ECO 561 Final Exam Answers

1. The ECO 561 business proposal final exam The ECO 561 Business proposal final exam deals with the concepts of the business world and its challenges. Copyright. All Rights Reserved by www.StudentWhiz.com

2. INTRODUCTION • The ECO 561 final exam is designed to make the students aware about the core of business operations and the various challenges it is accompanied with. • It highlights that establishing a business is not a one-step activity. • The paper focuses mainly on making the students understand that business is all about identifying and satisfying the needs of the market. Copyright. All Rights Reserved by www.StudentWhiz.com

3. The questions are strategically framed to bring out the major theme of the topic. • Questions are framed broader in scope to cover all the necessary challenges or perspective required to be given excess consideration when operating in the market. • Sufficient practical examples. Copyright. All Rights Reserved by www.StudentWhiz.com

4. How to answer? • Questions are dedicated to make the students understand concepts of business and its applications. • Develops a habit among the students to think critical and apply the theoretical concepts learned in the classes to the real world of business. • The final exam highlights that understanding the market and its concept at the initial stages saves much effort, time, and resources for the company at later stages. Copyright. All Rights Reserved by www.StudentWhiz.com

5. Connection to the real world • When writing the ECO 561 final exam excess importance is given to the learning the students will have from the subject. • Exclusive section for the students, which contain answers to know the manner in which the exam is to be performed. • It gives the students an opportunity to understand the topic and thereby, add productive ideas to the topics of discussion in class. • We believe in imparting practical knowledge regarding the field of law rather than restricting the discussion only to theoretical concepts. Copyright. All Rights Reserved by www.StudentWhiz.com

6. WHY US? • Full command over the subject of the assignment. • Deep analysis on the related topics the prior to beginning the assignment activity. • The work we produce is 100% original. • We maintain not only professional but personal touch too with our clients to understand their needs and demands better. • Proper adherence to the university as well as APA guidelines when completing the assignments. • Free answers to first 4 questions for better understanding of the paper. • For Sample Work write to us at - ………………………….. Copyright. All Rights Reserved by www.StudentWhiz.com

7. Questionsto ECO 561 Final Examare as follow: 1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing [ B. demand for clothing has grown faster than the supply of clothing] C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this information 2) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can’t keep up with the quantity demanded at that price), then we would expect both Camille’s and Julia's to: A. raise their price and reduce their quantity supplied [  B. raise their price and increase their quantity supplied] C. lower their price and reduce their quantity supplied D. lower their price and increase their quantity supplied Copyright. All Rights Reserved by www.StudentWhiz.com

8. 3) In which of the following industries are economies of scale exhausted at relatively low levels of output? A. Aircraft production B. Automobile manufacturing C. Concrete mixing D. Newspaper printing 4) The average cost curves (AVC and ATC) should be minimized A. where MC = ATC and MC = AVC B. where FC = ATC and FC = AVCC. Where T C starts to increase at a faster rate D. where ATC = AVC Copyright. All Rights Reserved by www.StudentWhiz.com

9. 5) If the wage rate increases, A. a purely competitive producer will hire less labor, but an imperfectly competitive producer will not B. an imperfectly competitive producer will hire less labor, but a purely competitive producer will not  C. a purely competitive and an imperfectly competitive producer will both hire less labor D. an imperfectly competitive producer may find it profitable to hire either more or less labor 6) The real wage will rise if the nominal wage A. falls more rapidly than the general price level B. Increases at the same rate as labor productivity  C. increases more rapidly than the general price level D. falls at the same rate as the general price level 7) Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason they do this is to A. restrict the supply of construction workers B. increase the elasticity of demand for construction workers  C. increase the demand for construction workers D. increase the price of substitute inputs Copyright. All Rights Reserved by www.StudentWhiz.com

10. Click here to download ECO 561 Complete Answers 8) Paying an above-equilibrium wage rate might reduce unit labor costs by A. permitting the firm to attract lower-quality labor B. increasing the cost to workers of being fired for shirking C. increasing voluntary worker turnover D. increasing the supply of labor 9) A good real-world example of monopolistic competition is  A. lawyers B. gas stations C. Time Warner Cable D. groceries stores Copyright. All Rights Reserved by www.StudentWhiz.com

11. 10) An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called A. monopolistic competition B. oligopoly C. pure monopoly D. pure competition 11) Price is constant or given to the individual firm selling in a purely competitive market because A. the firm's demand curve is downward sloping B. of product differentiation reinforced by extensive advertising C. each seller supplies a negligible fraction of total supply D. there are no good substitutes for its product Copyright. All Rights Reserved by www.StudentWhiz.com

12. 12) The most important pricing strategy for a perfectly competitive firm is A. minimizing cost B. maximizing sales C. product differentiation D. advertising Want to download the Complete Paper?? ECO 561 13) Which of the following is a non-price barrier of entry? A. Huge sunk cost B. Discounts C. Product differentiation D. Advertising Copyright. All Rights Reserved by www.StudentWhiz.com

13. 14) A third-degree price discrimination can be applied to which of the following market structures?  A. A monopoly B. An oligopoly C. A monopolistic competition D. A perfect competition 15) Investing in R&D is more likely to occur in markets where A. firms have monopoly power protected by regulatory barriers B. markets are closely competitive markets with close to zero economic profits C. markets are oligopoly markets with strong collusion agreements D. markets are monopolistic competitive markets Copyright. All Rights Reserved by www.StudentWhiz.com

