Introduction Question Bank
|
|
- Rosamond Beverley Snow
- 6 years ago
- Views:
Transcription
1 Introduction Question Bank 1. Science of wealth is the definition given by 2. Economics is the study of mankind of the ordinary business of life given by 3. Science which tells about what it is & what ought to be is 4. Positive economics does not give value judgments (True / False) 5. Positive economics says only about the ends. (True / False) 6. Normative economics is concerned with welfare judgments (True / False) 7. Microeconomics is also known as 8. In which type of economic system has government no control over price fluctuation. 107
2 Answer Sheet 1. Adam Smith 2. Alfred Marshall 3. Normative Science 4. False 5. True 6. True 7. Price Theory 8. Market Economy 108
3 9. In which economic system is cost benefit analysis used to answer the fundamental question what, how & for whom to produce? 10. In Static economic models,variables do not have a time dimensions. (True / False) 11. Economics is what economists do was stated by 12. Micro economic theory deals with 13. What is the main problem of every economy? 14. In economic theory the term means refers to 15. Who described economics in terms of material welfare? 16. Cetris paribus means 17. The term ends refer to 18. Who alleged that economic should not be normative in character. 109
4 Answer Sheet 9. Mixed Economy 10. True 11. Jacob Viner 12. Economic behaviors of individual economic decision making units. 13. Scarcity of economic resources 14. Resources 15. Cannon 16. Other things being constant 17. Wants 18. Robbins 110
5 19- Wealth is a concept in economic. 20- In economics Income is a concept. 21- The basic assumption of an economic analysis are 22- Who one is known as father of economics? 23- Who said, when six economist gathers there are seven opinions. 24- The concept of consumer surplus was coined by 25- The term Micro is derived from the Greek word which means. 26- Deductive method goes from general to particular. (True / False) 27- Inductive method is also known as 111
6 Answer Sheet 19. Stock 20. Flow 21. Cetris Paribus & Rational Behavior 22. Adam Smith 23. Barbara Wotten 24. Alfred Marshall 25. Small 26. True 27. Historical, Realistic & Analytical 112
7 Demand Question Bank 1. A desire culminates into demand when it is backed by 2. The price that a customer is willing to pay for a given quantity is called demand price. 3. Goods or services that are not necessary for living are 4. Complementary goods are those which are consumed 5. If price of sugar will increase the demand for coffee will 6. Increase in price of a product results in increased consumption of the product as the product become cheaper compared to other products. This effect is known as 7. Traditional approach to law of demand was propounded by 8. According to modern approach, law of demand is caused by 113
8 Answer Sheet 1. Purchasing power & willingness to spend money 2. Maximum Price 3. Wants 4. Simultaneously 5. Fall 6. Income effect 7. Alfred Marshal 8. Income & Substitution effect 114
9 9. Increase in Demand is also known as 10. Decrease in Demand is also known as 11. Tea & Coffee are 12. Which type of relationship exists between the price & quantity demanded? 13. Demand curve slopes 14. Shift in demand not take place because of 15. For what type of goods does demand fall with a is decrease in income level of household? 16. demand explains the collective behavior of all the buyers in a market price? 17. The goods that can be substituted for each other is called 18. The Law of demand is 19. The law of demand is quantitative statements. (True / False) 115
10 Answer Sheet 9. Expansion in demand 10. Constraction in Demand 11. Alternative goods 12. Inverse 13. Downward from left to right 14. Change in price of the product 15. Inferior Goods 16. Aggregate Demand 17. Substitute Goods 18. Price falls, demand rises 19. True 116
11 20. In case of normal goods the the income effect is 21. The price elasticity of demand would be higher for those product which have 22. The Price elasticity of demand for addictive products would be 23. Inferior goods have a negative income elasticity of demand.(true / False) 24. IF two products are good substitute, the value of cross elasticity will be 25. Usually the demand for necessities is highly inelastic. (True / False) 117
12 Answer Sheet 20. Positive 21. Large number of substitutes 22. Less than True 24. Positive 25. True 118
13 Cost & Law of Supply Question Bank 1. Benefit foregone in favor of alternative course of action is called, 2. If there is no production in short run, TC will be 3. In the short run, TC start from 4. Economics cost means 5. Accounting Cost means 6. Outlay cost means the cost incurred actually. (true / False) 7. The minimum price that a supplier expects to make available a specific quantity for sale is called 8. The maximum quantity that a supplier is prepared to supply in market at a given price is called 9. Under law of supply, ceteris paribus is 119
14 Answer Sheet 1. Opportunity cost 2. Positive 3. Positive vertical intercept 4. Explicit cost + Implicit cost 5. Explicit cost or money cost 6. True 7. Supply Price 8. Supply Quantity 9. Cost of production & Production technology 120
