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In the long run equilibrium, a typical perfectly competitive firm earns
A.
zero economic profit.
B.
a positive economic profit.
C.
negative economic profit, that is, an economic loss.
D.
zero accounting profit.
A.
zero economic profit.
B.
a positive economic profit.
C.
negative economic profit, that is, an economic loss.
D.
zero accounting profit.
Assume that the equilibrium price of a doctor's visit is $50, and the government places a price ceiling of $40 on a doctor's visit. The result will be
A.
a surplus
B.
first a shortage then equilibrium
C.
equilibrium
D.
a shortage
A.
a surplus
B.
first a shortage then equilibrium
C.
equilibrium
D.
a shortage
Which of the following will NOT shift the demand for a good?
A.
a change in input prices
B.
a change in the number of buyers
C.
a change in expectations
D.
a change in income
A.
a change in input prices
B.
a change in the number of buyers
C.
a change in expectations
D.
a change in income
Which of the following is not a characterisitc of a perfectly competitive market?
A.
There are many sellers in the market.
B.
Firms are price takers.
C.
Goods offered for sale are largely the same.
D.
Firms have difficulty entering the market
A.
There are many sellers in the market.
B.
Firms are price takers.
C.
Goods offered for sale are largely the same.
D.
Firms have difficulty entering the market
The government imposes a minimum price on gasoline that is above the equilibrium price. You accurately predict that
A.
the law will create an excess supply of gasoline.
B.
gas stations will start refurnishing their stations.
C.
less gasoline will be available to buy.
D.
the law will have no economic impact.
A.
the law will create an excess supply of gasoline.
B.
gas stations will start refurnishing their stations.
C.
less gasoline will be available to buy.
D.
the law will have no economic impact.
The government imposes a minimum price on gasoline that is above the equilibrium price. You accurately predict that...
You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.
Consumption 350 billion G
Transfer payments 100 billion G
Investment 100 billion G
Government purchases 200 billion G
Exports 50 billion G
Imports 150 billion G
Bond purchases 200 billion G
Earnings on foreign investments 75 billion G
Foreign earnings on Amagre investment 25 billion G
Compute net foreign investment.
Compute net exports.
Compute GDP.
Compute GNP.
In addition to responding with a quantitative answer, briefly, describe how you arrived at your answers.
Consumption 350 billion G
Transfer payments 100 billion G
Investment 100 billion G
Government purchases 200 billion G
Exports 50 billion G
Imports 150 billion G
Bond purchases 200 billion G
Earnings on foreign investments 75 billion G
Foreign earnings on Amagre investment 25 billion G
Compute net foreign investment.
Compute net exports.
Compute GDP.
Compute GNP.
In addition to responding with a quantitative answer, briefly, describe how you arrived at your answers.
2.Assume the following information represents the National Income Model of a hypothetical economy.
Y = C + I + G,C = a + b(Y – T),T = d + tY, I = I0,G = G0
Where a > 0; 0 < b < 1,d > 0; 0 < t < 1,T = Taxes, I = Investment ,G = Government Expenditure
Explain the economic interpretation of the parameters a,b,d and t.
Find the expression of equilibrium income, consumption and taxes
Y = C + I + G,C = a + b(Y – T),T = d + tY, I = I0,G = G0
Where a > 0; 0 < b < 1,d > 0; 0 < t < 1,T = Taxes, I = Investment ,G = Government Expenditure
Explain the economic interpretation of the parameters a,b,d and t.
Find the expression of equilibrium income, consumption and taxes
(1) Given a hypothetical consumption function of the form:
Y = C + I0 + G0 ,C = α + β Yd Where: Yd = Y – T, Y = Income, T = Taxes
Government spending and investment are exogenously determined at G and I respectively. Assuming this model represent a three sectors economy, determine Investment multiplier, Government spending multiplier and Tax multiplier. If there is an increase in marginal propensity to consumer, how will this affect the national income?
Y = C + I0 + G0 ,C = α + β Yd Where: Yd = Y – T, Y = Income, T = Taxes
Government spending and investment are exogenously determined at G and I respectively. Assuming this model represent a three sectors economy, determine Investment multiplier, Government spending multiplier and Tax multiplier. If there is an increase in marginal propensity to consumer, how will this affect the national income?
Economics
4) Sir Paul Incorporated is a company engaged in the selling of household floor tiles. The company produced 15000 pcs of tiles on its first month of business and sells it at P50 per piece since it is the accepted market price. On its next month, the price of the materials used to create the tiles however increased and as a result, the company was forced to increase the price of the tiles it sells by 50%. The company invested on new machines that enable the workers to produce tiles faster. Production on the part of the company tripled compared to the previous month. Compute for supply elasticity. Is it elastic, inelastic or unitary? Write it beside your supply elasticity coefficient.
