Exam 1: Economics Concepts

The marginal conditions must be satisfied for the attainment of a Pareto-efficient situation in an economy :

An important mechanism through which sellers and buyers deal with the problem of asymmetric information is

The set of all Pareto efficient allocations in an Edgeworth box diagram is called the

Which criterion refers to economic efficiency which can be objectively measured

A scientific paper titled "The Tragedy of the Commons" was written by

The permanent increment to future consumption expressed as a fraction of the initial consumption forgone is.....

The tragedy of the commons results in

Non diversifiable risk arises because

The standard economic model assumes people are

The risk premium for a capital investment by comparing the expected return on that investment with the expected return on the entire stock market is measured by

A negative externality from consumption occurs if there is a

Who argued that welfare is improved when 'the greatest good (is secured) for the greatest number'

Non diversifiable risk affects I. the opportunity cost of capital II. should enter into the risk premium

The concept of market signalling was first developed by

Several combination of commodities x and y that the economy can produce by fully utilizing all of the fixed amounts of labour and capital with the best technology available is depicted by I. production possibility frontier II. transformation curve III. production possibility curve

What is a Nash equilibrium

The sum of forgone interest and depreciation costs the machine's owner must pay is the

Diversifiable risk can be eliminated by

The quantity of present goods that must be forgone to increase future consumption by 1 unit is called

Which of the following statements is correct about behavioural economics