Study Guide
(Note: If you do not take the required Final Exam, you will receive a WF-Withdraw Fail in the course regardless of current grade.)
The final exam will consists of three large questions. Below are a list of potential questions that will appear on the final exam. I will choose three questions from the list below. You need to be prepared to answer each of the questions below. In addition, you must provide in-text citations from the textbook and provide the full textbook reference at the end of each question on the exam. Each question is worth 33.3 points each.
Helpful Tip: Begin answering each of the questions below in a word document, and then copy and paste your answers into the exam. This will save time.
List of Questions:
1.) Define Antitrust policy. Discuss in detail the three major Antitrust Acts and how they are used to promote competition in the market place. Discuss the pros and cons of using marginal cost pricing and average cost pricing to regulate prices in natural monopolies.
2.) Discuss how firms differentiate their products, and provide a specific example for each. Discuss the decision to advertise for each of the four basic market structures. Define a brand name, and provide five examples of recognizable brand names in the market place.
3.) Define compensating differentials. Define efficiency wages. Discuss the marginal productivity theory of labor. Discuss the role of unions in the labor market. Discuss discrimination in the labor market by providing various examples of wage disparities by gender.
4.) Differentiate between the poverty threshold and the poverty rate. Identify who the poor are in the United States, and discuss what causes poverty. Discuss antipoverty programs in the United States.
5.) Define private information, and discuss how private information can distort decisions in the marketplace. Differentiate between adverse selection and moral hazard and provide examples of each. Discuss how adverse selection can be avoided. Discuss how moral hazard can be avoided.