Micro and Macro Economic Questions

Microeconomics - Final Exam(12/05.06/2018) Dr. Soon Paik Name( )

Due on 12/09/2018 , Final Exam and Paper to [email protected]

1.True or False (O or X)

( ) 1. Opportunity cost is included in the accounting cost.

( ) 2. Marginal Cost(MC) and Average Cost(AC) meet at the lowest MC.

( ) 3. Economies of Scope decreases production cost by increasing production.

( ) 4. Economies of Scale is the case for decreasing Long-Run Average Cost.

( ) 5. Production Function's Independent Variable is the Output.

( ) 6. Profit Function's Independent Variable is the Output.

( ) 7. Cost Function's Independent Variable is the Output.

( ) 8. Cost Equation's Independent Variable is the Output.

( ) 9. Marginal Revenue is the Price in all cases.

( ) 10. Firm's Supply Curve is the average Cost Curve.

( ) 11. Consumer Surplus is a surplus vale of buying less than market price.

( ) 12. Producer Surplus is a surplus value of selling higher than market price.

( ) 13. De Bears Diamonds Co. is the Natural Monopoly.

( ) 14. Copy right are the Natural Monopoly.

( ) 15. Water supply is the Natural Monopoly.

( ) 16. Monopoly Price is the same level where MR meets MC.

( ) 17. Monopoly Demand is the Average Revenue.

( ) 18. Airline Ticket is the Peak-Load Pricing.

( ) 19. Electricity is the Intertemporal Pricing.

( ) 20. Amusement Park fees are the Two-Parts Tariffs.

( ) 21. Oligopoly Price is the same level where MR and MC meet.

( ) 22. Oligopoly Price is the same level where MR and MC meet.

( ) 23. Reaction Curve is the producer's production reaction to consumption.

( ) 24. Dominant Strategy Game is a game where one side considers other side.

( ) 25. Monopolistic Competition is where few sellers compete with same output.

( ) 26. Demand for labor is a Derived Demand.

( ) 27. As Bond Price increases, Bond Yield increases.

( ) 28. Agents have less information than principal.

( ) 29. Externalities are not good always to market economy.

2. Summarize

(1) Duality Theory

(2) Production Optimum Condition

(3) Perfectly Competitive Market Conditions

(4) Deadweight Loss

(5) Optimum Price and Quantity in Competition and in Monoploy (Graphs)

(6) Public Policies to Monopoly

(7) Cournot Equilibrium and Collusion Equilibrium

(8) Prisoners' Game

(9) Edgeworth Box for Exchange

(10) Asymmetric information

(11) Externalities

(12) Social welfare function