ZappIt Co produces limited edition action figures and is willing to receive $100 per figure. In 2015, the market price for an action figure went up from $125 to $150 . In 2016, the market price for an action figure decreased from $150 to $130 . The producer surplus received by ZappIt Co _____
a. increased in 2015, but decreased in 2016
b. decreased in both 2015 and 2016
c. decreased in 2015, but increased in 2016
d. increased in both 2015 and 2016
a
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Use the following graph of the total demand for money to answer the next question.
Assume we begin at point a. A decrease in the nominal GDP will can be shown as a move to ________.
A. point b B. point c C. point d D. point e
The World Bank has extended loans to the government of a developing country to finance construction of a canal with a certain future flow of earmings Now, however, the government has decided to redirect those funds to build a casino that may or may not generate suficient profits to allow the government to repay the loan This situation is an example of
a. Systemic Risk b. Moral Hazard c. Adverse Selection d. Asymmetric Information e. Principle Agent Problem
Answer the following statements true (T) or false (F)
1) All else equal, if a firm has complex input specifications, it is likely cost saving for the firm to buy the input for another firm. 2) All else equal, if a firm's long-run average cost curve increases as more of an input is produced and the firm requires a large quantity of the input, it is likely cost saving for the firm to buy the input from another firm. 3) All else equal, if a firm needs a small quantity of an input, it is likely to be cost saving for the firm to make the input. 4) If a firm has a long-run average cost of $4 when it produces 5,000 units of an input and has a long-run average cost of $2 when it produces $12,000 units, the firm is experiences economies of scale. 5) All else equal, the more of an input a firm needs per year, the more likely that the net present value from making the input internally is positive.
To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:
A. normative economic analysis. B. positive economic analysis. C. forensic analysis. D. negative economic analysis.