ECON 545 Devry Course Tutorial (econ545.com)
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ECON 545 Week 6 Quiz (Devry)

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Question:

(TCO F) The size of the labor force in a community is 800, and 720 of these folks are gainfully employed. In this community, 200 people over the age of 16 do not have a job, and are not looking for work. In addition, 100 people in the community are under the age of 16. The unemployment rate is:

2.

Question:

(TCO F) Suppose nominal GDP in 2005 was $14 trillion and in 2006 it was $15 trillion. The general price index in 2005 was 100 and in 2006 it was 103. Between 2005 and 2006 real GDP rose by what percent?

3.

Question:

(TCO F) The consumer price index was 185.2 in January of 2004, and it was 190.7 in January of 2005. Therefore, the rate of inflation in 2004 was about:

4.(TCO E) (10 points) As the Euro appreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Europe? What happens to the price of European goods in the U.S.?
 (10 points) Why would a country (for example, China) choose to keep their currency relatively pegged to the U.S. dollar? If the U.S. dollar were to appreciate considerably against most currencies, what would be the effect on Chinese exports to countries other than the United States? (Points : 20)

4.

Question:

(TCO E) (5 points) As the Mexican Peso depreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Mexico? What happens to the price of Mexican goods in the U.S.?
 (5 points) Why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar? If the U.S. dollar were to appreciate considerably against most currencies, what would be the effect on Chinese exports to countries other than the U.S.?

5.(TCO E) Suppose the Indian rupee price of one British pound is 54.392 rupees for each pound. A hotel room in London costs 120 pounds, while a similar hotel room in New Delhi costs 6,500 Indian rupees. In which city is the hotel room cheaper, and by how much? (Points : 15)

5.

Question:

(TCO E) Suppose the Japanese yen price of one British pound is 163.78 yen for each pound. A hotel room in London costs 120 pounds, while a similar hotel room in Tokyo costs 20,000 Japanese yen. In which city is the hotel room cheaper, and by how much?

6.(TCO E) Answer the next question on the basis of the following production possibilities data for Landia and Scandia:

Question:

(TCO E) Answer the next question on the basis of the following production possibilities data for Landia and Scandia:
 Landia production possibilities:
 ABCDE
 Fish 8 6 4 2 0
 Chips 0 10 20 30 40
 Scandia production possibilities:
 ABCDE
 Fish 24 18 12 6 0
 Chips 0 12 24 36 48
 Refer to the above data. What would be feasible terms of trade between Landia and Scandia?

8.(TCO F) Country A produces two goods, elephants and saddles. In the year 2006, the 100 units of elephants produced sold for $2,500 per unit and the 30 units of saddles produced sold for $200 per unit. In 2007, the 120 units of elephants produced sold for $3,000 per unit, and the 50 units of saddles produced sold for $300 per unit. Real GDP for 2007, assuming that 2006 is the base year, is ______. (Points : 15)

9) (TCO E) A Honda Accord sells for $24,000 in the United States and for SF29,500 in Switzerland. Given an exchange rate of SF1.25 = $1, how do the car prices of both countries compare?

 

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ECON 545 Week 8 Final Exam (Devry)

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1.

Question :

(TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets.

(a.) (15 points) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility?
Remember that supply and demand are about the market supply and market demand, which is bigger than your own company. You are being given data on supply and demand for the whole market and are being asked what effect that has on you as a small part of that market.

(b.) (15 points) Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production increase. What new decisions will you make regarding production levels and pricing for your Widget facility?

2.

Question :

(TCO B) Here is some data on the demand for marshmallows:

Price Quantity
$10 100
$ 8 300
$ 6 700
$ 4 1300
$ 2 2200

(a.) (15 points) Is demand elastic or inelastic in the $6-$8 price range? How do you know?

(b.) (15 points) If the table represents the demand faced by a monopoly firm, then what is that firm’s marginal revenue as it increases output from 1300 units to 2200 units? Show all work. (Be careful here!)

3.

Question :

(TCO C) You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
Total Total
Workers Labor Cost Output Revenue
1 $500 100 $700
2 1000 280 1150
3 1500 440 1440
4 2000 540 1570
5 2500 600 1670
6 3000 630 1710
7 3500 640 1730

(a.) (6 points) What is the marginal product of the second worker?

(b.) (6 points) What is the marginal revenue product of the fourth worker?

(c.) (6 points) What is the marginal cost of the first worker?

(d.) (12 points) Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.

