Microeconomics Homework 1

Your marginal benefit curve will not behave as your demand curve.

18. CHOOSE THE WRONG STATEMENT.

Ceteris paribus implies that anything else is held constant

20. CHOOSE THE CORRECT STATEMENT

The upward sloping property of supply curve can be explained with rising marginal costs. Therefore, supply curve behaves the same as marginal cost curve.

23. CHOOSE THE CORRECT STATEMENT

Kang never said a darn thing about analysis at marginal.

24. CHOOSE THE WRONG STATEMENT

Opportunity cost can be seen from the budget constraint we discussed.

25. CHOOSE THE CORRECT STATEMENT

keep buying a product until marginal benefit equals price.

A rational buyer will:

an inferior good.

Fast food is a good example of

decrease.

The idea of diminishing marginal product suggests that, if a local university adds more service workers (for maintenance), the marginal product of labor for the service staff will:

past decisions you have made.

The interdependence principle states that your best choice today depends on all of the following EXCEPT

lower, the quantity demanded is higher.

The law of demand is the tendency that when price is:

equal to the price ratio between good 1 and good 2

The slope of the budget constraint is

A 10-minute rant from Kang

What cannot shift the demand curve?

A decrease in input prices; a technological innovation; a fall in the price of a substitute-in-production.

Which of the following lists only factors that would cause an increase in the supply of an item?

the supply curve for frozen yoghurt to shift leftward.

Yoghurt is an important ingredient in the production of frozen yoghurt. If the price of yoghurt increases, then one would expect, holding all other things constant:

$100 you spent on the season tickets.

You have paid $100 for student season tickets to the football games at your university. It is halfway through the season, and the team has not won any games. You are considering whether you will attend any future games this season. All of the following are costs or benefits you should consider when making this decision EXCEPT the