1. Graphically show the Circular Flow of Income and Goods (Closed Economics. Add in Government Sector)

Include all three markets: Labor, Product, Capital and the Government sector.Indicate the flow between the markets and sector--directions of flow and proper labels.

Tips:Use one sheet of white paper-landscape orientation.Use colored pens/pencils.Be careful in photo/scan so the answer is legible.Upload as a pdf.

2. The Marginal Cost curve will

a.

cut ATC at the minimum of ATC but cut AVC at a point to the left of the minimum of AVC.

d.

cut AVC at the minimum of AVC but cut ATC at a point to the right of the minimum of ATC.

b.

cut ATC at the minimum of ATC but cut AVC at a point to the right of the minimum of AVC.

e.

cut both ATC and AVC at their respective minimums

c.

cut AVC at the minimum of AVC but cut ATC at a point to the left of the minimum of ATC.

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

Tips:

Use white paper.

Use colored pens/pencils.

Be careful in photo/scan so the answer is legible.

Upload as a pdf.

3. Average Fixed Cost is the

a.

horizontal distance (at any particular cost level) between ATC and AVC

d.

vertical distance (at any particular quantity) between AVC and the horizontal axis

b.

vertical distance (at any particular quantity) between ATC and AVC

e.

horizontal distance (at any particular cost level) between ATC and the vertical axis

c.

vertical distance (at any particular quantity) between ATC and the horizontal axis

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

Tips:

Use white paper.

Use colored pens/pencils.

Be careful in photo/scan so the answer is legible.

Upload as a pdf.

4. https://imgur.com/a/KNpbC4H (Figure 6-10 is IMGUR LINK)

The firm depicted inFigure 6-10currently is producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will

a.

adjust from point F to point G in the short run

b.

be unable to adjust to point G in the short run because some inputs are fixed

c.

be unable to adjust to point G in the long run because some are fixed

d.

be unable to adjust to point H in the short run because some inputs are fixed

e.

adjust from point F to point H in the long run

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

Tips:

Use white paper.

Use colored pens/pencils.

Be careful in photo/scan so the answer is legible.

Upload as a pdf.

5. https://imgur.com/a/6CmnrNB (Figure 7.13 is IMGUR LINK)

Consider the marginal revenue and marginal cost curves shown inFigure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level?

a.

150 units

b.

80 units

c.

50 units

d.

less than 50 units

e.

between 50 and 80 units

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

Tips:

Use white paper.

Use colored pens/pencils.

Be careful in photo/scan so the answer is legible.

Upload as a pdf.