Microeconomics Stapp Test 2 - Assignment Essays

question

For voluntary trade to take place both parties must be ____

answer

satisfied

question

The ______ of resources must be different between countries for trade

answer

1. quantity
2. quality

question

the amount/ cost to produce in one country different than another allows _______ to take place

answer

trade

question

Absolute advantage

answer

can produce absolutely more than another country
(Produce the most of a certain product)

question

Comparative advantage

answer

Who can do this the most efficient with their resources (country that can produce the most efficiently)

question

Efficiency

answer

Maximum output /outcome for input

question

Equity

answer

Treating equal people equally or different people differently

question

Can you be equitable and not efficient and vice versa?

answer

Yes you can have one without the other

question

Domestic markets

answer

Consumers love trade
Producers not as much
Price -
Q cons +
Q prod -
Cs +
Ps -

question

Foreign market

answer

Producers love trade
Consumers not as much
Price +
Q cons -
Q producers +
Cs -
Ps +

question

CA CB
Resources 100 50
Output 1000 700

answer

CA: absolute advantage

CB: comparative advantage

question

Wisconsin was known for cheese
Nappa valley for wine

answer

Both better adapted for their production

question

The key to understanding trade

answer

Cost structure of countries are different

question

Two things that must be in a market

answer

Supply
Demand

question

Two countries trade deficit

answer

China and Japan

question

Autarky

answer

The absence of trade

question

The only way imports can come into a country

answer

When there is an unmet need (shortage)

question

As price decreases shortage ___

answer

Increases

question

The demand for imports come from the excess ___ from domestic market

answer

Demand

question

As prices increases surplus _____

answer

Increases

question

When both countries have the same cost structure there is no ___

answer

Trade

question

We benefit when our market ____ increases

answer

Surplus

question

Imports have to come in at a ___ price than their domestic equivalent

answer

Lower

question

MS =

answer

Net gains from trade

question

If a price falls in a domestic market who likes it?

answer

Consumers

question

At equilibrium there is the

answer

Absence of trade

question

Is it possible to be efficient and equitable?

answer

Yes

question

Possible to not have both?

answer

Yes

question

If costs are same to produce a product then there is no

answer

Trade

question

Arbitrage

answer

Price of import lower than export

question

For every car brought in from Japan ___ people lose their jobs

answer

question

In trade there is no ____ at all

answer

Ambiguity

question

Overall with trade we are

answer

Better off just a part of society isn't

question

Price decrease

answer

Cs+
Ps-
Ms+
New ms triangle = gains from trade

question

The price of natural gas is going down even though

answer

Exports are going out

question

1990 is known as the ____ decade,

answer

Lost decade
3 famines in Japan are bark and leaves

question

Is there equity in trade?

answer

Yes

question

Two things to produce more

answer

1. Become more efficient
2.

question

What is the biggest subsidy of all time

answer

Interstate highways

question

APEC
TPP

answer

China is not a part of TPP can't subsidize unfair competition

question

Third largest economy on planet

answer

Japan

question

Impetus of America

answer

Stop competition

question

Steps to stop competition

answer

1. Tariff (tax on import)
2. Quota (limit amount of import)
3. Embargo (ban completely/ economic sanction)

question

We used to have embargos on

answer

Cuba
Iran

question

You loose gains from trade when there is a

answer

Complete ban

question

Trump wants to tariff every import from Mexico by

answer

35%

question

1990s APEC meeting

answer

Seattle Washington
President Clinton "the future of America is with Asia"

question

Most controversial import

answer

Autos

question

What autos did threaten we put tariffs on

answer

Lexus
Infinity
Acura

question

Japan's response to auto tariff

answer

Do it
1. Longevity oriented
2. Employee oriented
3. Profit oriented

question

Even though we invented televisions there are

answer

No American manufacturers left

question

Magnavox

answer

The most expensive TV set in America

question

Record company of America
Zenith

answer

...

