Exam | Economics homework help

magician     EXAMINATIONS

How many rabbits must the magician pull out of the hat to pass this course? 

Stay tuned for some helpful hints!

INSTRUCTIONS: Answer all of the following questions as directed. Watch the point value of the questions and prepare answers accordingly. Figure that an average C answer has one paragraph for each 5 points. Your answers are to be typed, using 12-point font. They may be single-spaced, with double spaces between paragraphs. They MUST include supporting diagrams, where necessary, to illustrate and support your answers. Your answers are due in class on Thursday, May 10, 2016. Late exams are subject to the 20% per late day penalty. Dr. Furfero accepts NO exams by email. Any questions, email Dr440 ASAP. Otherwise, Good Luck! 

    1. (10 points) As a government official, you have decided that an excise tax (a specific or per unit tax) imposed on businessmen’s output is the best way to raise revenue for the State.
      1. Show by means of a DIAGRAM what happens to price and quantity in a competitive market when the tax is imposed.
      2. In order to be an effective revenue raiser, the demand curve must be ________________ (elastic/inelastic) and the supply curve must be ________________ (elastic/inelastic).
      3. Using your knowledge of the determinants of price elasticity, classify the demand and supply curves for the following items according to their relative elasticities, explain why some are better revenue raisers than others, and pick the best revenue raiser and the worst revenue raiser.
        1. oranges
        2. cigarettes
        3. automobiles
        4. salt
        5. football games
        6. gasoline
        7. diamond bracelets
        8. butter
        9. McConnell’s Principles of Microeconomics textbook
    2. (10 points) Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, depreciation and obsolescence charges, sales taxes, and rental payments on leased office machinery. Then, explain: “There are no fixed costs in the long run; all costs are variable.”
    3. (10 points) Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts) for economy Alpha:
        Production alternatives
      Type of production A B C D E
      Automobiles 0 2 4 6 8
      Forklifts 30 27 21 12 0

      1. Show these data graphically (DIAGRAM!). Upon what specific assumptions is this production possibilities curve based?
      2. What is the socially optimum output for Alpha?
      3. If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length?
      4. If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 forklifts, what could you conclude about its use of its available resources?
    4. (10 points) The U.S. Department of Agriculture, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices (under Economics). Choose three farm products and determine whether their prices (as measured by “prices received”) have generally increased, decreased, or stayed the same over the past three years. In which of the three cases, if any, do you think that supply has increased more rapidly than demand? DIAGRAM and EXPLAIN! In which of the three cases, if any, do you think that demand has increased more rapidly than supply? Explain your reasoning. DIAGRAM and EXPLAIN!
    5. (10 points) Economics is…neither capitalist or socialist, it applies to every society. Economics would disappear only in a world so rich that no wants were unfulfilled for lack of resource. Such a world is not imminent and may be impossible, for time is always limited. Carefully evaluate and explain this quote. Do you agree that conceptually time is an economic resource?
    6. (10 points) Using the tools of supply and demand and the competitive market, demonstrate graphically and explain the difference between a “gas crisis,” in which prices are rising, and a “gas shortage.”
    7. (10 points – 5 points each) Address two (2) of the following issues:
      1. “There’s no such thing as bad publicity.” Evaluate this statement in terms of the recognition heuristic. Use Donald Trump and his run for the US presidency as your example.
      2. You just accepted a campus job helping to raise money for your school’s athletic program. You are told to draft a fund-raising letter. The bottom of the letter asks recipients to write down a donation amount. If you want to raise as much money as possible, would it be better if the text of that section mentioned that your school is ranked third in the nation in sports or that you are better than 99% of other schools at sports? Explain.
      3. Suppose that Ike is loss averse. In the morning, Dr440’s stockbroker calls to tell her that she has gained $1,000 on his stock portfolio. In the evening, her accountant calls to tell her that she owes an extra $1,000 in taxes. At the end of the day, does Dr440 feel emotionally neutral since the dollar value of the gain in her stock portfolio exactly offsets the amount of extra taxes she has to pay? Explain. 
      4. Economist Gerd Gigerenzer characterizes heuristics as “fast and frugal” ways of reaching decisions. Are there any costs to heuristics being “fast and frugal”? Explain and give an example of how a fast and frugal method for doing something in everyday life comes at some costs in terms of other attributes forgone.
      5. In the early 1990s, New Jersey and Pennsylvania both reformed their automobile insurance systems so that citizens could opt for either a less-expensive policy that did not allow people to sue if they got into accidents or a more- expensive policy that did allow people to sue if they got into accidents. In New Jersey, the default option was the less-expensive policy that did not allow suing. In Pennsylvania, the default option was the more-expensive policy that did allow suing. Given those options, which policy do you think most people in New Jersey ended up with? What about in Pennsylvania? Explain.
      6. What is “precommitment” in terms of behavioral economics? Give an example from your own life of a situation where you or someone you know uses a precommitment to overcome a self-control problem. Describe why the precommitment is useful and what it compensates for. Avoid any precommitment that was mentioned in the book.
    8. (10 points) A college professor invents a new production technology for making vitamins. He decides not to patent it. Thus, it is available for anybody to copy and put into use. The Total Cost per bottle for production up to 100,000 bottles per day is given in the following table:
Output Total Costs
25,000 $50,000
50,000 $70,000
75,000 $75,000
100,000 $80,000


