Indifference curve - Study guides, Class notes & Summaries

Scarcity Ans: A situation in which unlimited wants exceed the limited resources available to fulfill those wants Cost-Benefit Principle Ans: take an action if and only if the additional benefits from doing it or at least as great as the extra cost of doing it incentives Ans: a positive or negative environmental stimulus that motivates behavior indifference curve Ans: a curve that shows consumption bundles that give the consumer the same level of satisfaction Transaction price + Tra...

Microeconomics (FHNW) Exam Questions With 100% Correct Answers. Definition - Consumer surplus of the economy - answerThe consumer surplus of the economy is the sum of the consumer surpluses of all individual consumers. All goods and services have decreasing marginal benefits and so consumers receive more benefit than the amount paid for goods and services. What happens when the price exceeds the marginal cost? - answerThe company receives a producer surplus. Producer surplus = Sales pric...

Started on Wednesday, 10 April 2024, 12:23 PM State Finished Completed on Wednesday, 10 April 2024, 1:53 PM Time taken 1 hour 30 mins Marks 28.00/30.00 Grade 93.33 out of 100.00 Question 1 Complete Mark 1.00 out of 1.00 Flag question Question text A firm producing five units of output has an average total cost of R100 and has to pay R250 to its fixed factors of production. The average variable cost is … a. R50 b. R200 c. R100 d. R250 Question 2 Complete Mark 1.00 out of ...

Partial equilibrium correct answers analysis of a single market general equilibrium correct answers analysis of the interrelation between all markets in an economy axiom of comparison correct answers every consumer can compare consumption bundles a and b and rank them axiom fo transitivity correct answers if a is preferred to be and b is preferred to c ten a must be preferred to c goods correct answers commodities for which more is preferred to less bad correct answers commodities...

WGU C211 Objective Assessment Guide Exam Questions and Already graded Solutions and Assured Satisfactions 2024/2025 Market economy - Correct Answer Characterized by the "invisible hand" of market forces-all factors of production should be privately owned. Command economy - Correct Answer Defined by a government taking all factors of production to be government-owned or state-owned, & all supply, demand, & pricing are planned by the government. Mixed economy - Correct Answer An e...

Among the fundamental concepts in economics is (a) opportunity cost. (b) marginal analysis. (c) efficient markets. (d) (a) and (b). correct answers D Which of the following is a positive (descriptive) economics question? (a) Will unemployment amongst teenagers increase if the minimum wage is raised? (b) Should the minimum wage be set a 'living wage'? (c) Wouldn't it be more equitable if the minimum wage rose automatically with the cost of living? (d) Wouldn't it be better to subs...

Budget Constraintshows feasible collection of consumption points Maximum X Value: Income/Price of Good X Maximum Y Value: Income/Price of Good Y slope = wages = relationship between Good X and Y -Max Y value/Max X value Utilitymeasure of the amount of happiness that person derives from something; relative measure Diminishing Marginal Utilityadditional utility gained from consuming successive units of a good tends to smaller than the utility gained from the previous unit Indifference ...

WGU C211 Test Guide Exams Questions with Approved and passed Solutions 2023/2024 Four properties of an indifference curve - correct answers (1) Higher indifference curves are preferred to lower ones. People usually prefer to consume more goods rather than less. (2) Indifference curves are downward sloping. The slope of an indifference curve reflects the rate at which the consumer is willing to substitute one good for the other. (3) Indifference curves do not cross. (4) Indifference curves ar...

ECON 251 Exam 2 Purdue Latest Version 100% Pass Budget Lines Line describing the limits to consumtion possibilities Budget line equation Income= (price of good x)(quantity of good x) + (price of good y)(quantity of good y) Utility Unit of happiness Marginal utility Additional utility of one more unit Marginal utility equation (Change in utility)/(change in quantity) Consumer equilibrium Maximizes utility Consumer equilibrium equation (Mu of x)/(P of x= (Mu of y)/(P of y) (big chart w q, u,...

Efficiency from The First Fundamental Theorem of Welfare Economics requires correct answers that the economy is competitive. The marginal rate of substitution is correct answers the slope of the indifference curve. Market failure can occur when correct answers monopoly power exists in the market. when there is incomplete information. when goods are non-rival and non-exclusive A public good must be correct answers nonexcludable in consumption. A social welfare function correct answe...