question

Average cost per year incarceration

answer

20-40k

question

Diesel fuel is used for

answer

Refining cocaine

question

Nancy Reagan

answer

Just say no

question

Effect of legalizing illegal activity

answer

3 different buyer groups
1. People who do it regardless
2. Wanna be consumers
3. Those who never will

question

Legalizing illegal activity buyers

answer

Demand increases but supply increases even more

question

Legalizing illegal activity suppliers

answer

1. Those who supply regardless
2. Those who may
3. Those who never will

question

Chronic surplus

answer

Legalizing illegal activity (supply increases relative demand)

question

1920s prohibition

answer

When legalized price went down
Supply increased

question

CS
PS

answer

Increase
Ambig
Illegal activity

question

Income statement

answer

=top line= total revenue

question

Bottom line

answer

Total revenue - total costs = net income / profit

question

Profit

answer

TR-TC

question

Total revenue

answer

Price * Quantity

question

Total revenue

answer

Area below demand

question

Total cost

answer

Area below supply

question

When price percent decreases by same amount as QD percent increases

answer

TR stays the same

question

When price goes up nominal income

answer

Goes down

question

Marginal costumers

answer

Solely on price

question

Brand loyal

answer

Do not change purchase behavior on prices

question

Operating cost

answer

Total variable cost how much produced

question

Plant and equip

answer

Total fixed cost doesn't change by amount produced

question

Compare absolute values

answer

Interested with magnitude

question

Demand is always

answer

Negative

question

When price changes in unitary

answer

Nothing changes

question

Statistics

answer

No right answer just gives best possible answer you can

question

Measures of central tendency

answer

Mean
Median
Mode

question

Normal distribution

answer

Mean=median=mode

question

Net income per share

answer

Profit

question

Differentiated product

answer

Those that stay brand loyal

question

Homogeneous products

answer

Marginal costumers that buy primarily on price

question

When there is a price increase

answer

Both have marginal and brand loyal demand is responsive (elastic)

question

Goal of marketing

answer

Make people more brand loyal

question

Where every costumer is marginal

answer

Perfect substitutes
Will buy any quantity at price
Buyers market
There is only one max price
Infinite change
Perfectly ELASTIC

question

If costs go down do prices have to?

answer

No when all costumers are marginal

question

___ amount of farmers in NWA

answer

56 rice farmers
Original farm products

question

Concave

answer

Roadrunner coyote

question

Concave stapp fact

answer

Something that bends away from

question

Convex

answer

Function bends towards something

question

When TR is maximized

answer

Demand is unitary

question

TR is concave with respect to

answer

Quantity

question

Marginal revenue

answer

Change in total revenue by last unit of quantity ??

question

Marginal revenue

answer

🔺TR/ 🔺 Q (slope of total revenue)

question

Key newton

answer

Tangent points close together

question

Slope of a curve is slope of tangent line drawn to the curve at

answer

That point

question

Marginal "concept" is slope of

answer

Total "concept"

question

Average price of wheat

answer

$4 per bushel

question

When demand is perfectly elastic there is no

answer

Consumer surplus

question

Brand loyal

answer

Willing to pay any price
Drugs/ habits/ addictions/ necessities
Perfectly inelastic
No change in QD
TR increase by full amount of price
Sellers market

question

Increasing marginal demand

answer

Demand becomes more elastic (flatter) more consumers are homogenous

question

Increase brand loyal costumer

answer

Demand becomes more inelastic (steeper) goal of marketing

question

Midpoint formula

answer

E= (Q1-Q2)/ ((Q1+Q2)/2)/ (P1-P2)/ ((P1+P2)/2)

question

Stapp Formula

answer

Q1-Q2/Q1
----------
P1-P2/P1

question

Positive but less than one

answer

Normal good and a necessity (milk)

question

Positive but greater than one

answer

Normal good and a luxury (Rolex)

question

Negative

answer

Inferior (ramen noodles)

