Econ 308 Final Exam Terms - Assignment Essays

question

Shift the budget line out(up and to the right)

answer

When parameters like income(M) and price(P1 and P2) change the budget line usually changes as well. If a consumer's income increase while prices remain unchanged this will

question

Shift the budget line in(down and to the left)

answer

If both prices double, this will

question

Bundle that gives him the highest utility and is affordable

answer

When a consumer makes an optimal choice, he chooses the

question

The optimal amount of a good given prices and income of the consumer

answer

Demand functions are very convenient when dealing with consumer choice. They tell us

question

Perfect Complements

answer

Suppose Bob need to buy to buy phones and phone chargers for his family. Each phone needs exactly one charger to be useful since the phone cannot be used without being charged. What kind of preferences are represented?

question

It must also be Inferior

answer

According to the Slutsky Equation if a good is a Giffen Good, then

question

Life saving medicine

answer

Which of the following good is MOST LIKELY to have very inelastic demand?

question

A function that gives the maximum amount of output from a given amount of inputs

answer

Firms often have many ways to produce a given level of output. However, since the inputs are costly, they are usually concerned with producing the most output they can. Therefore a firm's production function y=f(x1,x2) is

question

Fixed Proportions

answer

A firm makes railroad track using metal railroads and wooden planks. To make each segment of railroad track, the firm must use exactly two metal rails and ten wooden planks. Any more of either resources does not help. What kind of technology is the firm using?

question

If we increase the amount of one input being used, we should be able to produce at least as much output as before.

answer

What does it mean for Technology to be Monotonic?

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In the short-run the firm has some inputs that are fixed and cannot be changed.

answer

The difference between short-run and long-run is that

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Gives the lowest possible cost of producing given output y

answer

A firm's cost function

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Increase as output increases

answer

If a firm's production function has decreasing returns to scale DRTS then its average cost(AC) will

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The MC curve intersects both AC and AVC curves at their lowest points

answer

If we graph Marginal Cost curve(MC), the Average Variable Cost curve(AVC), and the Average Cost curve(AC) on the same graph we will see that

question

That the firm will only set its output, not its price.

answer

When a firm is in Perfect Competition we, know

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Only the part of the MC curve above the AVC curve

answer

The supply curve of a firm in a Perfectly Competitive market is

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The sum of all individual demands in a market

answer

Market Demand is

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D(Pd)=S(Ps)

answer

In a market with NO tax, equilibrium occurs where

question

A tax levied per unit bought or sold

answer

What is a Quantity Tax?

question

There is no difference: the end result is exactly the same

answer

When a tax is imposed on a market, it is usually imposed on either the consumers or on the producers. What effect does imposing the tax on the producers have relative to imposing it on the consumers?

question

Whoever has less responsiveness to changes in price

answer

When a tax is imposed on a market, who bears more of the tax burden between producers and consumers?

question

It is completely passed along to the consumers

answer

If supply is Perfectly Elastic, how is the tax burden distributed?

question

The lost value to society due to the reduction in sales of a good because of a tax

answer

What is the Dead Weight Loss of a tax?

question

Consumer Surplues

answer

Intuitively thought of as the value buyers get from participating in a market, the difference between what one was willing to pay and what one actually paid for a good is called

question

Both will testify against the other since testify is the dominant strategy

answer

What is the Nash Equilibrium of the Prisoner's Dilemma?

1 of 25

question

Shift the budget line out(up and to the right)

answer

When parameters like income(M) and price(P1 and P2) change the budget line usually changes as well. If a consumer's income increase while prices remain unchanged this will

question

Shift the budget line in(down and to the left)

answer

If both prices double, this will

question

Bundle that gives him the highest utility and is affordable

answer

When a consumer makes an optimal choice, he chooses the

question

The optimal amount of a good given prices and income of the consumer

answer

Demand functions are very convenient when dealing with consumer choice. They tell us

question

Perfect Complements

answer

question

It must also be Inferior

answer

According to the Slutsky Equation if a good is a Giffen Good, then

question

Life saving medicine

answer

Which of the following good is MOST LIKELY to have very inelastic demand?

question

A function that gives the maximum amount of output from a given amount of inputs

answer

question

Fixed Proportions

answer

question

If we increase the amount of one input being used, we should be able to produce at least as much output as before.

answer

What does it mean for Technology to be Monotonic?

question

In the short-run the firm has some inputs that are fixed and cannot be changed.

answer

The difference between short-run and long-run is that

question

Gives the lowest possible cost of producing given output y

answer

A firm's cost function

question

Increase as output increases

answer

If a firm's production function has decreasing returns to scale DRTS then its average cost(AC) will

question

The MC curve intersects both AC and AVC curves at their lowest points

answer

If we graph Marginal Cost curve(MC), the Average Variable Cost curve(AVC), and the Average Cost curve(AC) on the same graph we will see that

question

That the firm will only set its output, not its price.

answer

When a firm is in Perfect Competition we, know

question

Only the part of the MC curve above the AVC curve

answer

The supply curve of a firm in a Perfectly Competitive market is

question

The sum of all individual demands in a market

answer

Market Demand is

question

D(Pd)=S(Ps)

answer

In a market with NO tax, equilibrium occurs where

question

A tax levied per unit bought or sold

answer

What is a Quantity Tax?

question

There is no difference: the end result is exactly the same

answer

When a tax is imposed on a market, it is usually imposed on either the consumers or on the producers. What effect does imposing the tax on the producers have relative to imposing it on the consumers?

question

Whoever has less responsiveness to changes in price

answer

When a tax is imposed on a market, who bears more of the tax burden between producers and consumers?

question

It is completely passed along to the consumers

answer

If supply is Perfectly Elastic, how is the tax burden distributed?

question

The lost value to society due to the reduction in sales of a good because of a tax

answer

What is the Dead Weight Loss of a tax?

question

Consumer Surplues

answer

Intuitively thought of as the value buyers get from participating in a market, the difference between what one was willing to pay and what one actually paid for a good is called

question

Both will testify against the other since testify is the dominant strategy

answer

What is the Nash Equilibrium of the Prisoner's Dilemma?

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