...Exam Study Chapter 3-What is Money * Medium of Exchange: * Eliminates the trouble of finding a double coincidence of needs (reduces transaction costs) * Promotes specialization * A medium of exchange must * be easily standardized * be widely accepted * be divisible * be easy to carry * not deteriorate quickly * Unit of Account: * used to measure value in the economy * reduces transaction costs * Store of Value: * used to save purchasing power over time. * other assets also serve this function * Money is the most liquid of all assets but loses value during inflation * M1 (most liquid assets) = currency + traveler’s checks + demand deposits + other checkable deposits. * M2 (adds to M1 other assets that are not so liquid) = M1 + small denomination time deposits + savings deposits and money market deposit accounts + money market mutual fund shares. Chapter 4- Interest Rates Four types of credit market instruments * Simple Loan-pv= fv/(1+i)1 * Fixed Payment Loan-same cash flow every period throughout the life of the loan * Coupon Bond-add the fv at the end * Discount Bond- ytm>coupon ROR vs Interest Rate * The return equals the yield to maturity only if the holding period equals the time to maturity * A rise in interest rates is associated with a fall in bond prices, resulting in a capital loss if time to maturity is longer than...
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...ECON 312 MIDTERM EXAMS Click Link Below To Buy: http://hwaid.com/shop/econ-312-midterm-exams/ Page: 1 2 Question 1. Question : (TCO 1) As a consequence of the condition of scarcity Question 2. Question : (TCO 1) The opportunity cost of constructing a new public highway is the Question 3. Question : (TCO 1) Which situation would most likely cause a nation's production possibilities curve to shift inward? Question 4. Question : (TCO 1) Which expression is another way of saying "marginal cost"? Question 5. Question : (TCO 1) The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the Question 6. Question : (TCO 1) The Soviet Union economy of the 1980s would best be classified as Question 7. Question : (TCO 1) The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through Question 8. Question : (TCO 1) Laissez-faire capitalism is characterized by Question 9. Question : (TCO 1) Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question? Question 10. Question : (TCO 1) A major problem with state ownership of resources is that it does not Question 11. Question : (TCO 2) An increase in product price will cause: Question 12. Question : (TCO 2) At the point where the demand and supply curves intersect Question 13. Question : (TCO 2) Black...
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...ECON 306 Final Exam Click Link Below To Buy: http://hwaid.com/shop/econ-306-final-exam/ 1. Which of the following constitutes an implicit cost to the Johnston Manufacturing Company? a. Payments of wages to its office workers. b. Rent paid for the use of equipment owned by the Schultz Machinery Company. c. Use of savings to pay operating expenses instead of generating interest income. d. Economic profits resulting from current production. 2. Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting: a. profits were $100,000 and its economic profits were zero. b. losses were $500,000 and its economic losses were zero. c. profits were $500,000 and its economic profits were $1 million. d. profits were zero and its economic losses were $500,000. 3. Which of the following is a short-run adjustment? a. A local bakery hires two additional bakers. b. Six new firms enter the plastics industry. c. The number of farms in the United States declines by 5 percent. d. BMW constructs a new assembly plant in South Carolina. 4. The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. Therefore, we can conclude that: a. marginal product of the third worker is 9. b. the third worker has to work with poorer-quality tools and raw materials. c. the firm will not want to hire more than...
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...ECON3020 EXAM II NAME (PRINT) _______________________________ TRUE/FALSE QUESTIONS (1 POINT EACH) 1. Average total cost is the sum of fixed cost plus variable cost. 2. Other things equal, the larger is the contribution margin the smaller is the breakeven quantity. 3. When the products are standardized, we can be sure that the industry will behave competitively. 4. When free entry exists, the perfect competitive model suggests that economic profit will always be equal to zero. 5. The firm’s demand curve in monopolistic competition is perfectly elastic. 6. A profit-maximizing monopolist produces output where marginal cost is equal to the price. 7. Marginal revenue is always twice as steep as the demand curve. 8. Collusion is harder to achieve if the costs of the firms in the group are similar. MULTIPLE CHOICE QUESTIONS (2 POINTS EACH) 9. For a typical competitive firm, the price in the long run equilibrium will tend to: A. be greater than average cost B. be equal to average cost C. be less than average cost D. intermediate 10. Which of the following is NOT a problem with monopoly? A. The price does not signal true cost. B. Monopolists typically force customers to purchase more than they want to. C. A monopolist may not produce at the lowest point of its average cost curve. D. The quantity produced is typically less than in pure competition. 11. Which of the following does NOT describe oligopolies? A. The rivals react to business decisions made...
