Chapter 1: The Big Ideas
Obama Makes Case for
President Says Access Should Be as Cost-Free and Universal as High School
(What does Cost-Free Mean?)
Here in America, we dont guarantee equal outcomes, Mr. Obama said. But w
Marginal product of labor (MPL): the increase in a firms revenues created by hiring an additional laborer.
A firm is willing to hire a worker when the marginal product of labor is greater than the wage (cost).
Market supply is upward sloping.
If a country is producing on its stable PPF, to produce more of one good, it must:
Incorrect: employ more of its available inputs.
employ more of its available inputs.
Incorrect: also produce more of the other.
also produce more of the other.
An increase in quantity supplied is:
Incorrect: a shift in the demand curve down and to the left.
a shift in the demand curve down and to the left.
Correct: a movement along a fixed supply curve caused by a rightward shift in the demand curve.
`Ch. 2 Foundations
Why trade? Because there are gain from trade. We are better off with trade than without.
History of Trade:
-The mercantilists 1500-1800
-They sought to answer how nations could regulate their domestic and international affa
Econ 360 Fall 2016 NIU Simple introduction and review of calculating marginal utility using the idea
of a derivative.
Calculating marginal utility can be done by taking a derivative.
Gist Calculating the marginal utility from any utility function requires
Chapter 1- Models=simplified versions of reality
Exogenous variables- variables that will be determined outside of a model
Endogenous variables- determined within a model
Price and quantity are endogenous
Everything else is exogenous
Partial Derivative Sample Problems: Intermediate Microeconomics NIU Fall 2016
Given the following functions, solve for the partial derivatives of each function with respect to X and Y.
Answers are provided immediately below you should show your work and t