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    Remedial Take-Home Exam For Introduction To Economics

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    AgZaw
    This document contains 11 questions covering various topics in economics including opportunity costs, productivity, comparative advantage, supply and demand diagrams, the Coase theorem, private vs public goods, production functions, and profit maximization for a competitive firm. The questions ask the reader to define terms, provide examples, construct tables and graphs, and analyze production, costs and profits.

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    Remedial Take-Home Exam For Introduction To Economics

    Uploaded by

    AgZaw
    30 views2 pages
    This document contains 11 questions covering various topics in economics including opportunity costs, productivity, comparative advantage, supply and demand diagrams, the Coase theorem, private vs public goods, production functions, and profit maximization for a competitive firm. The questions ask the reader to define terms, provide examples, construct tables and graphs, and analyze production, costs and profits.

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    Remedial Take-home Exam

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    This document contains 11 questions covering various topics in economics including opportunity costs, productivity, comparative advantage, supply and demand diagrams, the Coase theorem, private vs public goods, production functions, and profit maximization for a competitive firm. The questions ask the reader to define terms, provide examples, construct tables and graphs, and analyze production, costs and profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    Remedial Take-Home Exam For Introduction To Economics

    Uploaded by

    AgZaw
    This document contains 11 questions covering various topics in economics including opportunity costs, productivity, comparative advantage, supply and demand diagrams, the Coase theorem, private vs public goods, production functions, and profit maximization for a competitive firm. The questions ask the reader to define terms, provide examples, construct tables and graphs, and analyze production, costs and profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Remedial Take-home Exam for Introduction to Economics

    1. Give three examples of trade-off a housewife faces every day.


    2. Give an example of opportunity cost of becoming a mother.
    3. What does incentive mean? What incentives can a teacher give students to study
    harder?
    4. What is meant by productivity? What three advice would you give your friend who is
    struggling in her studies to improve her studying productivity?
    5. Korean and Japanese workers can each produce 10 cars a year. A Korean worker
    can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons
    of grain a year. To keep things simple, assume that each country has 10 million
    workers.
    a. For this situation, construct a table analogous to the table in Figure 1 (page 51).
    b. Graph the production possibilities frontiers for the Korean and Japanese
    economies.
    c. For Korea, what is the opportunity cost of a car? Of grain?
    For Japan, what is the opportunity cost of a car? Of grain?
    Put this information in a table analogous to Table 1 (page 55).
    d. Which country has an absolute advantage in producing cars? In producing grain?
    e. Which country has a comparative advantage in producing cars? In producing
    grain?
    f. Without trade, half of each country’s workers produce cars and half produce
    grain. What quantities of cars and grain does each country produce?
    g. Starting from a position without trade, give an example in which trade makes
    each country better off.

    6. Give two examples each of normal goods, inferior goods, substitutes, and
    complements.
    7. Suppose Myanmar government requires Facebook users to pay a $1 tax on each
    gigabyte (1GB) of data used.
    a. Draw a supply-and-demand diagram of the market for Facebook users without
    the tax. Show the price paid by consumers, the price received by producers, and
    the quantity of data sold. What is the difference between the prices received by
    producers?
    b. Now draw a supply-and-demand diagram for the Facebook user market with the
    tax. Show the price paid by consumers, the price received by producers, and the
    quantity of data sold. What is the difference between the price paid by
    consumers and the price received by producers? Has the quantity of data sold
    increased or decreased?
    8. What is Coase Theorem? Give an example of how Coase Theorem can be used to
    resolve a conflict.
    9. Give two examples each for private goods, public goods, and common resources and
    explain why they are such goods.
    10. Domus Company makes energy drinks for students and sell them in the market.
    Here's the relationship between the number of workers and the Domus' workers and
    output in a given day.

    Marginal Total Average Marginal


    Workers Output Product Cost Total Cost
    Cost
    0 0
    1 10
    2 40
    3 80
    4 110
    5 130
    6 140
    7 145

    a. Fill in the column of marginal products. What pattern do you see? How might
    you explain it?
    b. A worker costs $100 a day, and the firm has fixed costs of $200. Use this
    information to fill in the column for total cost.
    c. Fill in the column for average total cost.
    d. Now fill in the column for marginal cost. What pattern do you see?
    e. Compare the column for marginal product and the column for marginal cost.
    Explain the relationship.
    11. A profit-maximizing firm in a competitive market is currently producing 100 units
    of output. It has average revenue of $10, average total cost of $8, and fixed cost of
    $200.
    a. What is its profit?
    b. What is its marginal cost?
    c. What is its average variable cost?
    d. Is the efficient scale of the firm more than, less than, or exactly 100 units?

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