Homework Help for Economics

There are 4 general market structures detailed in this section:

a. Perfect Competition

b. Monopoly

c. Monopolistic Competition

d. Oligolistic Competition.

a. Compare and contrast each market structure. Make sure to discuss the differences in the productive and allocative efficiency when comparing and contrasting.

b. What market structure most describes the oil industry in the US? What regulatory policy would you enact if you wanted to lower the pump price of gasoline?

1.) Suppose that Joe enjoys and repeatedly does stupid things like getting heavily into debt and insulting police officers. Do these actions constitute systematic errors? If he gets what he wants each time, are his stupid actions even considered to be errors by economists? Explain.

2.) Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental processes?

10.) What does behavioral economics have to say about each of the following statements?

a.) "Nobody is truly charitable--they just give money to show off."

b.) "America has a ruthless capitalist system. Considerations of fairness are totally ignored."

c.) "Selfish people always get ahead. It's like nobody even notices!"

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1.) One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his way to save $4 on a grocery item that costs $10 at a local market. But he is unwilling to drive 20 minutes out of his way to save $10 on a laptop that costs $400 at a local store. In percentage terms, how big is the saving on the grocery item? On the laptop? In absolute terms, how big is the savings on the grocery item? On the laptop? If Samir is willing to sacrifice 20 minutes of his time to save $4 in one case, shouldn't he also be willing to sacrifice 20 minutes of his time to save $10?

4.) Angela owes $500 on a credit card and $2,000 on a student loan. The credit card has a 15 percent annual interest rate and the student loan has a 7 percent annual interest rate. Her sense of loss aversion makes her more anxious about the larger loan. As a result, she plans to pay it off first--depsite the fact that professional financial advisors always tell people to pay off their highest-interest-rate loans first. Suppose Angela has only $500 at the present time to help pay down her loans and that this $500 will be the only money she will have for making debt payments for at least the next year. If she uses the $500 to pay off the credit card, how much interest will accrue on the other loan over the coming year? On the other hand, if she uses the $500 to pay off part of the student loan, how much in combined interest will she owe over the next year on the remaining balances on the two loans? By how many dollars will she be better off if she uses the $500 to completely pay off the credit card rather than partly paying down the student loan? (HInt: If you owe X dollars at an annual interest rate of Y percent, your annual interest payment will be X * Y, where the interest rate Y is expressed as a decimal.)

Please do not cut and paste from other answers.

1. Why do salmon populations face the threat of extinction while goldfish populations are in no such danger?

2. List the federal government's three most important sources of tax revenue. How do these differ from your state government's three most important sources of tax revenue? Why do you think that these different government entities use different tax bases?

3. In Costa Rica, only a few beaches remain that are nesting grounds for sea turtles. Some of those beaches have communities situated near them; traditionally, the local people collected the turtle eggs and sold them for their purported aphrodisiac powers. As a result, sea turtle populations became endangered. To protect the sea turtle populations, the Costa Rican government gave each family in these villages ownership of a portion of the beach to do with as they please, including the harvesting and selling of sea turtle eggs. Sea turtle populations have started to increase. What is the economic rationale for this result?

What is the value of a preferred stock that pays a perpetual dividend of $150 at the end of each year when the interest rate is 7 percent?

1.Labor productivity is measured using the:

a. marginal output per worker.

b. average output per worker.

c. cost of labor inputs.

d. value of the goods produced by labor.

2.Federal tax and expenditure programs:

a. are somewhat effective means of redistributing income in the United States.

b. are not effective means of redistributing income in the United States.

c. have worsened the inequality of income in the United States.

d. have dramatically equalized income in the United States.

e. have worsened the inequality of income in the United States.

f. have dramatically equalized income in the United States.

3.

a. Which of the following statements is true on average?

b. Female executives earn less than male clerical workers.

c. Female machine operators earn more than female administrators.

d. Male and female service workers earn the same amount.

e. Professional specialists earn more than workers in precision production.

4.

When wages rise:

a. the quantity of labor supplied always declines.

b. neither the opportunity cost of an hour of leisure nor the quantity of labor supplied is likely to change.

c. the opportunity cost of an hour of leisure declines.

d. the opportunity cost of an hour of leisure increases.

why the site is an ideal social media tool(including its demographics, content focus, best practices, metrics available and any other information relevant to a marketer)

Charlie's utility function is U = xAxB. The price of apples used to be $1 per unit, and the price of bananas $2 per unit. His income was $40 per day. If the price of apples increased to $2.25 and the price of bananas fell to $1.75. Then in order to be able to just afford his old bundle, Charlie would have to have a daily income of

a. $62.50. b. $126. c. $31.25. d. $93.75. e. $250.

Goods 1 and 2 are perfect complements, and a consumer always consumes them in the ratio of 2 units of good 2 per unit of good 1. If a consumer has an income of $300 and if the price of good 2 changes from $5 to $6, while the price of good 1 stays at $1, then the income effect of the price change

a. is exactly twice as strong as the substitution effect. b. accounts for the entire change in demand.
c. does not change demand for good 1.
d. is 6 times as strong as the substitution effect.

e. is 5 times as strong as the substitution effect.

Suppose every Buick owner

Pepsi and Coke have engaged in the Cola Wars since the 1980s competing for volume from customers driving profit margins down. Coke and Pepsi control 90% of the soft drink market. How can they increase profits? Explain under assumptions your proposal works, and when it fails.

Strategic goals flow from the company’s mission statement and take into consideration the external and internal environments. With this in mind, describe the strategic goal setting process. Describe in a minimum of 350 words the steps you should take to create strategic goals. Steps one and two discuss the importance of a SWOT analysis in creating strategic goals. Be specific in explaining SWOT and what each element is about and where it’s located.

As North Americans, what features of other countries’ popular cultures do we absorb? Provide some examples.

1. The economy produces 2 types of goods. Over the past 3 years, the Bureau of Economic Analysis (BEA) recorded:

2014 2015 2016

P Q P Q P Q

good a 10 20 11 20 12 21

good b 100 40 100 45 105 45

2. Compute Nominal GDP and the Nominal GDP growth rate in 2015 and 2016.

3. Compute Real GDP and the Real GDP growth rate in 2015 and 2016. Use 2014 as the base year.

4. Compute the GDP deflator and the growth in the deflator in 2015 and 2016.

assify each of the following businesses by their characteristics. For parts a. through d., write Pure Competition, Pure Monopoly, Monopolistic Competition or Oligopoly. Answer the questions in parts e. through h.

a. Rick owns a Greek restaurant in a small, rural town. There are four other restaurants in town and five other fast food establishments; however, none of the others sell Greek Cuisine. (6 pts.)

b. Katie owns her own research firm. Much by accident she stumbled onto a chemical combination that, when inhaled, cures the common cold in a matter of minutes with no adverse side effects. She has a patent on the new drug. (6 pts.)

c. Ted and Chris own the only two gas stations in a 40 mile radius. When Ted lowers his price, Chris quickly follows because his sales start to fall off very quickly. Ted experiences the same result when Chris decides to lower his price. (6 pts.)

d. Sophia owns a farm and produces wheat. When she takes her wheat to sell it, she can sell her entire harvest, but she has to accept the going price on the market because there are so many other wheat farmers. (6 pts.)

e. In which market structure is there the greatest opportunity for economic profits? (6 pts.)

f. In which market structure(s) are there no economic profits in the long run? (6 pts.)

g. Let’s assume that Monopolistically Competitive firms in a particular industry are earning short-run economic profits. What will happen? What will the end result be? (7 pts.)

h. Why won’t a purely competitive firm earn economic profits in the long run? (7 pts

The difference between pure capitalism and modified capitalism is that:

a. under modified capitalism, individuals cannot keep profits.

b. under pure capitalism, consumers have a limited choice of goods and services.

c. under pure capitalism, there is less government regulation.

d. under modified capitalism, there is less government regulation.

e. under pure capitalism, individuals cannot keep profits.

Describe/Define an aspect Globalization of Consumption and provide two interesting examples to illustrate the aspect that you are describing (1 negative & 1 possitive impact)?

Example like : McDonald or something similar to the consumption of the globalization.

Chapter 3 Media Quiz: Mercosur

After watching the video on Uruguay and the Mercosur, and reading The Economist article, which addresses Problems with the Mercosur, answer the following questions:

Article: http://bi.galegroup.com/essentials/article/GALE%7CA296120872/49696ac316ed9c30ee18e8930434b6a0?u=tlearn_trl

Video: http://ng.cengage.com/static/nb/ui/index.html?nbId=467603&nbNodeId=164476608&deploymentId=5555541817116218412853698812&eISBN=9781305641440#!&parentId=164476631

What benefits does Uruguay enjoy by being a part of the Mercosur?

How can Uruguay create a competitive advantage?

Is the Mercosur a stumbling block for global integration?

Is being a smaller country compared to Brazil and Argentina an advantage or disadvantage for Uruguay?