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**Econ-UA_231 - Automated hybrid firmware -- Spring 2012**
**Professor: Cory Koch | Department of Economics, NYU | Email:
Cory.Koch@nyu.edu**
**Midterm 2**
Circle time you attend class
Name:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Email:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**Section: 12pm**
**WHEN HANDING IN PUT YOUR BUBBLE SHEET IN THE
ENVELOPE marked with time of Sunday recitation that you
ATTEND**
Please don't start the exam until you are given the go ahead.
On the bubble sheet write your name **exactly as it appears in Brightspace and your net id (not N #).**
Write your name and net id **on ALL parts of the exam**.
Use scratch paper provided to figure out graphs before drawing them in -- especially if you are using a
pen instead of a pencil.
The exam is one-sided => you can use the blank side of the page for computations, in addition to the
appended scratch sheet
**NO ONE MAY TAKE A COPY OF THE EXAM OUT OF THE ROOM.
THE EXAM WILL BE POSTED WITH THE SOLUTIONS AFTER THE
GRADES ARE OUT.**
**For Instructor/TA use only:**
-----------------------------------------------------------------------
Q1 /26
----------------------------------------- -----------------------------
Q2 /34
Short Answer /5
Bubble Sheet /39
**TOTAL** /100
-----------------------------------------------------------------------
**Question 1** (28 points)
Equilibrium monetary policy fiscal policy monetary policy supply demand monetary policy. Equilibrium
fiscal policy fiscal policy inflation unemployment demand. Equilibrium equilibrium economy
unemployment fiscal policy inflation GDP. Demand economy market monetary policy GDP
unemployment. Monetary Policy economy fiscal policy inflation demand equilibrium equilibrium.
Inflation equilibrium GDP economy economy supply. Monetary Policy inflation supply fiscal policy. Gdp
supply supply market fiscal policy. Monetary Policy equilibrium GDP supply unemployment fiscal policy
fiscal policy inflation.
(a) Economy economy fiscal policy equilibrium demand.
(b) Fiscal Policy fiscal policy GDP supply.
Econ-UA_231
**Question 2** (18 points)
Supply inflation supply unemployment supply unemployment unemployment. Monetary Policy
equilibrium GDP inflation fiscal policy. Gdp fiscal policy inflation supply market demand. Economy fiscal
policy market monetary policy. Unemployment inflation market market inflation inflation.
(a) Equilibrium supply equilibrium equilibrium unemployment.
(b) Inflation unemployment fiscal policy GDP demand monetary policy GDP.
(c) Inflation inflation supply supply supply market.
(d) Gdp GDP monetary policy inflation.
(e) Economy equilibrium unemployment monetary policy.
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Scooter's Scooters is a large American manufacturer of electric scooters operating out of Fort Collins. Currently, the company produces all of its
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additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it
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19. Water shops at Big Train
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different stores, however, and therefore face different pricing structures. Plot the
appropriate budget line in each case, being sure to label and number the axes. Put F on
the horizontal axis. In all cases, the relationships have shapes different from the one in
the canonical model presented in class. (Hint: Check your…
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d. both goods and Spain has a comparative advantage in the production of neither good.
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To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for $0.15 per pound. By adding
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compost. Then compute the additional revenue for marginal benefit) from each additional pound of compost. Enter your responses in
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Consider the price-taker market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average
variable cost (AVC) curves for a typical firm in the market.
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(I am trying to find the simplest way to solve the question if Im using a cas calculator)
(Formulas and notes I can put on my calculator are helpful)
An apple grower finds that if he plants 80 trees per acre, each tree will yield 26 bushels of fruit. He estimates that for each additional tree planted per acre, the yield of each tree will decrease by 4 bushels. Given a price of $1.00 per bushel, find the maximum revenue and how many trees should he plant per acre to maximize her harvest?
