1. Partial equilibrium analysis:
A. concerns competitive equilibrium only in the factor markets.
2. General equilibrium analysis:
A. concerns competitive equilibrium only in the factor markets.
3. General equilibrium analysis:
D. was pioneered by Nobel laureate Vernon Smith.
4. The father of general equilibrium theory is considered to be:
A. Kenneth Arrow.
5. The modern treatment of general equilibrium was pioneered by:
D. John Nash and Kenneth Arrow.
6. A market-clearing curve for a good:
D. shows equilibrium in a particular market.
7. The market-clearing curve for complementary goods is:
D. upward-sloping.
8. The market-clearing curve for substitutes is:
A. horizontal.
9. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Which of the following gives the price of milk in terms of the
price of cereal?
D.
Pm
= (32/12) + (
Pc
/6)
10. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Which of the following gives the market-clearing curve for
milk?
D.
Pm
= (32/12) + (
Pc
/6)
11. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Which of the following gives the price of cereal in terms of the
price of milk?
A.
Pc
= 100 – (
Pm
/10)
12. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Which of the following gives the market-clearing curve for
cereal?
A.
Pc
= 100 – (
Pm
/10)
13. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. What is the general equilibrium price for cereal?
D. $11.25
14. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. What is the general equilibrium price for milk?
D. $4.00
15. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. What is the general equilibrium quantity of cereal?
A. 20.5 million boxes
16. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. What is the general equilibrium quantity of milk?
D. 50.56 million gallons
17. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. The supply function for milk becomes:
A.
Q
sm
= 4
Pm
– 6.
18. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. The formula for the market-clearing curve for milk after the tax is:
D.
Pm
= 2 – (
Pc
/6).
19. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. The new general equilibrium price of milk is:
A. $2.37.
20. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. The new general equilibrium price of cereal is:
D. $11.76.
21. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. In the new general equilibrium:
D. the price of milk and the price of cereal are both lower.
22. Suppose milk and cereal are compliments and the demand for milk is
Qdm
= 40 – 6
Pm
– 2
Pc
,
where
Q
dm
stands for millions of gallons of milk demanded,
Pm
stands for the price of milk and
Pc
stands for the price of cereal. The supply of milk is
Q
sm
= 6
Pm
– 8, where
Q
sm
stands for millions of
gallons of milk supplied. The demand and supply of cereal are
Q
dc
= 90 – 5
Pc
–
Pm
and
Q
sc
= 5
Pc
–
10, respectively, where
Q
dc
stands for millions of boxes of cereal demanded and
Q
sc
stands for
millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on
milk. In the new general equilibrium:
D. consumers purchase less milk and more cereal.
23. The most commonly used notion of economic efficiency originated in the writings of:
A. John Nash.
24. An allocation of resources is Pareto efficient if it is:
A. possible to make at least one consumer better off without making someone else worse off.
25. A point inside the utility possibility frontier is:
D. desirable.
26. A point on the utility possibility frontier is:
D. undesirable.
27. Process-oriented notions of equity:
A. focus on the procedures used to arrive at an allocation of resources as well as on the
allocation itself.
28. Outcome-oriented notions of equity:
D. focus on what people could choose rather than what they actually choose.
29. The principle of equal opportunity is an example of:
D. Rawlsianism.
30. Utilitarianism:
A. was favored by John Nash.