Econ 315 Study guides, Class notes & Summaries

ECON 315 - Exam 1 Questions And Answers With Verified Solutions How is the labor market different from the typical market for products? - Goods are sold in the market (typical) - Labor is rented in a market - Institutions exist to connect employers and employees - Information about quality and price are exchanged Non-Pecuniary Reasons to Pick a Job: - Salary - Location - Opportunity - Reputation Pecuniary Relating to money Numerous insititions and legislations influence the e...

The relationship between actual output in an economy, the long-run component, and the short-run component is given as Long-run trend = Current output + Short-run output. a. True b. False b A policy rule dictates that monetary policy is set at the discretion of the president. a. True b. False b Brainpower Read More The main policy instrument used by the Federal Reserve is the target federal funds rate. a. True b. False a The foundation of the IS curve is the nationa...

Econ 315 Exam 2 Complete Questions And Answers With Verified Solutions An increase in the wage rate when the substitution effect dominated will labor force participation and hours of work increase, increase Indifference curves drawn with leisure and income on the axes have negative slopes because people are willing to give up income to obtain more leisure and vice versa An increase in non labor income due to a rise in the value of stocks and bonds will cause a pure income effect If a ...

ECON 315 Midterm 1 Questions And Answers With Verified Solutions 2023 Present value calculation: key formula PV = FV/(1+i)^n Value of a perpetuity: key formula pvperpetuity = CF/i Value of a firm; key formula pvfirm = π0(1 + i)/(i - g) Influences on present value a. Higher Interest Rate = Lower Present Value B. Longer Amount of Time = Lower Present Value C. Higher Profits = Higher Present Value Influences on demand a. Income I. Normal good (an increase in income = increase in...

Econ 315 Exam 1 Complete Questions And Answers Graded A+

Econ 315 Exam 3 Study Guide Questions And Answers Graded A+ 2023 Sweeny model of oligopoly; why does the price become "sticky" Because of kinked demand curve Sweezy model of oligopoly; focus on price elasticity of demand - If firm lowers its price; it has inelastic demand and TR drops - If firm raises its price; it has elastic demand and TR drops No incentive to change price since TR decreases in both cases Conceptual question; effect of change in marginal cost in oligopoly model(s)...

Econ 315 Formulas Questions And Answers 2023 Quiz Marginal Revnue for a Firm with Market Power MC=MR= P * (( 1 +Ef)/Ef) Ef is the own-price elasticity of demand Profit-Maximizing Markup for Monopoly and Monopolistic Competition P= (Ef/(1+Ef)) * MC Ef is the own-price elasticity of demand Profit-Maximizing Markup for Cournot Oligopoly P= (N*Em/(1+N*Em) *MC N is the number of firms in industry Em is the market elasticity of demand Advertising to Sales Ratio A/R = ElasAdv/ElasD...

ECON 315 FINAL Concepts Complete Verified Solutions Graded A+ 2023 Chapter 9: Basic assumptions of Oligopolies Oligopoly - Few firms in the market - The actions of one firm are considered by other firms when making decisions (Quantity of Output) Duopoly 2 firms Cournot Oligopoly In case of collusion, act as monopoly: MR = MC Stackelburg Oligopoly One firm leads the market and the others follow Chapter 10: Game Theory Game Theory if a strategy is always better regardless of ...

ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE ECON 315-70 PRACTICE FINAL EXAM 2 KEY| 2022 UPDATE 1. You are given a total cost function as 100 + 10Q – 6Q2 + Q3. What is the minimum level of average variable cost, and thus the minimum price the firm needs to stay open? A. $1. B. $3 C. $5 D. $7 2. Should a firm shut down if its weekly revenue is $1, 000, its variable cost is $800, and its fixed cost is $1, 500? Why? The firm should A.shut down because revenue of $1 000 is l...

Comprehensive and detailed Microeconomics lecture notes for price ceiling and price floor. U'll need it!!