The use of a price system tends to eliminate Question 10 options:

A) scarcity.

B) equilibrium.

C) shortages and surpluses

. D) changes in supply and demand.

All of the following have a few things in common that we discussed in class. After answering them write a summary of what those things are?

1. Consider a firm with production function f(L, K)=3L^1/3K^2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the cost of producing q units is?

2. Consider a firm with production function f(L, K)= 4L^2/3K^1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the average cost of producing q units is?

Consider a firm with production function f(L, K)= 4L^2/3K^1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the marginal cost of producing q units is?