    1. What is Average Total Cost for each level of output listed in the table?
    2. Suppose that for each 25,000-bottle-per-day increase in production above 100,000 bottles per day, Total Cost increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $85,000 and 150,000 bottles per day would generate total costs of $90,000). Is this an increasing-, constant-, or decreasing-cost industry?
    3. Suppose that the price of a bottle of vitamins is $1.33 and that at that price the total quantity demanded by consumers is 75,000,000 bottles. How many firms will there be in this industry?
    4. Suppose that, instead, the market quantity demanded at a price of $1.33 is only 75,000. How many firms do you expect there to be in this industry? Review your answers to parts b, c, and d. Does the level of demand determine this industry’s market structure?
  1. (10 points) In her spare time, Dr. Furfero runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? 2,000? 10,000? What is her ATC per poster if she prints 1,000? 2,000? 10,000? If the market price fell to 70 cents per poster, would there be any output level at which Dr. Furfero would not shut down production immediately? Make a DIAGRAM and show the different equilibria. 
  2. (10 points) “Small is beautiful” or so Dr. Furfero’s mother told her when she stopped growing at 5’2″. Is it? Compare and contrast the performance of a pure and perfectly competitive firm with a monopoly firm in long-run equilibrium. Make DIAGRAMs to support your comparisons.

BONUS: (5 points) In the CNN-sponsored Republican Presidential Candidate Town Hall on February 18, 2016, Ted Cruz said of Planned Parenthood, “[It is] responsible for taking the lives of millions of unborn children.” Did Mr. Cruz make a positive or normative statement? How can you tell? Did he use loaded terminology? Explain.

The campus section of ECO 1302 Principles of Microeconomics has TWO (2) exams — a Midterm Exam and a Final Exam. They are take-home exams. Each will be posted here approximately one week before it is due. Late Midterm Exams are subject to the 20% per late day grade reduction. No excuses are necessary. After 5 days, a Midterm Exam has no value. Final exams are due in class on the sceduled date. NO late Final Exams are accepted. Each exam must be typed in 12-point Times New Roman font, single spaced, with a space between paragraphs. You may hand draw diagrams and scan them in as pdf files. Dr440 accepts NO exams by email.


Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Public Administration
Customer 453751, June 28th, 2020
Thank you for the revision! This is how it should look like.
Customer 463407, October 16th, 2022
Business and administrative studies
Good work,
Customer 462901, April 27th, 2022
i really appreciate the work done
Customer 463875, April 28th, 2023
good work
Customer 456821, March 18th, 2022
Business and administrative studies
The grade was 100%- Oh man I will be back again. Thank you.
Customer 463293, April 27th, 2023
English 101
Customer 456823, May 15th, 2022
Entertainment & Gaming
Great work.
Customer 452441, April 29th, 2022
Health Care
It is exactly my expectation. Thank you.
Customer 454755, June 30th, 2020
Leadership Studies
Excellent job.
Customer 456821, April 21st, 2022
English 101
Good job
Customer 454209, June 2nd, 2020
Business and administrative studies
On point.
Customer 459947, April 15th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat