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business
foundations of economics

Questions and Answers of Foundations Of Economics

Discuss the origins and practice of modern antitrust.
List and discuss the major antitrust laws.
Defi ne and explain antitrust.
Discuss the effects of cutthroat competition in the college textbook market.
Experiment with game theory.
Explain and discuss administered prices.
Analyze the kinked demand curve.
Describe and discuss the competitive spectrum.
Defi ne and measure concentration ratios and the Herfi ndahl-Hirschman index.
Assess the effi ciency of the monopolistic competitor.
Defi ne and illustrate price discrimination.
List and discuss the characteristics of monopolistic competition.
Defi ne and examine product differentiation.
Differentiate between the monopolistic competitor in the short run and the long run.
List the pros and cons of allowing a Walmart supercenter to open in your community.
Identify and discuss the factors that make bigness bad.
Explain how economies of scale and natural monopoly affect control of an industry.
List and discuss the limits to monopoly power.
List and discuss the barriers to entry into a monopolized industry.
Differentiate between the short run and the long run for the monopolist.
Calculate the profi t or loss of the monopolist.
Analyze and discuss the graph of the monopolist.
Explain economic effi ciency.
Graph and analyze the short-run and long-run supply curves.
Distinguish between the short run and the long run for the perfect competitor.
List and discuss the characteristics of perfect competition.
Analyze graphically profi t maximization and loss minimization.
Distinguish between and calculate economic profi t and accounting profi t.
Defi ne and measure marginal revenue and total revenue.
Explain and differentiate between the shut-down and go-out-of-business decisions.
List the factors contributing to economies and diseconomies of scale.
Analyze the production function and its relationship to the law of diminishing returns.
Graph and analyze the AFC, AVC, ATC, and MC curves.
Defi ne and calculate average fi xed, variable, and total cost.
Discuss and measure marginal cost.
Defi ne and analyze fi xed costs, variable costs, and total cost.
Measure consumer surplus.
Defi ne and solve the water–diamond paradox.
Discuss and analyze maximizing utility.
Measure total utility.
Apply the law of diminishing marginal utility.
Defi ne and explain marginal utility.
Analyze and measure tax incidence.
Name and discuss the three phases of the elasticity of supply over time.
Discuss the elasticity of supply.
Defi ne and examine income elasticity of demand and cross elasticity of demand.
Examine the relationship between elasticity and total revenue.
List and discuss the determinants of elasticity.
Interpret and calculate the elasticity of demand.
Explain in terms of supply of demand why many people have trouble selling their houses.
Identify equilibrium price and quantity by observing graphs.
Draw graphs of supply and demand curves.
List and discuss the causes of changes in supply.
Distinguish between changes in supply and changes in quantity supplied.
Defi ne and differentiate between individual supply and market supply.
List and discuss the causes of changes in demand.
Distinguish between changes in demand and changes in quantity demanded.
Defi ne and differentiate between individual demand and market demand.
Analyze Baumol’s Disease.
Judge the Malthusian theory of population.
Discuss and analyze economic growth in the less developed countries.
List and examine the factors slowing our economic growth.
Assess the roles of savings, capital, and technology.
List and explain the reasons why our productivity growth has varied in recent decades.
Examine and explain the role played by productivity.
Summarize the causes of economic growth in the United States.
Assess the use of conventional macropolicy to fi ght recession and infl ation.
Apply behaviorist economics.
Judge the rational expectations theory.
Describe supply-side economics.
Apply the policy prescription of the monetarist school.
Analyze Keynesian economics.
Analyze classical economics.
Explain the quantity theory of money.
Discuss the equation of exchange.
Discuss whether Ben Bernanke should have been reappointed to a second term.
Explain how a normally functioning fi nancial system was restored.
Summarize the housing bubble and the subprime mortgage mess.
List and discuss monetary policy lags.
Examine the Banking Acts of 1980 and 1999.
Discuss the Fed’s effectiveness in fi ghting infl ation and recession.
List and apply the tools of monetary policy.
Explain the creation and destruction of money.
Apply the deposit expansion multiplier.
Discuss overdraft privileges.1 . Understand the organization of the Federal Reserve System.2 . Explain reserve requirements.
Describe and analyze the 2008 fi nancial meltdown.
Summarize the savings and loan debacle.
Defi ne and discuss branch banking and bank chartering.
Discuss the origins of banking.
Analyze the demand for money.
Distinguish among M1, M2, and M3.
List and discuss the three jobs of money.
Explain predictions for federal budget defi cits in the future.
Explain why the recovery from the Great Recession will be “jobless.”
Discuss and analyze the national debt.
Assess the success of fi scal policy measures in ending the Great Recession.
Defi ne and differentiate between the crowding-out and crowding-in effects.
Discuss fi scal policy lags.
Distinguish between budget defi cits and surpluses.
Assess discretionary fi scal policy.

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