一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写

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時間:2021-07-08

Sample Final exam

1) In Utopia, resources can be used to produce guns or butter. If only guns are produced a total of 120 units of guns can be made. If only butter is produced, 60 units of butter can be produced. Assume that the opportunity cost of making guns is constant. In this case:

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. it will be inefficient to produce 90 units of guns and 15 units of butter

 b. it will be infeasible to produce 90 units of guns and 15 units of butter. 

c. it will be inefficient to produce 15 units of guns and 90 units of butter. 

d. it will be infeasible to produce 15 units of guns and 90 units of butter. 

e. Both a and d are correct.

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写2) The demand for apples is given by q = 60 – 4p and supply is given by p = 5. At the market equilibrium own price elasticity of demand in absolute terms is equal to:

a. 0.5 and supply is perfectly elastic

 b. 0.25 and supply is perfectly elastic 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. 0.5 and supply is perfectly inelastic 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. 4 and supply is perfectly inelastic

 e. none of the above

3) Assume that demand is downward sloping and supply is upward sloping. If there is an increase in supply and a decrease in demand:

a. price will increase and quantity will increase in equilibrium 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写b. price will decrease and quantity will increase in equilibrium 

c. price will decrease and quantity will decrease in equilibrium 

d. price will increase and quantity will decrease in equilibrium 

e. none of the above

4) Which of the following will result in an increase in demand

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. an increase in income for a normal good.

 b. a increase in the price of a complementary good 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. a decrease in the price of a substitute good 

d. an expectation that price will increase in the future 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. both b and c are correct

5) Fifi and Bumble are best mates. Fifi currently owns a honey pot that she values at $10. Bumble values the honey pot at $8 and has $20 in his wallet.

a. The current allocation of the honey pot is Pareto inefficient. 

b. Fifi and Bumble should be able to come to a mutually advantageous trade with respect to the honey pot. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. Given the current allocation, it will be possible to make both Bumble and Fifi better off. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. The current allocation of the honey pot is Pareto efficient. 

e. a, b and c are all true.

6) Gordon used to work for MacSquander bank where he earned a yearly salary of $150,000. Gordon got fired as a result of the global financial crisis and found that the skills he had were not wanted by other employers. As a result, Gordon now runs a pie shop called Gordon’s Grumble Pie. Gordon pays rent of $100,000 per annum and spends $50,000 per year on other inputs. He earns $200,000 in total annual revenue. Gordon’s economic profit is

a. -$100,000.                                b. $0.                                                      c. $50,000.

 d. $200,000. e. None of the above because the answer depends on how much Gordon is willing to work for other banks for.

7) The supply curve for blueberry juice is estimated to be Q=40+2p. Then:

a. supply is price elastic at all prices 

b. supply is price inelastic at all prices

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 c. supply is only elastic at prices below 20 

d. no general statements about price elasticity of supply can be made

e. none of the above.

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写8) Producer surplus is: 

a. Always at least as large as profit. 

b. Revenue less the sum of marginal costs 

c. Equal to profits plus fixed costs. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. b and c only are true. 

e. a, b and c are all true.

9) Consider the following two demand curves for brie (d b ) and cheddar cheese (d c ) in the diagram below (note both have the same slope)

10) In a monopoly the consumer surplus is equals 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. 200            b. 300            c. 600           d. 900             e. 1100

11) When the market shifts from perfect competition to monopoly, which share of consumer surplus is transferred to the monopolist?

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 a. 200            b. 300            c. 400           d. 500             e. 600

12) An aspect of a good in which one person’s increased consumption of it does not decrease the amount available for consumption by others is called

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 a. non-rivalry.      b. non-excludability.        c. rivalry.       d. excludability.         e. exclusiveness.

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写13) Costs to society will equal costs to a private firm when

 a. harmful externalities occur in the firm’s market.

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 b. the firm misallocates resources in its market. 

c. third parties bear some costs of producing the firm’s product. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. no externalities occur when the firm produces its product. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. beneficial externalities occur in the firm’s market.

