BUSI 650 Quiz 2 Liberty University

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1. The following are shortcomings associated with analyzing problems “one factor at a time” also known as OFAT and 1FAT, EXCEPT:

2. In services, a product defect is analogous to a defecting customer – a customer who takes their business elsewhere

3. One aspect that differentiates Six Sigma from other earlier process improvement programs including total quality management and reengineering is that with Six Sigma

4. With respect to strategy maps and balanced scorecards, which of the following is FALSE?

5. Strategy maps can help define a balanced scorecard

6. Six Sigma (DMAIC) is best applied when:

7. Which term compares an organization’s processes with the best practices to be found in its industry or others?

8. Quality Function Deployment (QFD) starts by using “voice of the customer” (VOC) data in which of the following matrices?

9. The balanced scorecard approach relies not only on financial performance measure but includes customers, internal business processes and organizational learning and growth

10. Which of the following is NOT a problem commonly found when monitoring

11. An expectation of Business Process Design is that the improvements in performance will be at a minimum incremental 

12. Six Sigma is among the most timely topics in business today because of the following, EXCEPT:

13. The goal of the Analyze Phase is to identify key cause and effect relationships that can be leveraged to improve the overall performance of the process

14. Six Sigma is better applied on manufacturing than service operations 

15. The relationship between the natural variation in the production system and the product’s design specifications can be quantified using

16. Business Process Design (BPD) is also adequately named the following EXCEPT

17. Lean Sigma is a combination of Six Sigma and lean tools appropriate when both too much variation and waste exist in a process

18. Benchmarking is a process that helps compare a company against its competitors on a variety of relevant indicators 

19. When calculating ranges for particular variables, it is mathematically possible to obtain negative variables; in such an event, one should set zero for that variable range

20. Process capability analysis does NOT depend on

21. Developing and evaluation solutions to reduce the gap between desired process performance and current performance is the final step in the six sigma DMAIC approach for process improvement

22. Departments within a stage 2 organization may exhibit a stage 3 orientation, thereby upgrading the organization to a step 3 categorization

23. Which of the following is FALSE about Quality Function Deployment (QFD)?

24. Defects per million opportunities (DPMO) and Process Sigma are the most important tools for the Measure Phase of Six Sigma

25. In this stage of operational effectiveness, organizations use core capabilities residing in the operations area to obtain a sustainable competitive advantage 

BUSI 650 Quiz 3 Liberty University

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BUSI 650 Quiz 3 Liberty University

ECON 213 Problem Set 1 Liberty University

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Problem Set 1 is due by 11:59 p.m. (ET) on Monday of Module/Week 2.

1. Based on the information provided below for the market for video games, answer the following questions:

PRICE Q DEMANDED Q SUPPLIED

$50 5 9 $45 7 7 $40 9 5 $35 11 3 $30 13 1

a.) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph).

b.) What is the equilibrium price and quantity?

PRICE: ______________________  QUANTITY: ______________________

Now, assume that a new government report claims that video game play stimulates the brain.

c.) What will this do to the demand curve? Of the list of things in the text that cause a change in demand, which best fits here as the cause of the demand shift?

d.) What will happen to the equilibrium price and quantity?

P: _______________________  Q: _______________________

2. Based on the information provided below for the state of Montana, answer the following questions:

CHOICE

OIL / barrels

WHEAT / bushels

A 5000 0

B 4500 10000

C 2500 20000

D 0 25000

a.) Draw the Production Possibilities Curve.

b.) Determine the opportunity costs for a move from A to B; B to C; and C to D.

A to B: _____________ B to C: __________________  C to D: _________________

3. In the space provided below, do the following:

a.) Draw and properly label a demand and supply curve.

b.) Indicate where the equilibrium Price and Quantities are located.

c.) How do things change based on the following scenario?

· The market for hybrid cars is changing. There are more providers but due to bad publicity and poor performance, demand is falling.

