Economics 101Final Title ___________________________________Final ExamTA Title and Recitation Amount __________________During this examination, school college students may not use notes, books, laptop methods, programmable calculators, cell telephones or any digital machine apart from a simple calculator. Faculty college students may not converse with completely different school college students or check out the examination papers of various school college students. As quickly because the examination begins, school college students may not depart the room until they finish and change of their exams.Honor Pledge: I’ve neither given nor obtained unauthorized help on this examination. I do know and have abided by the examination tips and instructions.Signed: ______________________________________________________________Instructions1.2.three.4.5.On the blue Scantron sheet:a. Bubble in your closing title, first title and PID.b. Bubble in your recitation amount inside the sequence amount house as 1017xx the place xx isdetermined by your half amount. For example, someone partly 712 would bubble in101712. See beneath for a listing of half numbers.c. Faculty college students who incorrectly bubble their title, PID, or half amount are penalized 2 components.d. Write the form color of the examination on the upper left nook of the bubble sheet. The formis white, inexperienced, blue or yellow.The examination consists of 50 equally weighted questions. Reply all questions by marking thebubble sheet and by circling the correct reply on the examination itself. Inside the case of battle, theScantron reply is the official reply.Within the occasion you think about there isn’t a such factor as a correct reply or a number of correct reply to any question, make clear yourreasoning on the once more of this sheet (not the Scantron sheet). We can’t ponder an attraction unlessyou have recorded your argument on the examination sheet all through the examination interval.When you might have accomplished the examination, sign the excellence pledge. We can’t ponder anexamination official besides you sign the pledge.While you’re accomplished, flip inside the reply sheet and the examination by inserting them on the correctpiles on the rostrum.Economics 101.007Final Examination, internet web page 212 December 20131. In his Wall Highway Journal article by Jon Hilsenrath on our Archive internet web page, we found thatreal GDP grew by 1.6 p.c inside the third quarter of 2013 (i.e., the months of July,August and September), nonetheless would have grown 2.7 p.c in that quarter if_____________ had not occurred. What did Mr. Hilsenrath put on this clear?a.b.c.d.e.Super Storm Sandy.Authorities waste, fraud and abuse.Operation Twist.Decline in authorities expenditure.Your entire above.Background for questions 2, three, 4: Matty has merely provide you with an unimaginable thought for a ringtone: aninstrumental mannequin of Hark the Sound for UNC alums. Hes the one one making this product.Proper right here is the demand curve for the product for a 12 months.Worth$9$eight$7$6Quantity (tons of)36912$515$418$321$2242. The mounted value of renting the taping gear for a 12 months is $15000, and the marginal costof inserting the ringtone on the purchasers cellphone (along with the possibility value ofMattys time) is $three. If Matty follows the optimum supplier rule, what variety of ringtones willhe promote?a. 6 thousandb. 9 thousandc. 12 thousandd. 15 thousande. Not one of many above3. What is going on to Mattys complete value and income be at P=$eight?a. $33000; $15000b. $42000; $11000c. $51000; $21000d. $60000; $23000e. Not one of many above4. Matty has merely discovered the reason that no person else is making this product. UNC (theuniversity) has a copyright (like a patent) on Hark the Sound, and might solely let Mattycontinue if he pays UNC a royalty yearly. If UNC wished to get the perfect possiblerent from its copyright, what yearly value will it price Matty to proceed his enterprise?a. Equal to Mattys complete revenueb. Equal to Mattys monetary profitc. Equal to Mattys accounting profitd. No feee. Not one of many aboveEconomics 101.007Final Examination, internet web page 312 December 20135. The optimum labor hiring rule states company must proceed to hire workers so prolonged asthe ______________ of labor is greater than the _______________.a. productiveness, frequent complete costb. productiveness, wagec. marginal revenue product, frequent complete costd. marginal revenue product, wagee. not one of many above6. China recently lowered its reserve requirement for banks in an attempt to stimulateeconomic demand. How does this protection change have an impact on the money present in China?a. it reduces monetary establishment property.b. it should enhance monetary establishment liabilities.c. it forces banks to borrow additional from completely different banks.d. it forces the banks to lend additional to their prospects.e. it permits banks to make additional loans and thus improve deposits inthe banking