Prelim 1 - Custom Scholars
Order Now
Home » Flash Cards » Prelim 1

Prelim 1

question
utility function
answer
captures a person's preferences over different bundles of goods,and gives each bundle a value
question
cardinal utility
answer
The utility value is meaningful, a bundle that gives us U= 4 brings twice as much value/happiness as a bundle that gives us U= 2
question
ordinal utility
answer
Only the ordering of bundles matters
question
E|>1:
answer
Elastic
question
|E|= 1:
answer
Unit Elastic
question
|E|<1:
answer
Inelastic
question
own price elasticity of demand
answer
what is the percentage decrease in quantity demanded given a percentage increase in price
question
cross-price elasticity
answer
Given a percentage increase in the price of another product, what is the percentage change in the quantity demanded for my product?"
question
advertising elasticity
answer
an elasticity measuring the effect of an increase or decrease in advertising on a market
question
perfect complements
answer
When two goods are complements, they experience joint demand - the demand of one good is linked to the demand for another good.
question
perfect substitutes
answer
identical products
question
cobb-douglas
answer
a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs and the amount of output that can be produced by those inputs
question
relationship between quantity demanded and price
answer
(inverse) price increases, quantity demanded decreases
question
demand shifters
answer
prices of other goods
income
expectations
populations
consumer tastes and preferences
advertising/branding
question
complementary goods relationship with price
answer
(inverse) price increases, demand decreases
question
supplementary goods relationship with price
answer
(direct) price increases, demand increases
question
normal good relationship with income
answer
(direct) income increases, demand increases
question
inferior good relationship with income
answer
(inverse) income increases, demand decreases
question
supply shifters
answer
input prices
technology
number of firms
question
Perfect Substitutes Utility Function
answer
U(x,y) = ax + by
question
Perfect Complements Utility Function
answer
U(X,Y) = min{aX, bY}
question
Cobb-Douglas Utility Function
answer
u(X,Y) = X^aY^b
question
market rate of substitution
answer
the slope of the budget constraint
question
marginal rate of substitution
answer
the slope of the indifference curve
question
subsitution effect
answer
When the relative price of one good increases, we'll substitute toward the other good.
question
income effect
answer
When prices go up, our purchasing power decreases, so we become effectively poorer
question
Elasticity
answer
What will the percentage change in X be given a 1% change in Y
question
EQx,Py>0 (cross price elasticity)
answer
substitutes
question
EQx,Py<0
answer
complements
question
EQx,Py= 0
answer
No relationship
question
income elasticty of demand
answer
Given a percentage change in income, what is the percentage change in the quantity demanded for my product?
question
EQx,M>0 (income elasticity)
answer
normal good
question
EQx,M<0 (income elasticity)
answer
inferior good
question
Isoquant Curve
answer
a curve that shows all the combinations of two inputs, such as capital and labor, that will produce the same level of output
question
marginal rate of technical substitution
answer
slope of isoquant

-MPL/MPK
question
Diminishing Marginal Rate of Technical Substitution
answer
As we decrease the use of one input, we'll have to use increasing amounts of the other input.
question
isocost line
answer
shows the set of inputs that result in the same total cost.
1 of 37
question
utility function
answer
captures a person's preferences over different bundles of goods,and gives each bundle a value
question
cardinal utility
answer
The utility value is meaningful, a bundle that gives us U= 4 brings twice as much value/happiness as a bundle that gives us U= 2
question
ordinal utility
answer
Only the ordering of bundles matters
question
E|>1:
answer
Elastic
question
|E|= 1:
answer
Unit Elastic
question
|E|<1:
answer
Inelastic
question
own price elasticity of demand
answer
what is the percentage decrease in quantity demanded given a percentage increase in price
question
cross-price elasticity
answer
Given a percentage increase in the price of another product, what is the percentage change in the quantity demanded for my product?"
question
advertising elasticity
answer
an elasticity measuring the effect of an increase or decrease in advertising on a market
question
perfect complements
answer
When two goods are complements, they experience joint demand - the demand of one good is linked to the demand for another good.
question
perfect substitutes
answer
identical products
question
cobb-douglas
answer
a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs and the amount of output that can be produced by those inputs
question
relationship between quantity demanded and price
answer
(inverse) price increases, quantity demanded decreases
question
demand shifters
answer
prices of other goods
income
expectations
populations
consumer tastes and preferences
advertising/branding
question
complementary goods relationship with price
answer
(inverse) price increases, demand decreases
question
supplementary goods relationship with price
answer
(direct) price increases, demand increases
question
normal good relationship with income
answer
(direct) income increases, demand increases
question
inferior good relationship with income
answer
(inverse) income increases, demand decreases
question
supply shifters
answer
input prices
technology
number of firms
question
Perfect Substitutes Utility Function
answer
U(x,y) = ax + by
question
Perfect Complements Utility Function
answer
U(X,Y) = min{aX, bY}
question
Cobb-Douglas Utility Function
answer
u(X,Y) = X^aY^b
question
market rate of substitution
answer
the slope of the budget constraint
question
marginal rate of substitution
answer
the slope of the indifference curve
question
subsitution effect
answer
When the relative price of one good increases, we'll substitute toward the other good.
question
income effect
answer
When prices go up, our purchasing power decreases, so we become effectively poorer
question
Elasticity
answer
What will the percentage change in X be given a 1% change in Y
question
EQx,Py>0 (cross price elasticity)
answer
substitutes
question
EQx,Py<0
answer
complements
question
EQx,Py= 0
answer
No relationship
question
income elasticty of demand
answer
Given a percentage change in income, what is the percentage change in the quantity demanded for my product?
question
EQx,M>0 (income elasticity)
answer
normal good
question
EQx,M<0 (income elasticity)
answer
inferior good
question
Isoquant Curve
answer
a curve that shows all the combinations of two inputs, such as capital and labor, that will produce the same level of output
question
marginal rate of technical substitution
answer
slope of isoquant

-MPL/MPK
question
Diminishing Marginal Rate of Technical Substitution
answer
As we decrease the use of one input, we'll have to use increasing amounts of the other input.
question
isocost line
answer
shows the set of inputs that result in the same total cost.
Continue to order Get a quote

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code BEGOOD

Order Now
seoartvin escortizmir escortelazığ escortbacklink satışbacklink saleseskişehir oto kurtarıcıeskişehir oto kurtarıcıoto çekicibacklink satışbacklink satışıbacklink satışbacklink