B) The study of how consumers spend their income. C) The study of how producers decide what inputs to hire and what outputs to produce. D) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. E) The study of how consumers and producers meet each other at the market. Answer: D Diff: 1 Topic: Definition of Economics 3) Which of the following is a microeconomic topic?
Week 1 Quiz (Chapters 1 & 2) Return to Assessment List Part 1 of 1 - | 100.0 Points | Question 1 of 10 | 10.0 Points | The branch of economics that examines the impact of choices on aggregates in the economy is: | | A.positive economics. | | | B.normative economics. | | | C.macroeconomics. | | | D.microeconomics. | | Answer Key: C | | | Question 2 of 10 | 10.0 Points | When we are forced to make choices we are facing the concept of: | | A.ceteris paribus.
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
Define the price elasticity of demand and show how it is calculated. Answer: The units-free measure of the responsiveness of the quantity demanded of a good to a change in it s price when all other influences on buying plans remain the same. 3. What is the total revenue test? Explain how it works.
Quiz #1 1. TCO 1) The primary focus of the study of economics is on making the most efficient use of scarce productive resources. 2. (TCO 1) The key economic concept that serves as the basis for the study of economics is Student Answer: scarcity. 3.
c. Suppose government imposes a tax equal to the marginal external cost. What is the equilibrium price paid by consumers and the equilibrium quantity after implementation of the tax? d. At the output level in part (c), how much is the tax? e. How much tax revenue does government collect? f. What is the deadweight loss borne by society if the externality is left uncorrected?
There is no cost attached to shipping to the dummy destination at this time. The Transportation model found the lowest cost solution using linear programming. This made it the best model to use for this situation. It analyzed different shipping method and found the lowest cost for each. B.
It would not evaluate the price of surrounding damage nor the benefit of faster and effortless travel to work or school. A better way to look at it is, cost benefit amount copy's to try and put a monetary value on insubstantial costs and benefits. The version of cost/benefit analysis is very trouble-free. Whenever you have a big amount of money, development assessment can be really difficult. Advantages of CBA Cost Benefit Analysis is a strong, broadly applied and a fairly easy way in choosing to make an adjustment.
ASSIGNMENT 1 CHAPTER 1 – Limits, Alternative and Choices 1. Economics may best be defined as the: A. interaction between macro and micro considerations. B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. C. empirical testing of value judgments through the use of logic. D. use of policy to refute facts and hypotheses.
C. Advertising is usually directly paid, and publicity is usually indirectly paid. D. Advertising provides an immediate feedback loop, and publicity does not. E. Publicity always has a much greater reach than advertising. 33. For a message to be communicated effectively, the sender and receiver must have a mutually shared field of experience, which means a similar __________ they apply to the