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Mizzou ECON 3251 Exam One Latest Update
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Mizzou ECON 3251 Exam One Latest Update...
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Mizzou ECON 3251 Exam One Latest Updatepositive statement - ANSWER statement which describes the world as it is
normative statement - ANSWER statement which describes how the world should be
price ceiling - ANSWER A legal maximum on the price at which a good can be sold
price floor - ANSWER A legal minimum on the price at which a good can be sold
partial derivative - ANSWER Taking a derivative of a function with respect to a specific
variable while treating the other variables as if they were constants.
externality - ANSWER the impact of one person's actions on the well-being of a
bystander
marginal analysis - ANSWER analysis that involves comparing marginal benefits and
marginal costs
objective functions - ANSWER the function (of the decision variables) to be minimized or
maximized
choice variables - ANSWER determine the value of the objective function
discrete choice variable - ANSWER A choice variable that can take only specific integer
values
continuous choice variable - ANSWER A choice variable that can take any value
, between two end points
maximization problem - ANSWER An optimization problem that involves maximizing the
objective function
minimization problem - ANSWER An optimization problem that involves minimizing the
objective function
constrained optimization - ANSWER an analytical tool for making the best (optimal)
choice, taking into account any possible limitations or restrictions on the choice
unconstrained optimization - ANSWER An optimization problem in which the decision
maker can choose the level of activity from an unrestricted set of values
marginal benefit - ANSWER the additional benefit to a consumer from consuming one
more unit of a good or service
consumer choice - ANSWER The range of competing products and services from which
a consumer can choose.
indifference curve - ANSWER a curve that shows consumption bundles that give the
consumer the same level of satisfaction
indifference map - ANSWER A graphical representation of a consumer's tastes. Each
curve reflects a different level of utility.
marginal rate of substitution - ANSWER the rate at which a consumer is willing to trade
one good for another
perfect substitutes - ANSWER two goods with straight-line indifference curves
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