Economics Homework Final Answers - Student Three

TrishaM

1\. a 2\. a 3\. a 4\. b 5\. a 6\. a 7\. b 8\. b 9\. e 10\. d 11\. b 12\. e 13\. d 14\. a 15\. e 16\. d 17\. c 18\. a 19\. b 20\. b 21\. a 22\. d 23\. d 24\. a 25\. e. 26\. b 27\. b 28\. a 29\. c 30\. d 31\. c 32\. c 33\. c 34\. b 35\. e 36\. d 37\. e 38\. b 39\. a 40\. c 41\. a 42\. 1 43\. c 44\. a 45\. c 46\. d 47\. d 48\. c 49\. d 50\. c

Extra Credit (girls only): a

WOW!!! 36 CORRECT, THE HIGH SCORE SO FAR!!! You should take the CLEP exam (Microeconomics) to earn college credit. Post here if you decide to do so and want extra advice. I'll post the specific grading on your answers in a few days after everyone has had an opportunity to take this course. Congratulations on your superb finish!!!!--Andy Schlafly 19:50, 9 January 2010 (EST)

Mr. Schlafly, Thank you SO much for offering this economics course. I am not planning on taking the CLEP test, but the class was very helpful to me anyway! :) I am planning on taking some of your other excellent courses, such as writing, soon.

Thanks again! --TrishaM 20:00, 12 January 2010 (EST)

Congratulations again for completing this very difficult course and excelling on the final exam!!!! Next class starts Jan. 28th.--Andy Schlafly 20:33, 12 January 2010 (EST)

Mr. Schlafly, It looks like I might be taking the CLEP test after all, so any extra tips or suggestions you could give me would be very much appreciated! Thank you so much! --TrishaM 16:40, 1 February 2010 (EST)

Trisha, that's great, and I'll post your correct/incorrect answers next with an analysis.--Andy Schlafly 16:47, 1 February 2010 (EST)

## Analysis of exam[edit]

Trisha, you missed only 15 questions on the final exam:

2, 4, 17, 18, 20, 28, 29, 32, 39, 42, 44, 46, 47, 49, and 50.

I think a superb way to prepare for the CLEP Microeconomics exam (be sure to take Microeconomics, not Macroeconomics) would be for you to try again with those questions, posting your answers here for me to grade again. Thanks.--Andy Schlafly 18:09, 1 February 2010 (EST)

Ok, here are my new answers. Thanks so much for taking the time to do this. :) --TrishaM 18:21, 8 February 2010 (EST)

2\. d - CORRECT
4\. c - CORRECT
17\. b - CORRECT
18\. c - CORRECT
20\. d - CORRECT
28\. b - CORRECT
29\. d - CORRECT
32\. b - INCORRECT; CORRECT ANSWER ID "D" (ASK HERE IF YOU STILL DON'T UNDERSTAND)
39\. b - CORRECT
42\. d - INCORRECT; CORRECT ANSWER IS "E" (ASK IF YOU DON'T UNDERSTAND)
44\. d - CORRECT
46\. b - INCORRECT; CORRECT ANSWER IS "E" (ASK IF YOU DON'T UNDERSTAND)
47\. a - INCORRECT; CORRECT ANSWER IS "C" (ASK IF YOU DON'T UNDERSTAND)
49\. c - INCORRECT; CORRECT ANSWER IS "E" (ASK IF YOU DON'T UNDERSTAND)
50\. b - CORRECT

Will grade shortly.--Andy Schlafly 21:22, 8 February 2010 (EST)

Grading posted above. You did extremely well, and you'll be ready to pass the CLEP with a little more review!--Andy Schlafly 11:15, 14 February 2010 (EST)

Ok, so I looked at the ones I got wrong, and I could not figure out or find the answers to 32, 42, 46, or 49. Could you help me out with those ones? --TrishaM 15:28, 17 February 2010 (EST)

32: P is on the vertical axis, and Q is on the horizontal axis. If the good is extremely (or perfectly) elastic, then a small change in price causes a huge in Q. That must be a horizontal line. Similarly, imagine a perfectly inelastic good: it doesn't matter what the price is, the Q is the same. That's a vertical line.

42: If you like hamburgers twice as much as chicken, then you'll require for a trade that someone give you two chicken meals in exchange for one hamburger. Graph that trade-off and see that its slope is -0.5, with chicken on the x axis.

Will explain other two later. Please confirm that you fully understand the two I just did explain. Thanks.--Andy Schlafly 15:41, 17 February 2010 (EST)

Ok, the first one (#32) makes sense, now. However, I'm still a little shaky on the hamburger/chicken problem...I don't understand why the slope is negative 0.5.

The indifference curves for the utilities of hamburger and chicken are found by graphing hamburger on the y-axis and chicken on the x-axis. The curve has a negative slope, because an increase in y means a decrease in x. (Slope is the change in y over the change in x).--Andy Schlafly 20:59, 18 February 2010 (EST)

Ok, I think I understand that one, now. Thank you! --TrishaM 16:33, 19 February 2010 (EST)

Great, now here is the explanation for 46:

The cross-elasticity of demand for good X with respect to good Y is the percent change in demand for good X divided by the percent change in price for good Y. It is how much the demand changes for good X due to a change in price for good Y (because they may be complements or substitutes, for example). It can have one value for the "short run" and another value for "long run." Given what those values are, and given the price change in good Y (50%), you can work backwards to find the percent change in demand for good X:

(percent change in good X) divided by (50%) = -0.2 in the short run.

Thus the percent change in good X = -0.2 times 50% = -0.1 = - 10% = decrease by 10%

Now see if you can calculate it for the long run to obtain the same answer as (e). This is asked on the CLEP exam.--Andy Schlafly 17:30, 19 February 2010 (EST)

Ok, I was able to calculate it for the long run and it came out the same as the correct answer! --TrishaM 16:08, 25 February 2010 (EST)

Well done! For the last question (49) see the last question and model answer in Economics Homework Four - Model. In fact, you might benefit from reviewing all the model answers as you prepare for the CLEP.

Please ask me any other questions that might have.--Andy Schlafly 16:22, 25 February 2010 (EST)