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STRESS POST: BCramming, majoring in micro (2 Viewers)
- Thread starter redruM
- Start date
golfstick
balbrady's balbarer
I got a D for the assign
ECON111 Essay Questions:
Note:
- The following questions were the four compulsory questions from which one appeared in the 2003 exam.
- It is highly unlikely any of these will reappear in subsequent exams.
1. "Consumers maximise utility subject to a budget constraint. Firms maximise output subject to a cost constraint."
Outline how the analysis of the firm's behaviour in terms of isoquant and isocost analysis parallels the analysis of consumer behaviour in terms of indifference curve and budget constraint analysis.
To what extent does this type of analysis indicate the meaning of the basic economic problem.
2. Why does trade take place? Illustrate your answer with reference to each of the following:
(a) Market exchange in which price is determined by demand and supply. (Refer in your answer to producer and consumer surplus).
(b) Exchange between two individuals based on differences in tastes given a fixed endowment of two goods.
(c) International trade.
3. "In both monopoly and perfect competition the profit maximising output is at the level at which MR = MC, but only in the latter is the optimal level such that P = MC".
Explain the above statement by comparing the model of perfect competition with that of monopoly.
4. "Prices contribute to the efficient production and distribution of goods and services by embodying vast amounts of knowledge not available to any individual... prices lead to social outcomes that take account of producers' costs and consumers' preferences in ways that no individual planner could hope to accomplish". S.E. Landsburg
(a) Outline the various roles played by prices in a market economy.
(b) In what way does the presence of externalities result in price information being "inaccurate"? Illustrate your answer by considering:
(i) The case of research and development expenditures, and
(ii) The problem of traffic congestion.
Note:
- The following questions were the four compulsory questions from which one appeared in the 2003 exam.
- It is highly unlikely any of these will reappear in subsequent exams.
1. "Consumers maximise utility subject to a budget constraint. Firms maximise output subject to a cost constraint."
Outline how the analysis of the firm's behaviour in terms of isoquant and isocost analysis parallels the analysis of consumer behaviour in terms of indifference curve and budget constraint analysis.
To what extent does this type of analysis indicate the meaning of the basic economic problem.
2. Why does trade take place? Illustrate your answer with reference to each of the following:
(a) Market exchange in which price is determined by demand and supply. (Refer in your answer to producer and consumer surplus).
(b) Exchange between two individuals based on differences in tastes given a fixed endowment of two goods.
(c) International trade.
3. "In both monopoly and perfect competition the profit maximising output is at the level at which MR = MC, but only in the latter is the optimal level such that P = MC".
Explain the above statement by comparing the model of perfect competition with that of monopoly.
4. "Prices contribute to the efficient production and distribution of goods and services by embodying vast amounts of knowledge not available to any individual... prices lead to social outcomes that take account of producers' costs and consumers' preferences in ways that no individual planner could hope to accomplish". S.E. Landsburg
(a) Outline the various roles played by prices in a market economy.
(b) In what way does the presence of externalities result in price information being "inaccurate"? Illustrate your answer by considering:
(i) The case of research and development expenditures, and
(ii) The problem of traffic congestion.
golfstick
balbrady's balbarer
which of those 4 questions was used last year flyin?
i hope its the isocost one...anyway do you remember the types of questionsthey asked you to choose from...like are they pretty well spread out over the topics covered?..or just like the last few tpoics?
Do those 7 Q's, (4 comp, 3 provided by flyin')
and then just specialise in areas.
e.g, regardless of the comp question, im going to choose
market failures ( public goods/asymmetric info/externalities )
monopoly's & perfect competition ( MR = MC & P > MC etc... )
Trade ( demand supply / edgeworth / CS & PS )
and then just specialise in areas.
e.g, regardless of the comp question, im going to choose
market failures ( public goods/asymmetric info/externalities )
monopoly's & perfect competition ( MR = MC & P > MC etc... )
Trade ( demand supply / edgeworth / CS & PS )
Like for example, for a firm that produces bread, the inputs required are in a fixed proportion of 3 kg of flour for every 1 L of water. You cannot give up one Kg of flour for additional water. How is such an isoquant curve drawn?