D089 - Module 4 Practice
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Western Governors University *
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D089
Subject
Economics
Date
Jan 9, 2024
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htm
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4
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D089 - Module 4 Practice
D089 Course Instructors have created this resource to help develop your knowledge of the concepts in Module 4. We recommend reading the material in your Acrobatiq text and watching the
videos before working on the questions. Please note that these questions do not come from the actual assessment. Course Instructors are not privy to information on the assessment. If you have
any questions, please feel free to reach out to us at economics@wgu.edu
.
Points:
9/12
Correct
1/1 Points
1
Laws enacted by government to regulate prices are called price controls. Which of the following statements correspond to a price ceiling
? (choose 2 answers)Multiple choice. Sets a legal maximum price in the market
Creates a shortage
Creates a surplus
Sets a legal minimum price in the market
Correct answers: Sets a legal maximum price in the market,Creates a shortage
Correct
1/1 Points
2
Laws enacted by government to regulate prices are called price controls. Which of the following statements correspond to a price floor
? (choose 2 answers)Multiple choice. Sets a legal minimum price in the market
Sets a legal maximum price in the market
Creates a surplus
Creates a shortage
Correct answers: Sets a legal minimum price in the market,Creates a surplus
Incorrect
0/1 Points
3
The policy where a price ceiling is used to limit the rent landlords can charge is called "Rent Control". What happens in the housing market when a city enacts a rent control policy?Single
choice. The quantity of housing supplied decreases.
Equilibrium price in the housing market decreases.
Feedback: The price ceiling limits the rent landlords can charge, but does not change underlying conditions in the housing market. As the price of housing decreases, producers reduce the quantity
of housing supplied.
Demand for housing increases.
A surplus is created in the housing market.
Your answer to question 3 is wrong. Correct answers: The quantity of housing supplied decreases.
Incorrect
0/1 Points
4
The table below provides data on the cell phone market. Suppose the government set a price ceiling of $150 for a cell phone. What would happen in the market for cell phones?Single choice. There would be a shortage and the price would rise to bring the market to equilibrium.
Feedback: The $150 price ceiling creates a shortage. 650 phones are demanded, but only 500 phones are supplied. Ordinarily the market price would increase bringing the market back to equilibrium. Because the price floor does not allow the price to adjust, the market remains inefficient.
There would be a surplus and the price would fall to bring the market to equilibrium.
There would be a surplus and the market would be inefficient.
There would be a shortage and the market would be inefficient.
Your answer to question 4 is wrong. Correct answers: There would be a shortage and the market would be inefficient.
Correct
1/1 Points
5
Which of the following describes a market where prices are volatile (have more extreme fluctuations) because there are few buyers and sellers in the market.Single choice. Adverse Selection
Moral Hazard
Thin Market
Asymmetric Information
Correct answers: Thin Market
Correct
1/1 Points
6
Which of the following describes a market where individuals and firms are more likely to engage in risky behavior when they are protected from facing the costs of that behavior?Single choice. Moral Hazard
Thin Market
Adverse Selection
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The company you are working for has decided to put on a banquet to raise money for a charity and must decide between two catering services to supply the food and servers. You have been assigned to the Banquet Planning Committee. You will submit your work, neatly hand-written or typed and clearly labelled. You will submit graphs separately via the Desmos share tool. You must use algebra to solve the problems and describe how to use Desmos or a graphing calculator to check you work. To best maintain accuracy, round only your final answers. Simplify completely.
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Question
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2700
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p = 38 +
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MindTap-Cengage Learning X
/static/nb/ui/evo/index.html?deploymentld-58326557198082800211662038eISBN=9781337914413&nbld-3236996&snapshotld-3236996&id=16:
Courses
My Drive - Google...MyHarper | Students
CENGAGE MINDTAP
Aplia Homework: Demand, Supply, and Markets
WAGE (Dollars per hour)
20
18
16
14
12
10
8
6
4
2
0
X
0
•
I
Supply
I
I T Demand
I I
II I
|| 1
50 100 150 200 250 300 350 400 450 500
LABOR (Thousands of workers)
In this market, the equilibrium hourly wage is S
H
Graph Input Tool
Market for Labor in the Fast Food Industry
Chapter 4 HW Flashcards | Quizle X +
Wage
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
and the equilibrium quantity of labor is
Search L pe
U
8
8
Suppose a senator introduces a bill to legislate a minimum hourly wage of $8. This type of price control is called a
300
Labor Supplied
(Thousands of
workers)
thousand workers.
O
3
D
200
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specialist, who provided estimates of selling price per casting as a function of production output (see table 2).
There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per
year?
Table 1
Total cost per hr
Casting production per hr
$1,000
100
$2,600
200
$3,200
300
$3,900
400
$4,700
500
Table 2
Selling price / casting Casting production per hr
$20.00
100
$17.00
200
$16.00
300
$15.00
400
$14.50
500
The answer is Blank 1 per hour
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Table 1
Total cost per hr Casting production per hr
$1,000 100
$2,600 200
$3,200 300
$3,900 400
$4,700 500
Table 2
Selling price / casting Casting production per hr
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$17.00 200
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Fill in the Blanks
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Craft Supplies to design
$10
Selling Website Service Charge
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a) 100 ;
b) 200 ;
c) 300 ;
d) 400 ;
e) 500
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$0.5
2)
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3)
$10
4)
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46956797448719&elSBN=9780357133606&id=1051825327&snapshotld%3D2183359&
CENGAGE MINDTAP
Q Search t
Homework (Ch 08)
1. Understanding the implications of taxes on welfare
The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax
equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.
(?
Demand
Supply
A.
13.00 - --
B
C
9.00
D
E
5.00
18
QUANTITY (Pinckneys)
APR
étv
W
PRICE (Dollars per pinckney)
----0
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Selling price per large Snowie
$ 5.00
Ice per Snowie
$ 0.20
Spoon straw (need one per Snowie)
$ 0.02
Styrofoam cup (need one per Snowie)
$ 0.08
Napkin (need two per Snowie)
$ 0.02
Servings per gallon of syrup
28
Cost per gallon of syrup (includes concentrate, preservative, and sugar)
$ 8.00
Hourly rate for workers
$ 10.00
Event registration fee per day
$ 25.00
Electricity, insurance, maintenance, and permit costs per month
$ 250.00
Kiosk rental cost per month
$ 650.00
Purchase cost of two ice shavers (5-year life)
$ 3,180.00
Purchase cost of a flavor station (5-year life)
$ 1,080.00
a. Number of days you anticipate opening the kiosk per month
20
b. Number of hours you will work (no wages required) per day
6…
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