1 of 108

question

For voluntary trade to take place both parties must be ____

answer

satisfied

question

The ______ of resources must be different between countries for trade

answer

1. quantity
2. quality

question

the amount/ cost to produce in one country different than another allows _______ to take place

answer

trade

question

Absolute advantage

answer

can produce absolutely more than another country
(Produce the most of a certain product)

question

Comparative advantage

answer

Who can do this the most efficient with their resources (country that can produce the most efficiently)

question

Efficiency

answer

Maximum output /outcome for input

question

Equity

answer

Treating equal people equally or different people differently

question

Can you be equitable and not efficient and vice versa?

answer

Yes you can have one without the other

question

Domestic markets

answer

Consumers love trade
Producers not as much
Price -
Q cons +
Q prod -
Cs +
Ps -

question

Foreign market

answer

Producers love trade
Consumers not as much
Price +
Q cons -
Q producers +
Cs -
Ps +

question

CA CB
Resources 100 50
Output 1000 700

answer

CA: absolute advantage

CB: comparative advantage

question

Wisconsin was known for cheese
Nappa valley for wine

answer

Both better adapted for their production

question

The key to understanding trade

answer

Cost structure of countries are different

question

Two things that must be in a market

answer

Supply
Demand

question

Two countries trade deficit

answer

China and Japan

question

Autarky

answer

The absence of trade

question

The only way imports can come into a country

answer

When there is an unmet need (shortage)

question

As price decreases shortage ___

answer

Increases

question

The demand for imports come from the excess ___ from domestic market

answer

Demand

question

As prices increases surplus _____

answer

Increases

question

When both countries have the same cost structure there is no ___

answer

Trade

question

We benefit when our market ____ increases

answer

Surplus

question

Imports have to come in at a ___ price than their domestic equivalent

answer

Lower

question

MS =

answer

Net gains from trade

question

If a price falls in a domestic market who likes it?

answer

Consumers

question

At equilibrium there is the

answer

Absence of trade

question

Is it possible to be efficient and equitable?

answer

Yes

question

Possible to not have both?

answer

Yes

question

If costs are same to produce a product then there is no

answer

Trade

question

Arbitrage

answer

Price of import lower than export

question

For every car brought in from Japan ___ people lose their jobs

answer

question

In trade there is no ____ at all

answer

Ambiguity

question

Overall with trade we are

answer

Better off just a part of society isn't

question

Price decrease

answer

Cs+
Ps-
Ms+
New ms triangle = gains from trade

question

The price of natural gas is going down even though

answer

Exports are going out

question

1990 is known as the ____ decade,

answer

Lost decade
3 famines in Japan are bark and leaves

question

Is there equity in trade?

answer

Yes

question

Two things to produce more

answer

1. Become more efficient
2.

question

What is the biggest subsidy of all time

answer

Interstate highways

question

APEC
TPP

answer

China is not a part of TPP can't subsidize unfair competition

question

Third largest economy on planet

answer

Japan

question

Impetus of America

answer

Stop competition

question

Steps to stop competition

answer

1. Tariff (tax on import)
2. Quota (limit amount of import)
3. Embargo (ban completely/ economic sanction)

question

We used to have embargos on

answer

Cuba
Iran

question

You loose gains from trade when there is a

answer

Complete ban

question

Trump wants to tariff every import from Mexico by

answer

35%

question

1990s APEC meeting

answer

Seattle Washington
President Clinton "the future of America is with Asia"

question

Most controversial import

answer

Autos

question

What autos did threaten we put tariffs on

answer

Lexus
Infinity
Acura

question

Japan's response to auto tariff

answer

Do it
1. Longevity oriented
2. Employee oriented
3. Profit oriented

question

Even though we invented televisions there are

answer

No American manufacturers left

question

Magnavox

answer

The most expensive TV set in America

question

Record company of America
Zenith

answer

...