15 10. According to Law of supply higher the price higher the quantity the seller is prepared to supply in market. (True / False) 11. The measurement of sensitivity of quantity demand to change in price is called, 12. Utility elasticity is a type of elasticity in economics. (True / False) 13. Point elasticity concept was propounded by 14. Demand of Salt is inelastic because of 15. Price elasticity of demand is not affected by cost of production. (True / False) 16. Luxury goods have degree of elasticity. 17. Number of buyers is a factor in market supply of product. (True / False) 121
16 Answer Sheet 10. True 11. Price elasticity 12. False 13. Marshal 14. No substitute 15. True 16. High 17. False 122
17 18. When the price of complementary products falls, the demand of the other product will. 19. The elasticity of demand of normal goods is generally > The elasticity of complementary goods is generally < The elasticity of substitute goods is generally > The supply curve is normally downward. 23. If supply curve is relatively elastic it means that elasticity value is than one. 123
18 Answer Sheet 18. Increases 19. Income elasticity 20. Cross elasticity 21. Cross elasticity 22. Upward rising 23. Less 124
19 Production Question Bank 1. Production includes mining, manufacturing & service providing. (True / False) 2. Production can be defined as 3. Production just shows the relationship between input & output.(true / False) 4. Production reveals the output that yields the maximum profit. (True / False) 5. Production function shows the output produced with a given amount of input.(true / False) 6. Variable factors means those factor of production which can be changed in 7. Change in total revenue due to incremental change in quantity supplied. 125
20 Answer Sheet 1. True 2. Creation or addition of utility. 3. False 4. False 5. True 6. Short run 7. Marginal Revenue 126
21 8. Which law examines the production function keeping one factor variable? 9. During the stage of decreasing returns 10. The introduction of new product with added features in the market is known as 11. At what point is the marginal product maximum? 12. Isoquant is also known as 13. Isocost is also known as 14. Usually isoquants are Convex to the origin. (True / False) 15. If there is fixed factor & variable factor the law should be Law of 16. Cost function is related to production function. (True /False) 17. Who regards fixed costs as supplementary cost? 127
22 Answer Sheet 8. Law of variable proportion. 9. MP is decreasing 10. Product innovation 11. Inflection point 12. Production indifference curve 13. Price line 14. True 15. Variable proportion 16. True 17. Marshal 128
23 18. Term private & social cost were first used by 19. The law of diminishing returns applies in 20. Social cost is the cost which is incurred by 21. Private cost is the cost which is incurred by 22. Positive externality arises when 23. Labour supply curve is 24. In economic theory, in short run all the cost are 25. Discrepancies between private cost & social cost give rise to 129
24 Answer Sheet 18. Pigou 19. Short run 20. Society 21. Industry / Firm 22. Social cost is less than the private cost 23. Backward sloping 24. Fixed 25. Externalities 130
25 Consumer Behavior Question Bank 1. Law of diminishing Marginal utility states that with successive increase in consumption of additional unit marginal utility also decreases. (True / False) 2. Supply refers to the quantity which a firm is 3. Benefit foregone by not putting the resources to their next alternative use is called 4. Various combinations of two commodities that give same level of consumer satisfaction, is called 5. A line which shows combination of two commodities that a consumer can buy within same budget, is called 6. Difference between what a customer is willing to spend for a product & what he actually pays for it, is called 131
26 Answer Sheet 1. True 2. Willing to supply at a given price. 3. Opportunity Cost 4. Indifference Curve 5. Budget Line 6. Consumer Surplus 132
27 7. Indifference curve are convex to the origin due to 8. If indifference curve is concave to the origin it would implies 9. Higher indifference curve indicates 10. In short run producer surplus is 11. In long run producer surplus is 12. Who propounded Kinked demand curve hypotheses 13. Total utility is maximum when 14. MU curves will be below X-axis when 15. When the total utility is increasing at an increasing rate marginal utility is 16. Utility or satisfaction is subjective concept therefore it could only be ranked defines the position of 17. A=B=5, this statement is a 18. The want satisfying the power of a commodity is known as 133
28 Answer Sheet 7. Diminishing marginal rate of substitution 8. Increasing marginal rate of substitution 9. Higher level of satisfaction combination 10. Greater than economic profit 11. Equal to economic profit 12. Sweezy 13. Marginal utility is zero 14. MU is negative 15. Increasing 16. Ordinal utility theorist 17. Cardinal measure of utility 18. Utility 134
29 19. Utility measured in terms of 20. The total utility divided by the number of units consumed is known as 21. The point where marginal utility become zero, is called 22. The book Value & Capital is written by 23. Diminishing return occurs when a firm uses more & more on same inputs while holding all other inputs constant. (True /False) 24. Consumer s surplus is highest in the case of 25. Which one theory can be used to argue in favor of direct taxes? 135
