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Questions and Answers
Given the utility function $U(x_1, x_2) = 2x_1 + 3x_2$, what is the marginal utility of $x_1$ ($MU_{x_1}$)?
Given the utility function $U(x_1, x_2) = 2x_1 + 3x_2$, what is the marginal utility of $x_1$ ($MU_{x_1}$)?
If the price elasticity of demand is 0.73 and the percentage change in price is 12.5%, what is the approximate percentage change in quantity demanded?
If the price elasticity of demand is 0.73 and the percentage change in price is 12.5%, what is the approximate percentage change in quantity demanded?
For the Cobb-Douglas production function $Q = K^{0.8}L^{0.5}$, what is the sum of the exponents, representing the degree of homogeneity?
For the Cobb-Douglas production function $Q = K^{0.8}L^{0.5}$, what is the sum of the exponents, representing the degree of homogeneity?
Given the utility function $U(x_1, x_2) = x_1^2 + x_2^2$, what is the marginal rate of substitution of $x_1$ for $x_2$ ($MRS_{x_1,x_2}$)?
Given the utility function $U(x_1, x_2) = x_1^2 + x_2^2$, what is the marginal rate of substitution of $x_1$ for $x_2$ ($MRS_{x_1,x_2}$)?
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If the price elasticity of demand is 2.36 and the quantity demanded increases by 18.6%, what is the approximate percentage change in price?
If the price elasticity of demand is 2.36 and the quantity demanded increases by 18.6%, what is the approximate percentage change in price?
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Which factor is LEAST likely to influence the structure of a market?
Which factor is LEAST likely to influence the structure of a market?
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What is the primary characteristic of a perfectly competitive market?
What is the primary characteristic of a perfectly competitive market?
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What does 'market power' refer to?
What does 'market power' refer to?
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In a monopolistically competitive market, what is the primary reason why firms have some level of market power?
In a monopolistically competitive market, what is the primary reason why firms have some level of market power?
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Which market structure is characterized by a few large firms supplying all or most of a product?
Which market structure is characterized by a few large firms supplying all or most of a product?
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Which of the following describes a market with easy entry and exit?
Which of the following describes a market with easy entry and exit?
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Which statement best describes the relationship between market structure and market conduct?
Which statement best describes the relationship between market structure and market conduct?
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In a perfectly competitive market, what is the shape of the demand curve facing an individual producer?
In a perfectly competitive market, what is the shape of the demand curve facing an individual producer?
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Which of the following best exemplifies a characteristic that defines market structure?
Which of the following best exemplifies a characteristic that defines market structure?
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What distinguishes a spot market from a forward/futures market?
What distinguishes a spot market from a forward/futures market?
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At the equilibrium condition of the producer, what does the slope of the isoquant equate to?
At the equilibrium condition of the producer, what does the slope of the isoquant equate to?
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A market for agricultural credit is an example of which type of market?
A market for agricultural credit is an example of which type of market?
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What best describes 'market power' as defined in the context of a market structure?
What best describes 'market power' as defined in the context of a market structure?
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When will an individual's labor supply curve bend backwards?
When will an individual's labor supply curve bend backwards?
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If the government guarantees a minimum price to maize producers that is above the market price, what is a likely outcome?
If the government guarantees a minimum price to maize producers that is above the market price, what is a likely outcome?
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Which of the following scenarios is NOT a factor that influences or changes a market's structure?
Which of the following scenarios is NOT a factor that influences or changes a market's structure?
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In a perfectly competitive market, what power do the firms have over the price of the goods they sell?
In a perfectly competitive market, what power do the firms have over the price of the goods they sell?
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Referring to Figure I, at which point is marginal product zero?
Referring to Figure I, at which point is marginal product zero?
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Besides the number of buyers and sellers, which is also a key component to consider when evaluating a market's structure?
Besides the number of buyers and sellers, which is also a key component to consider when evaluating a market's structure?
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Referring to Figure I, at which point does marginal product reach a maximum?
Referring to Figure I, at which point does marginal product reach a maximum?
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What does the definition of a normal good imply?
What does the definition of a normal good imply?
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What does it mean for a market to perform well in terms of product availability?
What does it mean for a market to perform well in terms of product availability?
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If Ama's demand for good Z decreases when the price of good Z increases and her income is held constant, what kind of good is good Z?
If Ama's demand for good Z decreases when the price of good Z increases and her income is held constant, what kind of good is good Z?
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When the price of fish decreases and Ama discovers that she can eat more fish because they are cheaper than beef, this is an example of:
When the price of fish decreases and Ama discovers that she can eat more fish because they are cheaper than beef, this is an example of:
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What does an indifference curve represent?
What does an indifference curve represent?
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In the context of indifference curves, what does the Marginal Rate of Substitution (MRS) signify?
In the context of indifference curves, what does the Marginal Rate of Substitution (MRS) signify?
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What is the relationship between indifference curves and preference ranking?
What is the relationship between indifference curves and preference ranking?
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If a consumer moves from a bundle on one indifference curve to a bundle on a higher indifference curve, what happens to the consumer's utility?
