ECO 201 Study guides, Class notes & Summaries

3 1 Quiz GRADED ECO

Willingness to Pay (WTP) Answer the maximum amount that a buyer will pay for a good total willingness to pay (TWTP) Answer the maximum amount of money that buyers in a market are willing and able to give up the index change for Q units of the good Marginal Willingness to Pay (MWTP) Answer the maximum amount of money buyers in the market are willing and able to give up in exchange for a small additional amount of the good Inverse Demand Answer the demand function rearranged such that P i...

accounting total cost - ANSWER - explicit costs only economic total cost - ANSWER - accounting total cost + implicit costs economic total cost is opportunity cost accounting profit = - ANSWER - total revenue - accounting total costs economic profit = - ANSWER - total revenue - economic total costs when economic profit = 0 - ANSWER - normal economic profit; means that the firm is doing as well as it could in it's next best alternative economic profit > 0 - ANS...

ECO 201 Miami University Exam 3

ECO 201 - Exam 3 Review Questions And Answers sales tax tax on seller (we often times end up paying it but it is the businesses on whom that tax falls) two types of sales tax ad valorem and per unit B example of per unit sales tax gasoline (a tax per gallon) adding tax (inc or dec) the cost of the producer? increases what parts of graph are sales tax revenue? B + D what group is affected by sales tax? loss of welfare is on producers AND consumers tax revenue are made up of b...

ECO201 Final Exam - Miami University - Professor Elliot Questions And Answers The definition of supply assumes there is always a positive relationship between price and quantity supplied - ANS False Land - ANS inputs that exist around us - "natural resources" Labor - ANS Human input/capital - any input from people Capital - ANS stuff that makes stuff - things we produce that we then use to produce things Money is capital - ANS false Entrepreneurship - AN...

GEO 201 Miami University Exam 3 Questions And Answers 1781 - ANS Spanish colonists founded Los Angeles 1848 - ANS Treaty of Guadalupe Hidalgo 1920 - ANS Suburban growth outpaces urban growth 1929 - ANS Stock market crash 1934 - ANS National Housing Act 1941-45 - ANS World War II 1956 - ANS Interstate Highway Act Los Angeles - ANS -emergence of the 'Sun Belt' city -From Mexican Territory, new U.S. states --Mexican-American War 1846-48 --Treaty...

ECO 201 Exam 3 Questions And Answers What are the assumptions underlying perfectly competitive markets? - ANS 1. Large number of buyers and sellers 2. Identical products 3. Easy entry and exit 4. Perfect information (buyers know price of all sellers) If marginal cost begins below average cost and is everywhere increasing, what is true about the shape of the average cost cover? - ANS Average cost intersects marginal cost at its lowest point possible. Marginal Revenue (MR) - ANS ...

Econ 201 Exam 3 Questions And Answers Once it becomes obvious that a public good is being underprovided, - ANS the marginal benefit of further production to an individual fails to outweigh the individual's marginal cost. Conditions under which externalities can be solved in a decentralized manner. - ANS The Coase Theorem 3. The market failure of moral hazard may occur when one party - ANS -Has symmetric information about the other party's ACTION 4. The libertarian positio...

Exam 3 ECO 201 Nietfeld Exam Questions And Answers black markets - ANS a market in which goods or services are bought and sold illegally, either because it is illegal to sell them at all or because the prices charged are legally prohibited by a price ceiling minimum wage - ANS a minimum price that an employer can pay a worker for an hour of labor price ceiling - ANS a maximum price that can be legally charged for a good or service price controls - ANS government-imposed ...

Econ 201 Exam 3 Quizlet Exam Questions And Answers consumers - ANS also called economic agents or ROIs; they are assumed to be self interested and rational decision makers rational - ANS in an economic sense, this means that economic agents will only do things that will not make them worse off based on their own beliefs; ie, we only do things that we believe will make us better off No! If something is rational to one person, it may or may not be to another person. It also doesn't ...

ECO 201 Dr. Elliott Exam 3 Questions And Answers Profit - ANS Regardless of market type, firms are all about Profit - ANS Revenue-Costs Revenue - ANS -Amount of money the firm brings in -Price times quantity sold Cost - ANS Amount the firm pays to produce the good Maximizing profits - ANS Firms are all about Accounting Cost - ANS -Visible costs -Costs of land, labor, and capital Economic Cost - ANS -Visible costs -Opportunity cost of capital a...