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���Р�СЫ - Part 1 True/False(Total 5 marks 1 Microeconomics can be used by Governments to predict the impact of a policy and

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Part 1: True/False (Total: 5 marks) 1. Microeconomics can be used by Governments to predict the impact of a policy and suggestions to problems. (C1) 2. When a market is in disequilibrium consumers and producers change their behaviour, As a result, the market reaches equilibrium. (C2) 3. Indifference curves on the same indifference map can have different shapes (C3) 4. Unlike the indifference curves, isoquants can intersect (C6) 5. A firm may express increasing, constant and decreasing returns to scale for various levels of output (C6) Part 2: Multiple Choices (1 mark each) 1. Microeconomic models are used to (C1) a. Make predictions b. Explain real-life phenomena c. Evaluate policy alternatives d. All of the above are correct. 2. If the price of automobiles were to decrease substantially, the demand curve for automobiles will most likely (C2) a. Shift rightward b. Shift leftward. c. Remain unchanged d. Become steeper 3. An indifference curve represents bundles of goods that a consumer (C3)
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This note was uploaded on 12/27/2011 for the course NKL kl taught by Professor Nl during the Spring '11 term at Berklee.

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