Economics-(1-Assessment)

1Economics1of24Assumethattheafter-taxequilibriumoccursat(P1,Q1)withapretaxequilibriumat(Px,Qx),whereP1=PxandQ1Qx.Thisismostlikelytooccurifthegovernmentimposesaperunittaxonthe:buyeronly.buyerandtheseller.selleronly.2of24Whichofthefollowingistheleastlikelyoutcomewhenamonopolistadoptsfirst-degreepricediscriminationbecauseofcustomers'differingdemandelasticities?Themonopolistsharesthetotalsurpluswithconsumers.Theoutputincreasestothepointatwhichpriceequalsthemarginalcost.Thepriceforamarginalunitdecreasestolessthanthepriceforotherunits.3of24Ifacentralbankreducesthemoneysupply,thismovewillmostlikelyleadtoa:riseinnominalinterestratesandadeclineinaggregatepricelevel.riseinnominalinterestratesandariseinaggregatepricelevel.declineinnominalinterestratesandariseinaggregatepricelevel.4of24Theunemploymentrateisbestdescribedastheratioofunemployedto:laborforceminusfrictionallyunemployed.totalpopulationofpeoplewhoareofworkingage.laborforce.5of24Assumethatthecentralbankreducesthereserverequirement.Themostlikelyeffectwillbe:2anincreaseinthemoneymultiplier.adecreaseinnewdeposits.adecreaseinthemoneysupply.6of24Underconditionsofperfectcompetition,inthelongruncompanieswillmostlikelyearn:positiveaccountingprofitandnegativeeconomicprofit.zeroaccountingprofitandpositiveeconomicprofit.normalprofitandzeroeconomicprofit.7of24Anewtechnologythatreducesemployeeillnesswillmostlikelydecrease:demand-pullinflation.cost-pushinflation.cost-pullinflation.8of24Whichofthefollowingisleastlikelytoaffectthegrowthoftheeconomy?WhencapitaldepreciationexceedsgrossinvestmentwithintheeconomyAnincreaseinthelaborforcethatisoffsetbyadecreaseintheaveragehoursworkedperworker,makingthetotalhoursworkedunchangedTheworkforceattendinganaverageof20hoursoftrainingperyear9of24Ifthepricesofsubstituteresourcesdecrease,thedemandforagivenresourcewillmostlikely:remainunchanged.increase.decrease.10of243Assumethatthenominalspotexchangerate(USD/EUR)increasesby7.5%,theeurozonepriceleveldecreasesby4%,andtheU.S.pricelevelincreasesby2.5%.Thechangeintherealexchangerate(%)isclosestto:14.8%.0.7%.–6.3%.11of24Ifapricecutofaproductincreasestotalrevenue,demandisbestdescribedas:elastic.unitelastic.inelastic.12of24Assumeeconomicactivityisaccelerating,inflationisincreasingmodestly,andunemploymentislow.Theeconomyismostlikelyinwhichphaseofthebusinesscycle?PeakEarlyexpansionLateexpansion13of24Apowergenerationcompanyisamonopolythathasveryhighbarrierstoentry.Thequantitydemand(QD)foritsproductisQD=800–0.25×P(wherePisprice).Theslopeofthemarginalrevenuecurveisclosestto:–0.25.–8.00.–4.00.14of24Assumethefollowing:Anindividualconsumer’sdemandforteaQdt=1,800–40Pt+0.5I+150Pc4Seller’ssupplyofteaQst=–516+350Pt–120WLegendandInitialValuesAssumedValuesQdtQuantityofteaPtPriceofteaper100gramsIHouseholdincome£2,400WHourlywagerateforlaborPcPriceofcoffeeper100grams£22.4Equilibriumpriceoftea£30.6Ifthehouseholdincomeincreasesby2.5%whilePcandWdonotchange,thenewequilibriumquantitywillbeclosestto:5,163.5,166.5,136.15of24Anexpansionaryfiscalpolicyisleastlikelytoincludeanincreasein:taxrates.governmentexpenditures.budgetdeficit.16of24Acompanyusesthreetypesoflabor—unskilled,semiskilled,andskilled—intheproductionofelectroniccomponents.Thecompany'sproductionplanallowsforthesubstitutionofonetypeoflaborforanother.ThemarginalproductandcompensationinU.S.dollarsisasfollows:TypeofLaborMarginalProductperDayCompensationperDay(US$)Unskilled200units105Semiskilled300units160Skilled500units270Assumingthatthecompensationoftheunskilledlaborincreasesby4%,whatlabortypeshouldthecompanymostlikelyhirewhenexpandingoutput?SemiskilledUnskilled5Skilled17of24Assumethefollowingconsumptionbasketandpricesover2011and2012(inU.S.dollars):20112012ItemPriceQuantityPriceQuantityMeat$12/kg30kg$12.2/kg35kgRice$1/kg55kg$1.1/kg50kgMilk$1.5/liter65liters$1.6/liter65litersFuel$1/liter95liters$1.2/liter85litersTheFisherIndexisclosestto:106.1.105.8.105.4.18of24Assumethataneconomyiscomposedoftwoproducts,XandY,withthefollowingdetails:ProductQuantityProducedin2012QuantityProducedin2013ProductUnitPricesin2012ProductUnitPricesin2013X351.0352.013.313.8Y179.0182.5unknown11.1Assuming2012isthebaseyearformeasuringGDPandtheGDPdeflatorfortheeconomyin2013is102.4,theunitpriceofYin2012isclosestto:11.2.11.5.10.8.19of24Aresearchreportproducedbyadealerincludesthefollowingexchangerates:SpotRateExpectedSpotRateinOneYear6USD/EUR1.3961.386USD/CAD1.0111.030EUR/GBP1.2851.279Themostaccuratecalculationoftheexpectedappreciation(%)oftheCanadiandollar(CAD)relativetotheBritishpound(GBP)is:2.0%.–3.0%.0.7%.20of24Duringthelastmonth,afoodcompanylocatedintheUnitedStateshadthefollowingtransactions:TransactionAmount(US$millions)BoughtrawmaterialfromIndonesia50.0SoldfoodproductstoFrance65.0ReceivedroyaltyfeesfromitsbranchintheUnitedKingdom0.5DonatedtoacharitableinstitutioninAfrica0.1BorrowedfromabankinSingapore2.0PaidlegalfeestoitsGermanlegalconsultantcompany1.2ReceivedinterestcouponfromitsinvestmentinEurobondsissuedinLuxembourg0.8ThesetransactionswillmostlikelyincreasetheU.S.currentaccountby:$14.5mill