system.MoneyPrice indexReal GDPVelocity2012$5 billion100$ 1 billion20a.b.c.d.e.2013$10 billion100??????7. Inside the desk to the left you areprovided particulars about moneysupply, velocity, precise GDP and the priceindex in Elbonia (they use the $ ascurrency) for 2012 and 2013.Primarily based on the quantity equation, thereal GDP and velocity shall be for 2013:$2 billion, 20$ 1 billion, 10$ 4 billion, 40all of the abovenone of the above8. We have got a wide range of readings about Bitcoins on our Archive internet web page. As soon as we considerBitcoins in these readings from the angle of the three traits of money,what can we conclude?a. Bitcoins perform a retailer of valueb. Bitcoins perform a medium of exchangec. Bitcoins perform a unit of accountd. Your entire abovee. Every a and b.Background knowledge for questions 9, 10 and 11. Youve been given the followinginformation in regards to the US monetary system for 2014 (all in trillions of US ) by your boss at theCouncil of Monetary Advisers. Potential precise GDP (Y*) = $ 22. Authorities expenditure (G)Economics 101.007Final Examination, internet web page 412 December 2013= $2. Funding expenditures (I)= $1. Tax revenues (T)= $ 1. Exports (EX)= $three.Consumption expenditures (C) = $ 2 + .9 (Y-T). Imports (IM) = $ three + .1(Y-T). Consumerprices are mounted. Exact precise GDP (Y) won’t be however acknowledged, and its your job to search out it.9. What is the marginal propensity to eat (MPC) on this occasion, and the best way is it relatedto the income-expenditure multiplier?a. zero.1, as a result of the MPC rises the multiplier fallsb. zero.1, as a result of the MPC rises the multiplier risesc. zero.9, as a result of the MPC rises the multiplier fallsd. zero.9, as a result of the MPC rises the multiplier risese. not one of many above.10. What is the equilibrium value of precise GDP that you just predict?a. $ 4b. $ 10c. $ 20d. $ 22e. not one of many above11. If the federal authorities chooses to increase every G and T by $1 trillion, what shall be thechange in Y?a. low cost of $1 trillionb. zero effectc. improve of $1 trilliond. improve of $2 trillione. not one of many above.12. An open-market purchase is the acquisition of presidency Treasury funds from the___________ by the __________ for the goal of accelerating the provision of bankreserves and the money present.a. public, Federal Reserveb. authorities, Federal Reservec. public, US Treasuryd. authorities, US Treasurye. not one of many above13. A tough and quick alternate payment is an alternate payment whose value is __________ by ____________policy.a. numerous, private demandb. numerous, official governmentc. set, private demandd. set, official governmente. not one of many aboveEconomics 101.007Final Examination, internet web page 512 December 201314. A recessionary output gap exists when ___________________ is _______ than potentialoutput.a. employment, lessb. employment, morec. exact output, lessd. exact output, moree. not one of many above15. The fractional reserve banking system is a banking system by which required________________ are decrease than _______________ .a. liabilities, additional reservesb. liabilities, depositsc. monetary establishment reserves, additional reservesd. monetary establishment reserves, depositse. not one of many above16. Which of the subsequent is a component (are elements) of M2 nonetheless not of M1?a. Saving depositsb. Small-denomination time depositsc. Money-market mutual fundsd. Your entire abovee. Not one of many aboveBackground for questions 17, 18 and 19. Take into consideration two worldwide places, the US and China. Theyproduce two gadgets, aircraft and televisions. The number of people that it takes to produce 1 ofeach good in each nation is given inside the following desk.1 Aircraft1 TelevisionChina100,000100US75050Suppose for this question that there are 1 million people in China and 75,000 inside the US.17. What are the two endpoints for the manufacturing probability curve for China?a. 100,000 Aircraft, 100 Televisionsb. 10 Aircraft, 10,000 Televisionsc. 100 Aircraft, 1500 Televisionsd. 750 Aircraft, 50 Televisionse. Not one of many aboveEconomics 101.007Final Examination, internet web page 612 December 201318. What is the various value of 1 aircraft for China and the US, respectively?a. 1,000 Televisions for China, 15 Televisions for the USb. 15 Televisions for China, 1,000 Televisions for the USc. 1/1,000 of an aircraft for China, 1/15 of an aircraft for the USd. 750 workers for China, 100,000 workers for the USe. Not one of many above.19. Can the two worldwide places every revenue from worldwide commerce in this stuff? If that is the case, whatproduct must China export?a. No.b. Positive, Aircraft.c. Positive, Televisionsd. Positive, every goodse. Positive, neither good20. Scorching canines and hot-dog buns are ______________________ gadgets on account of when the priceof scorching canines rises, the demand for hot-dog buns _______________________.a. Substitute, rises.b. Substitute, falls.c. Complement, rises.d. Complement, falls.e. Not one of many above.Background for questions 21, 22 and 23. The graph beneath illustrates the provision anddemand curves for unskilled workers in Chapel Hill in December 2013. The curvelabeled present is the provision curve of workers, whereas the curve labeled demand is thedemand curve for workers. The wage is acknowledged in per hour. The horizontal axisindicates the number of full-time workers (in tons of) each demanded or supplied ateach wage.21. Equilibrium out there out there for workers shall be observed when the wage and amount ofworkers are:a. 6, eight thousandb. three, 10 thousandc. 