ECON 312 Final Exam

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ECON 312 Week 8 Final Exam (40 Questions and Answers)

1. The Table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread.

2. Using the information in the table above, what does GDP equal ?

3. Click on the icon to read the news clip, then answer the following question

a. Other things remaining the same, the change in what goods and services were produced is ……………. The change in for whom goods and service are produced is …………….

b. The decision to work part-time is a decision made in the ……………. An employer’s decision to shorten work hours is a decision made in the ……………..

4. Read Eye on Retailers’ Costs. Then answer the following questions

The graph shows the ATC curves of a Wal-mart store and a 7-11. Each store is operating at its minimum ATC.

a. _________has the lower cost because ________-

b. _________Has the lower marginal cost because _____

c. Draw and label each firms’ marginal cost curve

5. The table shows an economy’s total production and the price of the final goods it produced in 2013 and 2014. The base year is 2013. Calculate the percentage change in production in 2014

b. The graph shows the market for luxury boats. The government decides to tax luxury boats 10 percent. Draw a shape that represents the excess burden of the tax.

The tax is _________because at the quantity produced _________

6. Explain how the headlines concern self-interest and the social interest

a. Wal-mart, the world’s biggest store, is opening in China, and KFC is expanding everywhere.

b. Lottery tickets must state odds of winning

7. The figure shows the market for pizza. The market is in equilibrium when the wages paid pizza workers increases. What point represents the most likely new price and quantity?

8. Using the data in the table above, the growth rate of real GDP for 2010 is equal to

9. The graph shows the supply curve of sleeping bags and the market price of a sleeping bag. Draw a point that shows the marginal cost of the 30th sleeping bag.

The marginal cost of the 30th sleeping bag is ____________

10. The table shows the demand and supply schedule for boxes of chocolates on an average week. The price of chololate is $ 17.00 a box.

The quantity supplied__________the quantity demand______and the price_______until the ___________is eliminated.

11. Read the news clip, and then answer the following questions.

The personal distribution of income in china can be getting more unequal because_________

12. The table above show a nation’s labor demand and labor supply schedules and its production function. Given the equilibrium in the labor market, potential GDP is

13. The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $ 3 million and 330 luxury boats a week are bought. Now luxury boats are taxed at 20 percent.

After the tax imposed, the buyer pays__________for a luxury boat.

Choose the statement about the tax incidence that is correct.

Based on the data in the above, ice cream and cake are ___________goods

14. During Valentines’ week, people buy more boxes of chocolate than in a normal week and chocolatiers offer their chocolate in special red boxes which cost more to produce than the everyday box. The graph shows the market for boxes of chocolates during a normal week.

Draw a curve to show the effect when more people buy boxes of chocolates during Valentine’s week. Label it 1.

Draw a curve to show the effect of chocolatiers offering their chocolates in special red boxes. Label it 2

Draw a point to show the new equilibrium price and new equilibrium quantity.

15. The figure shows the production possibilities frontier for Suzie’s Squeeze, a smoothies producer.

Draw a point at which the firm achieves production efficiency. Label it Efficient.

Draw a point that is attainable but inefficient. Label it Inefficient.

When Production is inefficient………………