ECO 365 Final Exam (August 2015) - Assignment.pdf

ECO 365 Final Exam Assignment1). The DeBeers company is a profit-maximizing monopolist that exercisesmonopoly power in the distribution of diamonds. If the company earns positiveeconomic profits this year, the price of diamonds will:Exceed the marginal cost of diamonds but equal to the average total cost ofdiamonds.Exceed both the marginal cost and the average total cost of diamonds.Be equal to the marginal cost of diamonds.Be equal to the average total cost of diamonds.

2). Using 100 workers and 10 machines, a firm can produce 10,000 units ofoutput; using 250 workers and 25 machines, the firm produces 21,000 units ofoutput. These facts are best explained by:Economies of scopeDiseconomies of scaleDiminishing marginal productivityEconomies of scaleTo download the complete answer check ECO 365 Week 1 knowledge check3). Suppose that college tuition is higher this year than last and that morestudents are enrolled in college this year than last year. Based on thisinformation, we can best conclude that:despite the increase in price, quantity demanded rose due to some other factorschanging.the demand for a college education is positively sloped.the law of demand is invalid.this situation has nothing to do with the law of demand.4). A monopoly firm is different from a perfectly competitive firm in that:A monopolist’s demand curve is perfectly inelastic whereas a perfectlycompetitive firm’s demand curve is perfectly elastic.A competitive firm has a u-shaped average cost curve whereas a monopolistdoes not.A monopolist can influence market price whereas a perfectly competitive firmcannot.There are many substitutes for a monopolist’s product whereas there are nosubstitutes for a competitive firm’s product.Want help? Click to download ECO 3655). The best example of positive externality is:Alcoholic beverages

PollutionEducationRoller coaster rides6). The theory that quantity supplied and price are positively related, other thingsconstant, is referred to as the law of:supplyprofit maximizationopportunity costdemandWant more details? Download now ECO 365 Final Exam7). A reduction in the supply of labor will cause wages to:Decrease and employment to decrease.Increase and employment to increase.Decrease and employment to increase.Increase and employment to decrease.8). Other things held constant in a competitive labor market, if workers negotiatea contract in which the employer agrees to pay an hourly of $17.85 while themarket equilibrium hour rate is $16.50, the: Quantity of workers demanded will exceed the quantity of workers supplied. Quantity of workers supplied will exceed the quantity of workers demanded. Supply of labor will decrease until the equilibrium wage rate is $17.85. Demand for labor will increase until the equilibrium wage rate is $17.85.Download for answers ECO 365 Complete Course9). Alex is playing his music at full volume in his dorm room. The other peopleliving on his floor found this to be a nuisance, but Alex doesn’t care. Alex’s musicplaying is an example of:

Pareto externalityPositive externalityNegative externalityNormative externality10). Oligopoly is probably the best market for technological change because:The typical oligopoly has the funds to carry out research and development andbelieve that its competitors are innovating, which motivates it to conduct researchand development.The typical oligopoly lacks the funds to carry out research and development andtherefore will use basic research from universities.Research and development occurs only if government subsidizes such activity,and government tends to subsidize oligopolies.The typical oligopoly keeps price very close to average total cost because it fearsthe entry of new rivals if its profits are excessively high.Complete paper here ECO 365 Week 5 Final Exam11). A perfectly competitive firm facing a price of $50 decides to produce 500widgets. Its marginal cost of producing the last widget is $50. If the firm’s goal isto maximize profit, it should:Produce more widgetsProduce fewer widgetsContinue producing 500 widgetsShut down12). Graphically, a change in price causes:the demand curve to shift.both supply and demand to shift.a movement along a given supply curve, not a shift.the supply curve to shift.Download now ECO 365 Week 2 Knowledge Check

demand curve shifting to the right.supply curve shifting to the left.Complete Answers just a click away ECO 365 Week 3 Knowledge Check17). Many call centers that provide telephone customer services for U.S.companies have been established in India, but few or none have been establishedin China. Why?China is at a more advanced stage of economic development than India.China lacks the political infrastructure to support call centers.Indian labor costs are equal to Chinese labor costs.Chinese labor lacks the specific language skills needed to make call centersprofitable in China.18). Suppose people freely choose to spend 40 percent of their income on healthcare, but then the government decides to tax 40 percent of that person’s incometo provide the same level of coverage as before. What can be said aboutdeadweight loss in each case?There is no difference because the total spending remains the same and thehealth care purchased remains the same.Taxing income results in less deadweight loss because government knows betterwhat health care coverage is good for society.Taxing income results in deadweight loss, and purchasing health care on one’sown doesn’t result in deadweight loss.There is no difference between goods that are purchased in the market in eithercase.Click here to download Complete Answers of ECO 365 Week 4 Knowledge Check19). At one time, sea lions were depleting the stock of steelhead trout. One idea toscare sea lions away from the Washington coast was to launch fake killer whales,which are predators of sea lions. The cost of making the first whale is $16,000($5,000 for materials and $11,000 for the mold). The mold can be reused to makeadditional whales, and so additional whales cost $5,000 each. Based on thesenumbers, the production of fake killer whales exhibits:

