Economics 2150A/B Lecture Notes - Equation, Shortage, Exogeny

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8 Jul 2014

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ECON 2150A/B Full Course Notes

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Microeconomics is the study of the economic behavior of. Microeconomics is the study of the economic behavior of individual economic decision-makers such as consumers, workers, firms or managers. This study involves both the behavior of these economic agents on their own and the way their behavior interacts to form larger units, such as markets. In order to portray the way individuals make decisions, the way firms behave and the way in which these two the way firms behave, and the way in which these two groups interact to establish markets, economists develop models. Economic models explain why economic decisions are made and allow us to make predictions. p. For example, an economist may construct a model to show how a drought in colombia might affect the price show how a drought in colombia might affect the price of coffee in canada.

Related Questions

29) Rational expectations theory suggests that ________.

A) consumers base their expectations about the future largely on past experience.

B) economic agents will always alter their decision-making when a new piece of information becomes available.

C) economic agents will not be influenced by a piece of information if that information has already been anticipated.

D) consumers need not form expectations about the far flung future since most consumption decisions involve satisfying an immediate impulse, e.g. hunger.

30) The "rational expectations revolution" refers to a substantial change in the thinking of ________.

A) households and businesses

B) policy makers

C) macroeconomists

D) elected officials

31) Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, if ________.

A) changes in expectations are properly considered

B) policy actions are anticipated

C) economic behavior is guided by rational expectations

D) policy changes are understood to be permanent

1. Managerial economics can best be defined as the:

Select one:

a. macroeconomics and microeconomics for managers.

b. analysis of the labor market through the behavior of workers and managers.

c. analysis of major management decisions using economic tools.

d. study of economic incentives on consumer behavior and demand.

e. study of the strategic interaction between firms in a market.

2. The price elasticity of demand is defined as the ratio of the _____ other factors held constant.

Select one:

a. change in the price of a good to the change in the total revenue

b. percentage change in quantity demanded to the percentage change in the price of a competitorâs good

c. percentage change in quantity demanded to the percentage change in price

d. percentage change in the price of an input to the percentage change in the price of the good

e. percentage change in price of the good to the percentage change in the consumersâ income

3. According to the law of demand, if a firm reduces the price of its good:

Select one:

a. the quantity of goods produced and sold by the firm will decline.

b. competing firms will reduce prices.

c. some consumers will exit the market.

d. consumers in the market will demand more units of the good.

e. consumers will demand fewer units than before the price cut.

4. Other factors constant, a change in _____ will cause a shift in a firm's demand curve.

Select one:

a. the quantity of the good offered for sale

b. the price of the good or service

c. the wages paid to labor employed

d. the general income level of consumers

e. the technology used in the production of the good or service

apricotleopard382

Microeconomics

A	B	Answer
As a student of economics, when you speak of scarcity, you are referring to the ability of society to.	A. Extra benefit
What is the economic meaning of the expression that "There is no such thing as a free lunch?"	B. Entrepreneur.
Which expression is another way of saying "marginal benefit"?	C. Very limited government role in the economy
A tradeoff exists between two economic goals, X and Y. This tradeoff means that.	D. Price ceilings and the resulting product shortages.
The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the	E. Explicit costs.
The Soviet Union economy of the 1980s would best be classified as	F. Easy entry, many firms, and differentiated products
The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through	G. Product markets
Laissez-faire capitalism is characterized by	H. Satisfy economic wants given limited resources.
Black markets are associated with	I. Oligopoly
Cash expenditures a firm makes to pay for resources are called	J. The Resource Markets
Which set of characteristics below best describes the basic features of monopolistic competition	K. A command System
Mutual interdependence would tend to limit control over price in which market model	L. Getting more of X requires getting less of Y
Markets in which firms sell their output of goods and services are called	M. It means that there is an opportunity cost when resources are used to provide "free" products

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Economics 2150A/B Lecture Notes - Equation, Shortage, Exogeny

ECON 2150A/B Full Course Notes

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