MICROECONOMICS FINAL EXAM 2021PART 1: Answer the following questions. (5 percent each)1) List the...

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MICROECONOMICS FINAL EXAM 2021PART 1: Answer the following questions.  (5 percent each)1) List the three main forms of business ownership.2) What is the law of demand?  What is the law of supply?3) List the four levels of competition in markets.4) What is the difference between a labor strike and a lockout?PART 2: Problems.  Show your work.  (10 percent each)1) Accounting and Economic Profit:  Figure out the accounting and economic profit based on the following information.  A person decided to go to an expensive private four year college.  They took out loans that totaled $80,000 with a monthly repayment amount of $830 based on the interest rate they received and a ten year repayment.  They obtained employment in the field they wanted with an annual gross income of $60,000.  This person could have went to a state university and taken out $20,000 total of student loans that would have a monthly repayment of $207 and obtained employment in their field with a different company that would pay an annual gross income of $55,000.  Based on this information calculate both their accounting profit and also their economic profit for one year.  (Note: for this problem we are using gross income and ignoring the 77,000 + page IRS code.)2) Price Elasticity: Use the following equation to answer the problem and identify if the answer represents either elastic, inelastic, or unit elastic    Percentage Change in QuantityEd =    Demanded of Product X XXXXXXXXXX_____________________    Percentage Change in Price    of Product XA) The price of movie tickets increases 8.5% and quantity demanded decreases by 11.5%.        Ed=B) The price of pizza decreases by 5% and quantity demanded increased by 3.5%.        Ed=C) The price of wheat increases by 4.25% and quantity demanded decreases by 4.25%.        Ed=3) Economics of Taxation: A) If a student who files their tax return receives the American Opportunity Tax Credit for $2,500, and they are in the 15% tax acket, then what is their tax savings?B) If a taxpayer who files their tax return receives a tax deduction for $10,000 and they are in the 15% tax acket, then what is their tax savings?4) Global Economy: Complete the following table by indicating if the U.S. dollar appreciated or depreciated against the selected cuencies of the time frame given.  The values in the table represent how much one U.S. dollar is compared to the other cuencies.    Cuency    8/10/10    4/26/13    U.S. dollaAppreciate or Depreciate            EuroMexican PesoJapanese YenCanadian DollaU.K. Pound    .7612.6785.771.04.63    .7712.1697.941.02.65    ____________________________________________________________PART 3: Short answer.  Answer the following using complete sentences.  (10 percent each)1) Supply and Demand: Use the following graphs to answer A thru D.A-B) For each graph, explain a market situation that will explain the shift.  Also explain the result of the shift for equiliium price and quantity.2) Competition Level:  Given the following information that was found on the internet for the cereal industry, identify which level of competition this would be classified as, and explain why.  Identify and explain if the products are standard or differentiated.  Explain based on the level of competition what non-price competition there is such as advertising, etc. (Note: since private label is #4, use Quaker as the 4th largest in this industry.)3) Global Economy: List and explain the three main baiers to trade that a government can put in place.  Include in your answer why they would do this and how each baier would impact trade.4) Economic Systems: Compare and contrast the main differences between a market system and a command system.

Komalavalli · Accepted Answer

Part 1
1) The three main forms of business ownership are Sole Proprietorship, partnership and Limited Liability   Company.
Sole proprietorship:
A sole proprietorship is an unincorporated business held only by one person. While it is the simplest of the company forms, it also provides the owner with the least financial and legal protection. Sole proprietorships, unlike partnerships or corporations, do not create a separate legal identity for the company. In essence, the firm's owner has the same identity as the corporation. As a result, the owner bears full responsibility for the company's liabilities.
Partnership:
A partnership, as the name implies, is a firm held by two or more persons known as partners. Partnerships, like sole proprietorships, can benefit from flow-through taxation. This means that the income is taxed just once because it is considered as the income of the owners. In a partnership, the owners are liable for the firm's responsibilities. There are, however, certain exceptions. General partnerships, limited partnerships, and limited liability partnerships are the three forms of partnerships.
Limited Liability Company:
Limited liability corporations (LLCs) are one of the most adaptable company structures available. LLCs are a hybrid of a partnership and a corporation. They keep the advantages of sole proprietorships in terms of taxation and the restricted liabilities of corporations in terms of liability. Different tax treatment options are available to LLCs. The LLC keeps its flow-through taxation status as long as it decides not to be taxed as a C corporation.
2)
Law of demand:
According to the law of demand, the amount purchased is inversely proportional to the price. In other words, the lesser the amount needed, the greater the price. Because of declining marginal utility, this happens.
Law of supply:
All other things being equal, the law of supply asserts that when the price of a commodity or service increases, so will supply, and vice versa. To optimise their earnings, suppliers will try to sell more products when the price of an item increases.
3)
Monopolistic: 
Under monopolistic competition, there are still plenty of suppliers available (as we had under perfect competition). But they no longer sell the same items as before. These companies instead focus on differentiating their offerings by offering items that are considered to be different, but serving a common objective.
Oligopoly:
Oligopoly is characterized by a small number of vendors. It's not uncommon for one vendor to supply a substantial share of all items offered in an oligopolistic market. Because it is expensive to establish a business in an oligopolistic industry, the number of businesses that enter it is also limited.
Monopoly:
When it comes to the number of vendors and the level of competition, monopolies are at one extreme. Since no company can control pricing in an environment of perfect competition, tiny businesses just accept market price established by supply and demand. There is just one vendor in a monopolistic market. Not every market has to be a country;

MICROECONOMICS FINAL EXAM 2021 PART 1: Answer the following questions. (5 percent each) 1) List the three main forms of business ownership. 2) What is the law of demand? What is the law of supply? 3)...

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