Business School
Department of International Business &Economics

MACROECONOMICS 1
(ECON 1009)

Problem set 1 due on 10THDecember
2015

Instructions for submisson:

1. This
is Microeconomic Problem set

2. Answer both parts.

3. You
need 60% to Pass this Problem set

4. Check
for online feedback

Maths and graphs
1) A
graph having two axes _________ show the relationship between 3 variables
_______________________.
a)
can; only if the slope of the curve remains constant
b)
can; only if one variable remains constant
c)
can; only if two variables increase at the same rate
d)
cannot; ever

2) An
inverse relationship ____________________________________.
a)
is one between two opposite variables such as employment and unemployment
b)
is the same as a negative relationship
c)
can be seen easily on a cross-section graph
d)
always has one axis with an inverted scale

3) The
slope of a relationship is the _____________ of the variable measured on the
___ -axis divided by the _____________ of the variable measured on the ___
-axis.
a)
value; x; value; y
b)
change in the value; y; change in the value; x
c)
change in the value; x; change in the value; y
d)
value; y; value; x

4) To
compare the unemployment rate of teenagers with the unemployment rate of
workers in other age groups, you would use a ________ graph.
a)cross-section
b)two-variable
c)time-series
d)one-variable

MICRO
1) In
one day, Sue can change the oil on 15 cars or the tires on 10 cars. In one day,
Fred can change the oil on 12 cars or the tires on 10 cars. Sue’s opportunity
cost of changing oil is _______ than Fred’s and her opportunity cost for
changing tires is _______ than Fred’s.
a)
less; greater
b)
less; less
c)
greater; less
d)
greater; greater

2) Scarcity
arises when our ____________________________.
a)
resources exceed our wants
b)
resources are limited
c)wants exceed our resources
d)wants are unlimited

3) Our
productive resources include all the following except the __________________.
a)
land, skill of people, and machines owned by firms
b)land, entrepreneurship, and human capital
c)the money people own and the consumption
goods that they buy
d)skill of entrepreneurs and people, the
land they own, and their capital

4) The
production possibility frontier separates _____________________________.
a)
the types of goods that can be attained from those that can’t be unattained
b)
the goods and services that people want from those that they do not want
c)
the combinations of goods that people value and those that they
d)
the quantities of goods and services that can be produced from those that
cannot be produced

5) Beth
eats two tacos for lunch. The marginal benefit that Beth gets from the second
taco is the ________________________.
a)maximum amount that she is willing to pay
for two tacos
b)opportunity cost of producing two tacos
c)maximum amount that she is willing to pay
for the second taco
d)opportunity cost of producing the second
taco

6) When
production is efficient, ____________________________.
a)we can satisfy our wants, but we incur an
opportunity cost
b)our choice of the goods to produce has no
opportunity cost
c)we are willing to buy the goods produced
as the opportunity cost is low
d)we face a tradeoff and incur an
opportunity cost

7) Harry
produces 2 balloon rides and 4 boat rides an hour. Harry could produce more
balloon rides without producing fewer boat rides. Harry is
___________________his production possibility frontier.
a)
producing on
b)
moving along
c)
producing outside
d)
producing inside

8) Production
efficiency occurs when production _______________________.
a)is at any attainable point
b)is specialized
c)is on the production possibility frontier
or inside it
d)of more of any good requires producing
less of some other good

Consider the following two-player strategic-form game:

 

With these basic market research skills,you, as a marketing agency,will construct aPowerPoint presentation for the medium-sized American business, based in Prince WilliamCounty, VA.

PowerPoint presentationGoing Global no more than 15 content slides (excluding titled end slides)

a.You will choose only one category of consumer product to export to 1 country(i.e. toothpaste, pet food)

b. Choose 1 country (not Canada or Mexico)to export your product

c.You will write a preliminary promotion plan to include:

i.SWOT of exporting (Ch 2)

ii.Identify Product Life Cycle placement(Ch 11)

iii.Marketing Channel Used f or Consumer Products(direct,retailer,wholesaler, broker/agent)( Ch 13)

iv.Promotional Plan (Ch 16and 17)

TEMPLATE AND RUBRIC ARE ATTACHED