rest that is important

Question 1

MRS =

Answer 1

MUx/MUy

Question 2

If MUa/Pa > MUo/Po then

Answer 2

buy more a

Question 3

Types of efficiency:

Answer 3

1. productive - produce at minimum ATC
2. allocative - produce optimal quantity P = MC

Question 4

When is TR maximized?

Answer 4

When MR = 0

Question 5

Zero economic profit when

Answer 5

ATC=P

Question 6

Least cost rule

Answer 6

MPL/Price of L = MPC/Price of C

Question 7

Auto safety laws have negative effects

Answer 7

Sam Peltzman 1975

Question 8

The tyranny of the market: Why you cant always get what you want

Answer 8

Joel Waldfogel

Question 9

Theory of liquidity preference

Answer 9

John Maynard Keynes

Question 10

First Nobel in economics

Answer 10

1969 Jan Tinbergen and Ragnar Frisch for developing dynamic models

Question 11

Underinsurance coefficient =

Answer 11

sum insured/ current value. (Sum insured/required% x Asset value) x Loss amount

Question 12

Basis for insurance payment =

Answer 12

found damage x coefficient

Question 13

annual interest rate =

Answer 13

(1 + r/n)^n - 1

Question 14

Taylor rule

Answer 14

monetary policy rule on how central banks should set interest rates tying it to inflation and economic growth

Question 15

Adam Smith 4 tax principles =

Answer 15

fairness, certainty, convenience, efficiency

Question 16

Ad Valorem tax

Answer 16

a tax imposed on an item based on its assessed value

Question 17

3 types of money demand

Answer 17

transactions, precautionary, speculative

Question 18

The concept of social capital

Answer 18

F. Fukayama

Question 19

Whistleblower

Answer 19

someone who has and reports insider knowledge

Question 20

Knut Wicksell

Answer 20

natural interest rate is when economy is in a stable price equilibrium

Question 21

tax multiplier =

Answer 21

1/MPS - 1, MPC/MPS

Question 22

remittance

Answer 22

sending money to family abroad

Question 23

Trade policies do not

Answer 23

affect trade balance

Question 24

Methodological individualism

Answer 24

Max Weber

Question 25

When having situation like 1.02^n = 2 use

Answer 25

log1.02 (2) = In(2)/In(1.02)

Question 26

if we need to calculate PV but have more than 1 payment then the present value of annuity

Answer 26

PV = P x ((1-(1+r)^-n)/r) P = payment per period r = interest rate per period n = number of periods If n is large then 1-(1+r)^-n = 1

Question 27

future value of annuity

Answer 27

FV = P x ((1+r)^n - 1)/r)

Question 28

expected return on portfolio =

Answer 28

W1 x r1 + W2 x r2.....

Question 29

Female nobel Prize

Answer 29

Claudia Goldin(2023) - gender work gap Esther Duflo (2019) - poverty Elinor Ostrom(2009) - common resources

Question 30

Alfred Marshall contribution

Answer 30

Synthesis of supply and demand and partial equillibrium

Question 31

Economic rent

Answer 31

David ricardo

Question 32

Solow model

Answer 32

Maximize consumption per worker

Question 33

Iron law of wages

Answer 33

Ricardo was influenced by Malthus, believed wages will naturally tend towards a bare minimum level otherwise population will grow, economic rent - surplus earned by a factor that is perfectly inelastic in supply

Question 34

AlfredMarsha

Question 35

Credit and debit

Answer 35

Debit - increase in assets or decrease in liabilities. Left side of T-acc. Credit - decrease in assets In BoP Debit - payment to foreigners, outflow of funds(imports, buying foreign stocks) Credit - inflow of funds(exports, nci)

Question 36

Minsky

Answer 36

He believed in financial instability caused by too much stability

Question 37

Hayek

Answer 37

against central planner