Changes

1.  Which concept in Economics do you think is the best self-motivator, which you might use to achieve more?

1.  Which concept in Economics do you think is the best self-motivator, which you might use to achieve more?

:Answers vary, but could include a discussion of opportunity costs, maximizing marginal utility, economic costs, advantages of long run planning, how time is equivalent to money, etc.

:Answers vary, but could include a discussion of [[opportunity cost]]s, maximizing [[marginal utility]], economic costs, advantages of long run planning, how time is equivalent to money, etc.

2.  Which is true about the average fixed costs (AFC) of a firm?

2.  Which is true about the average fixed costs (AFC) of a firm?

Briefly explain your answer.

Briefly explain your answer.

:B is the correct answer, because AFC is fixed costs divided by total output: FC/Q. As Q increases, the outcome decreases.

:B is the correct answer, because AFC is [[fixed costs]] divided by total output: FC/Q. As Q increases, the outcome decreases.

3.  What is one of the primary responsibilities of the Federal Reserve Bank?  

3.  What is one of the primary responsibilities of the Federal Reserve Bank?  

5.  A monopolistic competitive firm has the following characteristic that ''is lacking'' for a perfectly competitive firm:

5.  A monopolistic competitive firm has the following characteristic that ''is lacking'' for a perfectly competitive firm:

(a) There are low barriers to entry.

(a) There are low [[barriers to entry]].

<br>(b) MR = MC in the long run.

<br>(b) MR = MC in the long run.

<br>(c) P > MC

<br>(c) P > MC

11.  What is "Keynesian economics" and what is your view of it?

11.  What is "Keynesian economics" and what is your view of it?

:Keynesian economics claims that government interference, and especially government spending, is good for the economy.

:[[Keynesian economics]] claims that government interference, and especially government spending, is good for the economy.

12.  An agreement by different firms with each other to reduce output is illegal.  Why should that be illegal?

12.  An agreement by different firms with each other to reduce output is illegal.  Why should that be illegal?

13.  Nash equilibrium, revisited:  What is the Nash equilibrium for two gas stations (an oligopoly) that are situated immediately across the street from each other?  In other words, what price do they sell at, expressed in terms of one of their cost measures?  Explain the process that reaches that "equilibrium".

13.  Nash equilibrium, revisited:  What is the [[Nash equilibrium]] for two gas stations (an oligopoly) that are situated immediately across the street from each other?  In other words, what price do they sell at, expressed in terms of one of their cost measures?  Explain the process that reaches that "equilibrium".

[[Category:Economics lectures]]

[[Category:Economics lectures]]