Assignment:
1. Define economics
2. Describe the Factors or production
3. Describe how people make decisions at the margin
4. Describe a scatterplot and a histogram
5. Describe positive and normative economics
6. Describe an economic model
7. Does correlation imply causation, explain.
8. Describe positive and negative correlation and r-squared.
9. What is ceteris paribus
10. What is macroeconomics and microeconomics
11. What and how to produce. Who consumes.
12. What is the future value if $800 is invested at a 6% annual interest rate for 29 years?
13. What is the present value of 4 million dollars given to you in 26 years using an annual discount rate of 7%?
14. If you received 18 out of 26 on multiple choice and this is 20% of test grade, and you received 72 out of 80 on essay and this is 80% of test grade, what is your final % grade?
15. Describe opportunity cost
16. Draw and describe a PPF (increasing costs in it)
17. Describe and draw graph of diminishing returns
18. what is a voluntary exchange
19. Describe international trade and the U.S.
20. How does a strong dollar affect our trade
21. Star wars made $200 million in 1977 and Transformers made $800 million in 2014. The CPI Is .45 for 1977 and the CPI is 1.85 in 2014 (base year is 2000). Which movie had higher nominal revenue and which movie had higher real revenue (in 2000 dollars)?
22. Is international trade based on absolute advantage or comparative advantage? (explain)
23. If country A can produce a maximum of 20 guns or 40 butter, whereas country B Can produce a maximum of 40 guns or 70 butter (both
country have 100 hours of labor), should these countries trade? Draw the PPF of both, calculate a fair terms of trade, and draw the production point and trade line on each PPF. Who are the winners and losers for country A and B?
24. What are the benefits of division of labor?
25. Describe what is needed for a market economy.
26. Describe why we still need some government involvement in a free market economy?
27. Describe law of supply and law of demand (draw graphs too)
28. Describe a good supply and demand condition for a business.
29. Describe the paradox of diamonds and water with respect to supply and emand.
30. .Describe what factors shift the supply and demand curves.
31. Graph and describe a shortage, and do the same for a surplus.
32. Draw and describe simultaneous shift of supply and demand
33. It costs $30 for a movie and $25 for a meal. I get 15 utils of satisfaction from the movie and 10 utils of satisfaction from the meal. Which one should I choose? SHOW WORK
34. Describe inelastic demand and how it relates to revenue if price is increased.
35. Describe elastic demand and how it relates to revenue if price is increased.
36. If the elasticity of demand is .6 and price increases by 9%, how much and in which direction will quantity demanded change?
37. What factors affect the elasticity of demand for a good?
38. Describe cross-price elasticity of demand, income elasticity, and supply elasticity.
39. How is elasticity of supply different in the short run and long run?
40 .If elasticity of demand is 1.4 and elasticity of supply is .8 and supply decreases by 9%, what will be the percentage change in price and the direction of the price change?
41. Graph the following 2 points on a demand curve and compute the elasticity of demand: P = $12 and Qd = 5; P = $11 and Qd = 16. If price increases by 15%, what happens to Qd?
42. What part of the demand curve is inure elastic and what part is more inelastic.
43. Draw and describe consumer and producer surplus
44. Show deadweight loss from price ceiling and price floor (2 graphs)
45. Other effects from rent control
46. Draw and explain import restriction and deadweight loss
47. Graph a 5 dollar tax on a product with a 10 equilibrium price
48. Show same graph using inelastic demand. How does result change.
49. Show deadweight loss from tax (use elastic supply curve)
50. Describe economic profit and accounting profit in detail
51. Construct a generic income statement and balance sheet.
52. Describe an explicit cost and implicit cost
53. Draw and describe graph for diminishini, marginal product of labor
54. Describe and graph ATC, AFC, and AVC
55. Draw a graph with ATC, AVC, and MC
56. What is the short run in economics
57. Describe the relationship between marginal cost and ATC
58. Draw and describe the long run ATC for a firm
59. Describe economies of scale, constant returns to scale, and diseconomies of scale, and why each occurs for a company as it increases production.
60. Demand function: Qd = 300 - 20P; Supply Function: Qs = 20P - 100. A1 Calculate equilibrium P and equilibrium Q. Graph it too.