Principles of Microeconomics Study Set 1

Which of the following statements is correct?

Welfare economics is the study of how

Welfare economics is the study of

Welfare economics is the study of

The study of how the allocation of resources affects economic well-being is called

An example of positive analysis is studying

An example of normative analysis is studying

Which of the Ten Principles of Economics does welfare economics explain more fully?

Which of the Ten Principles of Economics does welfare economics explain more fully?

One of the basic principles of economics is that markets are usually a good way to organize economic activity. This principle is explained by the study of

A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it

Welfare economics explains which of the following in the market for televisions?

The maximum price that a buyer will pay for a good is called

Suppose Larry, Moe, and Curly are bidding in an auction for a mint-condition video of Charlie Chaplin's first movie. Each has in mind a maximum amount that he will bid. This maximum is called

Suppose Raymond and Victoria attend a charity benefit and participate in a silent auction. Each has in mind a maximum amount that he or she will bid for an oil painting by a locally famous artist. This maximum is called

Willingness to pay

A consumer's willingness to pay directly measures

When a buyer's willingness to pay for a good is equal to the price of the good, the

In which of the following circumstances would a buyer be indifferent about buying a good?