Diminishing marginal productDecreasing returns to scaleConstant returns to scaleIncreasing returns to scale20). There are many restaurants in the city of Raleigh, each one offering food andservices that differ from those of its competitors. There is also free entry ofsellers into the market, and each seller serves a very small fraction of the totalnumber of meals served each day. The restaurant industry in Raleigh is bestcharacterized as:Perfectly competitive.Monopolistically competitive.A pure monopoly.An oligopoly.Want to see the complete Individual Assignment Check..??Click ECO 36521). Suppose foreign shrimp prices drop by 32 percent and importers gain a 90percent market share. From this information, what would economists stronglysuspect about this industry?Foreigners have a comparative advantage in shrimping.The large sales of foreigners indicate they are better strategic businessbargainers than Americans are.Americans have a comparative advantage in shrimping.Foreign sellers probably are colluding on price to maximize profits.22). For a monopolist, the price of a product:Is less than the marginal revenue.Exceeds the marginal revenue.Equals the marginal cost.Equals the marginal revenue.Download Complete Answers ECO 365 Week 5 Knowledge Check

23). When Ross Perot ran for president as a third party candidate in 1992, heargued that free trade with Mexico would result in massive job losses in theUnited States because Mexican wages were so low. Which of the following is thebest explanation of why few economists agreed with Perot?Although economics predicted that unemployment would rise, the increasedprofits of corporations would raise stock prices enough to compensate for the lostjobs.Economists did not believe any jobs would be lost in the United States.Although economists believed that in some areas the United States would losejobs, they expected the United States would gain jobs in other areas.Economics believed that the U.S. unemployment would rise.24). Mr. Woodward’s cabinet shop is experiencing rapid growth in sales. As saleshave increased, Mr. Woodward has found it necessary to hire more workers.However, he has observed that doubling the number of workers has less thandoubled his output. What is the likely explanation?The law of demandThe law of diminishing marginal productivityThe law of supplyThe law of diminishing marginal utilityWant to download the Complete Assignment..??Click ECO 365 Final Exam25). Price elasticity of demand is the:Change in the quantity of a good demanded divided by the change in the price ofthat good.Percentage change in price of that good divided by the percentage change in thequantity of that good demanded.Percentage change in quantity of a good demanded divided by the percentagechange in the price of that good.Change in the price of a good divided by the change in the quantity of that gooddemanded.

26). Which of the following statements is true about a downward-sloping demandcurve that is a straight line?The slope remains the same, but elasticity falls as you move down the demandcurve.The slope remains the same, but elasticity rises as you move down the demandcurve.The slope and the elasticity fall as you move down the demand curve.The slope and elasticity are the same at all points.Find the quiz answers here ECO 365 Individual Assignments27). Strategic decision making is most important in:Monopolistically competitive markets.Monopolistic markets.Oligopolistic markets.Competitive markets.28). Cartels are organizations that:Encourage price wars.Keep markets contestable.Use predatory pricing to monopolize industries.Coordinate the output and pricing decisions of a group of firms.Complete paper here ECO 36529). Microeconomics and macroeconomics are:Interrelated because what happens in the economy as a whole is based onindividual decisions.Interrelated because both are often taught by the same instructors.Not related because they are taught separately.Virtually identical, though one is much more difficult than the other.

30). Microeconomics is the study of:a firm's pricing policiesinflationunemploymentbusiness cyclesAbout AuthorThis article covers the topic for the University Of Phoenix ECO 365 Finak Exam.Theauthor is working in the field of education from last 5 years. This article covers the basicof ECO 365 Final Exam Assignments from UOP. Other topics in the class are asfollows:ECO 365 Week 5 Final ExamECO 365 Week 1 Knowledge CheckECO 365 Week 2 Knowledge CheckECO 365 Week 3 Knowledge CheckECO 365 Week 4 Knowledge CheckECO 365 Week 5 Knowledge CheckECO 365 Week 5 Final Exam (Latest - August 2015)Want to check other classes..?? Visit www.uopeassignments.com