30 Answer Sheet 19. Utils 20. Average utility 21. Point of safety 22. J R Hicks 23. True 24. Necessities 25. Equi marginal utility 136
31 Price & Output Determination Question Bank 1. rent is equal to firm s total profits. 2. A monopoly is one in which a monopolist is facing a monopsonist. 3. The theory of monopolistic competition is developed by, 4. Under perfect competition the number of firms are large. (True / False) 5. Under competition the price of product can not be controlled. 6. Which price refers to the price at which seller refuse to supply the goods. 7. In the very run demand only can change. 8. In the run both demand & supply can change. 137
32 Answer Sheet 1. Quasi 2. Bilateral 3. H E Chamberlin 4. True 5. Perfect 6. Reserve Price 7. Short run 8. Long run 138
33 9. Equilibrium price may be determined through, 10. What is the shape of the demand curve faced by a firm under perfect competition? 11. Under market condition, firms make normal profit in the long run, 12. The no. of sellers under Perfect competition is, 13. The no. of sellers under Monopolistic competition is, 14. The no. of sellers under oligopoly is, 15. The no. of sellers under monopoly is, 16. Product differentiation under Perfect competition is, 17. Product differentiation under Monopolistic competition is, 18. Product differentiation under Oligopoly is, 139
34 Answer Sheet 9. Demand & Supply 10. Horizontal 11. Perfect competition. 12. Many 13. Many 14. Few 15. One 16. None 17. Extreme 18. Not substantial 140
35 19. Product differentiation under Monopoly is, 20. Price elasticity of demand for a firm under Perfect competition is, 21. Price elasticity of demand for a firm under Monopolistic competition is, 22. Price elasticity of demand for a firm under Oligopoly is, 23. The degree of control over price under Perfect competition is, 24. The degree of control over price under Monopolistic competition is 25. The degree of control over price under Oligopoly is, 26. The degree of control over price under Monopoly is, 141
36 Answer Sheet 19. None 20. Infinite 21. Large 22. Small 23. None 24. Some 25. Some 26. Considerable 142
37 Price & Output Determination II Question Bank 1. What should firm do if total revenue from its product does not equal or exceeds its variable cost? 2. What should firm do when marginal revenue is greater than marginal cost? 3. If any unit of production adds more to revenue than to cost it will result, 4. If any unit of production adds more to cost than to revenue it will result, 5. Which one market never suffers losses in long run? 6. How prices are determined under Perfect competition? 7. What does the Kink demand curve explains? 8. The price is determined according to Australian approach by, 143
38 Answer Sheet 1. Stop production 2. Expand output 3. Increase in profits 4. Decrease in profits 5. Monopoly 6. Equilibrium prices of industry 7. Rivalry reactions in an oligopoly. 8. Utility 144
39 9. In the long run, prices are governed by, 10. Who called price mechanism as invisible hands? 11. Bilateral monopoly is where, 12. BEP means 13. Super normal profit occurs when 14. What is the other name given to average revenue curve? 15. Average profit is the difference between, 16. refers to increase in welfare of one individual without decreasing the welfare of another individual. 17. is a situation in which it is not possible to make someone better off without making someone worse off. 18. is the price at which demand for a commodity is equal to its supply. 145
40 Answer Sheet 9. Cost of production 10. Adam Smith 11. One buyer & one seller 12. TR = TC 13. AR is more than AC 14. Demand Curve 15. AC & AR 16. Distribution efficiency 17. Pareto efficiency 18. Equilibrium price 146
41 19. refers to a market where goods & services are bought & sold. 20. refers to a market where services of factors of production are bought & sold. 21. Externalities are also called, 22. When price discrimination extends two or more countries, it is called, 23. Adam Smith called price mechanism as 24. Australian approach is also known as 147
42 Answer Sheet 19. Goods market 20. Factor market 21. Spill over 22. Dumping 23. Invisible Hands 24. Psychological & Subjective approach 148
PRACTICE PAPER - 30 Dr. A. THANGAVEL WIN ACADEMY MICRO ECONOMICS PGTRB ECONOMICS COACHING
PRACTICE PAPER - 30 1. Economics is the science, which studies human behaviour as a relationship between ends and scarce means which have alternative uses. These lines can be attributed to (a) Lionel Robbins
More informationUNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION
UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B COM/BBA (2011 Admn. Onwards) I SEMESTER COMPLEMENTARY COURSE MANAGERIAL ECONOMICS QUESTION BANK 1. The famous book on economics An Enquiry into the
More informationMicro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics
Micro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics Annual Examination 1997 Time allowed: 3 hours Marks: 100 Maximum 1) Attempt any five questions. 2) All questions
More informationGraded exercise questions. Level (I, ii, iii)
Graded exercise questions Level (I, ii, iii) 248 MICRO ECONOMICS LEVEL 1 GRADED EXERCISE QUESTIONS (LEVEL I, II, III) INTRODUCTION 1. Why does an economic problem arise? 2. What is economics about? 3.
