113 review questions copy

6 7 8 9 10 11 12 13 14 c c a b b b a b b d b b b d 15

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: above. 14 Answer Key 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. C C A B B B A B B D B B B D 15 Economics 113 Introduction to Economics for Policy Analysis Review Questions Topic 4 1. Modeling economic behaviour is important for policy analysis because A. most important policy issues involve markets. B. successful policy design requires an understanding of how agents will respond to policy. C. the social benefits of policy must be weighed against the economic costs. D. policy should be designed to have the smallest possible economic impact. 2. The two key aspects to the methodology of economic modeling are A. preferences and income. B. costs and benefits. C. optimization and equilibrium. D. supply and demand. 3. A key assumption underlying optimization as the foundation for economic modeling is A. economic agents act out of pure self-interest. B. economic agents have complete information. C. economic agents never make mistakes. D. economic agents are rational. 4. The marginal cost of production A. is the cost o...
View Full Document

This document was uploaded on 03/03/2014.

Ask a homework question - tutors are online