Category: Economics

How would each of the following affect the firm’s marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves?
A decrease in material costs.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
The rent that the firm pays on the building that it leases decreases.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
An increase in wages.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC
The government imposes a fixed amount of tax.
no change MC, no change AVC, decreases ATC
increase MC, increase AVC, increase ATC
increase MC, no change AVC, increase ATC
decrease MC, decrease AVC, decrease ATC
no change MC, no change AVC, increases ATC
decrease MC, no change AVC, decrease ATC

How would each of the following affect the firm’s marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves?
The government imposes a fixed amount of tax.
(A) decrease MC, no change AVC, decrease ATC
(B) increase MC, increase AVC, increase ATC
(C) no change MC, no change AVC, increases ATC
(D) increase MC, no change AVC, increase ATC
(E) decrease MC, decrease AVC, decrease ATC
(F) no change MC, no change AVC, decreases ATC
An increase in wages.
(A) decrease MC, no change AVC, decrease ATC
(B) increase MC, increase AVC, increase ATC
(C) no change MC, no change AVC, increases ATC
(D) increase MC, no change AVC, increase ATC
(E) decrease MC, decrease AVC, decrease ATC
(F) no change MC, no change AVC, decreases ATC
A decrease in material costs.
(A) decrease MC, no change AVC, decrease ATC
(B) increase MC, increase AVC, increase ATC
(C) no change MC, no change AVC, increases ATC
(D) increase MC, no change AVC, increase ATC
(E) decrease MC, decrease AVC, decrease ATC
(F) no change MC, no change AVC, decreases ATC
The rent that the firm pays on the building that it leases decreases.

QUESTION 4) A company manufactures electronic gadgets. Every day, raw materials arrive at the warehouse and are inspected for quality. Once approved, materials move to production, where assembly begins. After assembly, products undergo quality testing. Approved products are packed and sent to the warehouse for storage. Customer orders are received daily, and warehouse staff pick, pack, and ship the items to customers. Inventory levels are reviewed weekly to decide when to reorder raw materials. The company aims to streamline these processes to reduce delays and improve efficiency.
Questions:
Draw a flowchart showing the raw materials inspection and approval process in the company.
Draw a flowchart illustrating the production and assembly workflow from materials to finished products.
Draw a flowchart of the quality testing and packing process for the finished products.
Draw a flowchart representing the order fulfillment process starting from order receipt to shipping.
Draw a flowchart for the inventory review and reordering process to maintain adequate raw materials.
NOTE : DO NOT UPLOAD IMAGE DRAW THE FLOWCHART ALL OF THE ABOVE QUESTIONS

Question 14 options:
A small business owner is deciding how to invest their savings. They are considering two investment options. The return from each investment depends on how the economy performs. The possible economic conditions are Good, Average, and Poor. The payoffs are in dollars ($), and probabilities are provided.
Investment Payoffs
Investment Option
Good (P = 0.5)
Average (P = 0.3)
Poor (P = 0.2)
Option A
1,000
500
200
Option B
700
700
700
Using the expected value approach, which decision is preferred? Please enter the correct letter (A or B) in the box below.
Answer (A or B):
Suppose the decision maker has the following utility values for monetary payoffs:
Utility Function
Monetary Value ($)
Utility
0
0.00
200
0.20
500
0.35
700
0.45
1,000
0.50
Using the expected utility approach, which investment should the business owner choose? Enter A or B:
Answer (A or B):
This business owner is a risk taker or avoider?
Answer (risk taker or avoider):
Suppose another decision maker has the following utility function:
Utility Function (Second Decision Maker)
Monetary Value ($)
Utility
0
0.00
200
0.25
500
0.60
700
0.80
1,000
1.00
Using the expected utility approach, which investment should this second business owner choose? Enter A or B:
Answer (A or B):
This business owner is a risk taker or avoider?
Answer (risk taker or avoider):

Question 8 1 pts Consider the file HW4-Short Run & Long Run. Suppose that a technological progress takes place and as a result the average cost of production decrease by 8 dollars (The ATC curve shifts down vertically by $8). Then, in the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.
Question 10 Consider the file HW4-Short Run & Long Run and ignore everything that happened in the previous two questions. Start from the beginning. Assume that this is a constant-cost industry. Suppose that the demand for this product increases by 1,200 units and stays at this new higher level forever. Then, in the short run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars. In the long run, the equilibrium price of the product will equal dollars per unit, the equilibrium quantity units, and there will be firms in the industry each making an economic profit of dollars.

3. Agreement and disagreement among economists
Suppose that Tim, an economist from a consulting firm, and Alyssa, another economist from a nonprofit institution in the Midwest, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over health insurance. The following dialogue represents a portion of the transcript of their discussion:
Alyssa:
A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Tim:
I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.
Alyssa:
I disagree. I think government funding of health insurance is useful to ensure basic fairness.
The disagreement between these economists is most likely due to .
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
Having a single income tax rate would improve economic performance.
Immigrants receive more in government benefits than they contribute in taxes.
Rent ceilings reduce the quantity and quality of available housing.

MA127-4-FYWhat is the price elasticity of demand on the following demand curveQd=60-15P P2at a price of P=5 ?
(a) 1.5
(b) -2.5
(c) 0
(d) -0.5
[2.5 mark]
2. A consumer’s demand curve for Good x is represented by the equation_Qd=60-0.3Pwhere Qd is the quantity of Good x demanded and P is the price of Good x. A producer’s supply curve for Good x is represented by the equation_Qs=15 1.2Pwhere Q, is the quantity of Good x supplied. What is the equilibrium quantity and equilibrium price for Good x ?
(a) Equilibrium quantity is 30 and equilibrium price is 100 .
(b) Equilibrium quantity is 42 and equilibrium price is 60 .
(c) Equilibrium quantity is 51 and equilibrium price is 30 .
(d) Equilibrium quantity is 54 and equilibrium price is 20 .
[2.5 mark]
3. Which of the following factors determine the effectiveness of discretionary fiscal policy?
(a) The accuracy of forecasting the course which the economy would take without the policy.
(b) The ability to forecast the magnitude of the effect of changes in government spending and taxation on other injections and withdrawals.
(c) The ability of governments to act quickly.
(d) All of the above.
[2.5 mark]

Two guys suffering from testosterone poisoning drive toward each other in the middle of a road. As they approach the impact point, each has the option of continuing to drive down the middle of the road or to swerve. Both believe that if only one driver swerves, that driver loses face (payoff equals 0) and the other gains in self-esteem (payoff equals 10). If neither swerves, they are maimed or killed (payoff equals −10). If both swerve, no harm is done to either (payoff equals 5). Show the payoff matrix for the two drivers engaged in this game of chicken. Determine the Nash equilibria for this game.
Payoff matrix (Driver 1 payoff, Driver 2 payoff)
Swerve (Driver 2)
Not swerve (Driver 2)
Swerve (Driver 1)
(5, 5)
(0, 10)
Not swerve (Driver 1)
(10, 0)
(−10, −10)
What is (are) the Nash equilibrium (equilibria)?
The Nash equilibrium is for both drivers to swerve.
The Nash equilibrium is for both drivers to not swerve.
The Nash equilibria are for Driver 1 to swerve and Driver 2 to not swerve and for Driver 1 to not swerve and Driver 2 to swerve.
The Nash equilibrium is for Driver 1 to swerve and Driver 2 to not swerve.
The Nash equilibria are for Driver 1 and Driver 2 to swerve and for Driver 1 and Driver 2 to not swerve.