Question 1

Partial equilibrium analysis

Accepted Answer

A)  Concerns competitive equilibrium only in the factor markets 
B)  Concerns competitive equilibrium only in the product markets 
C)  Concerns competitive equilibrium in a single market, considered in isolation 
D)  Is the study of competitive equilibrium in many markets at the same time 
A)  Concerns competitive equilibrium only in the factor markets 
B)  Concerns competitive equilibrium only in the product markets 
C)  Concerns competitive equilibrium in a single market, considered in isolation 
D)  Is the study of competitive equilibrium in many markets at the same time C

Question 2

The market-clearing curve for complementary goods is

Accepted Answer

A)  Horizontal 
B)  Downward sloping 
C)  Vertical 
D)  Upward sloping 
A)  Horizontal 
B)  Downward sloping 
C)  Vertical 
D)  Upward sloping B

Question 3

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Solve for the general equilibrium quantity of cereal.

Accepted Answer

A)  20.5 million boxes 
B)  Zero 
C)  38.8 million boxes 
D)  46.25 million boxes 
A)  20.5 million boxes 
B)  Zero 
C)  38.8 million boxes 
D)  46.25 million boxes C

Question 4

The input efficiency condition

Accepted Answer

A)  Holds if at least one pair of firms share the same marginal rate of technical substitution between every pair of inputs 
B)  Holds if at least one pair of consumers share the same marginal rate of substitution between two goods 
C)  Holds if every pair of firms share the same marginal rate of technical substitution between every pair of inputs 
D)  Holds if every pair of firms share the same marginal rate of substitution between two goods 
A)  Holds if at least one pair of firms share the same marginal rate of technical substitution between every pair of inputs 
B)  Holds if at least one pair of consumers share the same marginal rate of substitution between two goods 
C)  Holds if every pair of firms share the same marginal rate of technical substitution between every pair of inputs 
D)  Holds if every pair of firms share the same marginal rate of substitution between two goods

Question 5

The production contract curve

Accepted Answer

A)  Shows every efficient allocation of inputs between two firms in an Edgeworth box 
B)  Shows every efficient allocation of consumption goods in an Edgeworth box 
C)  Passes through the tangencies between pairs of isocosts in an Edgeworth box 
D)  Shows every inefficient allocation of inputs between two firms in an Edgeworth box 
A)  Shows every efficient allocation of inputs between two firms in an Edgeworth box 
B)  Shows every efficient allocation of consumption goods in an Edgeworth box 
C)  Passes through the tangencies between pairs of isocosts in an Edgeworth box 
D)  Shows every inefficient allocation of inputs between two firms in an Edgeworth box

Question 6

The contract curve

Accepted Answer

A)  Shows the unique Pareto efficient allocation of a pair of goods in an Edgeworth box 
B)  Shows every inefficient allocation of consumption goods in an Edgeworth box 
C)  Does not pass through the tangencies between pairs of indifference curves in an Edgeworth box 
D)  Shows every efficient allocation of consumption goods in an Edgeworth box 
A)  Shows the unique Pareto efficient allocation of a pair of goods in an Edgeworth box 
B)  Shows every inefficient allocation of consumption goods in an Edgeworth box 
C)  Does not pass through the tangencies between pairs of indifference curves in an Edgeworth box 
D)  Shows every efficient allocation of consumption goods in an Edgeworth box

Question 7

According to the principle of utilitarianism

Accepted Answer

A)  Society should place equal weight on the well-being of every individual 
B)  Society should place all weight on the well-being of its worst-off member 
C)  Society should place all weight on the well-being of its best-off member 
D)  Equal division of society's resources among all members of the population is the most equitable outcome 
A)  Society should place equal weight on the well-being of every individual 
B)  Society should place all weight on the well-being of its worst-off member 
C)  Society should place all weight on the well-being of its best-off member 
D)  Equal division of society's resources among all members of the population is the most equitable outcome

Question 8

The modern treatment of general equilibrium was pioneered by

Accepted Answer

A)  Kenneth Arrow 
B)  Gerard Debreu 
C)  Leon Walras 
D)  Kenneth Arrow and Gerard Debreu 
A)  Kenneth Arrow 
B)  Gerard Debreu 
C)  Leon Walras 
D)  Kenneth Arrow and Gerard Debreu

Question 9

Utilitarianism

Accepted Answer

A)  Was favored by John Nash 
B)  Was favored by John Rawls 
C)  Is an process-oriented notion of equity 
D)  Is an outcome-oriented notion of equity 
A)  Was favored by John Nash 
B)  Was favored by John Rawls 
C)  Is an process-oriented notion of equity 
D)  Is an outcome-oriented notion of equity

