Indiana University Bloomington

A monopolist faces a 1. Downward sloping marginal revenue curve above demand 2. Downward sloping marginal revenue curve that is equal to demand 3. Downward slowing marginal revenue curve that is below demand 4. Marginal revenue curve that is flat - Answer 3. Downward slowing marginal revenue curve that is below demand A monopsonist faces a(n) 1. Upward sloping marginal cost of hiring curve that is above supply 2. Upward sloping marginal cost of hiring that is equal to supply 3. ...

A Toyota Camry is a normal good in a community where 1. Most people are already rich enough to afford a Camry 2. Most people are not sufficiently wealthy to afford a Camry 3. The price of a Honda Civic is higher than the price of a Camry 4. The price of a Honda Civic is lower than the price of a Camry - Answer 2. Most people are not sufficiently wealthy to afford a Camry There are 4 brands of chainsaws available in various stores in Bloomington. One of the brands, HacksawPlus, increa...

graphically, consumer surplus is... - Answer the area above price but below demand graphically, producer surplus is... - Answer the area below price but above supply what is the equation you use to calculate consumer and producer surplus? - Answer (1/2)(b)(h) = CS or PS how do you calculate total surplus? - Answer CS + PS = TS in terms of total surplus, what outcome does not create a deadweight loss? - Answer when the quantity in the market is equal to equilibrium quan...

IU cuts enrollment for first tear students from 8,000 to 3,000 for the next 10 years in order to become more exclusive and rise in the ranking. As a consequence, if this decision, rental prices for apartments in Bloomington fall. This fall in rental prices is A. A positive externality B. A negative externality C. A correct price signal that indicates that scarcity has increased D. A correct price signal that indicates that scarcity has decreased - Answer D. A correct price signal that i...

Which of the following do not fit? 1. Time Constraint 2. Budget 3. Objective 4. Emotional Constraint - Answer Objective A theory is 1. An abstraction 2. Realistic 3. Consistent with observations 4. Verifiable - Answer An Abstraction The point of creating a parallel universe is to 1. Detect correlation in two or more variables 2. See a pattern in the data 3. Detect Causation 4. Measure a constraint - Answer Detect Causation The law of unintended consequences ...

Moral hazard is present when 1. There are different types of individuals and it is difficult to tell the different types apart 2. The marginal cost of the last unit is smaller than the marginal benefit 3. A particular action changes incentives for behavior for some people 4.There are large external costs - Answer 3. A particular action changes incentives for behavior for some people Adverse selection is present when 1. There are different types of individuals and it is difficult t...

Which of the following would not create a deadweight loss? a. A tax on a good with no externalities b. A subsidy on a good with no externalities c. A price floor above equilibrium price d. A price floor below equilibrium price - Answer d. a price floor below equilibrium price Which of the following would most likely result in high government tax revenue, ceteris paribus? - Answer A good with inelastic supply and inelastic demand Is inelastic steep or flat? - Answer steep Is...

value judgements - Answer Normative statements are based upon value judgements facts experiments random guessing College tuition is higher for out of state students than in state students. - Answer Which of the following statements is "positive" in nature? College tuition is too inexpensive. College tuition is higher for out of state students than in state students. College tuition should be free for all US citizens. College tuition is too expensive. $9,000 - Answer ...

The goal of the firm is to - Answer maximize profit Which of the following is a type of market? - Answer perfect competition monopolistic competition Oligopoly Monopoly Total cost (TC) = - Answer TFC + TVC or ATC * q When marginal product is rising - Answer marginal cost is falling Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to em...

21,000 - Answer Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to employees in wages, spent $40,000 on ingredients such as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used $50,000 of her personal savings to purchase equipment for Top Brew, which she was earning $4,000 in interest each year. Assuming no depreciation in the value of th...

b) Capital is fixed and Labor is variable - Answer In the short run, economists assume: a) Capital is fixed and Labor is fixed b) Capital is fixed and Labor is variable c) Capital is variable and Labor is variable d) Capital is variable and Labor is fixed a) production function - Answer The way that a firm combines inputs and factors of production in order to determine how much they can produce is represented by the firm's a) production function b) cost function c) pr...

in unrestricted (free or unregulated) perfectly competitive markets, rationing is . . . - Answer efficient (not always fair) price controls - Answer price restrictions placed and enforced by the government; government set minimum or maximum price price ceiling - Answer Legal maximum. limit on how high a price is charged for a good/service; set below equilibrium price (see graph in notes). A rent ceiling decreases quantity of rental housing available, shortage. People use resources...

economics - Answer the study of satisfying unlimited wants by utilizing limited resources scarcity - Answer unlimited wants and limited resources the economic problem - Answer deals with the problem of scarcity Microeconomics - Answer studies decisions by individual firms and governments Macroeconomics - Answer studies decisions made or actions taken by the entire economy ex. inflation, unemployment, GDP rationality assumption - Answer assumes that people do no...

when demand is more inelastic, ______________ pay more of the tax - Answer consumers when demand is more elastic, ______________ pay more of the tax - Answer producers when demand is unit elastic, consumers and producers pay _____________ of the tax - Answer the same amount protectionism - Answer regulations that burdens foreign producers but not domestic producers tariff - Answer tax on imports trade quota - Answer restriction on the quantity of foreign goods th...

class notes V550

Notes for class V550 it is to help on the first exam

A100 Final Exam | 79 Questions and Answers | 2025 Update | 100% Correct-Indiana University, Bloomington.

Angelo owns Computer Hut, where he sells computers, printers, scanners and copiers. Basil visits Angelo's store and purchases a computer and printer. While Basil is completing the purchase, he notices a mountain bike chained up in the corner of the store with a for-sale sign on it and inquires about the bike. Angelo explains to Basil that this is Angelo's personal mountain bike, and he has decided to sell it because he never has time to go biking. Basil agrees to buy the mountain bike for ...

Crowdfunding regulation allows... - Answer privately held companies to sell up to 1.07 million dollars in securities in any 12-month period. Tipper & tippee - who can be convicted of a crime and/or held liable? - Answer Both Do bank securities need to register? - Answer No What types of securities are exempt from registration? - Answer -government securities -bank securities -stock in nonprofit organizations -insurance policies -annuity contracts What is the purpose o...

Consistent with IRS revenue code 162(m), companies were able to deduct non-performance-based compensation for a single executive to the extent that it does not exceed $1 million. Under the new Tax Cuts and Jobs Act, this limit has been increased to $5 million. increased to $10 million. decreased to $500,000. eliminated. - Answer eliminated Banks that fail to comply with regulations, including the failure to maintain an adequate capital adequacy ratio, face: higher costs. lower c...