36 、The Laffer curve depicts a relationship between which of the following sets of two economic variables and its proponents belong to which group of economists?
| Two economic variables | Proponents belong to |
A. | Tax rate and tax revenues | Monetarists |
B. | Tax rate and tax revenues | Supply-siders |
C. | Inflation and unemployment | Monetarists |
D. | Inflation and unemployment | Supply-siders |
Select exactly 1 answer(s) from the following:
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
37、Choice Malts Breweries has compiled the following information in order to determine its economic profit for the year:
Total revenue | $300,000 |
Value of buildings and machinery |
|
- At the beginning of the year | $300,000 |
- At the end of the year | $280,000 |
Cost of raw materials | $100,000 |
Wages paid during the year | $ 50,000 |
Normal profit for the year | $ 40,000 |
What is the economic profit of Choice Malts Breweries closest to?
Select exactly 1 answer(s) from the following:
A. $90,000
B. $110,000
C. $130,000
D. $150,000
38、Which of the following provides the best description of the effect of subsidies on the prices of goods and the relationship between marginal cost and marginal benefit?
| Effect on prices | Relationship between marginal cost |
A. | Price falls | Marginal benefit exceeds marginal cost |
B. | Price falls | Marginal cost exceeds marginal benefit |
C. | Price increases | Marginal benefit exceeds marginal cost |
D. | Price increases | Marginal cost exceeds marginal benefit |
Select exactly 1 answer(s) from the following:
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
39、The Okun gap and the inflationary gap, respectively, occur under which of the following economic conditions?
| Okun gap | Inflationary gap |
A. | Below full-employment equilibrium | Below full-employment equilibrium |
B. | Below full-employment equilibrium | Above full-employment equilibrium |
C. | Above full-employment equilibrium | Below full-employment equilibrium |
D. | Above full-employment equilibrium | Above full-employment equilibrium |
Select exactly 1 answer(s) from the following:
A. Answer A.
B. Answer B.
C. Answer C.
D. Answer D.
40、In response to the influx of tourists, the demand for guest rooms in Sun-n-Surf, a resort hotel on a south pacific island, went up from 100 to 150 rooms. As a result, Sun-n-Surf management has decided to increase the tariff from $150 to $
Select exactly 1 answer(s) from the following:
A. 0.67.
B. 0.72.
C. 1.40.
D. 1.50.
答案和详解如下：
36 Correct answer is B
“Fiscal Policy,” Michael Parkin
2008 Modular Level I, Vol. 2, pp. 439-440
Study Session 6-27-a
explain supply-side effects on employment, potential GDP, and aggregate supply, including the income tax and taxes on expenditure, and describe the Laffer curve and its relation to supply-side economics
The relationship between the tax rate and the amount of tax revenue collected is called the Laffer curve, named after Arthur B. Laffer, a supply-side economist and a member of President Reagan’s economic policy advisory board. They argued that tax cuts would increase tax revenues and decrease the budget deficit.
37 Correct answer is A
“Organizing Production,” Michael Parkin
2008 Modular Level I, Vol. 2, pp. 92-95
Study Session 4-16-a
explain the types of opportunity cost and their relation to economic profit, and calculate economic profit
38 Correct answer is B
“Markets in Action,” Michael Parkin
2008 Modular Level I, Vol. 2, pp. 79-80
Study Session 4-15-d
discuss the impact of subsidies, quotas, and markets for illegal goods on demand, supply, and market equilibrium
Upon introduction of a subsidy, the equilibrium level of supply increases and the price falls. In the new equilibrium, marginal cost (on the supply curve) exceeds marginal benefit (on the demand curve) and a deadweight loss arises due to overproduction (Figure 13 on p. 79).
39 Correct answer is B
“Aggregate Demand and Aggregate Supply,” Michael Parkin
2008 Modular Level I, Vol. 2, pp. 327-328
Study Session
differentiate between short-run and long-run macroeconomic equilibrium, and explain how economic growth, inflation, and changes in aggregate demand and supply influence the macroeconomic equilibrium and the business cycle
A below full-employment equilibrium is a macro-economic equilibrium in which potential GDP exceeds real GDP. The amount by which potential GDP exceeds real GDP is called the Okun gap. An above full-employment equilibrium is a macro-economic equilibrium in which real GDP exceeds potential GDP. The amount by which real GDP exceeds potential GDP is called an inflationary gap.
40 Correct answer is C
“Elasticity,” Michael Parkin
2008 Modular Level I, Vol. 2, pp. 24-25
Study Session 4-13-a
calculate and interpret the elasticities of demand (price elasticity, cross elasticity, income elasticity) and the elasticity of supply, and discuss the factors that influence each measure
The elasticity of supply equals the percent change in quantity relative to the average quantity divided by the percent change in demand relative to the average demand:
The average quantity = (100 + 150) / 2 = 125, the % change in quantity = 50 / 125 = 40;
The average price = (150 + 200) / 2 = 175, the % change in price = 50 / 175 = 28.6
Elasticity of supply = 40 / 28.6 = 1.40
thanks a lot
thanks
thx
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