9, 6 thousandd. 12, 4 thousande. not one of many above.Economics 101.007Final Examination, internet web page 712 December 2013Wage per hourThe Market for Unskilled Staff1817161514131211109876543210Worker Demand123456Worker present7891011Number of workers (in tons of)22. If the town of Chapel Hill established a minimal wage of $12 per hour for December,then we’re going to observe an additional _______________ of workers of _________________thousand.a. present, 4b. present, 7c. demand, 4d. demand, 3e. not one of many above.23. In a segmented labor market, rising the minimal wage for unskilled workers willhave ______________ affect on the wage of skilled workers.a. an enormous positiveb. a small positivec. nod. a small negativee. an enormous negativeEconomics 101.007Final Examination, internet web page 812 December 2013Background toquestions 24 and 25:Lily has a weekly budgetof $80 to spend on threethings she loves: BetterGrind espresso, Subwaysandwiches, and CatsCradle reveals. She hasfound that her favorite6165105530espresso costs $2 per cup,7167107530the Subway sandwich is$5 apiece, and each showat Cats Cradle costs her $20. The desk to the left signifies the total utility obtained fromconsuming the given number of each of these three devices in a given week.Amount12345Full Utility of Consuming this Number of:CoffeeSubwayCat’s Cradle603015010055350130754501509050016010052024. Which of the subsequent combos of espresso, Subway and Cats Cradle can Lilyafford?a. 1 Cats Cradle, 1 Subway, 1 Espresso.b. 2 Cats Cradle, 2 Subway, 2 Coffeec. three Cats Cradle, three Subway, three Coffeed. Merely choices a and b.e. All of a, b and c.25. If we choose the cheap combination of the three gadgets that maximizes utility, what isthe marginal utility per dollar spent on the ultimate unit of each good and the total utility?a. 5, 665b. 1, 792c. 10, 555d. 7, 804e. Not one of many above26. Which of the subsequent actions illustrate moneys attribute of retailer of value?a. holding a $20 bill in your pockets for spending subsequent month.b. looking for a Treasury bond as a financial funding.c. shopping for ocean property on the Atlantic coast.d. when you promote your vehicle, itemizing the worth in .e. not one of many aboveBackground to questions 27 and 28: Harry and his three suitemates at Granville Towersare all M&M fanatics they love consuming M&Ms at any time of day or night time time. As quickly as per week onSunday they purchase groceries; they each chip in $10 to buy a present of M&Ms for the week.Theyve tried two strategies of serving the M&Ms. First, theyve poured all the M&Ms into aEconomics 101.007Final Examination, internet web page 912 December 2013communal bowl that every one of them share. Second, theyve created separate bowls for eachsuitemate with merely his share of the M&Ms; with this system, suitemates cant take candyfrom bowls belonging to others. They discovered that with the communal serving bowl theM&Ms have been handed by Monday at noon. With the separate serving bowls each suitemate stillhad candy inside the bowl on Friday.27. What is the economics time interval for this phenomenon?a. Optimum suppliers rule.b. Tragedy of the commons.c. Purchaser willingness to payd. value discriminatione. Not one of many above28. Why does each specific individual eat the candy additional slowly inside the individual-bowl servingstyle?a. The marginal advantage of an additional M&M is higherb. The marginal advantage of an additional M&M is lowerc. The marginal value of an additional M&M is lowerd. The marginal value of an additional M&M is highere. Not one of many above.Background to questions 29 and 30. Ford and GM are in a aggressive battle this 12 months to sellpick-up vans. Whether or not or not the F-150 or the Silverado, these are worthwhile merchandise for thecompanies. Inside the desk beneath I state each companys income based upon its pricing method.Each agency can choose each high-price or low-price as a way; the income associated witheach pair of selections is reported on this desk. (The first amount is GMs income; the secondnumber is Fords income.)FordLow-priceHigh-priceGMLow-price20, 2050, 10Extreme-price10, 5040, 4029. Ford has a _____________ pricing method on account of for each GM choice, Fords profitmaximizing choice is ______________.a. Value, low-price.b. Value, high-price.c. Dominant, low-priced. Dominant, high-pricee. Not one of many above.30. The