Knowing this information, answer the following questions and then show the corresponding information in your graph:

a.) 

b.) 

c.) 

d.) What is the market you are dealing with?

e.) Which curve(s) change(s)? Based on the lists in the text of what causes demand and supply to shift, what are the causes of these shifts?

f.) In what direction do they change?

g.) What happens to the equilibrium price and quantity after these changes are put into effect? Do they go up, go down, or stay the same?

P: _______________________  Q: _______________________

4. Mario has reached a crossroads in his life. He is trying to decide whether to change careers.  Currently, Mario makes pizzas, but he is considering entering a different line of work testing video games. Mario can either test 6 games or toss 12 pizzas in a day. Interestingly, Mario’s friend Luigi is in a similar predicament. Luigi can test 3 games or toss 2 pizzas during a day.

Mario’s opportunity cost of testing one game: ___________________________

(yes, you can test fractional games)

Luigi’s opportunity cost of testing one game: ___________________________

(yes, you can test fractional games)

Mario’s opportunity cost of tossing one pizza: ___________________________

 (yes, you can have fractional pizzas)

Luigi’s opportunity cost of tossing one pizza: ___________________________

(yes, you can have fractional pizzas)

Who has an absolute advantage in testing games? ________________________

Who has the comparative advantage in testing games? _____________________

Who has the comparative advantage in making pizzas? _____________________

ECON 213 Problem Set 2 Liberty University

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Problem Set 2 is due by 11:59 p.m. (ET) on Monday of Module/Week 4.

1. The following table presents data for wages in the market for Internet security professionals.

(Hint: In the labor market, the roles are reversed. Those who want to hire labor are the demanders. The workers enter the workforce providing labor to the marketplace, so they are the suppliers.)

Wage

Quantity Demanded

Quantity Supplied

$50,000

20,000

14,000

$60,000

18,000

18,000

$70,000

16,000

22,000

$80,000

14,000

26,000

$90,000

12,000

30,000

a.) What is the equilibrium wage? ___________________________________

Now, consider this scenario: Due to an increase in Internet security threats, the government wants to apply a price control in this market to encourage more people to become Internet security professionals. Assume that a wage control is set at $75,000.

b.) Will this increase the number of people entering this labor market? Why or why not?

c.) Will this increase the number of people hired? Why or why not?

2. Assume you are a policymaker in Washington, DC. Lobbyists for the Preschoolers of America have put pressure on their representatives to cap prices on graham crackers. You have been assigned a position on a new committee to study the impact of a price ceiling on graham crackers.

Your job is to:

a.) Illustrate using a fully labeled supply and demand graph what such an artificial price looks like (label all the axes and any lines you put in your graph).

b.) Explain what the results of such a move are for the graham cracker market. In other words, will there be a shortage, a surplus, or neither created? Why?

3. Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of goods that we buy. For instance, since coal-fired power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not high enough.

a.) Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and where the price would be after the externality is considered.

b.) What problems might exist in determining this new, externality-based price?

4. Using the information below about individuals and their willingness to pay for a bottle of ginger ale, calculate the total consumer surplus at a market price of $5.

Maximum amount a buyer would pay for ginger ale

Scott

$10

Dennis

$4

Greg

$8

Dave

$7

Mike

$5

Using the information below about willingness to supply ginger ale, calculate the total producer surplus at a market price of $5.

Marginal cost of producing ginger ale

Gene

$6

Brandon

$3

Matt

$2

Cooper

$11

Jed

$5

How do your answers change if the price falls to $2?

ECON 213 Problem Set 3 Liberty University

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Problem Set 3

Name: ________________________________________

Problem Set 3 is due by 11:59 p.m. (ET) on Monday of Module/Week 6.

1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.

Price of crackers

Quantity Demanded (per month)

$1.00–$1.50: ___________________________________

$1.50–$2.00: ___________________________________

$2.00–$2.50: ___________________________________

$2.50–$3.00: ___________________________________

Now, assume the price of graham crackers is $2.75. Should firms raise or lower their prices if they want to increase revenue? Explain this in terms of elasticity.

2. Assume the competitive market shown below faces a short run price of $10. Using the graph below, identify the following:

Profit-maximizing output: _______________________

In the long run, the price falls to $7.50. Why does this happen?

