MICROECONOMICS FALL2014 PRACTICE TEST QUESTIONS (Set 01.01) 1. What do economists mean when they say that the economy faces scarcity? A. There are fewer resources available than there were in the 1960s. B. It is quite evident that the world is running out of resources. C. The economy is producing far below its capacity to produce. D. The resources available are not sufficient to produce all that everyone wants. 2. Which of the following terms describes the next best alternative that
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economic competition to produce the good or service and a lack of viable substitute goods.[3] The verb "monopolise" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge high prices.[4] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise
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these curves show a positive or negative correlation between price and quantity? The curves in the above graph are representing Demand, thus a demand curve. They show a negative correlation between price and quantity. As the demand increases the price decreases. Because the price and the quantity demanded are negatively related, the demand curve slopes downward. b. Calculate the slope of the curve between points A and C. (Please show your work.)
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Nikki Roche Principles of Microeconomics: First Homework Subject 1: Introduction 1.Keynes’s Fallacy of Composition states that although economic policies may be good for one system, they could be harmful when applied to a different system. An example would be an individual saving money. It would be beneficial to the individual, because he wouldn’t spend all of their income, however it would be bad for the economy since there wouldn’t be money being re-infused. Macroeconomics looks at the
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Supply and Demand Simulation ECO 365 May 14, 2012 Supply and Demand Simulation With my simulation, I chose to have a vacancy rate of 5 % which maximized revenues at $ 1.81 million. When facing a falling or rising demand, I aimed for equilibrium price as determined by the intersection of both the supply and demand curves. When a price ceiling was implemented, I could only supply a limited number of apartments at the predetermined price. The market forces of demand and supply are the best
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Microeconomics examples of topics for essay#1 IMPORTANT Guidelines for essay - You are doing a short research paper. Therefore, you need come up with research questions or thesis. Think what interests you in what we cover in the class. For example, o If you are interested in outsourcing, your research questions could be “Is the US better off or worse off because of the outsourcing to China?”. Then you go do a research on it. Find academic articles or news articles
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Important Ideas Katrina Doughty Microeconomics- 4 ECO 3028-4 Select the top ten (10) most important ideas / concepts you learned in chapters 27& 28 of your textbook. Chapter 27: 1. Two basics forms of government regulation of business is economic and social regulation. I can’t think of how economic regulations affect me, but I do have friends that are affected because in order for them to enter a business they must have a license like working in a hair salon or
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Jack Doherty Microeconomics - Yarti Deonaran September 30, 2014 Economics of Marijuana in the USA Millions of people across America, and even around the world, use marijuana everyday, but what exactly is it? The National Institute on Drug Abuse defines marijuana as “the dried leaves, flowers, stems, and seeds from the hemp plant Cannabis sativa, which contains the psychoactive (mind-altering) chemical delta-9-tetrahydrocannabinol (THC), as well as other related
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2. Perfect Competition Supply and Demand…………………………...9 CHAPTER II Perfect Competition Short-Run Supply………………………………..13 2.1. Short-Run Production Alternatives of a Competitive Firm………... .13 2.2. Short-Run Equilibrium and Supply Curve ………………………… 23 CHAPTER III Perfect Competition Long-Run Supply………………………………29 3.1. Long-Run Equilibrium Conditions…………………………………..29 3.2. Long-Run Industry Supply Curve…………………………………...33
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Microeconomics and the Laws of Supply and Demand The Laws of Supply and Demand The laws of supply and demand are detrimental to our economy today. It is what actually drives our market economy. Buyers determine the quantity produced of a particular product based on their demand for that product and the price he or she is willing to pay for it. Supply is then created by producers when and if they are willing to accept the current rate for which they will get from production of that product
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