Sample Quiz #1
1. (10 pts) Satchel loves Jerky Bits, but he has to hide them from his roommate, Bucky
Katt. The more Jerky Bits he has, the less valuable they are to him, because he
starts to run out of good hiding places, and the chance o
We saw that the economic model of consumer behavior is very simple:
People choose the best things they can afford.
The budget constraint indicates what a person "can afford.
Now we shell look at the meaning of what is
The budget set
The rationality assumption
Microeconomics boils down to a simple cost/benefit rule: If the benefit is greater than the cost,
do it. If not, dont do it.
People who act in this fashion are called rational.
If people only consider the cost
The determinants of demand
What determines how much product people want to buy at any given price?
What factors influence demand and how changes in these factors affect market equilibrium. XD
= f(Px, Py, M, N, T, E),
Given that the demand is XD as a funct
Supply and demand
Product - a good or a service
Real price - the price of a product relative to the price of other products.
Demand - The functional relationship between the price of the product and the quantity
demanded by the consumers, giv
Sunk costs are the costs you have regardless of whether or not you engaged in an activity.
Sunk cost should not be included in the cost benefit analysis.
Example: You have an old car. A moth ago you had to replace the transmission for 500$. T
The economic paradigm
Study of the behavior of small units in the economy.
We study the decision making process of consumers and producers
Interaction in the market
Resulted effects on quantities exchangedand equilibrium prices.
S ample M idterm # 2
A pEc 3 001
1. (16 p ts) A monopolist faces a s hori-run t otal cost curve of T C = ~Q2 + 100, a nd
a d emand c urve equal t o P = 100 - 2Q, where Q is measured in units per m onth
and P is measured in $ /units o f Q.
S ample M idterm # 1
A pEc 3 001
1. (8 p ts) T he d emand for movie tickets is given b y P
20 - .04Q, a nd t he s upply
o f t ickets is given b y P
.00Q. P is t he p rice p er t icket, a nd Q is t he q uantity o f
t ickets sold each day. Use algeb
Sample Midterm #2
1. (16 pts) A monopolist faces a short-run total cost curve of T C = 1 Q2 + 100, and
a demand curve equal to P = 100 2Q, where Q is measured in units per month
and P is measured in $/units of Q.
(a) If the rm can not pr
Sample Quiz #4
1. (10 pts) A neighborhood has decided to renovate a portion of a vacant lot. Together,
they plan to pool their labor to install some landscaping. There are 10 able-bodied
residents in the neighborhood, each of whom have a w
Quiz #3 Sample
ApEc 3001 Fall 2009
1. (10 pts) Tonio is opening a pizza parlor. His long-run ability to produce pizzas
follows the production function Q(K, L) = 75K 2 L2 50L3 , where Q is the number
of pizzas cooked per hour, K is the number of wood
Sample Quiz #2
1. (10 pts) Mailee loves ice cream sundaes. The graph below shows three curves from
her indierence map I1 , I2 and I3 expressing her preferences for ice cream sundaes
and a composite good. The points A, B and C are tangency
S ample Q uiz # 1
ApEc 3 001
1. (10 p ts) S atchel loves Jerky Bits, b ut he has to hide t hem from his roommate, Bucky
K att. T he more Jerky Bits he has, t he less valuable t hey a re t o him, because he
s tarts t o r un o ut o f good hiding p
Economics and Emigration:Trilli
on-Dollar Bills on the sidewalk
Estimates of the gain from
reducing migration barriers
How migrants affect
The shape of labor demand
The effect of location on