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ECO 320 AFTER TEST 2 – Questions with 100% Correct Answers | Latest Update 2025/2026

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7 pages

Written in 2025/2026

Grade A+

ExamsCollection

ECO 320 Bundled Exams (Questions and Answers)

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18 items

sirjoel

The most important difference between rent controls and the minimum wage controls is: - ANS One is a price ceiling and the other is a price floor When a new group of tenants enters a market not subject to rent controls, landlords observe: - ANS A rise in profits with a rise in rents The Competition Tribunal: - ANS may apply different possible methodologies to anticompetitive behaviour The deadweight loss caused by rent controls can affect: - ANS both tenants and landlords A independent pi...

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5 pages

Written in 2024/2025

Grade A+

sirjoel

What other policy values should matter to making law and applying it? - ANS Income, wealth, consumption, contractual activity, property owned, harm caused, harm suffered, and the like, are all "imperfect signals" of the underlying immutable characteristics of individuals upon which the state would ideally base its redistributive policy if only it had such information. Using economic analysis what is the most optimal way to change a law - majority vote? Court decisions by judges? - AN...

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11 pages

Written in 2024/2025

Grade A+

sirjoel

The law - ANS A law is a rule that may or may not have have economic consequences for an individual Profit maximization - ANS Marginal revenue = marginal cost. Monopoly - ANS Natural (rare earth mines) or regulated (liquor) Monopoly - ANS No close substitutes and market power Division of Surplus - ANS A reasonable division of surplus gives each party an equal share The process of bargaining - ANS establishing the threat values, determining the cooperative surplus and terms for distributin...

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6 pages

Written in 2024/2025

Grade A+

sirjoel

Aspects of Transaction costs? - ANS Search, Bargaining, Enforcement What is production efficiency? (2) - ANS - Cannot produce more with same inputs - Cannot produce same with less inputs Allocative Efficiency - ANS Not possible to make one person better without making others worse What are the two (2) main approaches economists use to define efficiency - ANS Pareto Optimal and Cost Benefit Pareto Optimal - ANS Similar/same as allocative efficiency - Make A better without making B worse ...

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7 pages

Written in 2024/2025

Grade A+

sirjoel

Gun control is politically unpopular in neighborhoods with the highest crime rates. Use economics to explain why. - ANS Criminals obtain guns to make crime easier and apprehension more difficult, so guns tend to create crime. The potential victims of crime obtain guns to make their victimization harder and more risky for criminals, so guns can also tend to reduce crime. The standard argument is that the more handguns, the more violent crime. However, if criminals know that honest citizens ...

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30 pages

Written in 2024/2025

Grade A+

sirjoel

4 questions of property law - ANS 1: how are ownership rights established? 2:what can be privately owned? #. what may owners do with their property? 4. what are the remedies for the violation of property rights? coase theorem - ANS when transaction costs are zero, an efficient use of resources results from private bargaining, regardless of the legal assignment of property rights open range rule - ANS the farmer is responsible for keeping the archers cattle off his property and bears the da...

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6 pages

Written in 2024/2025

Grade A+

sirjoel

Should efficiency be the only value that matters to making law and applying it? - ANS • Not always leads to an equitable outcome • For law efficiency should be the only thing that matters because there is a large amount of variation of what people think is fair, as efficiency can be measured • Argument 1: Fairness comes at the expense of individual wellness (progressive taxes, rent controls) • argument 2: individuals that would thought to benefit from a law often are the victims of...

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8 pages

Written in 2024/2025

Grade A+

sirjoel

Forms of economic analysis of law - ANS markets without private goods (intellectual property) markets with bad (crime) markets without prices (marriage, domestic contracts) where do laws come from - ANS custom judicial precedent statutory legislation executive decision-making central problem of economic analysis of law - ANS optimality; lawmakers want to maximize social surplus what policies should matter to making a law and applying it? - ANS income and endowment effects why should ...

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21 pages

Written in 2024/2025

Grade A+

sirjoel

What are the three characteristics of private goods? - ANS - Rivalry in consumption - Consumed by individuals - Not enjoyed equally (E.g. cars, clothing) What are the three characteristics of public goods? - ANS - No rivalry - Enjoyed by all - Costly to exclude people from enjoying them (E.g. fresh air, national defense) What are private bads? - ANS Issues between individuals resolved through private agreements (e.g. car accident) What are public bads? - ANS Issues that involve negativ...

