Homework Help for Economics

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.

5. In each of the following cases: (a) Describe the resources Transferred; (b) describe the Deadweight Loss; (c) suggest how the deadweight costs might be avoided. Try to be as comprehensive as possible - and make sure you remember opportunity costs!

A. The bike theft "industry."

B. Prohibiting the copying of an article without the express written permission of (and payment to) the publisher.

Was there any feasible way to avoid the deadweight costs in any of these cases? Explain

Problem 1: At a recent meeting, the president and the CEO of Production, Inc. got into a heated argument about whether or not to shut down the company’s plant in Flint, Michigan. The plant currently loses $50,000/month. The president of Production, Inc. argued that the plant should continue to operate until a buyer is found for the facility. This argument was based on the fact that the plant’s fixed costs are $61,000/month. The CEO disagreed over this point, arguing that fixed costs do not matter in making the shutdown decision.

• Consider both sides of the argument and come to a decision of whether to close the plant or continue to operate it.
  
• How would you explain to either the president or the CEO that he or she is wrong?
  

Problem 2: A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50? Explain your responses.

You are given the following regression results estimating the demand for widgets based on time series data for the past 40 months. Qt = 2.5

Suppose Georgette earns $13 an hour installing transistorized digital chips in electronic calculators. If you were unemployed, would you offer to work for $8 an hour to get the job? Why might a profit-maximizing employer turn down your generous offer?

1) Ad valorem taxes

Infosys is one of the world's largest IT service providers. Started in India, Infosys has rapidly expanded around the world. It offers consulting services, outsourcing, data storage and other informational management services to all industries. Visit their website at www.infosys.com and find out how they manage their international strategy.

Based on the Infosys website, how do you think international strategic management is reflected?

1. A horse walks into a bar. The bartender says,

1. Many of the things discussed in these first chapters implied rational behavior by consumers; in fact economics analysis depends on it. Does this application suggest that consumers do not always act rationally? If not, how do we make economic judgments?

2. Discuss a firm

I'm doing a small research about the Syrian refugee's crisis and how it affects the EU economy.
What variables should be taken into consideration in order to check its effect on the economy? By other means what dependent and independent variables should be used in this case?

Make one substantive but succinct post

Part of making an effective argument is picking what you think is the strongest opposing or counter argument and refuting it (convincing your audience that it is wrong). Assume that you are arguing in favor of maintaining Federal Reserve Independence and consider the following counterargument:

The US Congress should reduce Federal Reserve Independence. It is unfair that the power to control the money supply is in the hands of secretive unelected officials who are more concerned about keeping inflation low to protect the interests of Wall Street than in reducing unemployment to help ordinary citizens. Moreover, the Federal Reserve's efforts to reduce the severity of business cycle swings makes them worse, which is inefficient.

Do not argue in favor of the statement.

1. Use the following resources and determine: What potential wages can you earn with a degree?

3. Does the value of an education pay for the cost? Explain how and why you made the decision to attend college and why you chose Daniel Webster College.

At a certain point, the marginal rate of substituion between goods a and b (MRS_a,b) is equivalent to zero. Assume that this point is also an individual's optimal bundle. Assume prices are both positive. Which of the following must be true? Please explain.

(a) We have a corner solution where all income is spent on good a.

(b) We have a corner solution where all income is spent on good b.

(c) An interior solution and a corner solution are possible. If we have a corner solution, all income will be spent on good a.

(d) An interior solution and a corner solution are possible. If we have a corner solution, all income will be spent on good b.

(e) We have an interior solution, but cannot have a corner solution.

Scenario: Cooper offers to purchase Brant