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Question 1

What is the purpose of an economic model

Answer 1

To generate insights

Question 2

What are 4 advantages of maths in economics

Answer 2

Precise - provides clarity
Certainty - can be verified to remove doubt
Generation of insights - more successful than other method
Removes abstraction

Question 3

What doe a budget set contain

Answer 3

All affordable alternatives

Question 4

What does a utility function do

Answer 4

Assigns a numerical value to each alternative

Question 5

Why does a consumer make choices

Answer 5

To maximise utility from a given set

Question 6

What is a set

Answer 6

A collection of 0 or more distinct objects

Question 7

What are natural numbers
How are they denoted

Answer 7

(0),1,2,3,4,…
IN (notation N)

Question 8

What is an integer
How are they denoted
What types of integers are there

Answer 8

Any whole number which does not contain a decimal
Notation Z
Positive, negative or non-negative (0)

Question 9

What are rational numbers
How are they denoted
What does this mean

Answer 9

Any number that can be written as a fraction using only integers
Notation Q
It is any decimal with a repeating pattern

Question 10

What is a real number
How are they denoted

Answer 10

Any number that can be represented on a number line
IR (Notation R)

Question 11

What are irrational numbers
Give 3 examples

Answer 11

Numbers that are real but are not rational
Pi, e, root 2

Question 12

What are elements

Answer 12

Objects that belong to a set

Question 13

What is the empty set

Answer 13

The set with no elements

Question 14

What notation is used to show that something is part of a set

Answer 14

Epsilon (Looks similar to E)

Question 15

How to show something is not part of a set

Answer 15

Epsilon with a cross though it

Question 16

How to denote a set

Answer 16

USING CAPITAL LETTERS

Question 17

How to denote elements of a set

Answer 17

by using lowercase letters

Question 18

What are the two ways of specifying sets

Answer 18

Listing all of the elements and enclosing them in curly brackets
Writing down the property/s that the elements of this set must satisfy

Question 19

When are two sets equal

Answer 19

When they contain exactly the same elements

Question 20

What does the existence of set equality imply

Answer 20

That there is exactly one empty set which contains no elements

Question 21

When can one set A be a subset of another set B

Answer 21

When all the elements of A are also elements of B

Question 22

What if two sets are subsets of each other

Answer 22

They are equal sets

Question 23

What is the subset symbol

Answer 23

Capital U rotated 90 deg clockwise

Question 24

What does AUB mean

Answer 24

A union B (A or B) is the set that belongs to A, B, or both

Question 25

What does AnB mean

Answer 25

A intersect B (A and B) is the set that belongs to both A and B

Question 26

What does A\B mean

Answer 26

A minus B is the set of elements that belong to A but not to B

Question 27

What is a useful way to visualise set operations

Answer 27

Venn Diagrams

Question 28

If X and Y are sets, what is the Cartesian product XxY

Answer 28

The set of pairs (x,y) such that x (epsilon)X and y(epsilon)Y

Question 29

Cartesian product of (1,2)x(3,4)

Answer 29

(1,2)x(3,4)=((1,3),(1,4),(2,3),(2,4))

Question 30

IR x IR = ?

Answer 30

The set of all real numbers on a plane
IR^2
Every pong on the plane corresponds to a set which is a pair of real numbers