4.

Question :

(TCO C) Answer the next questions on the basis of the following cost data for a firm in pure competition:

OUTPUT ------ TFC ---------- TVC
0 $100.00 0.00
1 100.00 70.00
2 100.00 120.00
3 100.00 150.00
4 100.00 200.00
5 100.00 270.00
6 100.00 360.00

(a.) (15 points) Refer to the above data. If the product price is $45 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.

(b.) (15 points) Refer to the above data. If the product price is $75 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.

5.

Question :

(TCO D) A software producer has fixed costs of $18,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below:

Q TVC Price
1,000 $15,000 $25
2,000 20,000 24
3,000 30,000 23
4,000 50,000 22
5,000 80,000 20
(a.) (15 points) If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above? Why? (Show all work).

(b.) (15 points) What should be the production level if fixed costs rose to $48,000 per month? Explain.

6.

Question :

(TCO F)

(a.) (20 points) Suppose nominal GDP in 1999 was $200 billion, and in 2001, it was $270 billion. The general price index in 1999 was 100 and in 2001 it was 150. Between 1999 and 2001, the real GDP rose by what percent?

(b.) Use the following scenario to answer questions (b1) and (b2).
In a given year in the United States, the total number of residents is 270 million, the number of residents under the age of 16 is 38 million, the number of institutionalized adults is 15 million, the number of adults who are not looking for work is 17 million, and the number of unemployed is 10 million.

(b1.) (5 points) Refer to the data in the above scenario. What is the size of the labor force in the United States for the given year?

(b2.) (5 points) Refer to the data in the above scenario. What is the unemployment rate in the United States for the given year?

7.

Question :

(TCO G and H)

(a.) (15 points) Suppose your local Congress representative suggests that the federal government intervenes in the gasoline market to stop runaway price increases. Would you say that this view basically supports the Keynesian or the Monetarist school of thought? Why? What position would the opposing school of thought take on this issue? (Be brief -- you can answer this in 2 or 3 brief paragraphs).

(b.) (10 points) Any change in the economy’s total expenditures would be expected to translate into a change in GDP that was larger than the initial change in spending. This phenomenon is known as the multiplier effect. Explain how the multiplier effect works.

(c.) (15 points) You are told that 90 cents out of every extra dollar pumped into the economy goes toward consumption (as opposed to saving). Estimate the GDP impact of a positive change in government spending that equals $20 billion.

8.

Question :

(TCO G)
(a.) (20 points) Third National Bank is fully loaned up with reserves of $20,000 and demand deposits equal to $100,000. The reserve ratio is 20%. Households deposit $5,000 in currency into the bank. How much excess reserves does the bank now have, and what is the maximum amount of new money that can be created in the banking system as a result of this deposit? Show all work.

(b.) (20 points) What is the discount rate in the banking system? Explain how the Fed manipulates this rate to achieve macroeconomic objectives.

9.

Question :

(TCO E and I) Let the exchange rate be defined as the number of dollars per British pound. Assume there is a decrease in U.S. interest rates relative to that of Britain.

(a.) (10 points) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound? Why?

(b.) (10 points) Has the dollar appreciated or depreciated in value relative to the pound?

(c.) (10 points) Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Great Britain? Illustrate by showing the price of a U.S. cell phone in Britain before and after the change in the exchange rate.

(d.) (10 points) If you had a business exporting goods to Britain, and U.S. interest rates fell as they have in this example, would you plan to expand production or cut back? Why?

 

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ECON 545 Week 3 Quiz Imperfect Competition (Devry)

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1.

Question :

(TCO A) There is a decrease in the cost of labor for producing bicycles.
(4 pts.) What happens to bicycle supply?
(6 pts.) What happens to bicycle demand?

2.

Question :

(

2. (TCO A) Ceteris paribus, Diet Cola Brand X and Diet Cola Brand Y are substitutes in consumption. The price of Diet Cola Brand Y falls.
(4 pts.) a. What happens to the demand for Diet Cola Brand X?
(6 pts.) b. What happens to the demand for Diet Cola Brand Y? (Points : 10)

3.

Question :

(TCO A) The number of new home sellers in a given market decreases.
(4 pts.) What happens to the supply of new homes?
(6 pts.) What happens to the demand for new homes?

4.

Question :

(TCO A) A market is in equilibrium with equilibrium Quantity of MEQ and equilibrium Price of MEP.

