...1. Which of the following is true under monopoly? A. Profits are always positive B. P > MC C. P = MR D. All of the above are true for monopoly Answer: B 2. In a competitive industry with identical firms, long run equilibrium is characterized by A. P = AC B. P = MC C. MR = MC D. All of the statements associated with this question are correct Answer: D 3. Which of the following is true? A. A monopolist produces on the inelastic portion of its demand B. A monopolist always earns an economic profit C. The more inelastic the demand, the closer marginal revenue is to price D. In the short run a monopoly will shutdown if P < AVC Answer: D 4. Which of the following is true under monopoly? A. Profits are always positive B. P > minimum of ATC C. P = MR D. None of the statements associated with this question are correct Answer: B 5. In the long-run, monopolistically competitive firms: A. Charge prices equal to marginal cost B. Have excess capacity C. Produce at the minimum of average total cost D. Have excess capacity and produce at the minimum of average total cost Answer: B 6. If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits the firm will A. Reduce output and increase price B. Increase output and decrease price C. Increase both output and price D. Reduce both output and price Answer: 7. Which of the following market structures would you expect to yield the greatest product variety? A. Monopoly ...
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...AB0901 PRINCIPLES OF ECONOMICS: A SINGAPORE PERSPECTIVE _________________________________________________________________________ Academic Year | : | 2013 - 2014 | Semester | : | July | Course Coordinator | : | Tan Khay Boon | Other Instructor(s) | : | Siang NgOng QiyanLu JiaSuman Kumari Sharma | Pre-requisites | : | Nil | No. of AUs | : | 3 | Course Description and Scope This course aims to provide a basic understanding of Economics. The first portion of the course will cover topics in Macroeconomics such as Gross Domestic Product, inflation, Unemployment, Fiscal Policy, Monetary Policy, Balance of Payments and Exchange Rate. The second portion of the course will cover topics in Microeconomics such as the theory of consumption, the theory of production and market structures Course Learning Objectives After the course, students should be able to: Explain the concepts of demand, supply, elasticity, efficiency, GDP, inflation and unemployment Apply economic models to analyze impact on market and economy when shock occurs Calculate revenue, cost and output for firms Compare and contrast different market structures Analyze the effect of government policies on market and economy Discuss exchange rate determination and balance of payments Learning & Teaching Methods Lectures : 2 hours per week Tutorials : 1 hour per week Course Assessments Components | Marks | Individual/Group | Quizzes | 20% | Individual | ...
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...Alfaisal University College of Business Master of Business Administration Professional Program MBA 513 Managerial Economics Course Syllabus Instructor: Dr Declan McCrohan © The College of Business, Alfaisal University, 2013. The materials contained in this document may only be used during the Alfaisal University MBA Program. Except as stipulated under national and international copyright laws, no part of this document may be copied, reproduced, stored or transmitted in any form or by any means, or used for any commercial purpose without the written permission of the copyright owner. Contact Information and Class Times Instructor: | Dr Declan McCrohan | Address: | College of Business, Alfaisal University,PO Box 50927,Takhassusi StreetRiyadh 11533,Kingdom of Saudi Arabia | | Email: | dmccrohan@alfaisal.edu | | Office: | +96612157717 | Consultation hours: | To be confirmed | Office: | College of Business, male section. | Class Times: | Cohort 1: Mon 9-12 Cohort 2: Sun 6-9pm Cohort 3: Mon 6-9pm | Venue: | Alfaisal University. Please check your personal academic timetables for the classroom location. | Course Instructor Dr Declan McCrohan graduated with a PhD in Applied Economics and a Masters degree in International Trade from Victoria University in Australia. His PhD research examined the impact of overseas students’ social networks on international trade flows. Dr McCrohan has extensive...
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...S End of Term Examination Question Book Module Title: | Principles of Economics | Module Code: FC013 | FC013 Diet 1 | Date: | December 2013 | Time: | TBA | Venue: | TBA | Instructions to students 1. Read all instructions very carefully 2. At the start of the examination, you should have: i. this question book ii. an answer book(s)* 3. Read all of the exam questions carefully before you begin to write 4. Write your answers in the answer book(s). *Listen for details on how you should present your work 5. Write in black or blue ink 6. Cross out any mistakes. *Listen for details on how you should present plans for written work or workings/calculations (where appropriate) 7. *You may use a paper (not electronic) translation dictionary e.g. English-Chinese and/or Chinese-English, but not English-English 8. *You may use a calculator (approved models only) for this examination 9. If you have questions at any time during the examination, you must raise your hand and wait for an invigilator. Do not attempt to communicate, by any means, with any other candidate at any time before or during the examination. 10. You may not leave the examination hall during the first hour. If the examination is less than one hour, you must stay for the entire duration of the exam (toilet breaks are permitted if necessary). 11. At the end of the exam, do not leave your seat until you have handed both the question...
