Women and the Economy Econ 3090 Spring 2015 Exam 1 1. In this course‚ we rely on an approach in neoclassical economics called constrained optimization‚ which can be described as: a. cost minimization with constraints b. making choices that will maximize wellbeing‚ with the choices limited by constraints‚ such as a time constraint or budget constraint c. making choices that maximize utility when prices and quantities are constrained d. minimizing expenditures on consumer goods 2. According to the textbook
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response that best answers the question or completes the statement. Make sure you put all of your responses on the opscan form. 1. Suppose that a more efficient way to produce a good is discovered‚ thus lowering production costs for the good‚ ceteris paribus. This will cause a(n): a) Increase in quantity supplied‚ or movement down the supply curve b) Increase in supply‚ or a rightward shift of the supply curve c) Decrease in quantity supplied‚ or movement up the supply curve d) Decrease
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maximize sales revenue. Price elasticity of demand (PED) measures the degree of responsiveness of quantity demanded of iPhone to a given change in the price of the good itself‚ ceteris paribus. Its formula is indicated by the % change in the quantity demanded of iPhone to a % change in the price of iPhone‚ ceteris paribus. The demand for iPhones is price inelastic in the short run‚ i.e. PED<1 due to its exclusiveness and uniqueness. The initial launch of Apple’s iPhones was a massive hit‚ combining
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UOP-custom course for Economics Title: Book Case Author: Location Chapter 1 > Lecture Exam Questions on Site: Date/Time August 6‚ 2010 at 6:50 PM (EDT) Submitted: More information about scoring 1. According to the law of demand: As prices rise‚ ceteris paribus Your quantity demanded decreases. Answer: 2. In response to news reports that taking aspirins daily can reduce an individual’s risk of a heart attack‚ there will most likely be Your an increase in the demand for aspirins. Answer: 3.
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Income elasticity of demand measures the responsiveness of demand to a change in income‚ ceteris paribus. It is the percentage change in demand for a good resulting from a percentage change in income‚ ceteris paribus. When income changes with other price or non-price factors‚ such as income‚ remaining unchanged‚ income elasticity of demand measures how much to which demand will change‚ ceteris paribus. Income elasticity of demand that is negative refers to inferior goods which are of lower
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Introductory Econometrics ECON2206 Slides01 Lecturer: Minxian Yang ie_Slides01 my‚ School of Economics‚ UNSW 1 About the Course • Staff There will be no lecture in Week 7. – Lecturer: Minxian Yang – Tutors: see Tutorial Contacts • Required textbook – Wooldridge‚ J.M. (2009)‚ Introductory Econometrics: A Modern Approach‚ 4th Edition‚ South-Western • Assessment – Two tutorial assignments (weeks 5 & 12): 20% – One course project (week 9): 20% – Final exam: 60%
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diagram below (Fig 1.1)‚ when the price of CDs falls (from P1 to P2) there is a rise in demand (from Q1 to Q2)‚ ceteris paribus. The movement along the curve is from point A to point B. When the price rises (from P1 to P3) there is a fall in demand (from Q1 to Q3)‚ ceteris paribus. The movement along the curve is from point A to point C. Note that we must say ’ceteris paribus’. If one of the other determinants of demand changes as well‚ then the curve would shift. A shift in the demand
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graph showing the appropriate demand and supply analysis. A. A major freeze destroys a large number of orange trees in Florida. The major freeze destroyed a large supply of orange trees. With a decrease in supply and demand unchanged (ceteris paribus)‚ price will increase until market
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Explain why it is important for an economic model to be an abstraction from the real world. TO UNDERSTAND THE COMPLEXITIES OF THE REAL WORLD. 5 Explain the importance of the ceteris paribus assumption for an economic model. Ceteris paribus = all other things being held constant/equal. Using the ceteris paribus you will then be able to rule out certain changes in the variables. 6 Explain the statement “There is no such thing as a free lunch” in relation to scarce resources. (Explains opportunity
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Resources are inputs used to produce goods and services. 4 Human rational self-interest is assumed. 5 Economics is a science‚ and employs the scientific method. 6 Theory is a set of testable hypotheses that explain observed facts. 7 The ceteris paribus condition is violated if background causes change when a hypothesis is being tested. 8 The fallacy of composition occurs when what holds for an individual acting independently is inferred to the aggregate‚ or vice versa 9 Positive statements
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