Homework Help for Economics

What occurs during the attract stage of the inbound methodology?

What could lead to inflation?

What, by consensus among economists, are the broad factors for economic growth?

What are the characteristics of a perfectly competitive market?

Why is economic globalization important?

What kind of situation does the term inflation describe?

True of False

Bill is an aging snowboard instructor at a local ski resort. All winter, he takes over the counter pain medication to deal with his aching joints. Each summer, he moves home with his parents and takes a part time job making minimum wage. This summer, he got qualified for and enrolled into state government subsidized health insurance. Now he plans to undergo arthroscopic surgery by the end of the summer to repair his knee. Though this is an economically rational decision for Bill, it represents a welfare loss to society as a whole.

Catastrophic medical expenses are large, infrequent and unpredictable. Risk aversion explains why people buy insurance which covers such catastrophic events.

The primary funding source for the expenses of current Medicare beneficiaries is the fund current beneficiaries contributed to throughout their lifetime.

Many useful medical technologies become wasteful when they are expanded to include low-risk individuals.

A problem with Cost-Benefit Analysis is that

a) scientists observe people’s behavior to calculate how much individuals are willing to pay for a particular treatment.

b) opportunity cost is measured as the value of the next best alternative foregone.

c) the perspective of the one benefitting from the medical service must be included.

d) sometimes subtle distinctions in the alternatives considered as opportunity costs may overstate the benefits of a treatment.

e) the use of expected values employs the statistical law of large numbers and this is not acceptable for individual decision making analysis.

Which of the following is an example of adverse selection in the private health insurance market?

a) Consumers regularly engaging in bungee jumping but being able to hide it from their insurer, who developed premiums based on the average utilization rates of that large group in the past.

b) Consumers anticipating regular (twice a year) visits to the dentist for preventive care but being able to hide it from their insurer, who developed premiums based on the average utilization rates of that large group in the past.

c) Young and healthy consumers having access to multiple plans offered by the employer (from low-priced HMO and high-deductible plans to higher-priced PPO) and ultimately choosing the most comprehensive PPO plan.

d) Elderly people enrolling in Medicare.

e) Poor family enrolling their chronically ill children in Medicaid.

Q1. If the price of a complement increases, all else equal, ----------------------------

Q2. Which of the following would lead to an INCREASE in the demand for golf balls?

A) An decrease in the price of golf balls.

B) An increase in the price of golf clubs.

C) A decrease in the cost of producing golf balls.

D) An increase in average household income when golf balls are a normal good.

E) none of the above

Q3. If input prices increase, all else equal, --------------------------------

Q4. Which of the following would decrease the supply of wheat?

A) A decrease in the price of pesticides. B) An increase in the demand for wheat. C) A rise in the price of wheat. D) An increase in the price of corn. E) none of the above

Q5. When Sonoma Vineyards increases the price of its Chardonnay from $15 per bottle to $20 per bottle, the result is a decrease in…

A) the quantity of this wine demanded B) the quantity of this wine supplied.

C) the demand for this wine. D) the supply of this wine.

Q6. Which of the following will cause a change in quantity supplied?

A) Technological change. B) A change in input prices. C) A change in the market price of the good.

D) A change in the number of firms in the market. E) all of the above.

Q7. In which of the following cases will the effect on equilibrium output be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)?

A) Demand decreases and supply decreases. B) Demand remains constant and supply increases.

C) Demand decreases and supply increases. D) Demand increases and supply increases. E) none of the above.

Use the following demand and supply functions to answer the next three questions.

Demand: QD= 600 - 30P Supply: QS = -300 + 120P

Q8. Equilibrium price and output are

A) P = $2 and Q = 540. B) P = $10 and Q = 300. C) P = $6 and Q = 420.

D) P = $3.33 and Q = 500. E) none of the above

Q9. If the price is currently $8, there is a --------------------------

A) surplus of 360 units. B) shortage of 360 units. C) surplus of 300 units.

D) shortage of 660 units. E) none of the above

Q10. If the price is currently $4, there is a

A) shortage of 300 units. B) shortage of 480 units. C) surplus of 180 units.

D) shortage of 180 units. E) none of the above

Q.11 The Free Indeed Company manufactures ladies’ shoes that are sold through discount houses. The shoes are sold for $20 each pair; the fixed costs are $110,000 for up to 30,000 pairs of shoes; variable costs are $13 per pair of shoes. What is the firm’s breakeven point in units sold?

a) 30,000 pairs of shoes b) 15,714 pairs of shoes c) 8,462 pairs of shoes d) 5,500 pairs of shoes

Q12. If the demand curve for British pounds shifts to the right, ---------------

a) the dollar price of British pounds will increase

b) the dollar price of British pounds will decrease

c) the exchange rate between dollars and pounds will be out of equilibrium

d) the pound will fall in value against the dollar

Q13. Judgments about "what ought to be" in economic matters. Can't be proven false, based on judgments

a. Macroeconomics b. Positive economics c. Normative economics d. Microeconomics

Q14. Which of the following statements is normative in nature?

A) That economics mid-term was tough!

B) Professor of economics put too many multiple-choice questions.

C) Neither of these statements is normative in nature

D) Both A & B of these statements are normative in nature

If the firm's fixed costs double while variable costs are unchanged, then

A) marginal cost remains unchanged.
B) marginal cost more than doubles.
C) marginal cost doubles.
D) average total cost remains unchanged.

A $100 million increase in investment spending will cause read GDP to

Select one:

a. decrease by less than $100 million

b. increase by more than $100 million

c. increase by less than $100 million

d. decrease by $100 million

e. increase by $100 million

the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will lead to an increase of real GDP by

Select one:

a. $100 million

b. $50 million

c. $150 million

d. $200 million

e. $300 million

When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200 the level of consumption spending is equal to $1,000. In this case the value of the marginal propensity to consume is

Select one:

a. 0.80

b. 0.50

c. 0.75

d. 0.85

e. 0.83

The marginal propensity to consume measures the

Select one:

a. increase in consumer spending when investment spending rises by $1

b. increase in disposable income when consumer spending rises by $1

c. increase in consumer spending when disposable income rises by $1

d. increase in disposable income when investment spending rises by $1

e. increase in consumer spending when taxes rise by $1

Suppose that during the past 3 years, equilibrium real GDP in a country rose steadily, from $450 billion to $500 billion, but even though the position of its aggregate demand curve remained unchanged, its equilibrium price level steadily declined, from 110 to 103. What could have accounted for these outcomes, and what is the term for the change in the price level experienced by this country?

Which of the following statements is true?

If demand is linear, slope will vary across different points on the demand curve whereas the elasticity will be the same at all points on the curve.

Elasticity does not depend on units whereas slope does.

The data needed to know the demand curve's entire slope are more likely to be available than the data needed to calculate elasticity at a given price.

Price elasticity of demand and slope are two names for the same concept.

According to the law of demand, what will happen as the price of a good or service decreases?

a. The demand for that good or service will decrease.

b. The demand for that good or service will increase.

c. The quantity demanded for that good or service will decrease.

d. The quantity demanded for that good or service will increase.

Buyers and sellers, who have no influence on market price, are referred to as?