Microeconomics Answers

For a downward sloping demand curve, the magnitude of substitution effect is always larger than a that of income effect

For a downward sloping demand curve, the magnitude of substitution effect is always larger than a that of income effect

Where would an REA diagram for the HR/payroll cycle store information about total hours an employee worked in order to calculate payroll?

A. None of these are correct

B. In the employee time table

C. In the time worked table

Where would an REA diagram for the HR/payroll cycle store information that can be used to bill a client for the time employees spent working on a task for that particular client?

A. None of these are correct

B. In the time used table

C. In the employee time table

D. In the time worked table

Which table would a manager query in order to assess how much time an employee spent performing various functions?

A. Evaluate performance

B. None of these are correct

C. Time worked

D. Time used

In an REA diagram of the HR/Payroll cycle, which of the following is a resource entity?

A. Skills

B. Applicants

C. None of these are correct

D. Training

Which of the following events typically violates the general rule that in an REA diagram every event must be linked to at least two agent entities, instead showing that the event is linked to only one agent? (Check all that apply.)

A. Perform machine operations

B. Perform job operations

C. Work in process

D. Issue raw materials

Where would an REA diagram for the production cycle store information for the standard time to make a product? (Check all that apply.)

A. In the machine operations list table

B. In the work in process table

C. In the bill of materials table

D. In the job operations list table

Where would an REA diagram for the production cycle depict the list of ingredients for making a product?

A. In the bill of materials table

B. In the raw materials table

C. In the work in process table

D. In the finished goods table

What are the benefit associated with low cost of production?

 1) The Cobb-Douglas production function is 

y=z1αz2β

, with 

α>0

 and 

β>0

. Show that 

MP1=αy/z1

, 

MP2=βy/z2

. What is the 

MRTS21

? How does it vary with: (a) y; (b) 

z2/z1

.

2) Show that the cost function for a firm with the constant returns Cobb-Douglas production function 

y=Az1αz21−α

 is given by 

C(p,y)=yp1αp21−αB

 , where B is a function of A and 

α

 only. Derive the conditional input demands

In a certain region, demand for construction equipment is downward-sloping and elastic with respect to price, while supply is upward-sloping and relatively inelastic. If the state government imposes a tax on the sale of construction equipment, which of the following statements would be true about the effect of the tax?

More of the tax burden falls on consumers than on producers

More of the tax burden falls on producers than on consumers

Total consumer and producer surplus will be reduced by an amount equal to the tax revenue generated

None of the above

All of the above