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So is this: a take home test or did you get the test questions a head of time from the teacher?
Edit: By the way number 3 looks to be referring to a supply curve shift. Take a look in the book and it should explain it further.
[quote=“joshb_”"]
So my final for this class is due Thursday by midnight and I need at least a 60 on it to move on to the next eco class next year. My class avg is like a 50 right now because of the class being extreamly poorly taught. Here are the 10 questions for the final…I have already answered a few…just thought I would throw this out there because I really cannot afford to take this class again.
1 A high school student is given a used car as a gift from a distant relative upon graduation. She is told that she may dispose of the car however she wishes. The car is worth $5,000 when received and will be worth $4,000 next year. The market interest rate is 10%. What is the opportunity cost of using this car for one year? Explain.
The opportunity cost of using the car for one year is $1,500. If the car was sold for $5,000 and then gained 10% over one year the student would have $5,500. If the car is used for one year then sold it would only be worth $4,000 so the opportunity cost is $1,500.
2 Use economic analysis to explain why people are more likely to litter in public parks than in their own yards. What type of market failure is involved in this situation?
3 Suppose that the expected future price of computers rises for both buyers and sellers. Explain what will happen to:
a) the current supply of computers.
b) the current demand for computers.
c) the price of computers.
d) the quantity of computers sold.
4 Comment on the following statement: “Effective rent control laws result in the creation of a surplus in the market for low-cost housing.”
I believe that the statement is false. When rent control laws are effectively used, a shortage is actually created for low-cost housing. Many cities that use rent control effectively such as San Francisco, have vacancy rates that is extremely low making it harder to find low-cost housing. Rent controlled cities lead to available units being priced well over the median census.
5 An econometrician estimates that the price elasticity of demand for cigarettes is 0.3.a. Is demand elastic or inelastic?b. If the price of cigarettes rise by 10%, what will be the percentage change in the quantity demanded?c. What happens to total expenditures on cigarettes when the price rises? Explain your answer.
a. If the price elasticity of demand for cigarettes is .3, then the demand is elastic since it is less than 1.
b. More then 10%
c. Total expenditures on cigarettes will decrease when the prices rise because there is less demanded.
6 It has been ruled that Microsoft is a monopoly that has used its monopoly power to harm consumers. Carefully explain the cost associated with the existence of a monopoly industry. (Be sure to explain the concept of deadweight loss as part of your answer.)
Some costs of the existence of a monopoly are higher costs and lower amount of quantity. These two costs will lower consumer surplus, but the surplus is transferred to producer surplus. This is a net cost to society and is called deadweight loss. The deadweight loss is the lower amount of producer and consumer surplus from the lower amount of production .
7 Suppose that a union is introduced into some but not all firms in a perfectly competitive labor market.a. what happens to labor supply, the wage, and employment levels in unionized firms?b. what happens to labor supply, the wage and employment levels in nonunion firms?
8 Explain why cartels are generally unstable.
Cartels are generally unstable because they require an arrangement where all the firms must not cheat the system. Firms can easily increase their profits by cheating on the agreement. Since the agreement is already illegal, firms are more prone to cheat and make the most profits they can which makes the cartel fail.
9 Comment on the following statement: “If MC is increasing, so is ATC.”
When MC>ATC then ATC must be increasing, however if MC<ATC, ATC must be decreasing. So if MC>ATC, then MC intersects ATC at is minimum point as both are increasing. MC and ATC are both increasing only when MC>ATC.
10 Suppose that an economist measures the return to education by comparing the present value of the lifetime earnings of college graduates with the present value of the lifetime earnings of high school graduates (taking the cost of education into account). College graduates generally receive jobs that are more pleasant than those received by high school graduates (for example, college graduates have more stable jobs and tend to work in more comfortable work environments). Will this estimated return to education overstate or understate the return to a college degree when compensating wage differentials are taken into account?
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First of all. Failing a class is almost always your fault. 1 out of million times a prof has it out for you. every other time its your fault. Im not gonna answer all the questions, but ill give you a few hints.
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This question is all about rational expectations. If you expect a price to increase tomorrow, what will you do today? This is a question about inflation.
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Price elasticities are a tad confusing. Think of like this. If the price goes up by 10% will my consumption behavior change at all? Will it go down by 10% or will it go down by more than 10%?
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You have a pefectly competitive labor market. what will happen when you introduce a union. You will shift away from a perfectly competitive market. What will happen then?
You have a pretty decent handle on this stuff. I hope this assignment isnt due tomorrow. Just brush up a little on these topics and you ll be fine. Resist the urge to cheat. Real knowledge comes from self control.
thanks…it is my fault i only have a 71 in the class right now, but the class avg is well below failing which shows something.
[quote=“joshb_,post:4,topic:40174"”]
thanks…it is my fault i only have a 71 in the class right now, but the class avg is well below failing which shows something.
[/quote]
then there should be a nice curve.
who is your prof? and where?
[quote=“boxsterschik,post:5,topic:40174"”]
then there should be a nice curve.
who is your prof? and where?
[/quote]
I would rather not give out that kind of information.
what class is this for?
or
pm me, these questions look similar to a test i took in undergrad.
[quote=“boxsterschik,post:7,topic:40174"”]
what class is this for?
or
pm me, these questions look similar to a test i took in undergrad.
[/quote]
eco101…im just trying to protect myself here…it is a take home test but Im sure I could still get in some sort of trouble for asking for help on it.
i hear ya dude. those questions are pretty easy, i’m sure they were covered in class.
you could always use the interweb to help you since they are pretty generic econ test questions.
ot- questions similar to these were on my eco4** midterm, thats funny.
idk if you said but i took micro at buff state teacher was a waste product.