What is the new profit-maximizing output? _______________________

3. A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course, the owners have asked for your opinion. Draw 2 completely labeled graphs to help you explain the shutdown decision. One graph must be for the market as a whole, and the other must be for this store in particular. Assume that the store is losing money; however, explain why they may want to stay open for a little while longer. (Note: Your answer should include a written explanation of your graph.)

4. Use the production function below to answer the following questions:

Units of Labor

Total Output

MP

a.) Calculate marginal productivity (MP) and put this in the table.

b.) At what level of employment does diminishing marginal productivity begin?

c.) At what level of employment does marginal productivity become negative?

d.) Why does marginal product become negative?

ECON 213 Quiz 1 Liberty University

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Question 1 Microeconomics is the branch of economics that focuses on the:

Question 2 The cost of a trade­off is known as the ________ of that decision.

Question 3 The U.S. federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes may have encouraged too many people to own a home. If the tax deduction caused people who otherwise would have rented to own, the tax deduction serves as a(n):

Question 4 In a growing number of cities, stores are required either not to make available plastic or paper bags or to do so only for an additional fee. If this fee can be refunded when you recycle the bag, the refund acts as a(n):

Question 5 More oranges are grown in Florida than North Dakota because Florida’s warm climate gives it a ________ in growing oranges.

Question 6 Because of scarcity:

Question 7 Economists believe that optimal decisions are made up to the point where:

Question 8 Why would economists find it surprising if the CEO of a large company does his or her own housework?

Question 9 When consumers discard their gasoline­powered automobiles for electric­powered ones, this partially reflects the ________ of gasoline:

Question 10 Opportunity cost is the ________ alternative forfeited when a choice is made.

Question 11 Economists believe that individuals compare the benefits and costs of various options when making a decision and in so doing act ________.

Question 12 The basic goal of economics is:

Question 13 The patent system:

Question 14 Who benefits from voluntary trade?

Question 15 As a new firm in the apple­picking business, you have considered adding an economist to your management team. What would this economist be unable to help your managerial team with?

Question 16 Public buildings in the United States are required to be accessible to the disabled and, as a result, almost all have an elevator. What would be an example of a positive direct incentive for those who can use stairs?

Question 17 A person has a comparative advantage in the production of a good when she or he can produce the product at a(n) ________ opportunity cost compared to another person.

Question 18 In economics, choices are necessary because of the presence of:

Question 19 Macroeconomics is the study of:

Question 20 Many stores are open 24 hours a day. When store managers make the decision to stay open 24 hours, it must be the case that:

Version B Quiz

Question 1 Economics professors are well aware of the importance of incentives. Which of the following situations shows the use of a positive incentive?

Question 2 Some public transit systems use an “honor system” whereby patrons have to show that they have paid their fare only when asked for it by an enforcement officer. With what population would such a system be successful?

Question 3 As a new firm in the apple­picking business, you have considered adding an economist to your management team. What would this economist be unable to help your managerial team with?

Question 4 Indirect incentives create:

Question 5 What is the opportunity cost of taking this exam?

Question 6 When most economists wake up in the morning, their first decision is whether or not to hit the snooze bar on the alarm clock. What statement best represents their thought process as a rational decision­maker?

Question 7 Who benefits from voluntary trade?

Question 8 Opportunity cost is the ________ alternative forfeited when a choice is made.

Question 9 The opportunity cost of a purchase is:

Question 10 Why would economists find it surprising if the CEO of a large company does his or her own housework?

Question 11 The U.S. federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes serves as a(n) ________ to buy a house.

Question 12 Many stores are open 24 hours a day. When store managers make the decision to stay open 24 hours, it must be the case that:

Question 13 What is the strongest argument for why we need more economists today than ever before?

Question 14 An opportunity cost is the:

Question 15 Economics is concerned with the trade­offs that emerge because of scarcity. The term “trade­offs” refers to:

Question 16 The government controls for many indirect incentives in safety net social programs by:

Question 17 Which of the following is a microeconomic question?

