Econ 2200 Midterm #1 fall 2011 Section I Answer Four of the following six questions. Each question is worth 5 points. a. What is the difference between the Income Effect and a Change in Income? b. True or False: The slope of the budget line represents the rate at which the consumer is willing to trade one good for another at any given bundle. Explain. c. An Engel curve can be both positively and negatively sloped‚ why does this happen? d. What do we mean by the term “Consumer Surplus”? e
Premium Consumer theory Supply and demand
Opportunity cost of an activity (or goods) is equal to the best next alternative foregone. Although opportunity cost can be hard to quantify‚ the effect of opportunity cost is universal and very real on the individual level. In fact‚ this principle applies to all decisions‚ not just economic ones. Since the work of the Austrian economist Friedrich von Wieser‚ opportunity cost has been seen as the foundation of the marginal theory of value[citation needed]. Opportunity cost is one way to measure
Premium Economics Microeconomics
QUESTION 1 a. A downward-sloping demand curve shows in both graphs when the quantity at each price is doubled what it was. However‚ the curve in demand for pharmaceutical drugs is drawn with a relatively steep slope as inelastic products. Equilibrium price down-sloping along the demand curve while quantity in both market increased to some extent. b. In inelastic demand of pharmaceutical drugs‚ the percentage change in price is greater than the percentage change in quantity demanded. While in elastic
Premium Supply and demand
01DEFINE AND EXPLAIN A RANGE OF CORE ECO TERMS AND CONEPTS INCLUDING ECONOMIC SURPLUS OPP COST AND SUNK COST DEFINE AND EXPLAIN A RANGE OF CORE ECO TERMS AND CONEPTS INCLUDING ECONOMIC SURPLUS OPP COST AND SUNK COST CHAPTER !: THINKING LIKE AN ECONOMIST Scarcity principal: due to limited resources to satisfy unlimited wants‚ trade offs occur in terms of having more of one good and less of another Economic decision: any decision when securing something of value means going without something
Premium Economics Supply and demand Costs
The possibility that microorganisms exist was discussed for many centuries before their actual discovery in the 17th century. The existence of unseen microbiological life was postulated by Jainism‚ which is based on Mahavira’s teachings as early as 6th century BCE.[19] Paul Dundas notes that Mahavira asserted existence of unseen microbiological creatures living in earth‚ water‚ air and fire.[20] Jain scriptures also describe nigodas‚ which are sub-microscopic creatures living in large clusters and
Premium Infectious disease Avicenna Centuries
Subject: Business Economics Subject Code: BUECO5903 Course Coordinator / Moderator: Paul McPhee / David Spiers Assignment A: Microeconomics Student Name: Noor Aini Faiz Student Number: 30120381 Lecturer: Dr. Ganeshamoorthy Question 1: (a) Explain and illustrate using suitable diagrams‚ the impact of external costs and
Premium Supply and demand Externality Market failure
Starbucks Macro-Environmental Analysis Starbucks is very well positioned to take advantage of sustained income due to a variety of strategic macro-environmental variables affecting its performance. Starbucks stage is the entire world‚ therefore must take into consideration the local countries current technological‚ economic‚ cultural‚ and political/legal environment‚ but also the interplay between countries as well. Starbucks cannot simply adapt completely policies and marketing
Premium North America Coffee Wi-Fi
Question 1: Assume that Econoland produces haircuts and shirts with inputs of labor. Econoland has 1000 hours of labor available. A haircut requires ½ hour of labor‚ while a shirt requires 5 hours of labor. Construct Econolands PPF. Answer 1: To construct Econolands Production Possibility Frontier (PPF) we first need to understand what is a PPF. A production possibilities frontier (PPF) is a graph showing the different quantities of two goods that an economy can efficiently produce with limited
Premium Inflation Macroeconomics Economics
A macro environment comprises the external factors that can influence a business. These factors are often out of the control or management ability of a company. Factors typically include economic‚ demographic‚ political‚ and technological forces in business. Business owners and managers often spend copious amount of time and effort to assess the overall economic environment in order to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers
Premium Economics Market economy Marketing
to determine whether: • abuse has taken place • there is ongoing risk of harm to the adult at risk. 5.5.2 Purpose of investigation and assessment The purpose of investigation and assessment is to establish the facts and contributing factors which led to the referral. Central to this is establishing the views and wishes of the person at risk and what outcome they require or desire. In addition there are responsibilities to identify and manage risk in order to ensure the safety of the
Premium Risk management Management Risk