Module 3 Problem Sets Principles of Economics Name: Date: Question #1 Question #1: Draw a perfectly inelastic supply curve. Answer: Question #2 Question #2: If elasticity of demand is 0.5 and price is lowered from to , by what percentage will quantity demanded rise? Answer: Question #3 Question #3: (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity. Answers: Question #4 Question #4: If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods. Answer: Question #5 Question #5: A perfect competitor would never charge more than market price because ________________; the perfect competitor would never charge less than market price because ________________________.

Answers: Question #6 Question #6: How much is the firm's most efficient output? Answer: Question #7 Question #7: At an output of 9, MC = 20 and AVC = . At an output of 10, MC = and AVC = . What is the lowest price the firm will accept in the short-run? Answer: Question #8 Question #9 Question #10 Question #11 Question #11: There are basically only two justifications for monopolies: Answers: Question #12 Question #12: The main economic criticism of monopolies and big business in general is that they are ________________________________.

Answer: Question #13 Question #13: Price discrimination occurs when a seller charges _________________________ for the same good or service. Answer: Question #14 Question #14: The monopolistic competitor's demand curve slopes ________________________________________. Answer: Question #15 Question #15: U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends. Answer: Question #16 Question #16: The oligopolist ________________________ at the minimum point of his or her ATC curve.

Answer: Question #17 Question #17: The most important cartel in the world today is __________________________________________. Answer: Module 4 Problem Sets Principles of Economics Name: Date: Question #1 Net Exports = _________________ - _________________________. Answers: Question #2 The three members of NAFTA are _______________, __________________, and__________________________. Answers: Question #3 Our exports of goods and services are about ____________ percent of our GDP in 2016. Answer: Question #4 The only trading bloc that has eliminated all its international tariffs is ___________________________.

Answer: Question #5 The main concern of the labor union members who were protesting against the WTO, the IMF, and the World Bank was ___________________. Answer: Question #6 ______________________________ measures total production in one year. Answer: Question #7 Per capita real GDP is found by dividing _______________________ by ______________________. Answers: Question #8 Given the following information, calculate NDP: GDP = trillion and Depreciation = 0 billion. Answer: Question #9 If depreciation is 0 billion and NDP is trillion, how much is GDP?

Answer: Question #10 Find per capita GDP when population is 100 million and GDP is

Module 3 Problem Setsprinciples Of Economicsnamedatequestion 1quest

Module 3 Problem Sets Principles of Economics Name: Date: Question #1 Question #1: Draw a perfectly inelastic supply curve. Answer: Question #2 Question #2: If elasticity of demand is 0.5 and price is lowered from $20 to $19, by what percentage will quantity demanded rise? Answer: Question #3 Question #3: (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity. Answers: Question #4 Question #4: If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods. Answer: Question #5 Question #5: A perfect competitor would never charge more than market price because ________________; the perfect competitor would never charge less than market price because ________________________.

Answers: Question #6 Question #6: How much is the firm's most efficient output? Answer: Question #7 Question #7: At an output of 9, MC = 20 and AVC = $25. At an output of 10, MC = $32 and AVC = $26. What is the lowest price the firm will accept in the short-run? Answer: Question #8 Question #9 Question #10 Question #11 Question #11: There are basically only two justifications for monopolies: Answers: Question #12 Question #12: The main economic criticism of monopolies and big business in general is that they are ________________________________.

Answer: Question #13 Question #13: Price discrimination occurs when a seller charges _________________________ for the same good or service. Answer: Question #14 Question #14: The monopolistic competitor's demand curve slopes ________________________________________. Answer: Question #15 Question #15: U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends. Answer: Question #16 Question #16: The oligopolist ________________________ at the minimum point of his or her ATC curve.

Answer: Question #17 Question #17: The most important cartel in the world today is __________________________________________. Answer: Module 4 Problem Sets Principles of Economics Name: Date: Question #1 Net Exports = _________________ - _________________________. Answers: Question #2 The three members of NAFTA are _______________, __________________, and__________________________. Answers: Question #3 Our exports of goods and services are about ____________ percent of our GDP in 2016. Answer: Question #4 The only trading bloc that has eliminated all its international tariffs is ___________________________.

Answer: Question #5 The main concern of the labor union members who were protesting against the WTO, the IMF, and the World Bank was ___________________. Answer: Question #6 ______________________________ measures total production in one year. Answer: Question #7 Per capita real GDP is found by dividing _______________________ by ______________________. Answers: Question #8 Given the following information, calculate NDP: GDP = $5 trillion and Depreciation = $500 billion. Answer: Question #9 If depreciation is $400 billion and NDP is $6 trillion, how much is GDP?

Answer: Question #10 Find per capita GDP when population is 100 million and GDP is $2 trillion. Answer: Question #11 Find per capita GDP when GDP is $1.5 trillion and population is 300 million. Answer: Question #12 If real GDP goes up by 3.7-percent and the GDP deflator goes up by 1.6-percent, find the percentage change in GDP. Answer: Question #13 If consumption spending is $3 trillion, investment is $800 billion, government spending is $1 trillion, imports are $1.2 trillion, and exports are $900 billion, how much is GDP? Answer: Question #14 Over time, per capita real GDP comparisons become _____________valid.

Answer: Question #15 GDP includes only payments for ____________________________________. Answer:

trillion. Answer: Question #11 Find per capita GDP when GDP is .5 trillion and population is 300 million. Answer: Question #12 If real GDP goes up by 3.7-percent and the GDP deflator goes up by 1.6-percent, find the percentage change in GDP. Answer: Question #13 If consumption spending is