Answer the MCQs and Theory (Theory must be own words, that's can be five or more sentence in every theory question):
The classical problem of economics is? * 1 point establishing a fair tax system. providing social goods and services. developing a price mechanism that reects the relative scarcities of products and resources allocating scarce productive resources to satisfy wants. OOOOO enacting a set of laws that protects resources from overuse. What is the difference between resource labor and resource 1 pcin1| entrepreneurship? * 1'l"'iCIlUf Bf'lSWEf How would an economist define the efficient amount of time studying? * 1 point 1'l"'iCIlUf Bf'lSWEf \fDefine Opportunity Cost. * 1 point Your answer To be considered scarce, an economic resource must be which of the 1 point following? I. Limited Il. Free Ill. Desirable * I only O I and ll only O II and Ill only I and Ill only I, II and Ill Define Scarcity. * 1 point Your answerHow can opportunity cost affect behavior? * 1 point YOUF EHSWEF Ination rate should be less than 4% per year in Bangladesh. State whether 1 point this is a positive or normative statement and explain briefly why. * ifour answer The UK government has put high restrictions on the number of students it 1 point Iallows to enter the country. However, as a result, more students are entering illegally. State what effect is this an example of. * YOUF EHSWEF Explain Marginal cost with a diagram. {Draw and upload the diagram, write 1 point your explanation too alongside the diagram as well. No separate uploads, only one upload, write your name on the paper) * Finish the following sentence. A value at price elasticity of demand equal 1 point to 2 means that.... * 0 Price rises twice as fast as an increase in demand The percentage quantity demanded falls by two times the percentage increase in price When price increases, quantity demanded increases twice as much Demand is relativer inelastic 0000 Quantity demanded falls bv two times the amount of increase in price Finish the fcllcwing sentence. The slope of a demand curve is... * 1 point 0 A poor measure of the response to quantity demanded to price changes 0 Equivalent to elasticity as a measure of responsiveness O The best way to measure a response in quantity demanded for a change in price 0 The proportional change in quantity demanded given a proportional change in price Reter to the diagram below. Which price maximizes the sum of consumer 1 poirrt and producer surplus? * 3.75 2.50 Price {$} 1.5!] D 1 2 3 4 5 6 T 8 Millions of hamburgers per month | 0 Any price greater than $3.?5 Using the graph below. which of the following statements is true? "' 1 point PmelA Pan-era | Panel A represents a perfectly elastic demand curye and Panel E! represents a perfectly inelastic demand cunre Panel A represents a perfectly inelastic demand curve and Panel B represents a perfectly elastic demand curve Panel A represents unit elasticity while Panel El represents zero elasticity 0000 Panel A represents zero elasticity while Panel E! represents unit elasticity Which of the following would have the most elastic demand * 1 point (:3 A good like electricity which has substitutes but me substitutes are not very good (:31 A good like CocaCola where aiternatiyes like Sprite and Pepsi are ayailable O A good like salt that requires a small portion of the consumer's budget 0 In the short run a good like automobile where it is difcuit to adjust to using public transportation Immediately Knitex wants to maximize its profits. It produces a product that has many 1 point substitutes and requires a large share of the consumer's budget. In order to increase reyenuesr Knitex has decided to increase the price of the product. W hich of the following statements is true about Knitex's decisions * O The elasticity of demand for Knitex's product is probably inelastic so increasing price will not change revenue The elasticity of demand for Knitex's product is probably elastic so increasing prioe will decrease revenue will increase revenue The elasticity of demand for Knitex's product is probably elastic so increasing prioe O The elasticity of demand for Knitex's product is probably inelastic so increasing price 0 will not change revenue Refer to the diagram below. Based on the information on the graphs. we 1 point conclude that "' __'o u (A J" II M Price per pound {$1 Prioe par pound {S} Ct Q1=5 Qz=1 Ci D 01:30 QE=1EDQ Pounds of steak per month l{Silurloes of steak per month The values of the slopes of the lines are different, but the behavior of buyers in both the diagrams are identical The values of the slopes of the lines are identical, from which we conclude the behavior of the buyers are identical Although the values of the slopes are identical, the behavior of the buyers are different The values of the slopes are different, from which we conclude the behavior of the buyers are different OOOO Which of the following elasticity coefficients represents a price elastic 1 point demand?* 0.87 1.5 O 1.0 Refer to the graph below. Use the information on the graph to determine 1 point the validity of the statements below.. * Price 12 - 10- Demand 19 20 Quantity O According to the price elasticity formula, the proportional change in price between points a and b equals 20% O According to the price elasticity formula, the value of elasticity between points a and b equals 0.25 O The slope of this demand curve is -2 All of the above statements are correct
