Math for Economics: Applications
Assignment # 1
1. For the following functions, (A) find critical values, (B) test for concavity to determine relative
maxima or minima, (C) check for inflection points, and (D) evaluate the function at critical values
How much output does KZ economy
Keeping in mind:
Nominal vs real
Domestic vs national
Gross vs net
Market prices vs basic prices
Nominal vs real GDP
Price level: what is the base year?
The Central Idea
Economic interactions involve scarcity and choice. Time and income are limited, and people choose
among alternatives every day. In this chapter, we study the choices people make when faced with a
scarcity of res
C000105 A command economy is one in which the coordination of economic activity, so essential to the viability and functioning of a complex social economy1 , is undertaken through administrative means commands, directives, targets and regu
Class: Total Possible Marks: 15
Production Possibilities & Opportunity Cost
Each multiple choice question carries one mark for a correct answer. No marks are deducted for wrong answers. Circle or tick your chosen answer.
The slope of the
Introductory Concepts and the Production Possibilities Curve
Normative economics is based on a. Empirical and statistical theory *b. Value judgments about what "ought to be" c. Analysis about "what is" d. Microeconomics and not macroeconomics The economic
Total, Average, and Marginal Physical Products
Hold all but one of the inputs xed (say, x K = K ).
Perhaps we are in a short run situation, or perhaps we
are just focusing on the eect of changing L.
The total product of labor is given by the function,
Pure monopoly is at the opposite end of the spectrum from pure (perfect) competition.
Examples U.S. Post Office, Cable companies, local phone services, etc.
1. Single seller the firm is the industry.
2. No close substi
90 PA RT CINE International Trade Theory
gods. They also have theM1A given amount of labor and capital yields the
same output of either cloth or food' In the two countries. The only difference between the
countries is in their resources.
Microeconomics Examination Topics
1. Opportunity cost
2. Theory of Consumer Behavior and Demand
a. Indifference Curve and Demand Theory
b. Market Demand and Elasticity
c. Choice under Uncertainty
3. Theory of the Firm
a. Production Function
b. Cost of Pro