1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money‚ the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality‚ is the impact of one person’s action on the well being
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the aid of community Indifference curve and the production possibility frontier how a country an gain from international trade. 둘째. What other possible gains from trade are there other than the “gain for exchange” and gains from specialization.”? 첫째 The gain from international trade between countries can simply be clarified by the aid of Community Indifference Curves and the production possibility frontier as follows. The production possibility frontier is the curve that shows the alternative
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economies of scale. d. diseconomies of scale. ____ 6. The complete description of a competitive firm’s supply curve is as follows: The competitive firm’s short-run supply curve is that portion of the a. average total cost curve that lies above marginal cost. b. average variable cost curve that lies above marginal cost. c. marginal cost curve that lies above average total cost. d. marginal cost curve that lies above average variable cost. 2 Name: ________________________
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Preliminary Lecture notes for a Micro Course Based on Microeconomics 8ed by Pindyck & Rubinfeld Prepared by Houston H. Stokes. Goal of the Notes: Allow the student to have an outline of the key ideas and solutions to a number of problems that will be discussed in class. Since the notes are distributed in WORD® format‚ students can edit the notes. Introduction Quote from Robert Mundell Man and Economics 1968 "Economics is the science of choice. It began with Aristotle
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that in reality utility or satisfaction cannot be measured cardinally‚ the satisfaction obtained from one combination of productions can only be compared to the satisfaction obtained by consuming another combination of products. * The indifference curve approach‚ was then introduced which is based on preference hypothesis ‚ that is if the consumer is provided with various combination of goods‚ he can put them or
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substitute (Marginal Rate of Substitution) Slope of indifference curve= the amount of a product that must be substitute for another if utility is to remain unchanged. The ratio is the marginal rate of substitution. The MRS is the slope of the indifference curve at a certain point. I spend my money on the product that gave the most marginal utility. Ex: How much X do I have to give to get an extra unit of Y ? Example of indifference curves= If my MRS does not depend on
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substitution effects of a change in the price of a good. Economics and Information systems Aboyowa Okoturo 3/2/2012 INTRODUCTION The relationship that occurs between one’s consumption‚ his or her personal preferences and the demand curve is one of the most complex associations in economics. Unconditionally‚ an economist would carry the mind set that whatever is purchased by an individual is consumed‚ and the only exception to this is if the purchase is for a productive activity.
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Lectures On Intermediate Microeconomics Kotut c Samwel‚ M. Phil (Economics) Moi University. Chapter one 1.0 Introduction Economics is the science of scarce resource allocation to meet endless human desires. The modern economics science has two major branches i.e. Micro-economics and Macro-economics. Compared to micro-economics Macro-economics is a younger branch of economics. Until the economic depression of 1930s economics was limited to what is
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Production–possibility frontier In economics‚ a production–possibility frontier (PPF)‚ sometimes called a production–possibility curve‚ production-possibility boundary or product transformation curve‚ is a graph that compares the production rates of two commodities that use the same fixed total of the factors of production. Graphically bounding the production set‚ the PPF curve shows the maximum specified production level of one commodity that results given the production level of the other. By doing
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C^1/2 R^1/2 + 2. Determine whether the following utility functions have strictly convex indifference curves (Use diagram and/or calculus). a. U= x11/2 + x21/2 b. U= min(x1/5‚ x2/2) c. U=( x1 + x2)3 3. Consider the following utility functions ((Use diagram and/or calculus ). a. U= x14 x24 b. U= x11/4 x21/4 c. U = 5x1+3x2 i. Find MRS for each function ii. Graph the indifference curve for U= 1 for each utility function . iii. Check for convexity/strict convexity‚ monotonocity/strict
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