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Homework answers / question archive / Question 1 Microeconomics studies the allocation of scarce resources

Question 1

Microeconomics studies the allocation of

- scarce resources.
- decision makers.
- unlimited resources.
- models.

Question 2

The market supply of Oregon hazelnuts is given by:

Q = 20 + 1.5P - 0.5COST

where Q is hazelnut quantity supplied, P is hazelnut price, and COST is an index variable representing the costs of production. The coefficient 20 represents:

- the partial derivative of quantity supplied with respect to cost.
- the partial derivative of quantity supplied with respect to price.
- quantity supplied when price and costs are each positive.
- quantity supplied when price and costs are zero.

Question 3

By selecting a bundle where marginal rate of subsitution (MRS) equals the marginal rate of transformation (MRT), the consumer is

- not behaving in an optimal way.
- achieving a corner solution.
- on a higher indifference curve than they can afford.
- reaching the highest possible indifference curve she can affor

Question 4

The Cobb-Douglas utility function is appropriate to represent preferences for pizza and burritos if they

- are never substitutable for each other.
- are moderately substitutable for each other.
- are perfect substitutes.
- are perfect complements.

Question 5

Consider the demand function Qd = 150 - 2P, where P is price. The effects of determinants of

Qd other than price are reflected in

- in both the slope and the intercept of the function.
- neither the slope nor the intercept of the function.
- the slope of the function.
- the intercept of the function.

Question 6

In the year 2018, 1.3 billion pounds of milk were produced and sold in the U.S. This was

- a quantity determined by the interactions in the market.
- the maximum amount dairy producers could produce.
- what consumers needed.
- the decision of the U.S. Department of Agriculture.

Question 7

The percentage change in quantity demanded associated with a one percent rise in price is known as the

- marginal rate of transformation.
- slope of the demand curve.
- excess demand.
- price elasticity of deman

Question 8

The market supply of Oregon hazelnuts is given by:

Q = 20 + 1.5P - 0.5COST

where Q is hazelnut quantity supplied, P is hazelnut price, and COST is an index variable representing the costs of production. The coefficient -0.5 represents:

- how much costs change when quantity supplied decreases by one unit.
- the partial derivative of quantity supplied with respect to cost.
- the partial derivative of cost with respect to quantity supplied.
- how much costs change when quantity supplied rises by one unit.

Question 9

An increase in the price of pork will lead to

- a leftward shift of the demand curve of pork.
- a movement up along the demand curve of pork.
- a rightward shift of the demand curve of pork.
- a movement down along the demand curve of pork.

Question 10

The term “inverse demand curve” refers to

- a demand curve that slopes upward.
- the difference between quantity demanded and supplied at each price.
- expressing the demand curve in terms of price as a function of quantity.
- the demand for “inverses.”

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