Exam 1: Microeconomics: a Working Methodology

The clustering model implies that several gas stations sometimes locate at the same intersection:

The market demand curve is downward sloping, which means that the quantity demanded When the price .

Define the competitive equilibrium. Explain how market forces push the price towards this equilibrium.

The statement "I will either pass or fail this exam" is an example of:

A perfectly competitive market has all of the following characteristics except:

Suppose that an increase in the global demand for corn has pushed the equilibrium price of corn above the government's support price. Which of the following would be true?

Positive economics is an approach that:

Locational models predict all of the following except:

Present a real- life example that would illustrate the common property problem.

The statement "the government should do something about the ballooning budget deficit" is:

Consider building a model trying to explain the appearance of a new radio station in a city. The explanation sought here is the reason for choosing a particular format for the radio station and a particular theme. Discuss how the location model might be appropriate for this endeavor.

The Cost- Benefit criterion selects a social state by finding whether:

Useful economic models have all of the following characteristics except:

Which of the following would be considered part of a resource endowment?

Cost- benefit analysis:

In a perfectly competitive market, each seller can choose:

When a resource like water, fish in the ocean, or grazing land is available to everyone, it is:

A market supply curve tells us how many units:

Oil extraction arrangements need to deal with common property issues:

In economics, a resource endowment is: