Microeconomics - Basics

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The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.

Refer to the above table. Suppose the government commands each firm to reduce its emissions by 1 ton each and allows these two firms to trade pollution permits. If a 1-ton credit is sold for $175, the total cost for both companies combined to reduce emissions by a total of 2 tons could be as low as:

1) joint-stock company: Joint-stock companies were groups of people, where every member put up a

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

Directions: Identify the letter of the choice that best completes the statement or answers the question. Then mark your response on the answer sheet. Unless otherwise stated, demand curves are negatively sloped and supply curves are positively sloped. The midpoint and point formulae for elasticity are, respectively:

1. Suppose that there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. Present production is:

In his cartoon, “Welcome to Economics 101, Kid”, Jeff Parker demonstrates a frustrated tone using an exaggerated symbolism and ironic background to highlight the unjustly overpriced costs of college tuition fees.

1. Economics – the efficient allocation of the scarce means of production toward the satisfaction of human needs and wants.

Evaluate each of the following changes in supply and/or demand. How will each affect equilibrium price and quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on shifts, will the answers be indeterminate?

Methamphetamine is a highly addictive drug, hence there is a high necessity associated with it, which would mean that for users of the drug, demand would be inelastic. P is a reputed necessity, because it is a good which isn’t essential for survival, but many users simply think they have to have it. Because those who use P generally have a strong addiction and dependence to P, an increase in price, caused by reduced supply from increased seizures of precursors used in the manufacture of the drug, such as pseudoephedrine, would most likely result in a less than proportional change in quantity demanded. Despite this, not all users of P are completely addicted, and a price increase would cause some users to reduce quantity demanded. It

In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving

Microeconomics is the economic influences that impact at the micro, or firm, rather than macro level. The study of this subject is one that is highly valuable for any studying business with the provision of knowledge that will increase understanding of different influences and support the decision making processes. With the knowledge gained, along with the skills in applying that knowledge developed through class work and exercises for the different modules, there has also been the development of increased confidence, both personal and in the theories, in using the relevant concepts and tools in a practical setting.

Unavoidable losses happen and farming can be a risky industry because of natural disasters such as; Tornadoes, hurricanes, frost, earthquakes, and other catastrophes

Monopolistic competition differs from perfect competition in the fact that production does not take place at the lowest possible cost. Because of this, firms are left with excess production capacity. Monopolistic competition is a type of competition within an industry where all firms produce similar substitutable products, all firms are able to enter the industry, all firms are profit maximizers and finally where all firms have some market power, which means none of them are price takers. Whereas perfect competition is a market structure where all the firms have to follow those five criteria: sell identical products, be price takers, have small market share, buyers have full knowledge, freedom of entry and exit.