Package deal for ECON 10A Exam 2 with Questions and Answers

Econ 10a Exam One with Questions and Answers Budget Constraint ANSWER p1x1 + p2x2= m Slope of Budget Constraint ANSWER -p1/p2 Slope of Budget Constraint with Sales Tax ANSWER -p1(1+.08)/p2 p1 ANSWER price of good 1 p2 ANSWER price of good 2 x1 ANSWER good 1 (units/week) x2 ANSWE...

Econ 10A Midterm 1 Exam with Questions and Answers Suppose a utility function represents perfect substitutes, that is, indifference curves are straight lines. Assume also that the budget constraint line is STEEPER than the indifference curves. There will be a utility-maximizing solution at: ANSWE...

ECON 10A Exam 2 with Questions and Answers The slope of the consumption function is equal to the a) average propensity to consume. b) marginal propensity to consume. c) rate of interest. d) saving function. e) multiplier. ANSWER b) marginal propensity to consume. Investment in a project...

ECON 10A Final Problem Set with Complete Solutions You have $400 to spend. Suppose you can spend your money on apples and bananas. The price of apples is $5 each, and the price of bananas is $8 each. If you spend all of your money on apples, what is the maximum number of apples you can afford? a...

Econ 10a Midterm 1 Test with Questions and Answers Budget Constraint Graph Set Up ANSWER x-axis=good 1 y-axis=good 2 x intercept=m/p1 y intercept=m/p2 slope=-p1/p2 Budget Constraint Equation and Slope ANSWER p1x1+p2x2=m slope=-p1/p2 Change of Income effect on budget constraint ANSWER s...

UCSB Econ 10A Midterm 2 Exam with Questions and Answers normal good definition ANSWER the more $ (m) you have, the more you will purchase a change in response to income example of a normal good ANSWER nordstrom pattern/ derivative of a normal good ANSWER m↑ x* ↑ ∂x*/∂m > 0 ...

Econ 10a Midterm 2 Study Guide with Questions and Answers Substitution Effect Definition ANSWER change in the demand due to the change in the rate of exchange (relative price) of goods 1 and 2 -ex p1 increases, good 2 becomes relatively cheaper so you demand more of good 2 and less of good 1 ...

Econ 10A Study Set with Questions and Answers Model ANSWER Simplified representation of reality exogenous variable ANSWER Price is determined by factors not discussed in the particular model endogenous variable ANSWER a variable that is determined within the model optimization principle ...