Exam 6: Exchange, Efficiency, and Prices

Suppose,given their initial endowments of milk [M] and cookies [C],you know that Ashley's marginal rate of substitution of cookies for milk [MRS_CM] = 3M/1C,Bill's MRS_CM = 8M/8C,and Carol's MRS_CM = 5M/10C.Given this information,a mutually beneficial trade:

(Multiple Choice)

4.8/5

(44)

Question 41

Explain why a competitive equilibrium produces an efficient allocation of goods.

(Essay)

4.7/5

(33)

Question 42

Nonprice rationing systems usually are:

(Multiple Choice)

4.9/5

(36)

Question 43

When the marginal rates of substitution for two consumers differ:

(Multiple Choice)

4.7/5

(32)

Question 44

How are prices of goods that you buy in an auction,at a garage sale,and at a drugstore determined? Is the price discovery process the same in all these markets?

(Essay)

4.8/5

(47)

Question 45

Which of the following is true of the contract curve?

(Multiple Choice)

4.8/5

(27)

Question 46

Any system of nonprice rationing could be inefficient because _____.

(Multiple Choice)

4.9/5

(29)

Question 47

If through prior trade,the marginal rates of substitution for two goods between two people are equal,we say that the last trade:

(Multiple Choice)

4.9/5

(45)

Question 48

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -In Figure 6-2,a movement from D to B will:

(Multiple Choice)

4.8/5

(29)

Question 49

Exchange is mutually beneficial when it is _____.

(Multiple Choice)

4.9/5

(43)

Question 50

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT $Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -In Figure 6-1,a movement from J to K:$ -In Figure 6-1,a movement from J to K:

(Multiple Choice)

4.8/5

(36)

Question 51

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -At point C in Figure 6-2,which of the following is true of the comparison between Tim's marginal ate of substitution of candy for bread [MRS_CB] and Kathy's MRS_CB?

(Multiple Choice)

4.7/5

(32)

Question 52

At their current distributions,Andrew's marginal rate of substitution of hamburgers for fish sticks is 6 while Betty's is 2.Both Andrew and Betty could be made better off if:

(Multiple Choice)

4.8/5

(32)

Question 53

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT $Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -A movement from A to J in Figure 6-1 would:$ -A movement from A to J in Figure 6-1 would:

(Multiple Choice)

4.9/5

(34)

Question 54

How does a competitive exchange differ from a two-person model of exchange?

(Multiple Choice)

4.8/5

(41)

Question 55

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRS_CB] at point C is _____.

(Multiple Choice)

4.9/5

(29)

Question 56

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT $Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -In Figure 6-1,points on the contract curve would include _.$ -In Figure 6-1,points on the contract curve would include _.

(Multiple Choice)

4.8/5

(34)

Question 57

The initial endowment of goods:

(Multiple Choice)

4.8/5

(35)

Question 58

What would you expect to see in the market for healthcare if the government decided that healthcare allocation would be done on the basis of altruism? Why?

(Essay)

4.8/5

(37)

Question 59

Which of the following describes the equilibrium in an Edgeworth box?

(Multiple Choice)

4.8/5

(32)

Question 60

Showing 41 - 60 of 79

Suppose,given their initial endowments of milk [M] and cookies [C],you know that Ashley's marginal rate of substitution of cookies for milk [MRS_CM] = 3M/1C,Bill's MRS_CM = 8M/8C,and Carol's MRS_CM = 5M/10C.Given this information,a mutually beneficial trade:

Explain why a competitive equilibrium produces an efficient allocation of goods.

Nonprice rationing systems usually are:

When the marginal rates of substitution for two consumers differ:

How are prices of goods that you buy in an auction,at a garage sale,and at a drugstore determined? Is the price discovery process the same in all these markets?

Which of the following is true of the contract curve?

Any system of nonprice rationing could be inefficient because _____.

If through prior trade,the marginal rates of substitution for two goods between two people are equal,we say that the last trade:

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -In Figure 6-2,a movement from D to B will:

Exchange is mutually beneficial when it is _____.

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -At point C in Figure 6-2,which of the following is true of the comparison between Tim's marginal ate of substitution of candy for bread [MRS_CB] and Kathy's MRS_CB?

At their current distributions,Andrew's marginal rate of substitution of hamburgers for fish sticks is 6 while Betty's is 2.Both Andrew and Betty could be made better off if:

How does a competitive exchange differ from a two-person model of exchange?

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRS_CB] at point C is _____.

The initial endowment of goods:

What would you expect to see in the market for healthcare if the government decided that healthcare allocation would be done on the basis of altruism? Why?

Which of the following describes the equilibrium in an Edgeworth box?

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Exam 6: Exchange, Efficiency, and Prices

Suppose,given their initial endowments of milk [M] and cookies [C],you know that Ashley's marginal rate of substitution of cookies for milk [MRSCM] = 3M/1C,Bill's MRSCM = 8M/8C,and Carol's MRSCM = 5M/10C.Given this information,a mutually beneficial trade:

Explain why a competitive equilibrium produces an efficient allocation of goods.

Nonprice rationing systems usually are:

When the marginal rates of substitution for two consumers differ:

How are prices of goods that you buy in an auction,at a garage sale,and at a drugstore determined? Is the price discovery process the same in all these markets?

Which of the following is true of the contract curve?

Any system of nonprice rationing could be inefficient because _____.

If through prior trade,the marginal rates of substitution for two goods between two people are equal,we say that the last trade:

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -In Figure 6-2,a movement from D to B will:

Exchange is mutually beneficial when it is _____.

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -In Figure 6-1,a movement from J to K:

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -At point C in Figure 6-2,which of the following is true of the comparison between Tim's marginal ate of substitution of candy for bread [MRSCB] and Kathy's MRSCB?

At their current distributions,Andrew's marginal rate of substitution of hamburgers for fish sticks is 6 while Betty's is 2.Both Andrew and Betty could be made better off if:

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -A movement from A to J in Figure 6-1 would:

How does a competitive exchange differ from a two-person model of exchange?

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRSCB] at point C is _____.

Figure 6-1 shows the distribution of steak and wine between Monica and Hank. Figure 6-1 ref SHAPE \* MERGEFORMAT -In Figure 6-1,points on the contract curve would include _____.

The initial endowment of goods:

What would you expect to see in the market for healthcare if the government decided that healthcare allocation would be done on the basis of altruism? Why?

Which of the following describes the equilibrium in an Edgeworth box?

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Production

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Suppose,given their initial endowments of milk [M] and cookies [C],you know that Ashley's marginal rate of substitution of cookies for milk [MRS_CM] = 3M/1C,Bill's MRS_CM = 8M/8C,and Carol's MRS_CM = 5M/10C.Given this information,a mutually beneficial trade:

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -At point C in Figure 6-2,which of the following is true of the comparison between Tim's marginal ate of substitution of candy for bread [MRS_CB] and Kathy's MRS_CB?

Figure 6-2 shows an Edgeworth box with the preferences of Kathy and Tom toward bread and candy. Figure 6-2 -Refer to Figure 6-2.Relative to point D,Tim's marginal rate of substitution of cookies for milk [MRS_CB] at point C is _____.