More information1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3
1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want
More informationBA Economics III Semester Core Course PRINCIPLES MICRO ECONOMICS
BA Economics III Semester Core Course PRINCIPLES MICRO ECONOMICS QUESTION BANK 1. The curve showing the possibilities of production of desired good is known as: (A) Indifference curve (B) Production possibility
More informationEconomics. In an economy, the production units are called (a) Firm (b) Household (c) Government (d) External Sector
Economics The author of the book "The General Theory of Employment Interest and Money" is (a) Adam Smith (b) John Maynard Keynes (c) Alfred Marshall (d) Amartya Sen In an economy, the production units
More information12 ECONOMICS 3 MARKS MATERIAL LESSON 1 1. State Alfred Marshall s definition of Economics? Alfred Marshall defines; economics as a study of mankind in the ordinary business of Life 2. What is the main
More informationPRINCIPLES OF ECONOMICS PAPER 3 RD
PRINCIPLES OF ECONOMICS PAPER 3 RD Question 1 Objectives. Select appropriate alternative. (A) The meaning of the world Economic is most closely associated with the word. (a) Free (b) Scarce (c) Unlimited
More informationEcn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman Final Exam You have until 12:30pm to complete this exam. Be certain to put your name,
More informationUNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of
More informationQ.1 Distinguish between increase in demand and increase in quantity demanded of a commodity.
Q.1 Distinguish between increase in demand and increase in quantity demanded of a commodity. Q. 2 Given price of a good, how does a consumer decide as to how much of that good to buy? Q. 3 A consumer consumers
More information1. T F The resources that are available to meet society s needs are scarce.
1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2
Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose
More informationCHAPTER 2: DEMAND AND SUPPLY
2.3 THE MARKET CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good
More informationAP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
More informationJANUARY EXAMINATIONS 2008
No. of Pages: (A) 9 No. of Questions: 38 EC1000A micro 2008 JANUARY EXAMINATIONS 2008 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates
More informationECONOMICS ASSIGNMENT CLASS XII MICRO ECONOMICS UNIT I INTRODUCTION. 4. Is free medicine given to patients in Govt. Hospital a scarce commodity?
ECONOMICS ASSIGNMENT CLASS XII MICRO ECONOMICS UNIT I INTRODUCTION 1. What is the Slope of PPC? What does it show? 2. When can PPC be a straight line? 3. Do all attainable combination of two goods that
More informationCommerce 295 Midterm Answers
Commerce 295 Midterm Answers October 27, 2010 PART I MULTIPLE CHOICE QUESTIONS Each question has one correct response. Please circle the letter in front of the correct response for each question. There
More informationECON 115. Industrial Organization
ECON 115 Industrial Organization 1. Tonight is a calculus review. 2. And a review of basic microeconomics. 3. We will do a couple of problems in class. First hour: Calculus Thinking on the margin. Introducing
More informationMultiple Choice Part II, A Part II, B Part III Total
SIMON FRASER UNIVERSITY ECON 103 (2007-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, A Part II, B Part III Total PART I. MULTIPLE CHOICE (56%, 1.75 points each). Answer on the bubble
More information07. Engel s Law of family expenditure and significance. - Consumer's surplus estimation and applications.