question

Average cost per year incarceration

answer

20-40k

question

Diesel fuel is used for

answer

Refining cocaine

question

Nancy Reagan

answer

Just say no

question

Effect of legalizing illegal activity

answer

3 different buyer groups
1. People who do it regardless
2. Wanna be consumers
3. Those who never will

question

Legalizing illegal activity buyers

answer

Demand increases but supply increases even more

question

Legalizing illegal activity suppliers

answer

1. Those who supply regardless
2. Those who may
3. Those who never will

question

Chronic surplus

answer

Legalizing illegal activity (supply increases relative demand)

question

1920s prohibition

answer

When legalized price went down
Supply increased

question

CS
PS

answer

Increase
Ambig
Illegal activity

question

Income statement

answer

=top line= total revenue

question

Bottom line

answer

Total revenue - total costs = net income / profit

question

Profit

answer

TR-TC

question

Total revenue

answer

Price * Quantity

question

Total revenue

answer

Area below demand

question

Total cost

answer

Area below supply

question

When price percent decreases by same amount as QD percent increases

answer

TR stays the same

question

When price goes up nominal income

answer

Goes down

question

Marginal costumers

answer

Solely on price

question

Brand loyal

answer

Do not change purchase behavior on prices

question

Operating cost

answer

Total variable cost how much produced

question

Plant and equip

answer

Total fixed cost doesn't change by amount produced

question

Compare absolute values

answer

Interested with magnitude

question

Demand is always

answer

Negative

question

When price changes in unitary

answer

Nothing changes

question

Statistics

answer

No right answer just gives best possible answer you can

question

Measures of central tendency

answer

Mean
Median
Mode

question

Normal distribution

answer

Mean=median=mode

question

Net income per share

answer

Profit

question

Differentiated product

answer

Those that stay brand loyal

question

Homogeneous products

answer

Marginal costumers that buy primarily on price

question

When there is a price increase

answer

Both have marginal and brand loyal demand is responsive (elastic)

question

Goal of marketing

answer

Make people more brand loyal

question

Where every costumer is marginal

answer

Perfect substitutes
Will buy any quantity at price
Buyers market
There is only one max price
Infinite change
Perfectly ELASTIC

question

If costs go down do prices have to?

answer

No when all costumers are marginal

question

___ amount of farmers in NWA

answer

56 rice farmers
Original farm products

question

Concave

answer

Roadrunner coyote

question

Concave stapp fact

answer

Something that bends away from

question

Convex

answer

Function bends towards something

question

When TR is maximized

answer

Demand is unitary

question

TR is concave with respect to

answer

Quantity

question

Marginal revenue

answer

Change in total revenue by last unit of quantity ??

question

Marginal revenue

answer

🔺TR/ 🔺 Q (slope of total revenue)

question

Key newton

answer

Tangent points close together

question

Slope of a curve is slope of tangent line drawn to the curve at

answer

That point

question

Marginal "concept" is slope of

answer

Total "concept"

question

Average price of wheat

answer

$4 per bushel

question

When demand is perfectly elastic there is no

answer

Consumer surplus

question

Brand loyal

answer

Willing to pay any price
Drugs/ habits/ addictions/ necessities
Perfectly inelastic
No change in QD
TR increase by full amount of price
Sellers market

question

Increasing marginal demand

answer

Demand becomes more elastic (flatter) more consumers are homogenous

question

Increase brand loyal costumer

answer

Demand becomes more inelastic (steeper) goal of marketing

question

Midpoint formula

answer

E= (Q1-Q2)/ ((Q1+Q2)/2)/ (P1-P2)/ ((P1+P2)/2)

question

Stapp Formula

answer

Q1-Q2/Q1
----------
P1-P2/P1

question

Positive but less than one

answer

Normal good and a necessity (milk)

question

Positive but greater than one

answer

Normal good and a luxury (Rolex)

question

Negative

answer

Inferior (ramen noodles)

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