Facebook Questions Flashcards
A payment or other benefit that a decision-maker receives above and beyond what they would have received in their next best alternative is called the decision-maker’s:
a) opportunity cost
b) economic rent
c)Incentives
d)Relative Price
Economic rent
Which of the following influences decision-makers’ choices?
Incentives
Relative Prices
Economic Rent
All of these influence decison makers choices
all of these are influences
Which of the following statements about iso-cost lines is correct?
1)All Iso cost lines for a given set of input prices have the same intercepts on each axis
2) “ have the same slope but different total costs
3) “ have the same total cost but different slopes
4) “ have different slopes
2) “ have same slope but different total costs
If prices remain constant, a decrease in a consumer’s income (or budget) results in a:
parallel, inward shift of the budget constraint
parallel, outward shift of the budget constraint
steeper budget constraint
flatter budget constraint
parallel, inward shift of the budget constraint
For a normal good, when income increases:
the consumer will definitely buy the same ratio of goods as before
the income effect will be smaller than the substation effect
the consumer will buy less of the good
there is no substitution effect
A substitution effect happens when there is a change in relative prices. When income changes, there is no change in relative prices, and so there is no substitution effect. There will only be an income effect.
A situation in which econmic factors interacting with one another each choose their best strategy given the strategies the others have chosen is called.
a competitive equlibrium
a socially optimal solution
an open market
a nash equilibrium
a nash equilibrium
In the constrained optimisation model for the worker, the worker can earn more income by:
moving long their indifference curve to the right
decreasing their time endowment
consuming more leisure
consuming less leisure
Circling back to this one. In the constrained optimisation model of the worker, the two good’s that the worker is choosing are income (consumption) and leisure. If they want to earn more income, they can only do so by working more, which means consuming less leisure.
Decreasing their time endowment would move the budget constraint for the worker inwards. They could in theory have more income that way, but it seems unlikely. Most likely they would have both less income and less leisure as a result.
Which of the following statements about game theory is correct?
a nash equlibrium is always a dominant strategy equlibrium
a simultaneous game alwats results in first mover advantage
a game might have no nash equilibrium in pure strategy
a player will always have a dominant strategy in a game
a game might have no nash equilibrium in pure strategy
In a sequential game with full information:
one player will choose their strategy already knowing the strategy chosen by the other player
the game cannot be repeated
there is always a first mover advantage
all of these are correct
one player will choose their strategy already knowing the strategy chosen by the other player
The consumer’s demand curve shows:
the quantity the consumer will demand at each price
the consumers willingness to pay for different quantities of the good
the result of the consumers optimisation decisons for different prices in the consumer choice model
all of these are correct
all of these are correct
ECONS101 Revision Question of the Day:
The intersection of which two curves indicates the point where total sales (or output) is maximised (without the firm making a loss)?
Marginal revenue and demand
marginal cost and average cost
average revenue and average cost
marginal revenue and marginal cost
marginal revenue and marginal cost
quantity where marginal revenue and demand intersect is at a quantity of zero. While it is true that the constant-cost firms that we have been drawing will not make a loss there, it clearly isn’t sales (or output) maximising. The sales-maximising point is the quantity where the average revenue and average cost curves intersect.