07. Engel s Law of family expenditure and significance. - Consumer's surplus estimation and applications. Engel s Law on Family Expenditure Every family has to spend money on necessaries of life, education,
More informationUNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
More information23 Perfect Competition
23 Perfect Competition Learning Objectives After you have studied this chapter, you should be able to 1. define price taker, total revenues, marginal revenue, short-run shutdown price, short-run breakeven
More informationUNIT-I INTRODUCTION TO MANAGERIAL ECONOMICS & DEMAND ANALYSIS. Economics as the study of nature and uses of national wealth.
www. UNIT-I INTRODUCTION TO MANAGERIAL ECONOMICS & DEMAND ANALYSIS or ld ECONOMICS Economics is a study of human activity both at individual and national level. The economists of early age treated economics
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1
1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.
More informationBremen School District 228 Social Studies Common Assessment 2: Midterm
Bremen School District 228 Social Studies Common Assessment 2: Midterm AP Microeconomics 55 Minutes 60 Questions Directions: Each of the questions or incomplete statements in this exam is followed by five
More informationJANUARY EXAMINATIONS 2005
No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper
More information14.01 Principles of Microeconomics, Fall 2007 Chia-Hui Chen November 7, Lecture 22
Monopoly. Principles of Microeconomics, Fall Chia-Hui Chen November, Lecture Monopoly Outline. Chap : Monopoly. Chap : Shift in Demand and Effect of Tax Monopoly The monopolist is the single supply-side
More informationBACHELOR OF BUSINESS. Sample FINAL EXAMINATION
BACHELOR OF BUSINESS Sample FINAL EXAMINATION Subject Code : ECO201 Subject Name : LABOUR ECONOMICS This examination carries 50% of the total assessment for this subject. Examiner(s) Moderator(s) Joyce
More informationSample. Final Exam Sample Instructor: Jin Luo
Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.
More informationMonopoly. Cost. Average total cost. Quantity of Output
While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if... it is the sole seller of its product. its product does not have close substitutes. The
More informationMODEL QUESTION PAPER SECTION A-(1X40)
MODEL QUESTION PAPER SUBJECT CODE : MB0042 SUBJECT : Managerial Economics SECTION A-(1X40) 1. Production cost is concerned with to produce a given quantity of output. a. Demand Forecast b. Estimation of
More informationUnit 1 DEMAND AND SUPPLY ANALYSIS
Unit 1 DEMAND AND SUPPLY ANALYSIS 1 LESSON 1 ELASTICITY OF DEMAND AND APPLICATIONS 1. STRUCTURE 1.1. Objective 1.2. Introduction 1.3. Meaning of Elasticity of Demand 1.4. Types of Elasticity of Demand
More informationMEPS Preparatory and Orientation Weeks. Lectures by Kristin Bernhardt. Master of Science in Economic Policy. March 2012
MEPS Preparatory and Orientation Weeks Master of Science in Economic Policy March 2012 Lectures by Kristin Bernhardt Fundamentals of Microeconomics 1. Introduction 2. Markets 3. Consumers and Households
More information2007 NATIONAL ECONOMICS CHALLENGE NCEE/Goldman Sachs Foundation
2007 NATIONAL ECONOMICS CHALLENGE NCEE/Goldman Sachs Foundation National Round I: Microeconomics David Ricardo Division 1. If your income tax liability is $15,000 and your income is $60,000, your A. average
More informationMonopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials
LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were
More informationECONOMICS (856) CLASS XI
ECONOMICS (856) Aims: 1. To enable candidates to acquire knowledge (information) and develop an understanding of facts, terms, concepts, conventions, trends, principles, generalisations, assumptions, hypotheses,
More informationa. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run
I. From Seminar Slides: 3, 4, 5, 6. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm (PC), a monopolistically competitive firm (MC), both, or neither.
More informationSample Paper-05 ( ) Economics Class XII. Time allowed: 3 hours Maximum Marks: 100
Sample Paper-05 (2016-17) Economics Class XII Time allowed: 3 hours Maximum Marks: 100 Answers 1. (b) How to produce. 2. (c) tea and coffee 3. (c) Contraction of demand. 4. PPC shift when (i) resources
More informationComm295 Midterm Review Package. October, Content:
Managerial Economics Comm295 Midterm Review Package October, 20 2014 Supply and Demand Elasticity Regression Analysis Consumer Choice Production Cost Concepts Profit Maximization Perfect Competition Monopoly
More informationMICROECONOMICS SECTION I. Time - 70 minutes 60 Questions
MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best
More informationExtra Credit. Student:
Extra Credit Student: 1. A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its supply curve for house windows to be: A. Dependent
More informationIntroduction. Consumer Choice 20/09/2017
Consumer Choice Introduction Managerial Problem Paying employees to relocate: when Google wants to transfer an employee from its Seattle office to its London branch, it has to decide how much compensation
More informationPerfect competition: occurs when none of the individual market participants (ie buyers or sellers) can influence the price of the product.
