Lecture 2 Flashcards
1
Q
What is the income offer path?
A
2
Q
What are the shapes of engel curves for inferior, necessities and luxury goods
A
3
Q
What are ordinary goods and giffen goods
A
4
Q
What is the definition and formula for elasticity
A
5
Q
What values are elastic vs inelastic
A
6
Q
Explain income elasticity. What are the 4 categories
A
7
Q
Explain the income and substitution effects
A
8
Q
How do you determine the pure substitution effect only
A
9
Q
Show the income and substitution effect from a change in price on the same diagram
A
10
Q
Show the impact of food stamps with a cap
A
11
Q
Show the impact of food stamps with the possibility of reselling
A
12
Q
What is the labour supply budget constraint?
A
13
Q
Draw the leisure/labour budget constraint and consumption choice
A
14
Q
Draw the labour budget constraint with Earned Income Tax Credits
A