Question 18 Microeconomics is the study of:

Question 19 While generous disability insurance can help those who have been permanently injured, it can also increase the likelihood that individuals will falsely claim to be disabled. This likelihood is a(n):

Question 20 When consumers discard their gasoline­powered automobiles for electric­powered ones, this partially reflects the ________ of gasoline:

ECON 213 Quiz 2 Liberty University

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Question 1 When one producer has a comparative advantage in production, she:

Question 2 The process of using current resources to create or buy new capital is called:

Question 3 A positive statement:

Question 4 An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF) would cause an:

Question 5 Refer to the following table to answer the questions that follow. Given the same quantity of resources, what is Jay­Z’s opportunity cost of producing a New York pizza?

Question 6 Refer to the following figure for the questions that follow. According to the figure, a new technology that makes it easier to peel, core, and prepare apples will cause:

Question 7 To determine which of two producers has a comparative advantage, you would need to know their:

Question 8 Consider the following scenario. Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake one loaf of bread and one hour to make one pie. Joey takes four hours to bake one loaf of bread and four hours to make one pie. If Rachel and Joey decide to specialize in order to maximize their combined output, who should produce what?

Question 9 Refer to the accompanying figure to answer the questions that follow. Unemployed resources are evident at:

Question 10 Refer to the following table to answer the questions that follow. Suppose that Alicia Keys and Jay­Z could each make either New York–style pizza or Philly cheesesteaks. Given an eight­hour workday, which of the following would permit them to consume outside their respective production possibilities frontiers (PPFs)?

Question 11 When the opportunity cost of producing a good rises as you produce more of it, you experience:

Question 12 The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the questions that follow. What is Jim’s opportunity cost of making 1 stromboli?

Question 13 Ceteris paribus means:

Question 14 The ability of one producer to create more of a good than another producer using the same quantity of resources is called:

Question 15 Which of the following is a positive statement?

Question 16 Refer to the following table to answer the questions that follow. Given an eight­hour workday, and to experience gains from trade,

Question 17 Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow. Given current resources and technology, the attainable range is best described as:

Question 18 Which of the following is a normative statement?

Question 19 Consider the following scenario to answer the questions that follow: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie. What is Joey’s opportunity cost of baking 1 pie?

Question 20 Suppose you are studying a production possibilities frontier (PPF) that has a bowed­out shape relative to the origin. What causes this shape?

Question 1 The area inside (within) the production possibilities frontier (PPF) contains:

Question 2 Michael and Angelo are both artists who can create sculptures or paint paintings each day. The following table describes their maximum outputs per day. Does either person have an absolute advantage?

Question 3 The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions that follow. What is Gibbs’s opportunity cost of making a wooden boat?

Question 4 The ability of one producer to create more of a good than another producer using the same quantity of resources is called:

Question 5 The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the questions that follow. Which statement best describes absolute advantage?

Question 6 You have a comparative advantage in producing a good whenever:

Question 7 Mrs. Abel has a comparative advantage in producing cabbage if, in comparison to Mrs. Bee, Mrs. Abel can grow cabbage:

Question 8 The important act of holding all other variables constant while examining a particular variable is known as:

Question 9 An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF) would cause an:

Question 10 Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the questions that follow. Suppose the plow is invented and agricultural productivity greatly increases. Which of the following graphs best depicts how this would affect the PPF?

Question 11 Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. What can you determine about the production of the two goods?

Question 12 A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources. The community’s production possibilities frontier (PPF) would show an:

Question 13 Think of the production possibilities frontier (PPF) model. When society is producing the largest possible output from its resources, it is operating:

Question 14 Which of the following is a positive statement?

Question 15 When the opportunity cost of producing a good rises as you produce more of it, you experience:

Question 16 Which of the following is a normative statement?

Question 17 Refer to the following figure to answer the questions that follow. In the figure, point E is:

Question 18 An economist’s use of experiments and real­world data to test a theory is an example of:

Question 19 Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow. Given current resources and technology, the unattainable range is best described as:

Question 20 Refer to the following figure to answer the questions that follow. Which point in the corresponding figure represents a combination of smoothies and milk shakes that society cannot currently produce?

