Micro Econ 402 Final UNH || with 100% Error-free Answers.
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Micro Econ 402
Institution
Micro Econ 402
Suppose the U.S government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000. These doctors would be exemplifying the economic idea that correct answers People respond to incentives
A produc...
Micro Econ 402 Final UNH || with 100% Error-free
Answers.
Suppose the U.S government encouraged new medical school graduates to take over existing
practices from doctors wishing to retire by paying both the new and retiring doctors $100,000.
These doctors would be exemplifying the economic idea that correct answers People respond to
incentives
A production possibilities frontier with a bowed outward shape indicates correct answers
Increasing opportunity costs and more of one good is produced
Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in
the price of coffee will cause correct answers a decrease in the demand for sugar and decrease in
the quantity supplied of sugar
Olive oil producers want to sell more olive oil at a higher price. which of the following events
would have this effect? correct answers Research finds that consumption of olive oil reduces the
risk of heart disease
What does price elasticity of demand measure? correct answers Responsiveness of the quantity
demanded to change in price
Elastic correct answers percent change in quantity demand is greater than the percent change in
price
Inelastic correct answers Percent change in quantity demanded is less than the percent change in
price
Unit Elastic correct answers Percent change in quantity demanded is equal to the percent change
in price
What are the determinants of PED? correct answers -Availability of close substances
-Passage of time
-Whether the good is a luxury or necessity
-The definition of a market
The share of a good in a consumers budget correct answers The demand of a good will be more
elastic the larger the share of the good in the average consumers budget
How does PED affect change in TR when the price changes? correct answers An increase in
price reduces TR and a decrease raises TR
, Cross-Price Elasticity of Demand correct answers Percent Change in Quantity demanded /
Percent Change in Income
Rationality correct answers The quality or state of being reasonable
Optimiazation correct answers Find an alternative with the most cost effective performance
under the given constraints
Utility correct answers The enjoyment people receive from consuming goods
Marginal Utility correct answers Change in total utility a person receives from consuming one
additional unit of a good or service
Law of Diminishing marginal Utility correct answers The principle that consumers experience
diminishing additional satisfactions as they consumer more of a good or service during a given
period of time
How we make decisions correct answers 1. Fairness
2. Network
3. Celeb Endorsements
3 things that affect our decision correct answers 1. Take into account monetary costs but non-
monetary ignore opportunity costs
2. They fails to ignore sunk cost (aka Fairness)
3. They are unrealistic about future behavior
Variable costs correct answers Cost that change as output changes
Fixed costs correct answers cost that remain constant as output changes
MPL correct answers MR x MP
APL correct answers Total output produced divided by Quantity of workers
MC correct answers (TC2-TC1) / (Q2-Q1)
TC correct answers (AFC+ AVC) X Q
FC correct answers TC-VC
VC correct answers AVC x Q
ATC correct answers TC/Q
AFC correct answers FC/Q
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