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...FINA 6282 Economics for Finance Practice Mock Examination Chinese University of Hong Kong Please write your name and student number (If you don't have a student number yet, please put your application number) on the booklet. Please answer all of the following questions. The full mark for exam is 100. Please present the definitions, theorems and steps of the proofs clearly. Please make sure that people can read your handwriting. You will have THREE hours for the exam. 1 Consider the following game between two firms, Sony and Toshiba. Toshiba Invest Heavily 0, 0 1, 3 Sony Invest Heavily Slacken Slacken 3, 1 2, 2 a) Find the pure-strategy Nash equilibrium or equilibria. b) Compute the mixed-strategy Nash equilibrium. As part of your answer, draw the best-response function diagram for the mixed strategies. c) Suppose the game is played sequentially, with Sony moving first. What are Toshiba's contingent strategies? Write down the normal and extensive forms for the sequential version of the game. d) Using the normal form for the sequential version of the game, solve for the Nash Equilibria. e) Identify the proper subgames in the extensive form for the sequential version of the game. Use backward induction to solve for the subgame-perfect equilibrium. Explain why other Nash equilibria of the sequential game are "unreasonable". (Nicholas and Synder Ch5, Q5.7) 2 Consider the following Bertrand competition model with differentiated products. Let the demand curves...
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...University 01/2010 – Present Director Assistant, Canadian Chamber of Commerce in Shanghai 06/2009 – 08/2009 • Designed 2010 Expo Guide for Canadians in Shanghai. • Coordinated events on Canada’s Day and assisted Administrative Director with related projects • Located and entered data into several databases; made phone calls, and ensured timely mail processing. • Assisted administrative team members with clerical function. Dining Service Associate, University of Minnesota – Twin Cities 09/2009 – 12/2009 • Maintained inventory of standard dining service supplies and assists manager coordinate attendants. Member, Actuarial Club in University of Minnesota – Twin Cities 01/2009 – 12/2009 • Arranged the preparation of Casualty Actuarial Society (CAS) exam Volunteer, Students Today Leaders Forever 03/2009 – 12/2009 • Assisted the donation of food to Minnesotans at risk of hunger. Volunteer, in school for the Mute and the Deaf in Zhoushan, Zhejiang Province 2006 – 2009 • Taught disabled students Mandarin. Policy-analyst, Model United Nation in Shanghai K.J. Senior High School 2006 – 2008 • Analyzed UN policies for Model UN conferences HONORS/ AWARDS Honor Program, Awarded by Associate Dean of University of Minnesota – Twin Cities Global Excellent Scholarship, Awarded by University of Minnesota – Twin Cities Dean's List, Awarded by University of Minnesota – Twin Cities st th 1 prize, World 20 Odyssey of Mind Competition in China Area 09/2008 – 12/2009 09/2008 – 12/2009 Fall 2008, Fall 2009...
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...BLAW 2210 Term Paper Career Preparation My top two career choices are corporate financial analysis in investment banking and actuary. I will be discussing the legal environment of my career choices, taxing authorities, entity structure, graduate school in order to obtain certain license, self-assessment of my chosen careers. First, I will discuss how I can work as a corporate financial analysis in investment banking. After that, I will talk about what I need prepare to be an actuary. 1.corporate financial planning and analysis The responsibility of a corporate financial planing and analysis is to support management planning and decision making by identifying, maintaining, and evaluating information,as well as recommending actions. * Legal environment * Entity structure Investment banking is concerned with the primary function of assisting the capital market in its function of capital market intermediation, i.e. the movement of financial resources from those who have them means investors, to those who need to make use of them means issuer for generating profit. Therefore, it can be inferred that investment banks are those institutions that are the counterparts of banks in the capital market in the function of intermediation in resources allocation. Investment banks carried on carious activities it helps companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations...
