B) The study of how consumers spend their income. C) The study of how producers decide what inputs to hire and what outputs to produce. D) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. E) The study of how consumers and producers meet each other at the market. Answer: D Diff: 1 Topic: Definition of Economics 3) Which of the following is a microeconomic topic?
Week 1 Quiz (Chapters 1 & 2) Return to Assessment List Part 1 of 1 - | 100.0 Points | Question 1 of 10 | 10.0 Points | The branch of economics that examines the impact of choices on aggregates in the economy is: | | A.positive economics. | | | B.normative economics. | | | C.macroeconomics. | | | D.microeconomics. | | Answer Key: C | | | Question 2 of 10 | 10.0 Points | When we are forced to make choices we are facing the concept of: | | A.ceteris paribus.
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
Chapter 17 Macroeconomic and Industry Analysis Multiple Choice Questions 1. A top down analysis of a firm starts with ____________. A. the relative value of the firm B. the absolute value of the firm C. the domestic economy D. the global economy E. the industry outlook A top down analysis of a firm starts with the global economy. Difficulty: Easy 2. An example of a highly cyclical industry is ________.
Classical economics was widely considered to be founded by Adam Smith in the late 18th century, in his book The Wealth of Nations. (Classical Economics) Adam Smith was a Scottish economist and moral philosopher, The Wealth of Nations was his magnum opus, it laid the foundation of classical economics. The book was a collection of how a nation accumulates wealth; it focused on free markets, the division of labour, and productivity. (The Wealth of Nations) David Ricardo, one of the most influential classical economist in history, was a British businessman and economist. He believed in the concept of comparative advantage, the idea of nations to specialize in specific industries and trade with other nations for products not produced nationally.
The equilibrium price of a good is determined by the intersection of its supply and demand curves. We can know everything about a good’s cost of production (that is we can know its supply curve exactly) but without the demand curve we will not know the quantity people will want to purchase and therefore we will not know what price must be charged to cover the cost. Learning Objective: 03-02 AACSB: Reflective Thinking Bloom’s: Understand 3. If price control regulation prevented the price of gasoline from rising to its equilibrium level, we would expect to see symptoms of excess demand for gasoline such as lines of cars waiting at the pumps to buy gas. Learning Objective: 03-02 AACSB: Analytic Bloom’s: Apply 4.
Investors buy stock at the C. quoted ask price. 3. Which of the following statements is most correct? A. The stock valuation model, P0 = D1/ (i - g), can be used for firms which have negative growth rates.
A good accountant from a utilitarian perspective would assess how the organization is creating and maximizing utility. Utility can be defined in many ways but a concise description is utility is the happiness added by a certain activity. This utility would be assessed all by values as utilitarians try to attach value created to every decision they make. Non-financial information is not important for good accountants to worry about, only financial information that is important for societal value. As long as the organization is maximizing the utility with the decisions they make, the good utilitarian accountant should not worry themselves with the moral implications of the decisions they made.
The paradox of efficient market hypothesis is that some investors have to believe that market for the market to continue to be efficient. Explain your understanding of the above paradox. Include in your discussion the forms of market hypothesis. The paradox of efficient market is that if every investor believed a market was efficient, then the market would not be efficient because no one would analyze securities. In effect, efficient markets depend on market participants who believe the market is inefficient and trade securities in an attempt to outperform the market.
Authors Glenn Hubbard and Anthony Patrick O’Brien in their book “Economics” present three key economic ideas that aid our renter. Those ideas are: People are rational, People respond to economic incentives, and Optimal decisions are made at margin. People are Rational Shane (1999-2010), “Economists assume that people are rational decision-makers who rank their preferences and pursue those that will provide the highest level of satisfaction, or utility. (Introduction to Principles of Economics, para. 6).