ECO 365 Principles Of Microeconomics
This course provides students with the basic theories, concepts, terminology, and uses of microeconomics. Students learn practical applications for microeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events.
This undergraduate-level course is 5 weeks.
ECO 365 Mergers & Joint Ventures Team c
ECO 365 Week 1 Knowledge Check
1. Price elasticity of demand is the
2. In general, the greater the elasticity, the
3. The price elasticity of supply is the
4. The distinction between demand and the quantity demanded is best made by saying that
5. The U.S. Postal Service printed 150,000 sheets of stamps depicting Bill Pickett, but recalled them when the USPS realized the image on the stamp was Bill’s brother, Ben, instead. They were unable to recall 183 sheets that had already been sold. The effect of this recall was to
6. Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to
7.
Mike Janet
Price Quantity Quantity
Per peck in pecks in pecks
$1 22 6
$2 18 3
$3 14 0
$4 10 0
$5 6 0
8.
Economics is the study of how
9. To engage in economic reasoning, one must compare
10. Countries such as Brazil, India, and Moldova–well-known sources of donors–have banned buying and selling organs. This legal action comes at the risk of driving trade underground. What idea does this story best illustrate?
11. The law of demand states that the quantity demanded of a good is inversely related to the
price of that good. Therefore, as the price of a good goes
ECO 365 Week 2 Knowledge Check
(1) A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is
above
(2) In a perfectly competitive market,
3.
The demand for clothing increases. As a result, the price of clothing increases above the minimum average cost of producing it. In the long run, if the clothing industry is perfectly competitive and is a constant-cost industry,
4. If the long-run market supply curve is perfectly elastic, an increase in demand will cause
the final equilibrium to be at
5. Number of workers Total Output
1 4
2 10
3 18
4 28
5 35
6 41
7 45
Correct:
The Correct Answer is: C.
8 48
9 50
10 49
Refer to the table shown. Diminishing marginal productivity begins when the
6. A production table can be used to determine
7. Mr. Woodard’s cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodard has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?
8. Number of Marginal Product of workers workers
1 5
2 7
3 8
4 10
5 11
6 7
7 5
8 3
9 0
10 -1
Refer to the table shown. A firm would be
to hire between
most likely
ECO 365 week 2 Individual Assignment Supply and Demand Simulation
Complete the Supply and Demand Simulation located on the student website.
Write 700 – 1,050-word paper of no more than summarizing the content. Address the following:
• Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic.
• Identify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?
• For each shift, analyze how it would affect the equilibrium price, quantity, and decision making.
• How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
How do the concepts of microeconomics help you
ECO 365 week 2 Learning Team Reflection Production and Cost Analysis
Discuss this week’s objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.
Prepare a 350- to 1,050- word paper detailing the findings of your discussion.
ECO 365 Week 3 Knowledge Check
1.In a monopolistically competitive market,
2. Strategic decision making is most important in
3. The general monitoring problem implies that
4. Lazy monopolists are characterized by the tendency to
5. Judgment by performance means that the competitiveness of a market is determined by
6. Consumers tend to accept the market restrictions imposed by suppliers because
7. The fact that U.S. managers’ salaries are about four times higher than those of comparable managers in Japan, where banks control firms more closely, is probably
ECO 365 Wk 3 Starbucks Current Market Conditions Team C
ECO 365 Week 4 Knowledge Check
1. What do economists mean when they say there is “market failure”?
2. If a market has no externalities, marginal private costs
3. Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement
4. The size performance improvements sought by those pursuing horizontal mergers is
5. A company buys another company in the same supply chain, but either in front of it or behind it in the supply chain. This is called
6. Sony and Toshiba become partners in a microprocessor manufacturing company. This is called
7. If two companies share ownership in a venture and agree on a formal management structure including members of both companies, this is called a
8. Two companies come together to take on a project that has an explicit time cycle and ending point. The most efficient form of acquisition of this project is
9. The more elastic the supply and the demand curves are, the
10. Assuming a binding price floor, the more elastic the supply and demand curves are, the
ECO 365 week 4 Individual Assignment Differentiating Between Market Structures Table
ECO 365 week 4 Learning Team Reflection Public Policy in Economics
ECO 365 Week 5 Knowledge Check
- What problem do economists see with free trade areas such as NAFTA and the European
Union?
- A group of countries that allows free trade among its members and puts up common
barriers against all other countries’ goods is called
3. Mexico has a comparative advantage in producing corn
4. Workers in education, health care, and government sectors have
5. In the United States globalization has
6. Most economists
7. World trade declined in the 1930s. Which of the following is the best explanation of that
decline?
8. As a country develops economically, what changes usually take place in the goods it
exports?
9. When a U.S. company establishes a call center in India that answers its customer service
calls, the United States is
ECO 365 Wk 5 Competitive Strategies & Government Policies Team C – ( New )
ECO 365 Final Exam Solutions
1. George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent. The demand for Christmas trees is __________________.
2. A Wall Street Journal headline reads: “Cigar Shortage Draws New Brands into Market.” The shortage resulted from a renewed interest in smoking cigars. What best describes the facts behind the headline?
3. State what type of business combination is occurring in the following scenario: Samsung and Sony become partners in a flat screen manufacturing company.
4. The price of a ticket to a rock concert is set at $35. All the tickets for the concert sell out 1 hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that:
5. According to the text, Microeconomics, Colander (2013), economics is the study of how:
6. Suppose a firm finds that an additional dollar spent on labor increases output more than does an additional dollar spent on machines. Under these conditions, the firm:
7. Which of the following is the best example of a macroeconomic externality?
8. Refer to the graph shown. The figure shows the demand and supply curves for eggs and shows two equilibrium points, E1 and E2. An increase in demand from D1 to D2 would cause:
9. State what type of business combination is occurring in the following scenario: A tobacco producer buys a carbonated beverage plant.
10. A resource is said to have a comparative advantage if:
11. Refer to the graph shown. If hamburger dinners are produced by a perfectly competitive industry with a market demand D:
12. Oligopoly is characterized by:
13. Refer to the table shown. Diminishing marginal productivity begins when the:
14. When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation for why few economists agreed with
Perot?
15. If MR < MC, a monopolist should:
16. Refer to the graph shown. At which point is elasticity zero?
17. Refer to the table shown. The average product when eight workers are employed is:
18. Germany restricts the use of nonrefillable bottles and cans. The European Union argues that the rules aren’t just protecting the environment; they also are protecting German beverage makers from competition. The EU sees Germany’s environmentalism as _____________________.
19. Refer to the table shown. At what level of employment is the marginal product of labor seven?
20. The morel is a prized mushroom that is often abundant in the Western United States in years after forest fires. Suppose two companies are buying morels from workers willing to find them. One company offers to pay workers $5.00 per pound, and the other company will pay workers only $4.00 per pound. Economists would say that
21. Economists and laypeople see the pros and cons of international trade in different ways. Which of the following is one of those ways?
22. Which of the following statements is true?
23. Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is _______________.
24. Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to
25. Refer to the graph shown. If this monopolistically competitive firm maximizes profit, it will?
26. Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will?
27. Opponents of government intervention in the economy argue that externalities
28. State what type of business combination is occurring in the following scenario: IBP meat processing firm buys American Cattle, a very large cattle ranch.
29. State what type of business combination is occurring in the following scenario: Golf Smith, a golf supply retailer buys its competitor, Vango golf.
30. Oligopoly is probably the best market for technological change because ?