There are some answers and hints for some of the
questions at the end of this file. Please first work
through the questions and then check your answers.
1. Define the concepts of MPL, APL, and total product of labor. Why does
the MPL fall as output increa
Practice Questions for the Second Exam-Econ200
This practice file for the second exam contains 20 questions.
There are hints for (and full answers for some of) these problems at
the end of this file. Please write the answer to these questions before
1. From last time: The effect of government tax or subsidy on supplier and consumer
2. Review for the first exam
- Readings for Thursday, Nov. 5: Chapter 5, Sections 5.1 and 5.2
Problems to do with your peer group (or o
Postulate 1 : people have preference
Postulate 2: more is preferred to less
Postulate 3: people substitute one good for another
Postulate 4: marginal value of a good falls as the consumed quantity
of good increase.
Do water ha
Opportunity cost is the benets forgone from the best alternative decision.
= net benet
=benet - cost
An example about opportunity cost
>positive sum game
Interaction is an positive sum game. Everyone can gain
Prepare for quiz 1
Price system is mechanisms that correct erroneous decisions about
Proposition that could be wrong but is conrmed by the facts are the most
A theory cannot be good in theory but lousy in practice cuz by den
1. Demand Schedule and Demand Curve
1. Concept of Demand Schedule and Demand Curve
Derivation of the Market Demand Curve
II. Water-Diamond Paradox
2. Practice Questions
Canada and many States in the US have enacted so-ca
Quiz 1Econ 200A Winter 2015
Please write legibly. lllegible writing will result in lost points.
1. Yena purchases a variety of goods and services. Among them, Yena buys entertainment services by
going to movies. Yenas marginal values and total v
Practice Questions for the First Exam
There are full answers for some of the questions and
hints for others in the question file below (answers
and hints are at the bottom of this file). We do not
provide complete answers to every question for a
1. The law of diminishing marginal returns to employment of a factor of production
(e.g., labor)the declining MPL and the rising costs at the intensive margin!
2. How does a firm decide on the number of workers to employ?