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...MID-TERM EXAM - 1st Semester, 2012 |Date |Time |Course Title & Code |Room No. | |29 June, 2012 |11.00 am ~ 12.30 pm |501: Accounting System & Auditing |502 | |(Friday) | | | | |30 June, 2012 |7.00 pm ~ 8.30 pm |502: Managerial Economics |402 | |(Saturday) | | | | |06 July, 2012 |3.00 pm ~ 4.30 pm |503: Business Communication |502 | |(Friday) | | | | |07 July, 2012 |7.00 pm ~ 8.30 pm |504: Advanced Management |502 | |(Saturday) | | | | |13 July, 2012 |3.00 pm ~ 4.30 pm |503: Business Communication...
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...SECTION A: MULTIPLE CHOICE QUESTIONS (35%) Answer ALL questions in this section. Choose the one alternative that best completes the statement or answers the question. Please answer questions by shading the appropriate box on the MCQ form (Multiple Choice answer sheet). 1) hich of the following is not a consequence of hyperinflation? W A) he price level grows in excess of hundreds of percentage points T per year. B) oneyʹs function as a medium of exchange is enhanced. M C) t causes an economy to suffer slow growth. I D) oney loses value so rapidly that firms and individuals stop M holding it. 2) hich of the following would you expect to lead to increases in W domestic interest rates and an appreciation of the domestic currency? A) xpansionary monetary policy e c B) ontractionary monetary policy C) xpansionary fiscal policy e D) oth B and C. B 3) eteris paribus, an unexpected increase in the current or actual rate of C inflation will cause A) he long run Phillips curve to shift leftward. t B) he short run Phillips curve to shift upward. t C) he unemployment rate to decrease (a movement along the short t run Phillips curve). D) xpectations of future inflation rates to be revised downward. e 4) he interest rate on a Treasury bill that you pay $980 for today that T matures in one year and pays $1,000 is A) percent. 2 B) percent. 4 C) percent. 3 D) percent. 1 5) he international trade effect states that ...
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...MRC 1513 ECONOMIC ANALYSIS WORKSHOP 1A Question 1: Although managerial economics is based primarily on microeconomics, explain why it is also important for managers to understand macroeconomics. Answer: Felda Technoplant Sdn Bhd is a subsidiary of Felda Holdings Berhad and was established on 22 June 2005 as a management agency for FELDA settler plantations. Among its main activities is replanting estates, managing immature and mature plantations as well as providing oil palm planting materials for estate replanting purposes. Almost 90% of the replanting area is planted with oil palm and the remaining planted with rubber. Thus we are subject to risks inherent to the plantation industry. These include damage from pests, outbreak of diseases such as ganoderma, fire or natural disasters, unscheduled interruption in palm oil milling and rubber tapping operation, climate condition, downturns in the global, regional and national economies, changes in law and tax regulations affecting palm oil and rubber and the competitive needs of labour with other industry. Movement of commodity price in local and international market influence the price of Fresh Fruit Bunch (FFB) and rubber. This will affect managerial decision whether continuing the normal field operations or take certain mitigation action focusing only to harvesting work while other work activities such weeding and fertilizing being stop until the operational cost becomes more viable. As an example, in 2008 the FFB selling...
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...Set 105 Environmental Scanning/Industry Analysis – 1 1. What external environmental variables should be scanned? In conducting an external environmental scan, focus should be drawn to two environmental variables: • Societal environment (macro-environment) – This is the general environment in which the business organization operates. It is characterized by those variables on which the business has no control. It does not directly touch on the short run activities of the firm but can, and often do influence its long-run decisions. • Task environment (micro-environment) – This is the industry within which the business organization operates. This environment is characterized by various players and stakeholders who affect a business enterprise, and are also affected by it. 2. According to Porter, what determines the level of competitive intensity in an industry? According to Porter, the level of competitive intensity is determined by 5 basic competitive forces namely: (1) Threat of new entrants to a market (2) Bargaining power of suppliers (3) Bargaining power of customers or buyers (4) Threat of substitute products and (5) Degree of competitive rivalry 3. What should be scanned in the task environment? There should be an analysis of relevant elements in the task environment such as: (1) Competitors (2) Suppliers (3) Regulators (4) Strategic Partners (5) Labor and (6) Customers. 4. Discuss how a development in a corporation’s societal environment can...
