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Econ%20306%20Midterm%20#1%20Study%20Guide0 - Intermediate...

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Intermediate Microeconomics – Econ 306 Midterm #1 Study Guide Quiz Questions (session two onwards): 1. At what point is total revenue optimized? 2. What is the role of the entrepreneur? 3. What is a law of Marginal Utility? 4. Are jobs goods or bads? Explain 5. What is an inefficiency of dating/marriage? 6. Draw the indifference curves for two normal goods with a budget constraint and the point of optimal consumption. 7. Draw the indifference curves for a good and a bad. 8. Demand curves slope downwards (t/f). 9. If income, Py and Px all increase by x%, does Qx or Qy change? 10. Why are peacock tails so large and ornate? 11. A voucher is identical to a consumer subsidy (t/f). Explain . 12. What is the MRS for two normal goods at any specific point (hint: is it changing?)? 13. Utility is maximized where MRS=price ratio (Px/Py) (t/f). Explain conceptually . 14. What does income elasticity measure? 15. Why does everyone have the same MRS in optimum (tell me more than just because everyone faces the same prices)? 16. What is the MRT for two normal goods at a specific point? 17. Draw a PPF with a comparative advantage in the production of Y. 18. In optimum, MRS=Px/PY<MRT (t/f). Explain. 19. Where does wealth come from? (Graphically illustrate. Explain your graphs in words.)
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20. Name an example of moral hazard and explain the impact of government policy on this example. 21. Explain why a pooling equilibrium occurs. Alternative Questions (in addition to the assigned questions in Hirshleifer): 1. What is the role of prices?
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