Location and localization of industry

Distinguish between location and localization of industry Location of an industry is the setting of economies of scale in pre-decided geographical areas where the producers receive several advantages that include reduced cost of production, cheap labour and an area where they expect the demand to be of the highest accord. There are several factors due to which the industries choose a particular place for establishing their industries. They are: Availability of raw materials and land Market demand for the product they want to produce The current condition of transport networks Availability of funds to finance the setup Climatic conditions Banking …

Economics detailed question

Q: match each consumer protection agency with its objective Ans: Food and drug administration- protect the people /public’s health by securing the safety of the drugs and food products. Federal Communications Commission- ensures continuous promotion and progress of broadband services and resources for the same. Federal Trade Commission- safeguards people from dishonest trade and business activities National Highway Traffic Safety Administration – help in reducing deaths and wounds caused by road accidents Q: assume that candle wax is traded in a perfectly Ans: a) Maximum willingness to pay exceeds minimum acceptable price- the total output should be increased b) MC> …

Marginal Utility and Impacts of Labor Union

Part III Deliverable Length: 600–800 words The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following: What type of tax is this? Explain. What happens to the supply of cookbooks? What happens to the equilibrium price? Who pays the tax at the end? Is this a good way to finance programs to improve health? What other types of tax can the government use to increase revenues? Part IV Deliverable Length: 600–850 words Justcookbooks.com becomes wildly successful in the United States, and you decide to export overseas. …

Economic Growth MCQs

PART 2 11.   Which one of the following statements correctly describes real GDP? A. Real GDP measures the total dollar value of all goods and services produced within the borders of a country using current prices. B. Real GDP measures the value of all goods and services produced in the world, using current prices. C. Real GDP measures the total dollar value of all goods and services consumed within the borders of a country, adjusted for price changes. D. Real GDP measures the value of final goods and services produced within the borders of a country, corrected for price changes. 12.   Melissa voluntarily quit …

Demand Curve and Elasticity

Key Assignment Final Draft  You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows: Technology (Web design and maintenance) $5,000 Postage and handling $1,000 Miscellaneous $3,000 Inventory of cook books $2,000 Equipment $4,000 Overhead $1,000 Part I Deliverable Length: 1 paragraph plus calculations You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year. The average retail price of the cookbook will be $30, …

Principles of Economics II ECON 203 PART I

Homework #3 INSTRUCTIONS (PLEASE READ):  This homework is OPEN BOOK.  Record your answers for all questions in the very back of the file in the space provided.  Answers must be typed and well-written in understandable English.  Feel free to use graphs to explain your answer, if appropriate.  Enter your answers into the assignments portion of WebTycho in the appropriate section (Homework 3).  There have been some issues with copying and pasting in WebTycho, please attach this as a file to your assignment.   Please answer all short answer questions in 100 words or less.  Excessive verbosity will not improve your score. …

Price elasticity of Demand – Problems

 Suppose demand is p = 20 – 2QD and supply is p = 2 + 2QS. The government enacts a $2 per unit tax. What is the post-tax equilibrium quantity?  SAMPLE ANSWER: P=20-2QdP=2+2QsTax=$2/unitNew Supply curve =P-2 = 2+2QsSo, equating both the demand and new supply curve,20-2Q=4+2QSo, 4Q=16So, Q = 4So,the post tax equilibrium quantity is 4 units – Suppose demand is p = 20 – QD and supply is p = 2 + QS. The government enacts a $2 per unit tax. What is the deadweight loss of the tax?  Suppose demand is p = 10 – 2QD. What is the price elasticity of demand at p = $6 and QD = 2?   Suppose the price elasticity of …

Market Demand increasing profit

QUESTION : Market demand is given as QD = 200 – 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is each firm’s profit? SAMPLE ANSWER : Profit = Total revenue – Total cost Step 1: To find Total revenue If we equate the Market demand and market supply, we will get the equilibrium price and quantity. Accordingly, 200 – 3P = 2P + 100 200 – 100 = 2P + 3P 100 = 5P P = 100/5 = $20 If price = $20, then the …

Competitive market with inelastic demand

QUIZ 2 Answer each of the following questions and return your completed papers by the beginning of the next class meeting.  You will find the Appendix to Chapter 4 helpful in answering these questions. 1.         Assume that a competitive market with a highly inelastic demand is in equilibrium.  Now suppose the government imposes a per-unit tax on the sale of the good (that is, $t is collected from the seller for each unit sold).  Using a graph, illustrate the effect that such a tax has on the price paid by consumers, the price received by sellers, the quantity sold in …

Tax revenue and dead weight loss

Name : Use the following graph for the market for trinkets to answer the questions : 1 . 1 Looking at the graph , which is more elastic : supply or demand ? How do you know ? 1 . 2 Suppose a $ 2 . 50 is imposed on the buyers in this market . Draw the new demand curve ( that determines the new quantity ) on the graph above , and show where the consumer surplus , producer surplus , tax revenue and dead weight loss is . 1 . 3 What is the new quantity of …