sloping line‚ marginal opportunity cost is constant” – prove the above statement by explaining with an illustrated schedule and a diagram 7) What do you mean MRS? What happens to MRS when consumer moves downwards along the indifference curve? Give reason 8) Draw the demand curve with a schedule and explain the law of demand. 9) State and explain the properties of indifference curve [3] [3] [3] [3] [1] [1] [1] [1] [1] Max Marks: 100 Page 1 of 4 10) Explain the law of Diminishing marginal utility
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used to produce capital goods. What happens if a country produces a combination of goods that efficiently uses all of the resources available in the economy? The country is operating on it production possibilities frontier. What does increasing marginal opportunity costs mean? Increasing the production of a good requires larger and larger decreases in the production of another good. What are the implications of this idea for the shape of the production possibilities frontier? The production possibilities
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sedan or a sports model that only seats two occupants. The trade off is the number of passengers the consumer could haul in the vehicle and make the decision based on that or the fuel efficiency rating between the two vehicles. A sports car would consume less fuel because the vehicle would not be weighed down with the extra passengers than a family car but a sports model may have a high performance engine which needs special maintenance or premium gas. The trade off would be the speed and less passenger
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CARIBBEAN EXAMINATIONS COUNCIL Caribbean Advanced Proficiency Examinations Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road‚ Kingston 5‚ Jamaica‚ W.I. Telephone Number: (876) 920-6714 Facsimile Number: (876) 967-4972 E-mail address: cxcwzo@cxc.org Website: www.cxc.org Copyright © 2008
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can afford to consume. Consumer Preferences – The goods and services consumers actually consume. Given the choice between 2 bundles of goods a consumer either: – Prefers bundle A to bundle B: A f B. – Prefers bundle B to bundle A: A p B. – Is indifferent between the two: A ∼ B. 4-3 Indifference Curve Analysis Indifference Curve – A curve that defines the combinations of 2 or more goods that give a consumer the same level of satisfaction. Good Y III. II. I. Marginal Rate of Substitution
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GEORGIA PERFORMANCE STANDARDS Fundamental Economic Concepts SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity‚ opportunity costs and trade offs for individuals‚ businesses and governments. Individuals have wants that are‚ for practical purposes‚ unlimited. But the total resources of society‚ including natural resources‚ human resources‚ capital goods and entrepreneurship‚ are limited‚ so that scarcity exists. As a result‚ it isn’t possible
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1. F. James McDonald the former president of the US automobile workers federation suggested an average reduction of 4% in the price of the car. The automobile market was weak‚ which resulted in unemployment. Lower price would lead to greater sales and stimulate employment. McDonald believed that a 4% reduction in price would increase sales by 16%.David black‚ representing the management of the automobile manufacturers disagreed with McDonald’s estimation. Black cited studies which indicated price
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deficits in the domestic economy and trade deficits in the international economy. 4. Which of the following is not a central focus of the "economic perspective"? A. Scarcity and choice. B. The scientific method. C. Purposeful behavior. D. Marginal analysis. 5. The term scarcity in economics refers to the fact that: A. economic wants are limited and resources are abused. B. even in the richest country some people go hungry. C. no country can produce enough products to satisfy everybody’s
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Government ownwershiop of most or all property resources A government appointed central planning board Economics is a social Science concerned with the allocation of scarce Resources to meet the unlimited wants Of the members of a given society. Marginal analysis involves the comparison or evaluation of: * The incremental cost versus the incremental benefit of a decision * * An good economic system must address the following questions: * What gods are to be produced? * How they
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Introduction…………………………………………….. 4 4 1 v vii 2.2 Data and Methodology………………………………….. 5 2.3 Unconditional Poverty Profile: Cross Tabulations……… 6 2.4 Conditional Poverty Profile: Marginal Effects………….. 14 2.5 Conclusion………………………………………………. 24 3. EVALUATING THE IMPACT OF MICROFINANCE ON SAVINGS AND INCOME: QUASI-EXPERIMENTAL APPROACH USING PROPENSITY SCORE MATCHING…… 34 3.1 Introduction………………………………………………. 34 3.2 Microfinance Institutions and Impact Studies……………. 37 3.3 Econometric Methodology and Data……………………...
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