Extra questions Flashcards
1
Q
What is them term given for data that analyses households, individuals, firms etc?
A
Microdata
2
Q
True or false: ‘it is valid to plot observed prices and quantities traded in a market and fit a line through them to estimate a market demand curve.’
A
False
(Observing the interaction of shifts in supply and demand curves, it is difficult and estimate either curve without further assumptions)
3
Q
What does the slope of the production possibility frontier (PPF) mean?
A
- Shows the opportunity cost of one good in terms of another
- Is typically negative
4
Q
We can represent a person’s preferences with a continuous utility function even if…?
A
- They prefer more of one good over less of that good
- They are unemployed
- They dislike something