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...An Assignment on Money Market and Labour Market in context of Bangladesh Course Instructor: Abdul Jalil Chowdhury SUBMITTED BY: Zinat Mahal Roll No.: 1328 Departmental of Training for BCS (Economic) cadre Officers NAPD, Ministry of Planning, Nilkhet, Dhaka-1205 Introduction Bangladesh is a developing country in where money market and labour market are two of the most important issues of economics that determine long run development of a country. The GDP and infrastructural development of a country depend largely on the successful and efficient money market and labour market. Financial sector is considered to be playing a crucial role in facilitating efficient allocation of resources and improving productivity of investment. Although the direct effect of financial institutions on the real economy is less clear, the indirect impact of financial market is essentially critical (Herring et al., 1991). Mobilization of savings, managing risks and facilitating exchange of goods and services are the functions of financial sector that connect households, firms and governments for their own purposes. An efficient financial system can be of great use for the poor through boosting the growth of the economy and reducing the financial risks by creating an enabling environment to ensure easy access to financial services for all. Money Market A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded...
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...use of feedback, decision making and human relation etc. Miller (1983) defines entrepreneurship as a multidimensional concept encompassing a company’s action relating to innovation and risk taking and proactive measures.Innovation and risk-taking has an important place in entrepreneurship. Schumpeter (1994) described role of entrepreneurship as tendency of company to engage in and support new ideas, novelty, and experimentation that may result in new products, services. Risk taking describes the nature of entrepreneur. A.H. Cole has explained entrepreneurship as, “the purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain, or earn profit by production and distribution of economic goods and services. According to Heggins, “Entrepreneurship is meant the function of seeking investment and production opportunity, organize an enterprise to undertake a new production process, raising capital, hiring...
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...THE COST OF CAPITAL, CORPORATION FINANCE AND THE OF INVESTMIENT In the business world we make investment for two main reasons or either of them that can be for the maximization of our profite from a business or it can be for the maximaization of the market value of the assets. Businesses generally aquire the assets if the perceives that the particular asset can help in increasing the profit of the organisation. According to the theory the acquisition of the asset can help to increase the profit only if the returns arising due to that asset are more than the interest costs arising due to that asset. On the individual level when we are cosidering the purchase of any asset we should also consider the risk factor associated with that asset. Profit maximization and value maximization they both have more or less same meanings and implications. But if the case is of uncertainity then the profit maximization has no meanings, it remains meaningless for the investors. When the situation is uncertain then in that case the market value maximization becomes the basis for the theory of investment, if this notion is kept in mind then every time when we are going to make a decision to invest or not we should simply keep one thing in our mind that can be the basis of the decision, that is if we aquire the particular asset will it help to increase the value of the firm’s share? If in response of this question we comes on this point that yes it will result in increase in the value of the firm’s...
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...TEPAV – Economic Policy Research Foundation of Turkey The first company that we visited in Ankara was the Economic Policy Research Foundation of Turkey. There they presented to us the Turkish economic background, the actual economic position regarding European Union and Middle East and what are their challenges to keep the long-term competitiveness. Turkey is strategically located between Europe and Middle East and this advantage, after the policy reforms, made the country boost their economy by attracting companies that operates in both markets. The country is so well geographically located that we in a 3 hours flight you have an economic potential of 8,7 Trillions of dollars. The ground for this economic boom was the first generation reforms starting in 1980 with Price reforms and Trade and Financial liberalization. After that in 2001 they had the Banking reform, Privatized state owned companies, created Independent authorities to regulate the markets and they also adopted Fiscal and Monetary discipline. Nowadays, they are trying to move from an Efficiency-driven economy to an Innovation-driven economy, which means that they need to not only build or make goods in the country but also aggregate value to the goods produced. Investing in education is the only and long way to shift the economy from large scale transformation to high-tech. On the other hand, Turkey has a current account deficit and it is at historic high, it corresponds as 10% of GDP. The majority of the...
