AGEC 105 Exam 3

The following information supposedly collected on a particular country by the CIA.

Consumption Expenditures $3,600 million
Imports $1,200 million
Depreciation $300 million
Government Expenditures $1,000 million
Gross Private Domestic Investment $1,000 million
Tax Revenues $700 million
Exports $800 million
Implicit GDP Deflator 2.00 (1996 = 1.00)

Nominal GDP is equal to:

Given the following equation where DPI represents disposable personal income:

C = 1,500 + 0.85(DPI)

If disposable personal income is $5,000, consumer spending would be equal to:

A barter economy occurs where:

Investment expenditures consists of:

Aggregate demand in the economy is equal to:

Given the graph below, which of the following statements is false?

Marginal propensity to consume is the slope of the aggregate consumption function and tells us how much consumption will change if consumer disposable income changes.

Given the equation C = $1,500 + .70($3,000):

The marginal propensity to save is equal to:

Disposable income in the economy reflects:

Given the graph below, which of the following statements is true?

Given the graph below, which of the following statements is true?

Assume the curves depict the aggregate demand (AD) and aggregate supply (AS) curves for a particular economy. Let $14 trillion correspond to the full employment level of aggregate output (the targeted or desired level) for this particular economy.

Consumption expenditures includes:

An inflationary gap occurs in the economy when:

The quantity producers would have supplied at the target price is

Intellectual property includes

A major difference between monopolistic competition and perfect competition is the degree of product differentiation. Pure competition has none and differentiation always exists in monopolistic competition.

A profit-maximizing, single-price monopoly must lower its price in order to sell more output.

Absent an ability to price discriminate, if a monopoly wants to sell more output, it must

Given figure below,Assuming no price discrimination, the firm represented by Figure above will have a(n)

Suppose that for a monopolist, MR = MC = $10 and P = $15 at the profit-maximizing level of output. At this level of output, the firm

Brittany provides manicures at the only salon in town. Her marginal cost is constant at $5 per client, her fixed cost is $25 per day, and she is able to do 8 manicures per day. On a given day, half of her clients are willing to pay $15 for a manicure; half are willing to pay only $10. If she charges all of her clients $10, then her maximum daily profit equals

The firm in Figure below does not practice price discrimination. Its price and output will be

Given the environment illustrated in Figure below, At the profit-maximizing, or loss-minimizing, level of output for the firm in Figure above, total revenue is approximately

Which of the following is not considered a barrier to entry?

Monopolies are characterized by all of the following, except one. Which is the exception?

Given the figure below,Producers are better off, gaining area 6 while giving up areas 2 and 3.

Figure below shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs. If it does not discriminate, it will produce

For a monopoly,

Brian and Matt own the only two bicycle repair shops in town. Each must choose between a low price for repair work and a high price. The yearly economic profits from each strategy are indicated in Figure bellow. The upper right side of each rectangle shows Brian's profits; the lower left side shows Matt's profits. Which of the following statements is correct for a one-trial game?

Given figure below, Assuming no price discrimination, the firm represented by Figure above will have a(n)

Give Figure below What is the total profit (or loss) for the (single-price) monopolist shown in Figure above?

Figure below shows the payoff matrix for the only two auto dealerships in a community, Jim's Autos and Tim's Autos. The matrix shows the profits that each firm would earn from choosing either a low price or a high price. Jim's dominant strategy is to

Patents grant

The change in total revenue obtained by selling an additional unit of output is

Figure below shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs. If it does not discriminate what will it's profit be?

Given the figure below, Consumer s would be worse off economically under this form of supply control by area 4 plus area 6.

A single-price monopolist is producing 8,000 units of output. At that level, price equals $10, average total cost equals $12, and average variable cost equals $8. In addition, both marginal cost and marginal revenue equal $6. Which of the following statements is correct in the short run?

In Promaine Flats, Nevada there are two restaurants: Sal Monella and Road Kill Café. Current profit is $7,000 each. Cleaning will attract more customers, but profit will reduce to $5,000 each. If Sal Monella cleans up and Road Kill Café doesn't then profit will be $4,500 for Sal Monella and $3,000 Road Kill, and if Road Kill Café cleans up and Sal Monella doesn't then profit will be $4,500 and $3,000, respectively.