Microeconomics consumer theory practice

Assignment Help Business Economics

Reference no: EM13892052

Microeconomics Consumer Theory Practice Questions:

1. "Angela view Apples and Bread as a perfect substitutes at a 1:1 ratio. Thus she will always spend half of her income on each good." Comment (True or False, why?)

2. "If apples are $1 per pound while bananas are $2 a pound. Paula should spend her last $1 on apples." Comment (True or False, why?)

3. Graphically illustrate, aided with verbal discussion, why isoquants cannot intersect.

Reference no: EM13892052

Questions Cloud

Consider our simple model of system of factory cities : Consider our simple model of a system of factory cities. Why is there more than one city? Does anyone in the region produce both shirts and bread? Why? Suppose transportation technology improves. What will happen to the system of cities, holding al..

Discuss the sustainability of ethanol production from corn : Recently, when the cost of oil was ~$100/barrel the US made a significant investment in the form of tax breaks and subsidies to producers of ethanol to assist in the development of production of ethanol from biomass, including corn. Discuss the susta..

Steady-state condition that investment equals depreciation : Country A has the production function: Y=F(K,L)=K^(1/2)L^(1/2) a. What is the per-worker production function y=f(k)? b. Assume that country A experiences no population growth or technological progress and that 10 percent of capital depreciates each y..

What is the central idea of mercantilism and liberalism : Write an essay about each of the IPE perspective has at its center a fundamental value or idea. What is the central idea of mercantilism, of liberalism, and of Marxism?

Microeconomics consumer theory practice : "Angela view Apples and Bread as a perfect substitutes at a 1:1 ratio. Thus she will always spend half of her income on each good. Graphically illustrate, aided with verbal discussion, why isoquants cannot intersect.

Households receive goods and services and pay firms : In the _____, households receive goods and services and pay firms for them

Gold standard-nations domestic economic policy : When a U.S. citizen buys goods from a foreign merchant, the goods are usually paid for by having the U.S. citizen send a personal check or dollars directly to the exporter. Foreign exchange refers to. Meetings among the leaders of the Group of Seven ..

Why university degree can be treated as form of capital : Explain why a university degree can be treated as a form of capital. 'Most countries import substantial amounts of goods and services from other countries.’

What is the size of the labor force : suppose nominal GDP in 2012 was $100 billion and in 2014 it was $220 billion. The general price index in 2012 was 100, and in 2014 it was 140. Between 2012 and 2014, the real GDP rose by what percent? What is the size of the labor force in the United..

User Account

All Pages