Question 10

General equilibrium analysis

Accepted Answer

A)  Is the study of competitive equilibrium in one market 
B)  Illustrates the independency among markets 
C)  Concerns competitive equilibrium in a single market, considered in isolation 
D)  Is the study of competitive equilibrium in many markets 
A)  Is the study of competitive equilibrium in one market 
B)  Illustrates the independency among markets 
C)  Concerns competitive equilibrium in a single market, considered in isolation 
D)  Is the study of competitive equilibrium in many markets

Question 11

The market-clearing curve for substitutes is

Accepted Answer

A)  Horizontal 
B)  Downward sloping 
C)  Vertical 
D)  Upward sloping 
A)  Horizontal 
B)  Downward sloping 
C)  Vertical 
D)  Upward sloping

Question 12

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Solve for the price of milk in terms of the price of cereal.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 13

Process-oriented notions of equity

Accepted Answer

A)  Focus on the procedures used to arrive at an allocation rather than on the allocation of resources 
B)  Focus on whether the process used to allocate resources yields fair results 
C)  Focus on what people could not choose rather than what they actually choose 
D)  Focus on what people could choose rather than what they actually choose 
A)  Focus on the procedures used to arrive at an allocation rather than on the allocation of resources 
B)  Focus on whether the process used to allocate resources yields fair results 
C)  Focus on what people could not choose rather than what they actually choose 
D)  Focus on what people could choose rather than what they actually choose

Question 14

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.The formula for the market-clearing curve for milk after the tax is

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 15

An endowment

Accepted Answer

A)  Is the bundle of goods an individual starts out with before trading 
B)  Is the bundle of goods an individual ends up with after trading 
C)  Is the bundle of goods an individual inherits 
D)  Is the bundle of goods and individual donates 
A)  Is the bundle of goods an individual starts out with before trading 
B)  Is the bundle of goods an individual ends up with after trading 
C)  Is the bundle of goods an individual inherits 
D)  Is the bundle of goods and individual donates

Question 16

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Find the formula for the market-clearing curve for cereal.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 17

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.The supply function for milk becomes

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 18

The Edgeworth box

Accepted Answer

A)  Is a diagram that shows two consumers' opportunities and choices in a single figure 
B)  Can be used to illustrate equilibrium in a simple exchange economy 
C)  Was first introduced by Francis Ysidro Edgeworth 
D)  All of these 
A)  Is a diagram that shows two consumers' opportunities and choices in a single figure 
B)  Can be used to illustrate equilibrium in a simple exchange economy 
C)  Was first introduced by Francis Ysidro Edgeworth 
D)  All of these

Question 19

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium

Accepted Answer

A)  The price of both milk and cereal increase 
B)  The price of milk increases and the price of cereal decreases 
C)  The price of milk decreases and the price of cereal increases 
D)  The price of both milk and cereal decrease 
A)  The price of both milk and cereal increase 
B)  The price of milk increases and the price of cereal decreases 
C)  The price of milk decreases and the price of cereal increases 
D)  The price of both milk and cereal decrease

Question 20

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Solve for the general equilibrium price for milk.

Accepted Answer

A)  $9.76 
B)  $2.37 
C)  $5.63 
D)  $4.00 
A)  $9.76 
B)  $2.37 
C)  $5.63 
D)  $4.00

Partial equilibrium analysis

The market-clearing curve for complementary goods is

The input efficiency condition

The production contract curve

The contract curve

According to the principle of utilitarianism

The modern treatment of general equilibrium was pioneered by

Utilitarianism

General equilibrium analysis

The market-clearing curve for substitutes is

Process-oriented notions of equity

An endowment

The Edgeworth box

Introduction

Supply and Demand3

Balancing Benefits and Costs

Principles and Preferences

Constraints, Choices, and Demand

Rom Demand to Welfare

Technology and Production

Cost

Rofit Maximization

Choices Involving Time

Choices Involving Risk

Choices Involving Strategy

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Filters

Exam 16: General Equilibrium, Efficiency, and Equity

Partial equilibrium analysis

The market-clearing curve for complementary goods is

The input efficiency condition

The production contract curve

The contract curve

According to the principle of utilitarianism

The modern treatment of general equilibrium was pioneered by

Utilitarianism

General equilibrium analysis

The market-clearing curve for substitutes is

Process-oriented notions of equity

An endowment

The Edgeworth box

Introduction

Supply and Demand3

Balancing Benefits and Costs

Principles and Preferences

Constraints, Choices, and Demand

Rom Demand to Welfare

Technology and Production

Cost

Rofit Maximization

Choices Involving Time

Choices Involving Risk

Choices Involving Strategy

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Filters