If a consumer moves from a bundle on one indifference curve to a bundle on a higher indifference curve, what happens to the consumer's utility?
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Why do indifference curves typically have a negative slope?
Why do indifference curves typically have a negative slope?
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If $U(x,y) = k$, where ‘k’ is a constant, what does this equation represent in the context of indifference curves?
If $U(x,y) = k$, where ‘k’ is a constant, what does this equation represent in the context of indifference curves?
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Given the formula $MRS_{x_2, x_1} = -\frac{ \delta x_1}{ \delta x_2}$, what does this notation represent?
Given the formula $MRS_{x_2, x_1} = -\frac{ \delta x_1}{ \delta x_2}$, what does this notation represent?
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What fundamental assumption is made about goods when using indifference curves?
What fundamental assumption is made about goods when using indifference curves?
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If the marginal product of capital (MPK) is 10 and the marginal product of labor (MPL) is 5, what is the marginal rate of technical substitution of labor for capital (MRTSL,K)?
If the marginal product of capital (MPK) is 10 and the marginal product of labor (MPL) is 5, what is the marginal rate of technical substitution of labor for capital (MRTSL,K)?
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Which of the following best describes the relationship between the elasticity of substitution (σ) and the percentage changes in K/L and MRTS?
Which of the following best describes the relationship between the elasticity of substitution (σ) and the percentage changes in K/L and MRTS?
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In the production function $Q = \Phi K^{\alpha} L^{\beta}$, if $\alpha = 0.6$ and $\beta = 0.4$, what is the return to scale?
In the production function $Q = \Phi K^{\alpha} L^{\beta}$, if $\alpha = 0.6$ and $\beta = 0.4$, what is the return to scale?
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Given the production function $Q = A K^{\alpha} L^{\beta}$, if both capital (K) and labor (L) are doubled, and $\alpha + \beta > 1$, what happens to output?
Given the production function $Q = A K^{\alpha} L^{\beta}$, if both capital (K) and labor (L) are doubled, and $\alpha + \beta > 1$, what happens to output?
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If a production function can be written as $Q_0^* = s * Q_0$ after both inputs are scaled, the production is considered:
If a production function can be written as $Q_0^* = s * Q_0$ after both inputs are scaled, the production is considered:
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Which measure is most affected by the units in which capital and labor are measured?
Which measure is most affected by the units in which capital and labor are measured?
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In the production function $Y = \Phi K^{\alpha} L^{\beta}$, what do $\alpha$ and $\beta$ represent?
In the production function $Y = \Phi K^{\alpha} L^{\beta}$, what do $\alpha$ and $\beta$ represent?
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In the production function $Q = \Phi K^{\alpha} L^{\beta}$, what is the implication of a high $\frac{\alpha}{\beta}$ ratio?
In the production function $Q = \Phi K^{\alpha} L^{\beta}$, what is the implication of a high $\frac{\alpha}{\beta}$ ratio?
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Given the production function $Y = \Phi K^{\alpha} L^{\beta}$, and applying a scaling factor of 's' to both inputs, what is the value of $Y^*$ after scaling?
Given the production function $Y = \Phi K^{\alpha} L^{\beta}$, and applying a scaling factor of 's' to both inputs, what is the value of $Y^*$ after scaling?
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What does factor intensity measure?
What does factor intensity measure?
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Study Notes
Agricultural Economics & Agribusiness Exam Notes
- Exam date: 2014/2015
- Course level: 200, Bachelor of Science in Agriculture
- Course title: Microeconomics
- Module: Principles & Applications to Households and Firms
- Duration: Two (2) hours
- Instructions: Answer all questions. Sections A & B on question paper, sections C & D on answer booklet. Attach both.
Section A: Multiple Choice (25 marks)
- Format: Multiple choice questions; choose the correct letter.
- Timing: 25 minutes
- Question 1: If the price elasticity of demand is less than 1, to increase total revenues, hold the price constant.
- Question 2: The slope of an indifference curve measures the marginal rate of substitution.
- Question 3: In the long run, all inputs are variable.
- Question 4: A shift in the demand curve for a product (M) is not caused by a change in the price of the product itself. Instead, other factors cause shifts.
- Question 5: A characteristic of a monopoly is that no market entry by other producers is possible.
Section B: True or False (20 marks)
- Format: Indicate whether statements are true or false.
- Timing: 20 minutes
- Note: Statements not included in Section B will not be assessed because they are not included in the provided document.
Section C
- Format: Numerical problem, showing working.
- Timing: 40 minutes
- Note: This section involves calculations related to a budget equation and utility functions (using supplied equations).
Section D
- Format: Economic problem-solving
- Timing: 35 minutes
- Note: This section involves using a Cobb-Douglas production function to solve for problem-solving scenarios involving capital (K) and labour (L). Detailed calculations are needed for full marks.
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Description
Test your understanding of various economics concepts including utility functions, price elasticity of demand, and market structures. This quiz covers both theoretical principles and practical calculations in economic theory. Challenge yourself with a variety of questions that will enhance your knowledge in economics.
