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    In Siddhartha’s problem, calculate marginal utility for income and for leisure. Now, start off at the choice with 50 hours of leisure and zero income, and a wage of $8 per hour, and explain, in terms of marginal utility how Siddhartha could reason his way to the optimal choice, using marginal thinking only.

    Begin from the last table and compute marginal utility from leisure and work:

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Questions & Answers

what is Economics
Kwame Reply
Economic is the study of scarcity
Economics is the study of a lot of things. It is split up into two areas of study, Microeconomics and Macroeconomics. Microeconomics is the study of an individual's choices in the economy and Macroeconomics is the study of the economy as a whole.
Economics is a science that studies human scarcity
What is Equilibrium price?
Equilibrium is the market clearing price. The point at which quantity demanded equals quantity supplied. The point at which the supply and demand curves intersect.
Equilibrium price*
why is economics important
Derrick Reply
What will you do as a consumer if you are not at equilibrium?
chukwu Reply
am new I will like to know about the graph relationship
Gloria Reply
comment on WTO principle on trading system. trade without discrimination
Omben Reply
optimize z=f(x,y)=6x²-9x-3xy-7y+5y²
Alex Reply
What is an indifference curve?
layla Reply
different levels of utilities of a person in a given set of bundles of goods
identify and quantify five social costs and social benefits of building a school
Mokgobo Reply
identify and quantity five social costs and social benefits of building a hospital
short run vs long run
state the law of diminishing return?
The Law of Diminishing (Marginal) Returns simply states that at some point in time a business/operation/etc.'s increased productivity will begin to decline.
For example, if a small pizza shop currently has 3 workers in the kitchen at any given time,and hiring 1 more worker will increase productivity, at some number of workers hired will the business see a decrease in productivity because the capital resources that the pizza shop has is not infinite.
Five social benefits of building a hospital, in my opinion and depending on where it's built, would be 1) Increased care for neighboring residents, 2) Potential jobs for individuals, 3) May decrease the travel time residents need to endure in order to reach the nearest hospital
4) May create work-study programs for individuals who aspire to be future Doctors, Nurses, Physicians, etc. 5) Assuming there are local pharmaceutical businesses nearby, the hospital may decide to purchase supplies local, increasing the business' sales. Thus, generating more income.
5 costs of building a hospital would be 1) Increased noise and waste pollution from service vehicles and hospital visitors, 2) May require large amounts of space, possibly jeopardizing nearby animal habitats, 3) May see an increase in traffic and possibly car accidents from frantic individuals
racing to see their injured friends, family members, etc. 4) Constructing a hospital and hiring staff is very expensive 5) To use funds, private or public, to finance the construction of a hospital cannot be used to fund any other projects. (The concept of opportunity costs.)
what is meant by inteference with the price mechanism operation?
We use a Supply and Demand graph to illustrate at what price level will the market for a certain good or service be at equilibrium. If the price for a good or service is set too high, consumers will be less inclined to buy that product Thus, creating a surplus.
This surplus will eventually drive the price back down to it's equilibrium point. Similarly, if a price for a good or service is set too low, individuals would be more inclined to buy more of a certain product, creating a shortage. This shortage will cause sellers to drive the price back up to the
equilibrium point.
is it true that the opportunity cost of unemployed labour is zero?
Wisdom Reply
give two forms of collusion
nondumiso Reply
1.Explicit Collusion: Also termed overt collusion, this occurs when two or more firms in the same industry formally agree to control the market .
2.Implicit Collusion: Also termed tacit collusion, this occurs when two or more firms in the same industry informally agree to control the market, often through nothing more than interdependent actions. A prime example of implicit collusion is price leadership .
explicit collusion: this occurs when two or more firms in the same industry legally agree to control the market
implicit collusion this occurs when two or more firms in the same industry illegally agree to control the market
what is responsible for investigating cases of collusion
what mean economic as a science
reasons why a country maybe involved in international trade
Nde Reply
state five similarities and differences between money market and capital market
Victoria Reply
Give a Zimbabwean example of firms operating in an oligopoly market and illustrate using diagrams how a manager in such a market maximize profit
Pam Reply
what is an industry
EWAH Reply
An industry is the production of goods and related services within an economy
an industry is place where goods and services are produced for human consumption....
scarcity is the major course of economics problems. discuss
Abdulhameed Reply
please say about that it is interesting for us

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