Ünite Sınavı Soruları

“It requires that total consumption expenditures on different goods be equal to total income of the household (from ownership of the factors of production)”.

Which term is explained by the above sentences?

Which of the following is true about efficiency in output mix?

I. Productive efficiency alone is sufficient to establish efficiency of general competitive equilibrium.

II. The right mix of products that comply with consumers’ choices must be produced to satisfy demand for the goods produced.

III. Obviously, no matter how technically efficient it may be, production of goods that are not demanded by anyone is useful.

Choose the option that completes the following sentence correctly.

".......... efficiency in production refers to allocations of resources at which it is impossible to increase the output of one good without reducing the output of the other."

Choose the option that completes the following statement correctly.

".......... is the good that is chosen as the unit of measurement. All nominal values in a general equilibrium model can be expressed in terms of that good by dividing each of the other prices by its price."

Comparative statics is based on comparison of the _____________ values of the endogenous variables in the model before and after an exogenous shock for the purpose of measuring the changes resulting from that shock.

Choose the option that completes the following sentence correctly.

"The state of simultaneous clearance of all goods and factor markets at a certain set of prices is called ..........."

Which of the following is defined as the constraint limiting the spending capacity of the household?

Which method of anlysis is used for a comparison of the equilibrium values of the endogenous variables in the model before and after an exogenous shock for the purpose of measuring the changes resulting from taht shock?

Choose the option that completes the following sentence correctly.

"The term .......... equilibrium itself refers to a state of simultaneous equilibrium in all goods and factor markets."

_________________ states that in a general equilibrium model with n perfectly competitive (product and factor) markets, the following equation always holds:

i=1 n Σpi.EDi ( p) = 0 (9) where p is an nx1 vector of prices, pi is the price prevailing in the ith market, and EDi is the excess demand in that market (expressed as a function of all prices).