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10 pages

Written in 2024/2025

Grade A+

sirjoel

ECO 320 Bundled Exams (Questions and Answers)

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5 items

sirjoel

What is market power? - ANS ability of a firm to raise and maintain prices above competition prices, extent to which a firm can influence price by exercising control over supply/demand, ability to create high barriers to entry What business policies can firms use to acquire and maintain market power? - ANS mergers, cartel behavior/collusion, predatory pricing, innovation, advertising, bundling, pricing/price discrimination, product differentiation, lobbying, limit pricing Implications of m...

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8 pages

Written in 2024/2025

Grade A+

sirjoel

Expectation Damages - ANS awards compensation for breach of contract; awarding perfect expectation damages restores the Principal (promise) to the position that he or she would have enjoyed if the Agent (promisor) fulfilled the contract Expectation Damages Rule - ANS actual amount the Agent has to pay the Principal in compensation to put the Principal in the same economic position it would have been if the contract had been performed; awarding perfect expectation damages restores the Princi...

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7 pages

Written in 2024/2025

Grade A+

sirjoel

"Central Problem" - ANS - optimality in the economic analysis of law - maximize social surplus Property Rights/Law - ANS - supplies the legal framework for allocating resources & distributing wealth - a bundle of rights describing what people may & may not do with the resources they own: the extent to which they may --> possess/use/develop/improve/transform/consume/deplete/destroy/sell/donate/bequeath/tra nsfer/mortgage/lease/loan/exclude - economic theory tries to predict the e...

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62 pages

Written in 2024/2025

Grade A+

sirjoel

In a command economy, the ______ either makes economic decisions itself of at least strongly influences how the decisions are made. - ANS Government In a _________, mot economic decisions about what to produce, how to produce it and whom to prove it are made by buyers and sellers. - ANS Market-oriented economy. The basic difference between macroeconomics and microeconomics is that: - ANS Microeconomics is concerned with the trees (Individual markets) while macro economics is concerned with...

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6 pages

Written in 2024/2025

Grade A+

sirjoel

What is social surplus? - ANS consumer surplus + producer surplus Advantage & disadvantage of the Law of Primogeniture in England - ANS Eldest son inherits entire state Unintened Advantage: preserves economies of scale in english farming Disadvantage: eldest son could be stupid When can laws outlive their usefulness? - ANS They are infect long after the circumstances which first gave occasion to them, which sometimes makes them unreasonable. Cooperative surplus - ANS The value created by ...

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12 pages

Written in 2024/2025

Grade A+

sirjoel

Climatic variation occurs over which time scales? a. Daily time scales only b. Daily and yearly time scales only c. Yearly and decade time scales only d. Across daily, seasonal, and yearly time scales - ANS d. Across daily, seasonal, and yearly time scales Which statement about climate is false? a. Climate usually has little effect on the rate of periodic disturbances in an area. b. The timing of a change to the physical environment is often ecologically important. c. Climate influences...

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23 pages

Written in 2024/2025

Grade A+

sirjoel

According to the Gravity Model, the reason why the United States trades more heavily with Germany, the United Kingdom, and France than with other countries in Europe is because of - ANS size of their economies. Gravity Model - ANS The gravity model assumes that size and distance are important for trade in the following way: Tij = A × Yi × Yj/Dij That is, the value of trade between any two countries is proportional, other things equal, to the product of the two countries' GDPs and dim...

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5 pages

Written in 2024/2025

Grade A+

sirjoel

In the short run - ANS the interest rate can rise when the domestic money supply falls. Under the monetary approach to the exchange rate (long run view) - ANS an interest rate increase is associated with higher expected inflation and a currency that will be weaker on all future dates. An increase in the world relative demand for U.S. output causes - ANS a long-run real appreciation of the dollar against the euro. Aggregate demand for an open economy's output is the sum of - ANS consumpt...

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5 pages

Written in 2024/2025

Grade A+

sirjoel