14. 16) All economies of scale are achieved at the minimum of A. average total cost B. total cost C. average variable cost D. average fixed cost 17) Inflation is undesirable because it  A. arbitrarily redistributes real income and wealth B. invariably leads to hyperinflation C. usually is accompanied by declining real GDP D. reduces everyone’s standard of living in the same pro Portion Copyright. All Rights Reserved by www.StudentWhiz.com

15. To download the complete answer checkECO 561 Week 5 Quiz or Knowledge 18) An economy’s aggregate demand curve shifts leftward or rightward by more Than changes in initial spending because of the A. net export effect B. wealth effect C. real-balances effect  D. multiplier effect 19) Suppose productivity rises in a particular economy, but wages stay the same. Other things equal, A. the demand curve will shift leftward B. the supply curve will shift rightward C. the supply curve will shift leftward D. expenditures curve will shift rightward Copyright. All Rights Reserved by www.StudentWhiz.com

16. 20) If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium A. output would rise B. output would fall C. price level would necessarily fall D. price level would necessarily rise 21) Expansionary fiscal policy is so named because it A. involves an expansion of the nation's money supply B. can only be attained by expanding government consumption C. is aimed at achieving greater price stability D. can motivate an expansion of real GDP Copyright. All Rights Reserved by www.StudentWhiz.com

17. 22) Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative$100 billion. To achieve full-employment output (exactly), government should A. increase government expenditures by $100 billion B. increase government expenditures by $50 billion C. reduce taxes by $50 billion D. reduce taxes by $200 billion ECO 561 Week 6 Complete 23) GDP understates the value of output produced by an economy because it A. includes transactions that do not take place in organized markets, such as home cooked meals B. includes environmental degradation caused by increased output production  C. excludes value added from the underground economy, such as tips taken under the table D. excludes the value of the wages and benefits of government employee Copyright. All Rights Reserved by www.StudentWhiz.com

18. 24) Other things equal, a decrease in the real interest rate will A. shift the investment demand curve to the right B. shift the investment demand curve to the left C. move the economy upward along its existing investment demand curve D. move the economy downward along its existing investment demand curve 25) Other things equal, a decrease in corporate income taxes will A. decrease the market price of real capital goods B. have no effect on the location of the investment demand curve  C. shift the investment demand curve to the right D. shift the investment demand curve to the left Copyright. All Rights Reserved by www.StudentWhiz.com

19. 26) Inflation in U.S. prices will cause A. an increase in the demand for U.S. dollars and an appreciation in the exchange rate B. an increase in the supply of U.S. dollars and a depreciation in the exchange rate  C. a decrease in the demand for U.S. dollars and a depreciation in the exchange rate] D. a decrease in the supply of U.S. dollars and an appreciation in the exchange rate 27) The quantity theory of money states that A. the money supply divided by the velocity of money equals the price level divided by real output B. the money supply times the velocity of money equals the price level times real output C. the money supply times the price level equals real output divided by the velocity of money D. the money supply times the price level equals real output times the velocity of money Copyright. All Rights Reserved by www.StudentWhiz.com

20. 28) Suppose that U.S. prices rise 4% over the next year while prices in Mexico rise 6%. According to the purchasing power parity theory of exchange rates, what should happen to the exchange rate between the dollar and the peso? A. The dollar should depreciate. B. The peso should appreciate. C. The peso should depreciate. D. The dollar will be revalued. 29) A rise in the domestic interest rate leads to capital A. outflows and exchange rate appreciation B. outflows and exchange rate depreciation C. inflows and exchange rate depreciation D. inflows and exchange rate appreciation Copyright. All Rights Reserved by www.StudentWhiz.com

21. 30) A firm under monopolistic competition will earn A. a positive economic profit as it has some monopoly power B. zero economic profit as it sets P = MC C. zero economic profit as its P = ATC D. a positive economic profit as it sets MC = MR About Author This article covers the topic for the University Of Phoenix ECO 372 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of ECO 561 Individual Assignmentfrom UOP. Other topics in the class are as follows: ECO 561 Week 1 Quiz or Knowledge Check ECO 561 Week 1 Complete ECO 561 Week 2 Quiz or Knowledge Check ECO 561 Week 2 Learning Team Deliverable ECO 561 Week 2 Complete Copyright. All Rights Reserved by www.StudentWhiz.com

22. ECO 561 Week 3 Quiz or Knowledge Check ECO 561 Week 3 Learning Team Deliverable ECO 561 Week 3 Complete ECO 561 Week 4 Quiz or Knowledge Check ECO 561 Week 4 Learning Team Deliverable ECO 561 Week 4 Complete ECO 561 Week 5 Quiz or Knowledge Check ECO 561 Week 5 Peer Review ECO 561 Week 5 Complete ECO 561 Week 6 Quiz or Knowledge Check ECO 561 Week 6 Final Proposal ECO 561 Week 6 Complete For further information on the above topics you can always visit the website www.StudentWhiz.com Copyright. All Rights Reserved by www.StudentWhiz.com