Micro Midterm pt 1

What is a consequence of the division of labor?

Why has globalization become so prevalent in the past half century?

What institution brings together buyers and sellers of goods and services?

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Maintain production line:

The Kravlon Bank wants to loan money to customers. They have a risk premium of 2.5%, they expect inflation to be 1%, and there is a time value of money of .75%. What is the minimum interest rate they should charge?

Prices:
-beer: $3
-wing: $1
-Income: $12

Based on this budget constraint, what combination of goods is possible and efficient?

What two effects explain the reasoning of the question above?

Above Question: (As the price of Fancy Lads Snack Cakes increases, people will choose to consume more Sugar Bombs and less Fancy Lads Snack Cakes.)

If RobCo places employees successfully, what process is the firm taking part in to increase production?

In order to be productive efficient, production must take place…

Which of the following are goods?

“Eighty-seven billion dollars for Iraq! Just think of how many of our children could be better educated; how many schools could be restored; how many youths could be trained for new jobs; how many bridges and roads could we rebuild; how many prescriptions and improved health care could be provided; how many more police officers, firefighters, etc., could be hired and equipped.”

-Letter to the Editor, Detroit Free Press, 9/9/03

The economic concept illustrated in this statement is...

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Lifting crates full of cereal boxes:

Fill the numbers that satisfy A, B, C, and D into the blanks below.

Qs MUs TUs Qf MUf TUf
0 0 0 0 0 0
1 30 30 1 20 20
2 25 55 2 18 38
3 20 75 3 16 54
4 15 (A) 4 14 68
5 10 100 5 (B) 80
6 5 105 6 10 90
7 0 105 7 8 98
8 -5 100 8 6 104
9 (C) 90 9 4 108
10 -15 75 10 2 110
11 -20 55 11 0 (D)
12 -25 30 12 -2 108

Answer exactly like this: (A) # (B) # (C) # (D) #

Individuals exist to maximize ______; Firms exist to maximize ______.

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Reduce Costs:

It is possible to produce outside of the PPF curve.

Given the table above and the following budget constraint information, which combination of Sugar Bombs and Fancy Lads Snack Cakes will maximize your utility?

Price of Sugar Bombs: $4

Price of Fancy Lads Snack Cakes: $2

Income: $12

The government influences a majority of the economic transactions that take place in my society. However, I have many choices that are made by me. Which best describes my economy?

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Improve taste:

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Program production line:

RobCo is considering production of a line of cereal called Sugar Bombs. They will need to place employees with certain skills on certain parts of the production process. Match them.

Creating marketing and advertising:

Question 14 on the quiz is a graph. Look at it and know the concept of allocative efficient.

As the price of Fancy Lads Snack Cakes increases, people will choose to consume more Sugar Bombs and less Fancy Lads Snack Cakes.

What stops us from having everything we desire?

What does profit equal?