combination _________________, __________________ is a Nash equilibrium.a. Ford low-price, GM low-price.b. Ford low-price, GM high-price.c. Ford high-price, GM low-price.d. Ford high-price, GM high-price.e. None of these.Economics 101.007Final Examination, internet web page 1012 December 201331. When the worth of gasoline rises by 50 p.c (for given purchaser income), the quantitypurchased on the pump falls by 10 p.c. When the consumer income rises by 10p.c (for given value), the quantity purchased on the pump rises by three p.c. This isan illustration of the property of ___________________ ___________________curve.a. an inferior, demandb. an inferior, supplyc. a normal, demandd. a normal, supplye. not one of many above32. The town of Sunnyvale has sunshine every day inside the 12 months (it solely rains at night time time). It has asolar-power plant that generates electrical vitality at 6 cents per kilowatt-hour, nonetheless solely duringthe daytime. At night time time it has a coal-fired vitality plant that generates electrical vitality with a costof 16 cents per kilowatt-hour. Each plant has ample functionality to satisfy the demandfor electrical vitality, nonetheless the solar-power plant does not perform at night time time. What is the sociallyoptimal pricing scheme vitality (per kilowatt-hour) in Sunnyvale, and why?a. 16 cents day and night time time, on account of that is the value of the higher-costunit used.b. 6 cents day and night time time, on account of that is the lower-cost numerous.c. 6 cents by day and 16 cents by night time time, on account of that is the value forthe lowest-cost plant working.d. 6 cents day and night time time, on account of that may maximize consumersurplus.e. Not one of many above.33. Gilbert has merely started his private enterprise doing state-certified inspections of autos. First,he wanted to pay $1000 to the state in a one-time license value. Then, he rented work spacefrom an space vehicle provider. The provider is charging him $500/month for the utilization of the realm.Lastly, he acquired a wonderful deal on the gear he desires: the proprietor will lease it to him at acost of $2 per vehicle inspected. If he inspects no autos, he pays no lease, whereas the additional carshe inspects the additional he pays in rental for that gear. We are going to identify the $1000 licensefee a ____________ value, the $500/month a ______________ value, and the $2 per carpayment a __________________ value.a.b.c.d.e.Variable, mounted, sunkFixed, sunk, variableSunk, mounted, variableVariable, sunk, fixedFixed, variable, sunkEconomics 101.007Final Examination, internet web page 1112 December 201334. An oligopoly is a market by which a _________________ number of large firms competewith one another in selling gadgets which could be ____________________ substitutes.a.b.c.d.e.Big, not closeLarge, closeSmall, not closeSmall, closeNone of the above.35. The manufacturing prospects frontier is a graph that describes the ______________amount of 1 good that could be produced for _______________ diploma of producing ofthe completely different good.a. required, every possibleb. required, the minimumc. most, the minimumd. most, every possiblee. not one of many above36. Structural unemployment is the ___________________ unemployment that existsbecause workers _________________ at the moment are not in demand.a. long-term, skillsb. long-term, Helpantsc. short-term, skillsd. short-term, Helpantse. not one of many aboveDemand for espresso*Background forquestions 37 and 38. Theweekly market for designercoffees in Chapel Hill canbe represented by the graphto the left. Use theinformation from this graphto reply the followingquestions.Worth of 1 cup of espresso (in $)7654321001020304050Cups of espresso (in tons of)6070Economics 101.007Final Examination, internet web page 1212 December 201337. If the quantity is 20 thousand, the consumer willingness to pay is _____________. If theprice on this market is $2, the web willingness to pay at quantity of 20 thousand is_________________.a. 5, 2b. 5, 5c. 4, 4d. 4, 2e. three, 438. If the worth on this market is $2, the patron surplus is _________.a.b.c.d.e.100 thousand80 thousand60 thousand40 thousandnone of the aboveBackground for questions 39,40, and 41. On the left is a tabledescribing the problem facingthe authorities of Uzbekistanwith regard to the Aral Sea.Cotton will promote for $5 per bale(or $5 million per million bales)on worldwide markets. Forthis disadvantage, lets assume thefollowing: 80 million cubicmeters of water per 12 months transfer tothe Aral Sea by technique of the rivers. Water shall be diverted from the rivers to the cotton fields bythe farmers at no cost. There is a $4 per bale variable value to cotton manufacturing. For each rowof the desk, you may be given the quantity of water diverted from the rivers to the cotton fields, theresulting output of cotton, and the following value (in ) to residents of the Aral Sea house ofthe water diversion.Water diverted(Millioncubic meters)10203040506070Quantityof cotton(million bales)40607075777775Worth to AralSea residents(1000’s and 1000’s of )30609012015018021039. If the cotton farmers ignore the costs of their actions to the Aral Sea residents, theiroptimal choices will lead to how quite a bit water diversion?a. 10 million cubic metersb. 