1. An overview of economic systems: contrast traditional, command and market economies. What countries are considered economically free
Yüklə 69,73 Kb.
|
| monopoly is a business structure where one dominant supplier, producer, or service provider controls the entire market. In free markets, monopolies are discouraged because they inhibit creativity due to a lack of competition. There are specific conditions that need to be met for a legal monopoly to exist. The conditions include: Government regulations — Governments put in place high entry barriers in certain markets, such as postal services, ensuring no other producers or suppliers enter the market.
How governments can encourage innovation. What is the situation in Azerbaijan in this field? Why the Private Sector Underinvests in Technologies? Cavab: A number of different government policies can increase the incentives to innovate, including: guaranteeing intellectual property rights, government assistance with the costs of research and development, and cooperative research ventures between universities and companies. One way to increase new technology is to guarantee the innovator an exclusive right to that new product or process. Intellectual propertyHome rights include patents, which give the inventor the exclusive legal right to make, use, or sell the invention for a limited time, and copyright laws, which give the author an exclusive legal right over works of literature, music, film/video, and pictures. For example, if a pharmaceutical firm has a patentHome on a new drug, then no other firm can manufacture or sell that drug for twenty-one years, unless the firm with the patent grants permission. How businesses raise financial capital and how households supply financial capital №3 Residents of the town of Ganja like to consume beefs, but each beef requires 10 people to produce it and takes a month. If the town has a total of 100 people, what is the maximum amount of beef the residents can consume in a month? If we know that the price elasticity of supply of cherry is 3 and that the price of cherry has doubled, by what percentage will the quantity of cherries supplied increase or decrease? If Parliament reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development? Identify a public good using nonexcludable and non-rival as criteria. Define several sources of public goods and explain the free rider problem What is the total amount of interest from a $5,000 loan after three years with a simple interest rate of 6%? №4
A consultant works for $200 per hour. She likes to eat vegetables, but is not very good at growing them. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables? Suppose the price elasticity of demand for apples is equal to 0,75. If the price of apples rises by 10%, what percentage increase or decrease in apple consumption will occur? What is the difference between monopoly and monopsony. Show examples. Explain the Inefficiency of Monopoly If immigration is reduced, what is the impact on the wage for low-skilled labor? Explain this situation. How it might affect a country’s culture, including differences in language, and patterns of family, authority, or gender relationships. Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low? №5
Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert Consumption choices: Total utility and diminishing marginal utility. Show an example of the law of diminishing marginal utility, which holds that the additional utility decreases with each unit added. Explain the significance of differentiated products for Monopolistic competition and analyze how advertising can impact monopolistic competition. What are some of the most important laws in Azerbaijan that protect employee rights? What is a dividend and why should a financial investor care about diversification? №6
Suppose BakuBus raised the price of bus tickets from 0.5 azn to 1 azn per trip (while the price of burgers stayed at 2azn and his budget remained 10 azn per week.) Draw Ali’s new budget constraint. What happens to the opportunity cost of bus tickets? How Changes in Income and Prices Affect Consumption Choices? Does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing selfinterest? Explain brief. The Oligopoly Version of the Prisoner’s Dilemma. Explain how imperfectly competitive labor markets determine wages and employment, where employers have market power. Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? №7
We have 10 usd. Bus tickets 0.5 azn and price of burgers 2 azn. Draw and explain the budget constraint curve. Suppose BakuBus raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Show these changes on a graph. If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demanded of that product, will another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded? What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Explain the concept of labor unions, including membership levels and wages How can there be any economic gains for a country from both importing and exporting the same good, like cars? №8
Demand and Supply: Explain equilibrium, equilibrium price, and equilibrium quantity. Draw a schedule. Explain explicit and implicit costs. Accounting and economic profit. Give samples. What is tying sales, bundling, and predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal? How firms determine wages and employment when a specific labor market combines a union and a monopsony If the removal of trade barriers is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products? №9
Suppose the price of gasoline is $1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of $1.40 per gallon? Equilibrium quantity 600 million gallons. What about the quantity supplied? Is there a shortage or a surplus in the market? A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm’s accounting profit? Calculate the Four Firm Concentration Ratio based on the data in the table 🙄 Explain the impact of discrimination in a competitive market and analyze earnings gaps based on race and gender Define absolute advantage, comparative advantage, and opportunity cost .What happens when a country has an absolute advantage in all goods №10
1.Give examples of the price ceiling and price floor in Azerbaijan If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter? Calculate the Herfindahl-Hirschman Index (HHI) for the industry in the Table. İf the market shares for replacing automobile windshields are: 🙄 Explain economic inequality and how the poverty line is determined. What is the poverty trap, noting how government programs impact it Identify at least two advantages of intra-industry trading. Explain the relationship between economies of scale and intra-industry trade №11
Name some factors that can cahange a volume of demand and supply separately. You bake and sell bread at home. You work for yourself, your wife and 1 employee. Count an explicit and implicit costs. Explain the goal of antitrust policies. Analyze restrictive practices. Identify the antipoverty government programs and explain the safety net programs’ primary goals Tarrifs as barriers to trade and the benefits of reducing barriers to international trade №12 Demand and Supply in Labor Markets. Who on the supply side and who on the demand side? The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table for total cost, average variable cost, average total cost, and marginal total cost 🙄 İs there an exclusive dealing in Azerbaijan? How might it reduce competition and when might it be acceptable? Explain the distribution of income, and analyze the sources of income inequality in a market economy Explain how international trade impacts wages, labor standards, and working conditions №13