Perfect Competition In this section of work and the next one we derive the equilibrium positions of firms in order to determine whether or not it is profitable for a firm to produce and, if so, what quantities
More informationAdvanced Microeconomic Theory. Chapter 7: Monopoly
Advanced Microeconomic Theory Chapter 7: Monopoly Outline Barriers to Entry Profit Maximization under Monopoly Welfare Loss of Monopoly Multiplant Monopolist Price Discrimination Advertising in Monopoly
More informationAP Microeconomics Chapter 4 Outline
I. Learning Objectives In this chapter students should learn: A. How to differentiate demand-side market failures and supply-side market failures. B. The origin of consumer surplus and producer surplus,
More information2010 Pearson Education Canada
What Is Perfect Competition? Perfect competition is an industry in which Many firms sell identical products to many buyers. There are no restrictions to entry into the industry. Established firms have
More informationSRI LANKA INSTITUTE OF ADVANCED TECHNOLOGICAL EDUCATION. (Established in the Ministry of Higher Education, vide in Act No.
Q1. Select the correct answer and Under line it (Total 16 Marks) 01. Economics is a science. Because, (a) Evidences are observable (b) Findings are measurable (c) Findings can be analyzed i a and b correct
More informationINTRODUCTION. Two uses of price theory: 1. Descriptive (Positive Theory) 2. Prescriptive (Normative Theory)
INTRODUCTION This course covers the field of microeconomics. Microeconomics addresses individual behavior in markets and the interrelationships between markets. This is quite different from macroeconomics,
More informationE.C.O.-6 Economic Theory
N 1 ASSIGNMENT SOLUTIONS GUIDE (2015-2016) E.C.O.-6 Economic Theory Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the Assignments. These
More informationAfter studying this chapter you will be able to
3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences
More informationECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter Introduction Towson University 1 / 69
ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 2-4 - Introduction Towson University 1 / 69 Disclaimer These lecture notes are customized for the Macroeconomics
More information12 ECONOMICS MATERIAL LESSON - 1
12 ECONOMICS MATERIAL LESSON - 1 1. State Alfred Marshall s definition of Economics? Alfred Marshall defines economics as a study of mankind in the ordinary business of Life. An altered form of this definition
More informationSIMON FRASER UNIVERSITY Department of Economics Sample Final Examination. PART I. Multiple Choice. Choose the best answer. (60% - 1 point each!
Econ 103 SIMON FRASER UNIVERSITY Department of Economics Sample Final Examination PART I. Multiple Choice. Choose the best answer. (60% - 1 point each!) PART 1: MULTIPLE CHOICE (answers are at the end
More informationFigure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ $ $ $ $10 2 8
Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8
More informationPreface. Chapter 1 Basic Tools Used in Understanding Microeconomics. 1.1 Economic Models
Preface Chapter 1 Basic Tools Used in Understanding Microeconomics 1.1 Economic Models 1.1.1 Positive and Normative Analysis 1.1.2 The Market Economy Model 1.1.3 Types of Economic Problems 1.2 Mathematics
More informationA2 Economics Essential Glossary
tutor2u A2 Economics Essential Glossary Author: Geoff Riley (Eton College) Tutor2u Limited 2004 All Rights Reserved tutor2u is a registered trade mark of Tutor2u Limited 2 Abnormal profit Abnormal profit
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) Consumers have the ability to buy everything
More information[ECON10004: INTRODUCTORY MICROECONOMICS: LECTURE REVISION NOTES]
Lecture Two: Cost of an action: Opportunity cost: value of resources if they were used in their next best alternative Sunk cost: resources already used before making the choice about an action, not included
More informationMarket Structure & Imperfect Competition
In the Name of God Sharif University of Technology Graduate School of Management and Economics Microeconomics (for MBA students) 44111 (1393-94 1 st term) - Group 2 Dr. S. Farshad Fatemi Market Structure
More informationIntermediate Microeconomics Spring 2005 Midterm Exam
Intermediate Microeconomics Spring 2005 Midterm Exam K. Yamamoto Answer all the questions in the sections A and B. For the section C, answer any two (2) questions. A. 1.Use the following two statements
More informationDemand and Supply. Chapter 2 pages 18-24, 27-3-, 33-34
Demand and Supply Chapter 2 pages 18-24, 27-3-, 33-34 Markets Market- where buyers and sellers come together to carry out an economic transaction Markets can be physical places where goods/services are