(2 pts.) a. What happens to market equilibrium Price (MEP) if there is an increase in Demand?

(4 pts.) b. What happens to market equilibrium Quantity (MEQ) if Supply decreases as Demand increase?

(4 pts.) c. What happens to market equilibrium Price if there is an increase in Supply followed by a decrease in Demand which if followed by another increase in Supply?

5.

Question :

5.

The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group:


Price (P)...Quantity (Q)
50........... 100
35.......... 180
20............300
10............500

a. (2 pts.) What is demand elasticity in the $35 - $50 price range? Is demand elastic, inelastic, or of unitary elasticity? Calculate the value and show all of your work. Be sure to use the midpoint equation to determine elasticity.

b. (4 pts.) Assume demand elasticity is 1.0 in the $20 - $35 price range. In this range of demand, by what percentage would quantity demanded change if price decreases by 5 percent? Show your detailed calculations

c. (4 pts.) What is the effect of a price increase from $10 to $20 on total revenue for the event? Does total revenue (TR) increase, decrease, or remain the same? By how much? Show your detailed calculations.

6.

Question :

(TCO B) Use a hypothetical example to illustrate whether you agree or disagree with the following statement: "Unemployment will go up more if the demand for labor is inelastic because the demand for labor will decrease more when you have inelastic demand than if demand were elastic." Explain why, using hypothetical numbers to illustrate your case.

7.

Question :

(7. TCO C) You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.

No. of workers Total Labor Cost Output Total Revenue

1 $145 100 $190

2 290 105 380

3 435 111 840

4 580 120 1320

5 725 125 1650

6 870 129 1780

7 1015 131 1800

(2 points) What is the marginal product of the fourth worker?

(2 points) What is the marginal revenue product of the fifth worker?

(2 points) What is the marginal cost of the second worker?

(4 points) Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer. (Points : 10)

8.

Question :

(TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

Total Product TFC TVC

0 $70 $0

1 70 70

2 70 120

3 70 150

4 70 220

5 70 300

6 70 390

Refer to the above data. If the product price is $75 at its optimal output, exactly how many units should be produced to maximize profits or minimize losses? How much will the profit or loss be? Show all calculations. (Points : 10)

9.

Question :

(TCO C) (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

TP TFC TVC
0 $45 $0
1 45 170
2 45 320
3 45 450
4 45 620
5 45 800
6 45 990
Refer to the above data. If the product price is $165 at its optimal output, exactly how many units should be produced to maximize profits or minimize losses? How much will the profit or loss be? Show all calculations. (Points : 10)

10.

Question :

(TCO C) A firm has Total Costs (TC) of $10,000 over the next three months (TOTAL for the 3 months - not per month), of which $6,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $5,000 in revenues (TR). So, considering only this information, should they stay in business for those three months or should they close down right now? Provide your reasoning.

 

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ECON 545 Entire Course (Devry)

ECON 545 Entire Course (Devry) | ECON 545 Devry Course Tutorial (econ545.com) | Scoop.it
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DEVRY ECON 545 Week 1 DQ 1 Supply and Demand

DEVRY ECON 545 Week 1 DQ 2 Elasticity and the Minimum Wage

DEVRY ECON 545 Week 2 DQ 1 Marginal Analysis

DEVRY ECON 545 Week 2 DQ 2 Controlling Costs

DEVRY ECON 545 Week 2 Project Part 1

DEVRY ECON 545 Week 3 DQ 1 Mergers Acquisitions

DEVRY ECON 545 Week 3 DQ 2 Anti-Trust Policy and Microsoft

DEVRY ECON 545 Week 3 Quiz Imperfect Competition

DEVRY ECON 545 Week 4 DQ 1 Macroeconomic News

DEVRY ECON 545 Week 4 DQ 2 Healthcare

DEVRY ECON 545 Week 5 DQ 1 Trade Deficits

DEVRY ECON 545 Week 5 DQ 2 Exchange Rates

DEVRY ECON 545 Week 5 Project Part 2

DEVRY ECON 545 Week 6 DQ 1 Fiscal Policy

DEVRY ECON 545 Week 6 DQ 2 Monetary Policy

DEVRY ECON 545 Week 6 Monetary and Fiscal Policy - You Decide

DEVRY ECON 545 Week 6 Quiz

DEVRY ECON 545 Week 7 DQ 1 The Public Sector

DEVRY ECON 545 Week 7 DQ 2 Forecasting

DEVRY ECON 545 Week 8 Final Exam

 

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