On what other factors does the demand for labor (labor force) in the labor market depend on when the wage level remains constant?( factors that will cause the demand to increase or decrease) Explain the results of the effects of these factors. Fred currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he establishes himself. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. He could hire a law clerk for $35,000 per year. If these figures are accurate, would Fred’s legal practice be profitable? The Economics of Pollution: give examples of positive and negative externalities. Explain and evaluate the effectiveness of command-and-control regulation Measure income distribution in quintiles. Calculate and graph a Lorenz curve Explain protectionism and its three main forms №14
On what other factors does the supply of labor (labor force) in the labor market depend on when the wage level remains constant? (factors that will cause the supply to increase or decrease). Explain the results of the effects of these factors. As shown in the table, production technology 1 uses 10 labor and 2 machinery, while production technology 3 uses 3 labor and 7 machinery. İf workers cost $40, machines cost $80which option will be more efficient to use?🙄 Evaluate the benefits and costs of environmental protection. Which Environmental Laws have been adopted in Azerbaijan? In country B, the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate? Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar. №15
Are households demanders or suppliers in the goods market? Are firms demanders or suppliers in the goods market? What about the labor market and the financial market? A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers? International Environmental Issues: the partnership of high-income and low-income countries in efforts to address international externalities Calculate Cumulative Share of Income in 1980 (%) and 2013 years based on the data in the table 🙄 Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries. №16
If the Central Bank of Azerbaijan imposed an interest rate ceiling of 20% on all loans, who would gain and who would lose? The farmer sells peas in sacks at the market. They buy it, package it and sell it under the brand name of NEO. Indicate which market types the products belong to. Explain the difference between private benefits and social benefits and give examples of each. Identify ways to reduce the risk of imperfect information. Explain how imperfect information can affect price, quantity, and quality. How does international trade affect working conditions of low-income countries? №17
An overview of economic systems: contrast traditional, command and market economies. What countries are considered economically free? Suppose the price of apple decreases by 4% and apple producers reduce the quantity of apple supplied by 20%. Calculate the price elasticity of supply. If Parliament reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development? If immigration is reduced, what is the impact on the wage for low-skilled labor? Explain this situation. How it might affect a country’s culture, including differences in language, and patterns of family, authority, or gender relationships Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar. №18
How we use theories the circular flow diagram model to understand economic issues/ Draw the circular flow diagram. If we know that the price elasticity of supply of cherry is 3 and that the price of cherry has doubled, by what percentage will the quantity of cherries supplied increase or decrease? What is the difference between monopoly and monopsony. Show examples. Explain the Inefficiency of Monopoly. What are some of the most important laws in Azerbaijan that protect employee rights? Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? №19
Residents of the town of Ganja like to consume beefs, but each beef requires 10 people to produce it and takes a month. If the town has a total of 100 people, what is the maximum amount of beef the residents can consume in a month? Suppose the price elasticity of demand for apples is equal to 0,75. If the price of apples rises by 10%, what percentage increase or decrease in apple consumption will occur? Explain the significance of differentiated products for Monopolistic competition and analyze how advertising can impact monopolistic competition. Explain how imperfectly competitive labor markets determine wages and employment, where employers have market power. How can there be any economic gains for a country from both importing and exporting the same good, like cars? №20
A consultant works for $200 per hour. She likes to eat vegetables, but is not very good at growing them. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables? Consumption choices: Total utility and diminishing marginal utility. Show an example of the law of diminishing marginal utility, which holds that the additional utility decreases with each unit added. Does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing selfinterest? Explain brief. The Oligopoly Version of the Prisoner’s Dilemma. Explain the concept of labor unions, including membership levels and wages. If the removal of trade barriers is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products? №21
Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table for total cost, average variable cost, average total cost, and marginal total cost 🙄 What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? How firms determine wages and employment when a specific labor market combines a union and a monopsony. Define absolute advantage, comparative advantage, and opportunity cost .What happens when a country has an absolute advantage in all goods. №22 Suppose BakuBus raised the price of bus tickets from 0.5 azn to 1 azn per trip (while the price of burgers stayed at 2azn and his budget remained 10 azn per week.) Draw Ali’s new budget constraint. What happens to the opportunity cost of bus tickets? If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demanded of that product, will another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded? What is tying sales, bundling, and predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal? Explain the impact of discrimination in a competitive market and analyze earnings gaps based on race and gender. Identify at least two advantages of intra-industry trading. Explain the relationship between economies of scale and intra-industry trade. №23
We have 10 usd. Bus tickets 0.5 azn and price of burgers 2 azn. Draw and explain the budget constraint curve. Suppose BakuBus raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Show these changes on a graph. Explain explicit and implicit costs. Accounting and economic profit. Give samples. Calculate the Four Firm Concentration Ratio based on the data in the table 🙄 Explain economic inequality and how the poverty line is determined. What is the poverty trap, noting how government programs impact it. Tarrifs as barriers to trade and the benefits of reducing barriers to international trade. №24
Demand and Supply: Explain equilibrium, equilibrium price, and equilibrium quantity. Draw a schedule. A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm’s accounting profit? Calculate the Herfindahl-Hirschman Index (HHI) for the industry in the Table. If the market shares for replacing automobile windshields are:🙄 Identify the antipoverty government programs and explain the safety net programs’ primary goals. Explain how international trade impacts wages, labor standards, and working conditions. №25
Suppose the price of gasoline is $1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of $1.40 per gallon? Equilibrium quantity 600 million gallons. What about the quantity supplied? Is there a shortage or a surplus in the market? If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter? The Economics of Pollution: give examples of positive and negative externalities. Explain and evaluate the effectiveness of command-and-control regulation Calculate Cumulative Share of Income in 1980 (%) and 2013 years based on the data in the table🙄 Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar. Yüklə 69,73 Kb. Dostları ilə paylaş:
|