More informationIB Economics Competitive Markets: Demand and Supply 1.4: Price Signals and Market Efficiency
IB Economics: www.ibdeconomics.com 1.4 PRICE SIGNALS AND MARKET EFFICIENCY: STUDENT LEARNING ACTIVITY Answer the questions that follow. 1. DEFINITIONS Define the following terms: [10 marks] Allocative
More informationAgenda. Profit Maximization by a Monopolist. 1. Profit Maximization by a Monopolist. 2. Marginal Revenue. 3. Profit Maximization Exercise
Agenda 1. Profit Maximization by a Monopolist 2. Marginal Revenue 3. Profit Maximization Exercise 4. Effect of Elasticities on Monopoly Price 5. Comparative Statics of Monopoly 6. Monopolist with Multiple
More informationECONOMICS. Paper 3 : Fundamentals of Microeconomic Theory Module 28 : Non collusive and Collusive model
Subject Paper No and Title Module No and Title Module Tag 3 : Fundamentals of Microeconomic Theory 28 : Non collusive and Collusive model ECO_P3_M28 TABLE OF CONTENTS 1. Learning Outcomes 2. Introduction
More informationCh. 7 outline. 5 principles that underlie consumer behavior
Ch. 7 outline The Fundamentals of Consumer Choice The focus of this chapter is on how consumers allocate (distribute) their income. Prices of goods, relative to one another, have an important role in how
More informationPrinciples of Economics Final Exam. Name: Student ID:
Principles of Economics Final Exam Name: Student ID: 1. In the absence of externalities, the "invisible hand" leads a competitive market to maximize (a) producer profit from that market. (b) total benefit
More informationUnit 4: Consumer choice
Unit 4: Consumer choice In accordance with the APT programme the objective of the lecture is to help You to: gain an understanding of the basic postulates underlying consumer choice: utility, the law of
More informationChapter 28: Monopoly and Monopsony
Chapter 28: Monopoly and Monopsony 28.1: Introduction The previous chapter showed that if the government imposes a tax on some good that there is a loss of surplus. We show a similar result in this chapter
More informationPlease recall how TP, MP and AP are plotted
Please recall how TP, MP and AP are plotted The Marginal Revenue Product (MRP) The increase in total revenue for every additional labor unit employed. Units of Labor TP MP Product Price TR MRP ( TR/ L)
More informationCh3: Consumer Preferences and Utility
Ch3: Consumer Preferences and Utility Goal of Ch 3 and 4: To construct a model of demand based on individual decision making (ie:consumer choice). We will find this model has broad applicability. To construct
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Micro - HW 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In central Florida during the spring, strawberry growers are price takers. The reason
More informationChapter Summary and Learning Objectives
CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price
More informationI enjoy teaching this class. Good luck and have a nice Holiday!!
ECON 202-501 Fall 2008 Xiaoyong Cao Final Exam Form A Instructions: The exam consists of 2 parts. Part I has 35 multiple choice problems. You need to fill the answers in the table given in Part II of the
More informationMICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE
MICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE UNIT 1 BASIC CONCEPT OF CONSUMER BEHAVIOUR CHAPTER ONE CONTENTS Introduction Objectives Main Content Theory of Consumer Behaviour Consumer Preferences Decisiveness
More information2) All combinations of capital and labor along a given isoquant cost the same amount.
Micro Problem Set III WCC Fall 2014 A=True / B=False 15 Points 1) If MC is greater than AVC, AVC must be rising. 2) All combinations of capital and labor along a given isoquant cost the same amount. 3)
More informationTest Yourself: Basic Terminology. If all economists were laid end to end, they would still not reach a conclusion. GB Shaw
Test Yourself: Basic Terminology If all economists were laid end to end, they would still not reach a conclusion. GB Shaw What is economics? What is macroeconomics? What is microeconomics? Economics is
More information1.1 Efficiency in economics What is efficiency in economics?
1 Economic Efficiency Efficiency is one of the most important concepts in A Level Economics. There are two aspects to economic : allocative and productive. Confusingly, there are many types of. Learn definitions
More informationCOST OF PRODUCTION & THEORY OF THE FIRM
MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM One of the concepts mentioned in both Units I and II was and its components, total cost and total revenue. In this unit, costs and revenue
More informationThe "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market.
