Assignment:
True or False
( ) 1. The loanable fund market demand is the demand for consumption.
( ) 2. An increase in thebond price increases the bond yield.
( ) 3. An increase in thestock price increases the stock rate of return.
( ) 4. Monopolyincreases unemployment, butmonopsony does not.
( ) 5. The open market operation is the changes in interest rate in open market.
( ) 6. The highreserve requirement has the direct relationship withmoney creation.
( ) 7. The money value andprice level have inverserelationship.
( ) 8. The nominal interest rate is related to inflation.
( ) 9. An inflation tax is the tax put on inflation.
( ) 10. Government expenditure belongs to the aggregate supply.
( ) 11. 1973-1975 recession is due toaggregate demand shift.
( ) 12. 2001 recession is due toaggregate demand shift.
( ) 13. As potential GDP is smaller thanactual GDP, recession occurs.
( ) 14. A money supply results in shift ofaggregate supply GDP.
( ) 15. The multiplier effect is bigger asmarginal propensity to consume is smaller.
( ) 16. The multiplier effect comes together withcrowding effect.
( ) 17. A recession results in decrease ofwelfare program.
( ) 18. A recessionresults indecrease of tax revenue.
( ) 19. The unemployment andinflation are in inverse relation.
( ) 20. The unemployment andinflation relation does not related toaggregate demand.
( ) 21. A quotadeceases export
( ) 22.A tariff decreases import.
( ) 23. A real exchange rate is not related tonominal exchange rate.
( ) 24. A purchasing power parity exchange rate is not related tonominal exchange rate.
( ) 25. A flexible exchange rate is not related tonominal exchange rate.
( ) 26. The export increasesconsumer surplus.
( ) 27. The trade deficit results incapital inflow.
2. Summarize
(1) loanable fund market
(2) monetary policy tools
(3) quantity equation
(4) Okun's law
(5) mutiplier effect and crowding effect
(6) automatic stabilizers
(7) risk aversion and risk taking
(8) Fisher effect
(9) aggregate model
(10) aggregate demand shift
(11) Phillips curve
(12) protectionist policies
(13) capital inflow and capital outflow
1.True or False (O or X)
( ) 1. Opportunity cost is included in the accounting cost.
( ) 2. Marginal Cost(MC) and Average Cost(AC) meet at the lowest MC.
( ) 3. Economies of Scope decreases production cost by increasing production.
( ) 4. Economies of Scale is the case for decreasing Long-Run Average Cost.
( ) 5. Production Function's Independent Variable is the Output.
( ) 6. Profit Function's Independent Variable is the Output.
( ) 7. Cost Function's Independent Variable is the Output.
( ) 8. Cost Equation's Independent Variable is the Output.
( ) 9. Marginal Revenue is the Price in all cases.
( ) 10. Firm's Supply Curve is the average Cost Curve.
( ) 11. Consumer Surplus is a surplus vale of buying less than market price.
( ) 12. Producer Surplus is a surplus value of selling higher than market price.
( ) 13. De Bears Diamonds Co. is the Natural Monopoly.
( ) 14. Copy right are the Natural Monopoly.
( ) 15. Water supply is the Natural Monopoly.
( ) 16. Monopoly Price is the same level where MR meets MC.
( ) 17. Monopoly Demand is the Average Revenue.
( ) 18. Airline Ticket is the Peak-Load Pricing.
( ) 19. Electricity is the Intertemporal Pricing.
( ) 20. Amusement Park fees are the Two-Parts Tariffs.
( ) 21. Oligopoly Price is the same level where MR and MC meet.
( ) 22. Oligopoly Price is the same level where MR and MC meet.
( ) 23. Reaction Curve is the producer's production reaction to consumption.
( ) 24. Dominant Strategy Game is a game where one side considers other side.
( ) 25. Monopolistic Competition is where few sellers compete with same output.
( ) 26. Demand for labor is a Derived Demand.
( ) 27. As Bond Price increases, Bond Yield increases.
( ) 28. Agents have less information than principal.
( ) 29. Externalities are not good always to market economy.
2. Summarize
(1) Duality Theory
(2) Production Optimum Condition
(3) Perfectly Competitive Market Conditions
(4) Deadweight Loss
(5) Optimum Price and Quantity in Competition and in Monoploy (Graphs)
(6) Public Policies to Monopoly
(7) Cournot Equilibrium and Collusion Equilibrium
(8) Prisoners' Game
(9) Edgeworth Box for Exchange
(10) Asymmetric information
(11) Externalities
(12) Social welfare function