For Monash University Students: If you have studied intermediate level microeconomics this will be easy reading. Please assist fellow students. Financial Markets bring together borrowers and lenders of funds. They bring aggregate saving into equality with aggregate investment. Consumers have different time preferences for their consumption. Producers use capital until its marginal revenue productivity equals its opportunity cost in interest charges. These are Paretian optimal solutions for welfare
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Chapter 07 Consumer Behavior Multiple Choice Questions 1. Utility: A. is synonymous with usefulness. B. is want-satisfying power. C. is easy to quantify. D. rarely varies from person to person. 2. Marginal utility can be: A. positive‚ but not negative. B. positive or negative‚ but not zero. C. positive‚ negative‚ or zero. D. decreasing‚ but not negative. 4. The ability of a good or service to satisfy wants is called: A. utility maximization. B. opportunity cost
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Q.1. What are indifference curves? Explain the consumers’ equilibrium under the assumptions of ordinal approach. Utility of goods cannot be measured in terms of précised quantitative term. J. R. Hicks and R.G.D. Allen developed Indifference Curve analysis based on ordinal approach. Indifference curve (IC) is defined as the locus of point which show the different combination of two goods or commodities a consumer is indifferent about the point A or B or C or D. According to this analysis the consumer
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budget of Rs 1000 to spend on the two goods. Suppose that he has already bought one DVD and one CD. In addition‚ there are 3 more DVDs and 5 more CDs that he would really like to buy. a. Given the above prices and income‚ draw his budget line on a graph with CDs on the horizontal axis. b. Considering what he has already purchased and what he still wants to purchase‚ identify the three different bundles of CDs and DVDs that he could choose. Assume that he cannot purchase fractional units. 2) Suppose
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Name: ________________________ Class: ___________________ Date: __________ ID: A CH 11 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ ____ ____ 1. Timmy makes $100 per week as a taxidermist. He spends all this income to buy pizza and hair gel. The price of a pizza is $10 and the price of a bottle of hair gel is $4. If Timmy buys 5 bottles of hair gel‚ then he buys ____ pizzas. a. 10 b. 4 c. 8 d. 20 e. None of the above answers is correct.
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Introduction Over the past decade‚ medical costs have increased more rapidly than other consumer costs. Americans spent 2.5 trillion on health care in 2009 according to Medicare’s Office of the Actuary. That figure translates into approximately $8‚086 per person‚ or 17.6 percent of the nation’s gross domestic product (GDP).1 Health care costs more than tripled from 1990 to 20092 and are projected to rise to 19.6 percent of GDP in 2019.3 “The 4 percent increase from 2008 levels represented
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and label the following bundles: A (2‚10) B (6‚2) C (0‚4) D (8‚10) E (4‚6) (b) Assume A is indifferent to B (A ∼ B). On a single line‚ list all the bundles in descending order of preference using ( ) to denote strict preference and (∼) to denote indifference between adjacent pairs. In other words‚ use the form: A B C D E Answer: D E A∼B C‚ or D E B∼A C. 10 2 2. Consider an economic agent who has preferences that are represented by the utility function: u(x‚ y) = √ xy (a) for each pair of bundles
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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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Plot and label the following bundles. A (2‚ 10) B (6‚ 2) C (0‚ 4) D (8‚ 10) E (4‚ 6) b. Assume A is indifferent to B. On a single line‚ list all the bundles in descending order of preference using (≻) to denote strict preference and (∼) to denote indifference between adjacent pairs as‚ e.g.‚ in the form A ≻ B ≻ C ∼ D ≻ E. 2. Consider an economic agent who has preferences that are represented by the utility function: u(x‚ y) = √ xy a. For each pair of bundles A and B‚ indicate whether A ≻ B‚ A ≺
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1. Evaluate the consequences of offering a single ticket for the concert series either in addition to‚ or in place of‚ offering the tickets for each concert separately. The primary aim here should be to maximize profit. Below table gives the Willingness –to-pay of Concert Patrons: Case 1: Only Bundling Bundle at $50- This is the maximum that the last two categories of patrons are ready to pay. Hence‚ the revenue we get is $200. Bundle at $60- Only the top two categories of patrons are ready
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