slope? What does the slope of the budget line equal? d) What is an indifference curve? e) Why do consumers prefer higher indifference curves (farther to the right) to lower indifference curves? f) In an indifference curve/budget line framework‚ how does a consumer decide which of all possible combinations of goods to purchase? g) Describe the consumer equilibrium in the indifference curve/budget line model. h) In a budget line/indifference curve figure‚ how do you identify the best affordable combination
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UK operates no general duty to aid someone in peril‚ only where there is a certain relationship established. Using case law and legal principles an attempt to justify such a duty in today’s society shall be considered. In considering its merits and drawbacks‚ with reasoned opinion‚ this essay shall conclude whether the UK criminal law should impose such a duty. In UK law it is an offence to fail to take reasonable steps to assist another person in peril in certain situations. Such duties as those
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consumer’s budget constraint. b. has no effect on the slope of the consumer’s budget constraint. c. decreases the slope of the consumer’s budget constraint. d. has no effect on the consumer’s budget constraint. ANS: B 6. The following diagram shows one indifference curve representing the preferences for goods X and Y for one consumer. Figure 21-2 Refer to Figure 21-2.What is the marginal rate of substitution between points A and B? a.
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5. An indifference curve shows: a. the one most desirable portfolio for a particular investor. b. all combinations of portfolios that are equally desirable to a particular investor. c. all combinations of portfolios that are equally desirable to all investors. d. the one most desirable portfolio for all investors. 6. Which of the following statements regarding indifference curves is not true? a. Investors have a finite number of indifference curves. b.
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1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money‚ the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality‚ is the impact of one person’s action on the well being
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substitute (Marginal Rate of Substitution) Slope of indifference curve= the amount of a product that must be substitute for another if utility is to remain unchanged. The ratio is the marginal rate of substitution. The MRS is the slope of the indifference curve at a certain point. I spend my money on the product that gave the most marginal utility. Ex: How much X do I have to give to get an extra unit of Y ? Example of indifference curves= If my MRS does not depend on
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x2 when x1 > 0 and x2 > 0 so nonsatiation is satisfied. 1.1.3 Implications of nonsatiation 1. If utility is strictly increasing in both goods then the indifference curve is downward sloping because if x1 is increased holding x2 constant then utility is increased‚ so it is necessary to reduce x2 to get back to the original indifference curve. 2. If utility is strictly increasing in both goods then a consumer that maximizes utility subject to the budget constraint and nonnegativity constraints
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Lectures On Intermediate Microeconomics Kotut c Samwel‚ M. Phil (Economics) Moi University. Chapter one 1.0 Introduction Economics is the science of scarce resource allocation to meet endless human desires. The modern economics science has two major branches i.e. Micro-economics and Macro-economics. Compared to micro-economics Macro-economics is a younger branch of economics. Until the economic depression of 1930s economics was limited to what is
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Consumer Expenditure and Equi-marginal Utility Consumer behaviour theory tries to explain the relationship between price changes and consumer demand. Utility is a concept used to denote the subjective satisfaction or usefulness attained from consuming goods and services. This concept helps to explain how consumers divide their limited income / resources among different choices of goods and services that help attain them satisfaction (utility) The issue however is how we are supposed to measure
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Boat‚’ Stephen Crane displays to us a universe completely indifferent to the affairs of humankind; we live in an apathetic world‚ in which man has to fight and struggle to live. The characters illustrated in the story come face-to-face with this indifference and all are nearly overcome by nature’s lack of concern with humanity. The survivors are alive primarily through determination and cooperation. We as human are alive because our constant struggles to co-exist in this universe. Crane illustrates
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