ECO/365 Final Examination Study Guide
This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers.
Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar with, refer to the Student Guide for that particular week.
Week One: Fundamentals of Microeconomics
Objective: Differentiate between macroeconomics and microeconomics.
1. Macroeconomics is
a. the study of individual choice and
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11. Suppose wages and employment decrease. These changes were most likely caused by a(n)
a. decline in immigration
b. increase in emigration
c. increase in the working age population
d. decline in business activity in the economy
12. The incentive effect refers to how much a person will change his or her
a. hours worked in response to a change in the wage rate
b. wage rate in response to a change in productivity
c. quantity demanded of a taxed good in response to a change in the tax rate
d. wage rate in response to a change in the tax rate on earnings
Objective: Analyze the effect of changes in marginal revenues and costs on a firm’s profit-making potential.
13. Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her explicit costs for the new business include
a. only the expenses incurred for office space, equipment, and supplies
b. only her foregone salary of $42,000 per year
c. both the expenses incurred for office space, equipment, and supplies, and her foregone salary of $42,000 per year
d. neither the expenses incurred for office space, equipment, and supplies, nor her foregone salary of $42,000 per year
14. If your company cell phone bill is either $40 when you use up to 300 minutes per month or $80 when you use between 300 to 400 minutes per month, the marginal cost of the 301st minute is
a. $0.13
c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above?
Jill (45,000 – 500 – 2000 * 75%, yr1/ 134,500 – 1,000 – 2,500 * 75%,
____ 22. When incorporating her sole proprietorship, Samantha transfers all of its assets and liabilities. Included in the
Use the lecture folder to help you complete this guide. The more detail you can provide the better prepared for the test you will be.
*If you go through each item on this study guide and read about it on the REFerenced page and corresponding TOPic in your text, you should have an excellent study guide for the Final Exam. If you do not do this, you will likely fail this exam miserably!
Directions: Use your graded tests and Unit 4 & 5 notes to answer the following questions. You can find the answers for #’s 1 – 62 on Exam 1 (3rd Nine Weeks Exam) and #’s 63 – 100 on your unit notes. Write your answers in the space provided, below each question.
Over the course of your pregnancy, you've likely experienced excitement, nervousness, curiosity and unfortunately, some aches and pains. By week 36, your body has made an amazing transformation and your baby has grown by leaps and bounds. She is now close to six pounds and will continue to gain about one ounce each day. As you near the end of your pregnancy, you may be experiencing new kinds of pains. It's important to know which of these are common at this stage and which are a cause for concern.
i. The gross income information from Jessie Robinson's W-2 form. TIP: This is the amount from question 7b above.
Assume Hospital A is a for-profit organization that pays taxes at a rate of 30 percent and Hospital B is a not-for-profit organization that pays no taxes. If depreciation expense for the year that ended on December 31, 2012, were doubled (e.g., from $100,000 to $200,000) for both organizations, which of the following statements is most correct?
Directions: Read the captioned book. Then answer the questions contained in this study guide. Post your completed document to the appropriate assignment box on the course website.
(b) Calculate by how much the proposed addition will either increase or reduce operating income. Show all work.
B. The money that is collected is put in a trust fund that provides a monthly income for retired workers.
(d) Received $800 from customers in payment of their accounts. Cash 800/ Net Income 800
As you read this week’s required materials, complete this study guide. Review the material to study for the final examination in Week Five. This is a multipage assignment: double-check that you have completed each page before submitting.