Exam 1: Analyzing Economic Problems

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). A change in income will cause a shift in the supply curve.

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(True/False)

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Question 1

Correct Answer:

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False

Economics is often described as:

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(Multiple Choice)

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Question 2

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Which of the following is not typically found in a constrained optimization problem?

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(Multiple Choice)

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Question 3

Correct Answer:

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Which of the following represents an example of normative analysis?

(Multiple Choice)

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Question 4

Every society must answer which one of the following questions?

(Multiple Choice)

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Question 5

Endogenous changes to demand and supply curves cause them to shift.

(True/False)

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Question 6

What term in microeconomics tells us how a dependent variable changes as a result of adding one unit of an independent variable?

(Multiple Choice)

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Question 7

Microeconomics examines:

(Multiple Choice)

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Question 8

Normative analysis typically focuses on issues of social welfare.

(True/False)

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Question 9

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). Price and income together must change in order to create a shift in the demand curve.

(True/False)

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Question 10

Constrained optimization, equilibrium analysis and comparative statistics are the three essential tools of:

(Multiple Choice)

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Question 11

If we were to build a model measuring the supply of corn, which of the following could be an example of an exogenous variable in the model?

(Multiple Choice)

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Question 12

Currently, 75,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will have no effect on the market.

(True/False)

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Question 13

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). Income is not represented on one of the axes, and so is treated as an exogenous variable in the graphical analysis.

(True/False)

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Question 14

Exogenous changes can never affect both the demand and supply curves.

(True/False)

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Question 15

A good example of marginal reasoning would be:

(Multiple Choice)

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Question 16

Which of the following statements represents normative analysis?

(Multiple Choice)

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Question 17

Positive analysis predicts how an economic system will change over time.

(True/False)

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Question 18

While normative analysis can be wrong, since it is often based on someone's opinion, positive analysis is always accurate.

(True/False)

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Question 19

Constrained optimization occurs when:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 79

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). A change in income will cause a shift in the supply curve.

Economics is often described as:

Which of the following is not typically found in a constrained optimization problem?

Which of the following represents an example of normative analysis?

Every society must answer which one of the following questions?

Endogenous changes to demand and supply curves cause them to shift.

What term in microeconomics tells us how a dependent variable changes as a result of adding one unit of an independent variable?

Microeconomics examines:

Normative analysis typically focuses on issues of social welfare.

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). Price and income together must change in order to create a shift in the demand curve.

Constrained optimization, equilibrium analysis and comparative statistics are the three essential tools of:

If we were to build a model measuring the supply of corn, which of the following could be an example of an exogenous variable in the model?

Currently, 75,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will have no effect on the market.

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Let demand be a function of price and income, Qd (P, I). Income is not represented on one of the axes, and so is treated as an exogenous variable in the graphical analysis.

Exogenous changes can never affect both the demand and supply curves.

A good example of marginal reasoning would be:

Which of the following statements represents normative analysis?

Positive analysis predicts how an economic system will change over time.

While normative analysis can be wrong, since it is often based on someone's opinion, positive analysis is always accurate.

Constrained optimization occurs when:

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

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