Giffen goods Study guides, Class notes & Summaries

Absolute Advantage - Answer The economic advantage one nation enjoys that is absolutely superior to other nations. Accounting Profit - Answer Total revenue minus total explicit cost Acquisition - Answer a wholly owned subsidiary is created through direct foreign investment. Administrative Policy - Answer Bureaucratic rules that make it harder to import foreign goods. Agglomeration - Answer Clustering of economic activities in certain locations. Beyond geographic advantages, location-...

Ceteris paribus all other things are being held equal positive economics matters of economics that can be proven to be right or wrong by looking at the facts normative economics matters of economics that are based upon opinion and so are incapable of being proven to be right or wrong scarcity the limited availability of economic resources relative to societys unlimited demand for goods and services land the physical factor of production. It consists of natural re...

CFA LEVEL 1 QUESTIONS AND ANSWERS What are the 4 types of measurement scales? - CORRECT ANSWER-1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - CORRECT ANSWER-Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilit...

CFA LEVEL 1 QUESTIONS AND ANSWERS What are the 4 types of measurement scales? - CORRECT ANSWER-1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - CORRECT ANSWER-Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilit...

CFA LEVEL 1 QUESTIONS AND ANSWERS What are the 4 types of measurement scales? - CORRECT ANSWER-1. Nominal Scales 2. Ordinal Scales (Assigned to a category) 3. Interval Scales (Relative ranking) 4. Ratio Scales (Equal differences between scale values) NOIR When do we use geometric and arithmetic means to analyze investment returns? - CORRECT ANSWER-Arithmetic Mean: To estimate next year's return Geometric Mean: Measure of past performance What are the 3 different types of probabilit...

CFA level 1 Exam With Complete and Correct Answers 2023 private value auctions - CORRECT ANSWER-Value is subjective and different to each bidder Ascending price (English) auction - CORRECT ANSWER-Bidders can bid amounts greater than the previous bid, and the bidder that first offers the highest bid wins the item and pays the amount Sealed bid auction - CORRECT ANSWER-Each bidder submits one bid, which is unknown to the other bidders and the bidder with the highest bid wins the item ...

MULTIPLE CHOICE 1. Which of the following functional forms for utility suggests the greatest substitution effect when starting at the point where PX = PY a. U = min (X, Y) b. U = X + Y c. U = X1/2Y 1/2 d. U = X1/4Y 3/4 ANS: b 2. With only two goods, if the income effect is in the same direction as the substitution effect then the good is a. normal b. inferior but not Giffen c. Giffen d. There is not enough information to answer. ANS: a 3. With only two goods, if the income effec...

QUESTION 1 (15 marks) In this question, write whether each statement is true or false. Fully explain your answer, using a diagram if appropriate. 1.1 Michael only consumes two goods: X and Y. If X is a Giffen good for Michael, then Y must be a normal good for Michael. True. A Giffen good is an inferior good. Since Michael only consumes two goods, they cannot both be inferior goods. Therefore, Y is a normal good. (It is important to explicitly point out explicitly that Giffen goods are a s...

You will find the essential information from Understanding the Information Economy's Week 1 lecture content as well as practice question and answers. It provides detailed notes and information regarding the topic of indifference curves and budget lines.

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