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写14) Which statement is true?

 a. Revenue (or total expenditure) is maximised at the middle point of a linear (straight line) demand curve. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写b. When prices rise total expenditure rises when demand is elastic in the relevant range 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. Total expenditure rises when demand in inelastic in the relevant range and price falls 

d. All of the above statements are true 

e. None of the above

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写15) Which statement is true?

 a. A positive tax always creates a deadweight loss

 b. A tax that does not raise any revenue has a zero deadweight loss. 

c. In a market where the domestic no trade price is above the world price, if demand is inelastic and the law of supply holds, a tariff does not create any deadweight loss. 

d. If the law of demand holds and supply if perfectly inelastic, consumers pay for all of a tax. 

一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. None of the above.

Question B1 

Trieste is a beautiful city located in the Gulf of Venice. Although it belongs to Italy nowadays, many people living there for generations speak languages other than Italian. This is the case of the Slovenes. The only Slovenian bookshop in Trieste is Tr?a?ka Knjigarna (it simply translates to Triestian Bookshop). During the 1970s it was relatively difficult for the Slovenes from Trieste to cross the border and buy books in Yugoslavia. Therefore Tr?a?ka Knjigarna (or just TK) was effectively a monopolist. By that time the monthly demand in Trieste for the novel Na klancu by Ivan Cankar was given by Q D = 1200 – 12P, where P is measured in thousands of Italian lire . TK estimated the total cost of selling Na klancu as TC = Q 2 /12 – 40Q + 3000 .

 (a) Suppose TK wants to maximise profits, what would be the price for Cankar’s novel? In your answer you must draw a diagram indicating the relevant curves and the equilibrium outcome. [4 marks] 

(b) The owners of TK decided they wanted to support the reading of Slovenian books. How many copies of the novel TK would sell if they wanted to make the market efficient? Please identify the quantity in the diagram drawn for part a) [2 marks] 

(c) One of the employees at TK proposed a third solution: setting a price such that revenue is maximised. Which was the price he proposed? [1 marks]

 (d) After a few years some of the conditions on the market changed. Demand remained Q D = 1200 – 12P. However, total cost became TC = 50Q + 5000. Assume again that TK acted again as a monopolist. Moreover, the Italian government imposed a 2,000 lump sum tax on all bookshops. Calculate TK’s new price and profits under the new conditions. Please, use a new diagram to illustrate your answer. [3 marks] For each of the four parts of this problem you must show the calculations that lead to find the answer

Question B2 

The industry for mopeds has a market demand curve given by the equation P = 50 – Q/10, where P is the market price, and Q is industry-wide output. Ten (10) perfectly competitive firms currently operate in the moped industry. Each of these firms has a total cost function given by TC = 25 + 20q + q 2 , where q is the output of the individual firm. 

Note, to get full marks for this question you must draw diagrams indicating the outcomes in the answers.

 (a) When would existing firms in the moped industry shut down in the short run? (2 marks)

 (b) Find the market equilibrium in the short run? In particular, you should identify the market price? How much do individual firms produce? Do firms earn economic profits? [Hint: you will first need to work out the industry supply curve.] (2 marks) 

(c) What is the market price that would prevail in the long run and how many firms will operate in the long run? (2 marks)

(d) Suppose that there is technological revolution in the production of mopeds so that the new total cost curve for moped producers becomes TC = 16 + 20q + q 2 ? If the market for mopeds was initially in long run equilibrium, calculate and explain what happens in the short and long run now for both individual firms and in the market as a whole. (4 marks)

Question B3

 Consider the market for education. Education services are provided by a competitive industry with a marginal cost MC of MC = 3q, where q is the quantity of education. The private marginal benefit of education (PMB) for the consumers of education is PMB = 50 - q. Education, however, has a positive consumption externality e of $10 per unit. 

(a) What is the market equilibrium price and quantity? Illustrate the market outcome on a diagram. (2 marks) 

(b) Considering the private marginal benefit and the externality, determine the equation for the social marginal benefit (SMB) for education. What is socially optimal quantity of education? (2 marks)

 (c) Define deadweight loss. What is the deadweight loss, if any, in the market outcome for education? Provide intuition for your result and show the deadweight loss on your diagram. (2 marks) 

(d) Provide details (including calculations) on a policy option for the government to achieve the optimal outcome in the market. Explain the rationale underlying your answer. Given this is a consumption externality, should the government target this policy to the consumption side of the market? Explain your answer. (4 marks)





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