I only accept explained answers with calculations

8. Ceteris paribus, when the government engages in price supports for agricultural products, a. shortages of agricultural output are likely to generated b. the economically efficient amount of agricultural output is likely to be generated C. prices of agricultural goods are likely to be lower than they would be otherwise d. surpluses of agricultural goods are likely to be generated ECNS 101 - Final Exam - Section 1 - Version 1 -Page 2 of 13 Elves/hour Total Product (toys/hour) 50 80 100 110 115 118 9. Santa Claus hires elves to produce toys according to the production function in the table above. Santa prices his toys at $10 each and elf wages are $75 per hour. Elf wages represent Santa's only cost of production. Based on this information, what is total revenue when Santa hires 5 elves per hour? a. 115 toys per hour b. $115 per hour C. $1150 per hour d. $775 per hour e. $50 per hour 10. The equilibrium price of renting a booth at the Gallatin Valley Farmer's Market is $10 per day. The Bozeman Organic Growers' Association has petitioned the Farmer's Market Management Board to impose a price ceiling of $5 per day for booth space. All else equal, if the Farmer's Market Management Board adopts the price ceiling of $5, we would expect that a. There will be a shortage of booth space at the Farmer's Market b. All organic growers at the Farmer's Market will be better off C. There will be a surplus of booth space at the Farmer's Market d. The market for booth space will reach equilibrium e. Both b and d are correct 60 Price (hour) 10 D 100 206 300 400 503 600 706 800 906 1080 Quantity (hours/week) 11. The figure above illustrates the demand and supply of Economics 101 tutoring services at MSU during finals week. If MSU gets a grant to hire more tutors for Economics 101, a possible new equilibrium would be a. P = $20, Q = 100 hours per week b. P = $20, Q = 500 hours per week C. P = $40, Q = 100 hours per week d. P = $40, Q = 500 hours per week e. not enough information31. The table above shows the demand and supply for huckleberry bagels at the BagelWorks bagel shop in Bozeman, Montana. At equilibrium, the price of huckleberry bagels is _ per dozen and total revenue earned from huckleberry bagel sales _ per week. a. $60; $60 b. $10; $60 C. $60; $1000 d. $10; $600 -+MB (social ------ MC (private) 4000 Price per ounce Quantity (number of ounces/week) 32. Suppose that the market for marijuana is shown in the graph above, where MC(private) represents the private supply curve and MC(social) represents the social supply curve that reflects the full social marginal costs of marijuana. MB(social) is the demand curve and represents the private and social marginal benefits of marijuana. Without Intervention, _ ounces of marijuana will be traded per week at a price of _ per ounce. a. 400; $2500 b. 400; $2000 c. 450; $2250 d. 450; $2000 33. If it takes country B four units of labor to produce a computer and three units of labor to produce a TV and it takes country A three units of labor to produce a computer and two units of labor to produce a TV, then country A has a comparative advantage in both goods a comparative advantage in computers a comparative advantage in neither goed a comparative advantage in TVs e. the law of decreasing opportunity cost ECNS 101 - Final Exam - Section 1 - Version 1-Page 8 of 13 34. Decreasing costs of production have made it cheaper to produce medical marijuana. At the same time, the demand for medical marijuana has increased. Ceteris paribus, what can we say about the equilibrium price and quantity of medical marijuana as a result of these two changes? a. price will fall and quantity will rise b. quantity will fall, but the effect on equilibrium price is unknown price will rise and quantity will rise d. quantity will rise, but the effect on equilibrium price is unknown e. the effects on both equilibrium price and equilibrium quantity are unknown Quantity Demanded Price Quantity Supplied (dozens/week) ($/dozen) (dozens/week) 140 6 0 120 15 100 8 30 80 9 45 60 10 60 40 11 75 20 12 90 13 105 35. The table above shows the demand and supply for huckleberry bagels at the BagelWorks bagel shop in Bozeman, Montana. In equilibrium, the consumer surplus from huckleberry bagel consumption is a. .5*60*$13 = $390 per week b. .5*60*$10 = $300 per week c. .5*60*$3 = $90 per week d. .5*60*$6 = $180 per week e. $0 since there is no consumer surplus in equilibrium Elves/hour Total Product (toys/hour) 0 0 50 BO 100 110 5 115 6 11842. When demand for a good is relatively inelastic, there are relatively _ __ substitutes available, and quantity demanded is_ _ to price changes. a. many; highly responsive b. many; not very responsive C. few; highly responsive d. few; not very responsive 60 50 40 Price (Shour 10 D 0 100 200 300 400 500 600 700 800 900 1000 Quantity (hours/week) 43. The figure above illustrates the demand and supply of Economics 101 tutoring services at MSU during finals week. Given this information, when P =$40, total revenue is $__per week. When P = $35, total revenue is $ _ per week. Between P = $40 and P = $35, the price elasticity of demand is _ a. $0; $0; elastic b. $4000; $7000; elastic C. $4000; $7000; inelastic d. $20000; $14000; elastic e. $20000; $14000; inelastic 44. A decrease in the supply of fast food restaurant workers could be the result of a. higher wages paid to workers in other types of restaurants b. lower wages paid to fast food restaurant workers C. lower wages paid to workers in other types of restaurants d. decreased demand for fast food e. higher wages paid to fast food restaurant workers 45. Which of the following will lead to an increase in the equilibrium quantity but a decrease in the equilibrium price of beer, ceteris paribus? a. An increase in beer purchasers' incomes b. An increase in the price of hops, an input into beer C. A new law making alcohol consumption illegal d. Evidence that drinking beer leads to obesity e. A decrease in the price of hops, an input into beer 46. Which of the following can cause a free market to produce more than the socially efficient amount of a good or service? a. social benefits b. negative externalities C. private benefits d. positive externalities e. free rider problems ECNS 101 - Final Exam - Section 1 - Version 1-Page 11 of 13 Marginal Cost of Pollution Reduction ($) Quantity of Pollution Mess it up Fancy Reduction Manufacturing Fabricators (tons/day) 0 100 25 150 W N 50 200 4 75 25047. The table above describes a local manufacturing industry made up of two firms. The manufacturing process used by the firms generates emissions of pollution into the local environment. The numbers in the table show the marginal cost of reducing each ton of pollution for each of the firms. The total cost of reducing pollution by 3 tons per day for Fancy Fabricators is _ a. $50 b. $200 C. $450 d. $700 -=> MC/private) -MC(social) Price per ounce Quantity (number of ounces/week) 48. Suppose that the market for marijuana is shown in the graph above, where MC(private) represents the private supply curve and MC(social) represents the social supply curve that reflects the full social marginal costs of marijuana. MB(social) is the demand curve and represents the private and social marginal benefits of marijuana. The gap between MC(social) and MC(private) represents a. The difference between the private and social benefits of marijuana production and consumption b. The negative externalities associated with marijuana production and consumption c. The difference between the market price of marijuana and the actual private cost involved in producing marijuana d. Producer surplus e. Consumer surplus ECNS 101 - Final Exam - Section 1 - Version 1-Page 12 of 13 Quantity Demanded Price Quantity Supplied (dozens/week) ($/dozen) (dozens/week) 140 6 120 15 100 8 30 9 45 60 10 60 40 11 75 20 12 90 13 105