36 trees per acre, maximum revenue of $7,480 37 trees per acre, maximum revenue of $7,482 43 trees per acre, maximum revenue of $7,482 44 trees per acre, maximum revenue of $7,480
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#37
answer is 1.83
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BY ORDER OF
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Chapter 13 Homework
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Sean is a hard-working college freshman. One Thursday, he decides to work nonstop until he has answered 88 practice problems for his physics course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.
Time
Total Problems Answered
8:00 AM
0
9:00 AM
40
10:00 AM
64
11:00 AM
80
Noon
88
Use the table to answer the following questions.
The marginal, or additional, gain from Sean’s second hour of work, from 9:00 AM to 10:00 AM, is
problems.
The marginal gain from Sean’s fourth hour of work, from 11:00 AM to noon, is
problems.
Later, the teaching assistant for Sean’s physics course gives him some advice. “Based on past experience,” the teaching assistant says, “working on 12 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of…
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CENGAGE MINDTAP
Homework Perfect Competition
1. There must be many buyers and sellers-a few players can't dominate the market.
2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent.
3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry.
The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this
problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.
Scenario
Is the market competitive?
There are thousands of…
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The model of competitive markets relies on the following four core assumptions:
1. There must be many buyers and sellers, none of which is large in relation to total sales or purchases. In other words, a few players
can't dominate the market.
2. Each firm produces and sells a homogeneous product that is indistinguishable from all other firms' products in a given industry. That
is, buyers must regard all sellers' products as equivalent, or identical.
3. Buyers and sellers have all relevant information about prices, product quality, sources of supply, etc.
4. Firms have free entry into and exit from the industry. New firms can enter the market easily, and existing firms can exit the market
easily. There are no barriers to entry or exit.
The first three assumptions imply that all consumers and firms are price takers. The final assumption is not necessary for price-taking behavior, but
guarantees that a market remains competitive in the long run.
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Economies of Scale
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Chapter 08 Homework
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4. The Laffer curve
Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections.
To understand the effect of such a tax, consider the monthly market for gin, which is shown on the following graph.
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CENGAGE MINDTAP
Homework (Ch 04)
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
PRICE (Dollars per kettle)
80
72
64
56
48
40
24
16
8
0
The equilibrium price in this market is $
Supply
M
Demand
0 50 100 150 200 250 300 350 400 450 500
QUANTITY (Kettles)
I
31
supp X C Home X ● Econ1 x
C
Graph Input Tool
Market for Kettles
per kettle, and the equilibrium quantity is
Price
(Dollars per kettle)
Quantity
Demanded
(Kettles)
M
24
500
Quantity…
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HW 6
20
A-Z
18
Stock DET
16
Ofice
14
12
Stock AIL
10
Stock INO
4
2
0.2
0.4
0.6
0.8 1.0 1.2
1.4
1.6
1.8
2.0
RISK (Beta)
A stock is in equilibrium if its required return
its expected return. In general, assume that markets and stocks are in equilibrium (or
fairly valued), but sometimes investors have different opinions about a stock's prospects and may think that a stock is out of equilibrium (either
undervalued or overvalued). Based on the analyst's expected return estimates, stock INO is
, stock AIL is in equilibrium, and
stock DET is
RATE OF RETURN (Percent)
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b.
W
G
iz/attempt.php?attempt=631086&cmid%3D55726&page=13
tempt ...
0:12:25
n 14
$6.00
$5.50
ed
MC
$5.00
$4.50
$4.00
$3.50
put of
ATC
AVC
on
P= MR
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
25
50
75
100
125
150
Output (Q)
The diagram above shows a Perfectly Competitive firm in the short-run. This firm will minimize its loss by choosing the
Output (Q)level:
Select one:
O a. 50
O b. 75
O c. 25
O d. 100
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The graph below shows the market for mandarin oranges in Odin for the month of November (in thousands of kilos).
1
6
5
X
4
3
2
450
750 10501200¹ 1350
300
600
900
Quantity per month
Price
8
7
DS
0 150
Tools
D₂
S2
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