ECON 213 Quiz 3 Liberty University

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Question 1 In agriculture, a “bumper crop” refers to a particularly productive harvest. If there is a bumper crop for wheat at the same time that more people become allergic to wheat and all else is held constant, what will happen to the equilibrium price and quantity for wheat?

Question 2 Something is a normal good if the demand for the good:

Question 3 During the winter months, many elderly persons leave their homes in northern New York and travel south to Florida or Arizona. What would you expect to happen to the equilibrium price and quantity of items most used by the elderly in northern New York?

Question 4 If the price of Gatorade increases, the

Question 5 The change in equilibrium shown in the accompanying figure would be explained by a(n):

Question 6 Oil is a main component in the manufacture of plastic bags. If the price of oil were to increase, the price of plastics bags would:

Question 7 Refer to the accompanying figure. What event would cause the supply curve to shift out?

Question 8 Changes in population can:

Question 9 Refer to the table below: Assume that the market for iPods has only two consumers: Chuck and Ryan. According the table above, if the price of an iPod is $85, the market will demand:

Question 10 Shoes are considered to be a normal good. What would happen to the equilibrium price and equilibrium quantity of shoes if income increases and the cost of labor to produce shoes increases?

Question 11 Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure?

Question 12 If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant, what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

Question 13 The demand curve for a good will shift to the right if, holding all else constant,

Question 14 If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _________ and the equilibrium quantity to _________, holding all else constant.

Question 15 The equilibrium price of teddy bears is $5. A study comes out that says owning a teddy bear causes you to earn a lower salary. If all other factors are held constant, which of the following scenarios could happen?

Question 16 A monopoly:

Question 17 Kim attends the farmer’s market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar?

Question 18 The law of supply states that, all other things being equal,

Question 19 When the number of firms in a market decreases,

Question 20 Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will:

Question 1 In the first few months of 2012, the price of gasoline increased by approximately 15%. Because of this increase, we would expect the _________ curve in the market for hybrid cars to _________.

Question 2 When the number of firms in a market decreases,

Question 3 A shortage occurs whenever:

Question 4 Companies use advertising to shift consumer demand. Which of the following demand shifters do you think advertisers most often rely on?

Question 5 A subsidy:

Question 6 When firms in a market expect the price of their product to rise, the supply curve of their good:

Question 7 Old Navy stocks more Bermuda shorts during the summer months than in the winter months. The resulting shift in supply explains:

Question 8 If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant, what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

Question 9 The market for footballs is perfectly competitive. If all else is held constant and the price of leather decreases, we would expect that the equilibrium quantity of footballs would:

Question 10 As more people migrated West during the gold rush, what do you think happened to the demand curve in most Western markets, holding all else constant?

Question 11 As the life expectancy in the United States increases, which of the following could likely happen to the demand curve for items such as health care, cancer treatments, and nursing facilities, holding all else constant, and why?

Question 12 Something is a normal good if the demand for the good:

Question 13 Which of the following would cause the demand curve to shift to the right?

Question 14 According to the law of demand, all other things being equal,

Question 15 Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?

Question 16 The law of supply states that, all other things being equal,

Question 17 When both curves shift:

Question 18 Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to this table, if the price of nachos is $6, the market will supply:

Question 19 The demand curve for a good will shift to the right if, holding all else constant,

Question 20 The change in equilibrium shown in the accompanying figure would be explained by a(n):

ECON 213 Quiz 4 Liberty University

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Question 1 Why does a shortage that occurs under a binding price ceiling decrease over time?

Question 2 ____________ is a real­life example of a price floor.

Question 3 You are the president of the United States. In an attempt to make gasoline prices cheaper, you have imposed a binding price ceiling on gas. What would you expect your critics to say?

Question 4 Use the following information to answer the questions that follow. Market for used cars: Demand: ,000 – 86 P Supply: Qs = –100 + 14 P What would be the quantity demanded if a price ceiling is set at $2,000?

Question 5 What is the incentive to create a black market when a binding price ceiling exists?

Question 6 Suppose you live in a community with no price controls. What do you expect to happen if your town borders a community where there is a binding price floor on most products? 