Chapter 16 Monopolistic Competition TRUE/FALSE 1. The "competition" in monopolistically competitive markets is most likely a result of having many sellers in the market. ANS: T 2. The "monopoly" in monopolistically
More informationSTUDY MATERIAL ECONOMICS (030) CLASS XII
STUDY MATERIAL ECONOMICS (030) 2017-18 Rationale Behind teaching Economics CLASS XII Economics is a subject of study which influences every human being. As economic life and the economy go through changes,
More informationAdopted from IB Economics Guide brought to you by 1
UNIT 1 INTRODUCTION TO ECONOMICS Definitions of social science and economics s of microeconomics and macroeconomics s of growth, development, and sustainable development Positive and normative concepts
More informationMonopoly. PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University
15 Monopoly PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Market power Why Monopolies Arise Alters the relationship between a firm s costs and the selling price Monopoly
More information2007 Thomson South-Western
Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity
More informationECON 260 (2,3) Practice Exam #4 Spring 2007 Dan Mallela
ECON 260 (2,3) Practice Exam #4 Spring 2007 Dan Mallela Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is defined as a. net revenue
More informationExam 1. Pizzas. (per day) Figure 1
ECONOMICS 10-008 Dr. John Stewart Sept. 30, 2003 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note a)=1, b)=2
More informationDo not open this exam until told to do so. Solution
Do not open this exam until told to do so. Department of Economics College of Social and Applied Human Sciences K. Annen, Fall 003 Final (Version): Intermediate Microeconomics (ECON30) Solution Final (Version
More informationDEMAND ANALYSIS. Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics)
DEMAND ANALYSIS Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics) MEANING OF DEMAND Demand is effective desire which can be fulfilled. Demand must satisfy the following prerequisites:
More informationShort-Run Versus Long-Run Elasticity (pp )
Short-Run Versus Long-Run Elasticity (pp. 38-46) Price elasticity varies with the amount of time consumers have to respond to a price Short-run demand and supply curves often look very different from their
More informationECON 311 MICROECONOMICS THEORY I
ECON 311 MICROECONOMICS THEORY I Profit Maximisation & Perfect Competition (Short-Run) Dr. F. Kwame Agyire-Tettey Department of Economics Contact Information: fagyire-tettey@ug.edu.gh Session Overview
More informationPrinciples of Microeconomics Module 5.1. Understanding Profit
Principles of Microeconomics Module 5.1 Understanding Profit 180 Production Choices of Firms All firms have one goal in mind: MAX PROFITS PROFITS = TOTAL REVENUE TOTAL COST Two ways to reach this goal:
More informationChapter 2: The Basic Theory Using Demand and Supply. Multiple Choice Questions
Chapter 2: The Basic Theory Using Demand and Supply Multiple Choice Questions 1. If an individual consumes more of good X when his/her income doubles, we can infer that a. the individual is highly sensitive
More information3 CHAPTER OUTLINE CASE FAIR OSTER PEARSON. Demand, Supply, and Market Equilibrium. Input Markets and Output Markets: The Circular Flow
CASE FAIR OSTER PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N Prepared by: Fernando Quijano w/shelly Tefft 2of 68 Demand, Supply, and Market Equilibrium 3 CHAPTER OUTLINE Firms and
More informationA few firms Imperfect Competition Oligopoly. Figure 8.1: Market structures
8.1 Setup Monopoly is a single firm producing a particular commodity. It can affect the market by changing the quantity; via the (inverse) demand function p (q). The tradeoff: either sell a lot cheaply,
More informationMonopolistic Markets. Causes of Monopolies
Monopolistic Markets Causes of Monopolies The causes of monopolization Monoplositic resources Only one firm owns a resource which is crucial for production (e.g. diamond monopol of DeBeers). Monopols created
More informationProfessor Christina Romer SUGGESTED ANSWERS TO PROBLEM SET 2
Economics 2 Spring 2016 rofessor Christina Romer rofessor David Romer SUGGESTED ANSWERS TO ROBLEM SET 2 1.a. Recall that the price elasticity of supply is the percentage change in quantity supplied divided
More informationPostal Test Paper_P1_Foundation_Syllabus 2016_Set 1 Paper 1- Fundamentals of Economics and Management
Paper 1- Fundamentals of Economics and Management Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 1-Fundamentals of Economics and
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?
More information