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...THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS ECON 2206 INTRODUCTORY ECONOMETRICS FINAL EXAMINATION SESSION 1, 2008 1. TIME ALLOWED - 2 Hours. 2. READING TIME = 10 Minutes 3. THIS EXAMATION PAPER HAS 9 PAGES 4. TOTAL NUMBER OF QUESTIONS - 6. 5. ANSWER ALL QUESTIONS. 6. ALL QUESTIONS ARE OF EQUAL VALUE 7. TOTAL MARKS AVAILABLE FOR THIS EXAMATION - 60. 8. THE MARKS AWARDED TO EACH PART OF A QUESTION ARE INDICATED. 9. CANDIDATES MAY BRING THEIR OWN CALCULATORS TO THE EXAM 10. STATISTICAL TABLES ARE PROVIDED AT THE END OF THE EXAM PAPER 11. ALL ANSWERS MUST BE WRITTEN IN PEN. PENCILS MAY BE USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORK. 12. THIS PAPER MAY BE RETAINED BY THE CANDIDATE Please see over pfJ ANSWER ALL SIX QUESTIONS REMINDER: When performing statistical tests, always state the null and alternative hypotheses, the test statistic and it's distribution under the null hypothesis, the level of significance and the conclusion of the test. Question 1. (10 Marks). (i) What are the distinctive features of 'panel data' compared to 'cross-section' data? Explain. (2 marks). (ii) In the model: price = /3 0 + /3 1area + /32bdrms + /33 area x bdrms + u what is the partial effect of bdrms on price? (2 marks). (iii) What is the 'p-value' for a test statistic? SHAZAM reported the p-value for a test was 0.022; should I therefore reject the null hypothesis at the 1% level of significance? (2 marks) (iv) Consider the following regression...
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...Devry Econ 545 Final Exam-2015 IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.hwspeed.com/Devry-Econ-545-Final-Exam-2015-04040444320.htm?categoryId=-1 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Question Question 1.1.(TCOs A and D) Suppose you are hired to manage a small manufacturing facility that produces Widgets. (30 points) (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. From data collected on the Widget Market, you know that market demand has recently decreased and market supply has recently increased. Name two shift factors and determinants that could have caused the market demand to decrease and two shift factors and determinants that could have caused the market supply to increase. Also as manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? (15 points) Remember that supply and demand are about the market supply and market demand, which is much 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. You want to identify the possible change in market equilibrium price, and possible change in market equilibrium quantity based on the shifts in demand and supply and adjust your own price and...
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...Devry Econ 545 Final Exam-2015 IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.hwspeed.com/Devry-Econ-545-Final-Exam-2015-04040444320.htm?categoryId=-1 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Question Question 1.1.(TCOs A and D) Suppose you are hired to manage a small manufacturing facility that produces Widgets. (30 points) (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. From data collected on the Widget Market, you know that market demand has recently decreased and market supply has recently increased. Name two shift factors and determinants that could have caused the market demand to decrease and two shift factors and determinants that could have caused the market supply to increase. Also as manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? (15 points) Remember that supply and demand are about the market supply and market demand, which is much 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. You want to identify the possible change in market equilibrium price, and possible change in market equilibrium quantity based on the shifts in demand and supply and adjust your own price and...
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...DeVry ECON 312 Midterm Exam - Latest IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.acehomework.net/wp-admin/post.php?post=1964&action=edit IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM DeVry ECON 312 Midterm Exam - Latest Page 1 Question 1.1. (TCO 1) As a consequence of the condition of scarcity (Points : 3) there is never enough of anything. production has to be centrally planned. things which are plentiful have relatively high prices. individuals and communities have to make choices from among alternatives. Question 2.2. (TCO 1) The opportunity cost of constructing a new public highway is the (Points : 3) money cost of hiring contractors and construction workers for the new highway. value of other goods and services that must be sacrificed to construct the new highway. expected cost of constructing the new highway in a future year. value of shorter driving times and distances when the new highway is completed. Question 3.3. (TCO 1) A nation can increase its production possibilities by (Points : 3) shifting resources from investment good production to consumer good production. shifting resources from private goods to public goods. improving labor productivity. eliminating discrimination. Question 4.4. (TCO 1) Which expression is another way of saying "marginal benefit"? (Points : 3) Benefits given up Unintended gain Employment benefits Extra...
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...ECON 125-HK2. Economics for Managers Exam http://homeworkfy.com/downloads/econ-125-hk2-economics-for-managers-exam/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) > TAKE ASSESSMENT: EXAM 1 Question 1 2 points Save Which of the following economic systems abolishes all private property? communism socialism fascism all of the above Question 2 2 points Save The profit motive is one characteristic of a command economy. True False Question 3 2 points Save In a market system, the government enforces laws ensuring that private enterprises and conditions of competition will prevail. True False Question 4 2 points Save The most common type of business in the United States is the corporation. True False Question 5 2 points Save Laissez-faire is a policy of no government intervention in the economic activities of individuals and businesses. True False Question 6 2 points Save In a partnership, each partner’s liability is limited to his or her contribution to the partnership. True False Question 7 2 points Save There are no government-regulated markets in the U.S. economy. True False Question 8 2 points Save Which of the following is not among the United States’ economic goals? ...
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...Unit II Exam Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The demand for a good or service is determined by a. those who buy the good or service. b. the government. c. the producers who create the good or service. d. those who supply the raw materials used in the production of the good or service. ____ 2. Which of the following is not a characteristic of a perfectly competitive market? a. Different sellers sell identical products. b. There are many sellers. c. Sellers almost always accept the price the market determines. d. All of the above are characteristics of a perfectly competitive market. ____ 3. Which of the following would not be a determinant of the demand for a particular good? a. prices of related goods b. income c. tastes d. the prices of the inputs used to produce the good ____ 4. Two goods are substitutes if a decrease in the price of one good a. decreases the demand for the other good. b. decreases the quantity demanded of the other good. c. increases the demand for the other good. d. increases the quantity demanded of the other good. ____ 5. Ford Motor Company announces that it will offer $3,000 rebates on new Mustangs starting next month. As a result of this information, today’s demand curve for Mustangs a. shifts to the right. b. shifts to the left. c. shifts either to the right or to the left, but we cannot determine the direction of...
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...Economics Exam 1 Study Guide Vocabulary * Opportunity Cost – the value of the opportunities lost * Total Cost – the “all or nothing” cost of engaging in any activity * Marginal Cost – describes how total costs change as I change the amount (or intensity) of the activity * Benefits – The advantageous or desirable outcome of an action * Inflation – an increase in the general level of prices * Absolute Advantage – the ability to produce the same good using fewer inputs than any other producer. * Production Possibilities Frontier – shows all the combinations of goods that a country can produce given its productivity and supply of inputs * Comparative Advantage – a country has a comparative advantage in producing goods for which it has the lowest opportunity cost. * Demand Curve – a function that shows the quantity demanded at different prices * Quantity Demanded – the quantity that buyers are willing and able to buy at a particular price * Consumer Surplus – the consumer’s gain from exchange, or the difference between the maximum price a consumer is willing to pay for a certain quantity and the market price * Total Consumer Surplus – the area beneath the demand curve and above the price * Normal Goods – a good for which demand increases when income increases * Inferior Goods – a good for which demand decreases when income increases * Substitutes – good that can be purchases in place of each other. A decrease in price of...
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...ECON 125 HK2 ECONOMICS FOR MANAGERS Exam Solutions https://hwguiders.com/downloads/econ-125-hk2-economics-for-managers-exam-solutions/ ECON 125 HK2 ECONOMICS FOR MANAGERS Exam Solutions Exam 1: Question 1 Which of the following economic systems abolishes all private property? communism socialism fascism all of the above Question 2 The profit motive is one characteristic of a command economy. True False Question 3 In a market system, the government enforces laws ensuring that private enterprises and conditions of competition will prevail. True False Question 4 The most common type of business in the United States is the corporation. True False Question 5 Laissez-faire is a policy of no government intervention in the economic activities of individuals and businesses. True False Question 6 In a partnership, each partner’s liability is limited to his or her contribution to the partnership. True False Question 7 There are no government-regulated markets in the U.S. economy. True False Question 8 Which of the following is not among the United States’ economic goals? full employment stable prices healthy economic growth equal distribution of income Question 9 Under the U.S. market system, land and capital goods are owned mainly by the federal government individuals and firms local governments state governments Question 10 The biggest disadvantage of a sole proprietorship is the...
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