Question 7 Use the following information to answer the questions that follow. Market for used cars: Demand: ,000 – 86 P Supply: Qs = –100 + 14 P What would be the quantity demanded if a price ceiling is set at $1,000?

Question 8 A real­life example of a binding price ceiling is:

Question 9 Apartment rent control in New York City is an example of:

Question 10 What will happen in a market where a binding price floor is removed?

Question 11 Use the following information to answer the questions that follow. Market for flat­screen TVs: Demand: ,600 – 5 P Supply: Qs = –1,000 + 10 P What would be the quantity demanded if a price ceiling is set at $150?

Question 12 Refer to the accompanying figure. At the price of the binding price floor, by how much would the quantity supplied change from the market equilibrium?

Question 13 What is a black market?

Question 14 You would expect there to be many customers for a black market good when the opportunity cost of finding the good under a:

Question 15 Tina, an economics student, was just named Miss Florida, based in part on her answer to the question of why price gouging laws should be relaxed in that state. Tina won because she gave which of the following answers?

Question 16 Use the following table to answer the questions that follow. What is the equilibrium quantity in the market for public transportation?

Question 17 Use the following table to answer the questions that follow. What will be the amount of government expenditure required if a price floor for corn is set at $4.50 and the government agrees to purchase the amount of disequilibrium?

Question 18 What is the amount of the shortage or surplus in the market for public transportation when the price ceiling is $1.75?

Question 19 As the time frame shifts from the short run to the long run, what happens to producers who are subject to a binding price floor?

Question 20 Refer to the accompanying table to answer the questions that follow. If rent control is established at $1,550, what would be the amount of disequilibrium in the apartment market?

Version 2

Question 1 Refer to the accompanying figure. At what price would there be the least pressure to form a black market?

Question 2 Do all buyers benefit from a binding price ceiling?

Question 3 Refer to the accompanying table to answer the questions that follow. At what price level does the apartment market reach equilibrium?

Question 4 Why are binding price floor laws passed?

Question 5 Why is raising the minimum wage generally ineffective?

Question 6 Refer to the accompanying figure to answer the questions that follow. The market is currently at market equilibrium. If a binding price ceiling of P1 is imposed, by how much would the quantity demanded change?

Question 7 Refer to the accompanying figure, which shows both short-­run and long-­run demand and supply curves. If there is a $4 binding price ceiling imposed on a pharmaceutical drug, what will be the amount of the disequilibrium in the short run?

Question 8 Use the following information to answer the questions that follow. Market for a new hardcover book: Demand: – 8 P Supply: Qs = –60 + 3 P What would be the equilibrium price for hardcover books?

Question 9 What would you expect the consequences to size and quality would be for a product sold under a binding price ceiling?

Question 10 Use the following figure to answer the questions that follow. The accompanying figure describes the market for gasoline in a local community. If the government were to place a price floor at P1, predict the resulting surplus or shortage.

Question 11 What is the long­run consequence of a price ceiling law?

Question 12 Let’s say that you have a friend who was caught illegally buying a good on the black market. When the judge asks you to describe your friend’s motivation as a buyer, which of the following would most likely be your reply?

Question 13 Refer to the accompanying figure. At the price of the binding price floor, by how much would the quantity supplied change from the market equilibrium?

Question 14 A nonbinding price floor has the following consequences:

Question 15 How do producers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

Question 16 Let’s say that you have a friend who was caught illegally selling a good on the black market. When the judge asks you to describe your friend’s motivation as a seller, which of the following would most likely be your reply?

Question 17 If a good is subject to a binding price ceiling and you purchase it on the black market, what do you expect to happen to the availability of the good over time?

Question 18 Refer to the accompanying figure to answer the questions that follow. The market is currently at market equilibrium. If a binding price ceiling of P1 is imposed, by how much would the quantity supplied change?

Question 19 You are the president of the United States. In an attempt to make prescription drug prices cheaper, you have imposed a binding price ceiling on drugs. What would you expect your critics to say?

Question 20 Which of the following is true, holding all other things constant, when comparing regions that impose a higher minimum wage to regions that impose a lower minimum wage?