20 million cubic metersc. 30 million cubic metersd. 40 million cubic meterse. 50 million cubic metersEconomics 101.007Final Examination, internet web page 1312 December 201340. If the Uzbekistan authorities takes into consideration every the constructive facets to the cottonfarmers and the losses to the Aral Sea residents of diverting water from the rivers, what isthe optimum amount of water diversion it ought to allow?a. no diversionb. 10 million cubic metersc. 20 million cubic metersd. 30 million cubic meterse. 40 million cubic meters41. The Uzbekistan authorities is considering using a tax on cotton farmers to internalizethe exterior costs to Aral Sea residents. Which tax shall be larger at internalizing theexternality?a. a tax per cubic meter on water diversionb. a tax per bale of cotton producedc. a set tax for working a cotton farmd. an income tax on cotton farmers (who may need noncotton income)e. the four are equivalentExportsBusiness investmentPurchase of pre-existing homesGovernment expenditureConsumer expendituresImportsSales from closing 12 months’s inventories$400$200$300$500$1000$500$10042. The accompanying tableprovides knowledge on courses ofexpenditures on final gadgets and suppliers(in billions of US ) in 2013. Ifthis is a complete report, what is the USgross house product for 2013?a.b.c.d.e.$3000$2600$2100$1600not one of many aboveBackground for 43, 44, 45, 46: Three UNC grads (they identify their agency Electro-Heels)have a daring new advertising technique arrange a group of charging stations for electrical carsthroughout the Assessment Triangle house. Theyve researched their advertising technique, and this iswhat they found.Mounted value per 12 months of constructing the group: $10 millionMarginal value (categorical plus implicit) of charging one vehicle one time: $20.Demand for electric-car prices per 12 months in 2020.PriceQuantity1200demanded (1000’s and 1000’s)1000.2900.3800.4700.5600.6500.7400.8300.9201.zero101.1Economics 101.007Final Examination, internet web page 1412 December 201343. If the Electro-Heels produce one million vehicle prices in 2020, what’s the entire value andaverage complete value at that diploma of producing?a. $20 million, $30 millionb. $30 million, $20 millionc. $30 million, $30d. $20 million, $20e. Not one of many above44. Create a graph of the everyday complete value of Electro-Heel manufacturing for zero.2 million, zero.4million, zero.6 million, zero.eight million, and 1 million prices. What can we identify a company that hasaverage complete value curve with this manner?a. Monopolyb. Pure monopolyc. Oligopolyd. Pure Oligopolye. Monopolistic competitor45. What is the consequence (by method of value and quantity) that may maximize complete economicsurplus?a. Worth $20, Quantity 1 million chargesb. Worth $70, Quantity zero.5 million chargesc. Worth $30, Quantity zero.9 million chargesd. Worth $50, Quantity zero.7 million chargese. Not one of many above46. If the federal authorities wished to handle Electro-Heels using average-cost pricing, whatwill be the tip end result (by method of value and quantity):a. Worth $20, Quantity 1 million chargesb. Worth $70, Quantity zero.5 million chargesc. Worth $30, Quantity zero.9 million chargesd. Worth $50, Quantity zero.7 million chargese. Not one of many above47. A quota is a approved ________________ on the ___________________ of a wonderful that presumably imported.a. tax, valueb. tax, quantityc. prohibit, valued. prohibit, quantitye. Not one of many aboveEconomics 101.007Final Examination, internet web page 1512 December 201348. When the price of a countrys imports exceeds the price of a countrys exports in a givenperiod, the nation has a commerce ______________ that should be offset by an equal amountof _______________ worldwide residents.a. surplus, lending tob. surplus, borrowing fromc. deficit, lending tod. deficit, borrowing frome. not one of many above.49. Hybrid autos (identical to the Toyota Prius) are substitutes for non-hybrid autos.When the US authorities launched a tax credit score rating for the purchasers of hybridautomobiles, this ______ the ________ curve for non-hybrid autos.a.b.c.d.e.Elevated (shifted in direction of bigger parts), DemandDecreased (shifted in direction of lower parts), DemandIncreased (shifted in direction of bigger parts), SupplyDecreased (shifted in direction of lower parts), Supplynone of the above50. The speed of curiosity is the amount that debtors pay ____________ per dollar of moneyborrowed. It is the choice value of ________________________________.a.b.c.d.e.In taxes; spending todayIn taxes; spending inside the futureTo lenders; spending todayTo lenders; spending inside the futureNone of the above.

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