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...Monetary Policy Design in a DSGE Model 1. A simple model 1.1 Households The utility function of a representative household is ∞ ⎛ ξ C1−σ L1+η ⎞ Et ∑ β s ⎜ t + s t + s − t + s ⎟ 1+η ⎠ s =0 ⎝ 1−σ (1) The dynamics of the demand shock is ζ t = ζ t −1 + eζ ,t , where ξt = eζ . The consumption is t θ −1 ⎡ 1 ⎤ θ −1 composed of lots of goods. It is composed in a CES function Ct = ⎢ ∫ Ct (i ) θ di ⎥ . The i =0 ⎣ ⎦ 1 1−θ 1−θ consumer price index is P = ⎡ ∫ P (i ) di ⎤ . Then the demand function of each good is t t ⎢ i =0 ⎥ ⎣ ⎦ 1 θ ⎡ P (i ) ⎤ Ct (i ) = ⎢ t ⎥ Ct ⎣ Pt ⎦ The budget constraint is −θ PCt + Bt = Wt Lt + Π t + Rt −1 Bt −1 t The first order condition for Ct , Lt , and Bt are Ct−σ = λt Pt Lη = λtWt t λt = Rt λt +1|t After some calculation, we have the Euler equation and labor supply equation ξt +1Ct−+σ / Pt +1 1 β Rt Et =1 −σ ξt Ct / Pt ξt Ct−σ Pt 1.2 Firms (2) = Lη t Wt (3) Assume there is a type of price stickiness in the economy, that each firm has a probability φ that cannot change its price, and fixed the level as the last time. And it has a probability 1 − φ that can re-optimal its price. The problem of a firm which can re-optimal its price in time t is 1 Et ∑ (βφ ) s Λ t + s [ Pt* (i )Yt (i ) − Wt Lt (i )] s =0 ∞ ⎡ Pt * ⎤ s.t.Yt + s (i ) = ⎢ ⎥ Ct and Yt (i ) = At Lt (i ) ⎣ Pt + s ⎦ The dynamics of the technology shock is at = ρ a at −1 + ea ,t , where at = ln( At ) . The first order condition is ...
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...Financial Concepts in a Changing Business Michael Magons FIN/571 April 9, 2012 Beatrice Jones Financial Concepts in a Changing Business Guillermo Navalles’s furniture store is facing some new competition and has choices to make (University of Phoenix, 2012). These choices include competing with the new firm, absorbing or being absorbed by other firms, or changing from mainly manufacturing to distribution. Changing technologies and changes in the labor force influence decisions Guillermo needs to make to improve his business. Financial concepts associated with these types of changes are discussed here. Guillermo is compelled to make decisions about how he runs his company because of his own financial self-interest (Emery, Finnerty, & Stowe, 2007). The opportunity cost for Guillermo’s firm has changed since the arrival of new competition, and he must decide how to change his variable costs to maintain the prosperity of his company. His options include altering labor costs through automation or changing from a manufacturer to a distributor with more outsourcing (University of Phoenix, 2012). He is also displaying the behavioral principle because he is considering either copying the competition or adopting a business model that works for other furniture firms. Copying the behavior of another could work for Guillermo. The comparative advantage principle can also work with Guillermo because he can offer a patented coating that is flame retardant and...
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...A Short History of Economic Thought Hans-Walter Lorenz FSU Jena Winter 2012/13 Hans-Walter Lorenz (FSU Jena) A Short History of Economic Thought Winter 2012/13 1 / 93 Outline, Relevance, and Contents Outline, Relevance, and Contents Outline Very brief overview of a few dominant authors (starting around 1700 and ending in our times) Due to time restrictions: selection is to some extent arbitrary Emphasis on authors with a major influence on the development of economics Note: Empty entries are open for students’ presentations Hans-Walter Lorenz (FSU Jena) A Short History of Economic Thought Winter 2012/13 2 / 93 Outline, Relevance, and Contents Outline, Relevance, and Contents Relevance: Reasons for concentrating on the history of thought General historic interest (assumed!) Developing a sense for connections between political/technical history and the emergence of new economic ideas Many recently discussed topics in economics have ancestors in previous decades and centuries; many ‘brand-new’ approaches actually possess long beards (however often forgotten). Hans-Walter Lorenz (FSU Jena) A Short History of Economic Thought Winter 2012/13 3 / 93 Outline, Relevance, and Contents Outline, Relevance, and Contents Contents The Classics – Quesnay, Smith, Ricardo, Say, Malthus, Marx The Neoclassics – Marshall, Walras, Menger, Gossen The Keynesian Revolution The Neoclassical Synthesis and the New Classical School Strategic...
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