Practice Test # 3 Useful formulas/expressions: (1) MPC = ∆ C / ∆ DI or ∆ C / ∆ YD & MPC + MPS = 1 (2) Exp. Multiplier = 1/(1-MPC) ∆GDP = Exp Mult. * ∆AE (3) Δ AE = Δ Income * MPC (4) DD Multiplier = 1/rrr ∆DD = DD Mult. * ∆Reserves Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Long-run full-employment equilibrium assumes: a. a downward-sloping production function. b. a downward-sloping long-run supply curve (LRAS)
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Running head: INTERNATIONAL TRADE AND THE ROLE OF INFORMATION TECHNOLOGY IN MICROECONOMICS Economics 103‚ Economics in the Information Age International Trade and the Role of Information Technology in Microeconomics 02/09/2014 Professor Asif International Trade 2 Microeconomics is a field of study that relies on the market decisions made by people and businesses regarding which goods‚ services and resources they chose to use (Mayer‚2010‚ p.2). These
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a significant debate between proponents and opponents of environmental issues at the moment in our nation. 1) Please give your opinion concerning this issue. 2) Please explain what the Cap-and-Trade Bill is. The environment is essential in any modern economy‚ healthy and prosperity. It is therefore necessary for governments to recognize that environmental economics play an important role in the design of environmental public policies. Acording to the Center for American Progress: “the Cap
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|ECON E-1010 | |Microeconomic Theory Spring‚ 2013 | Course Web Site: http://isites.harvard.edu/course/ext-23285/2013/spring Professor: Bruce Watson econe1010@dce.harvard.edu Lectures: Mondays 7:40 – 9:40 Science Center A Teaching Assistants: Teo Nicolais (For
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APPLICATION OF MICROECONOMIC CONCEPTS TO THE ECONOMY BACKGROUND Project Description: In this project‚ you will apply the theories studied in class to analyze the microeconomic forces affecting a business. Each and every data/graph/table should have the Source with it. The contents of your presentation must incorporate concepts from the course. RESEARCH OUTLINE Choose your industry and your company - Brief background of the company. Explain the circular flow diagram and concentrate on each
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decreasing function of output. 8. Since a monopoly makes excess profits beyond the normal rate of return on investment‚ an investor is likely to get a higher rate of return in the stock market by investing in monopolistic rather than competitive industries. 9. A Stackelberg leader will necessarily make at least as much profit as he would if he acted as a Cournot oligopolist. 10. Dominant strategy equilibrium is a set of choices such that each player’s choices are optimal regardless of what the other
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Is it necessarily a good thing‚ in terms of the welfare of society as a whole‚ for the government to step in to break up a monopoly in order to create a competitive industry? A monopoly exists when one single firm is the only producer of a commodity in the market‚ allowing them to set prices as they wish and maximise profits due to the high barriers to entry. In this case‚ the firm is given the ability to exploit their consumers in terms of price discrimination based on price elasticity. In this
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CHAPTER 1 INTRODUCTION 1.1 DISCIPLINE OF ECONOMICS THEORY There are two different categories concerning economic behavior‚ the micro economics and macro economics. Micro economics The study of economic behavior of individual making units such as producer‚ consumer‚ household‚ and firms. Macro economics The study of economic system as a whole or on the basis of aggregate such as consumer price index‚ inflation rate‚ national income and unemployment level. 1.2 DEFINITION OF ECONOMICS
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224 casinos in the world. The most popular casino must be the one in Las Vegas. Besides‚ Cathy H.C. Hsu points that gambling has existed in Asia for many centuries and gambling has become part of daily life in many Asian cultures like India (Casino Industry in Asia Pacific Development‚ Operation and Impact). Many Asian governments are turning to gambling to bolster their economies‚ to capture taxes lost to illegal betting and to boost tourism. Why Hong Kong does not widely develop casino? In fact
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and express the correct wording of the above statements. Graphs must be provided with your explanation for each statement. Question Two: Study the effect in words and graph of the following events on market equilibrium using the 3-step DD-SS analysis: Effect of a decrease in prices of wool sweaters on the market of leather jackets. Step One:- Price of relating goods (substitutes) is the factor effecting the Demand curve. Step Two:- if price of wool sweaters decrease‚ then the quantity
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