Mid Term - Answers §

(F) Day of the week: Thursday Created Time: January 16, 2020 3:59 PM Database: Class Notes Database Date: January 16, 2020 3:59 PM Days Till Date: Passed Last Edited Time: June 9, 2021 10:42 AM Type: Lecture

I. Key Terms §

II. Multiple Choice Questions §

Comprehension Questions §

Microeconomics: Study of decision and interaction between firms and households

Macroeconomic: Study of the whole economic. unemployment, inflation

2. Comparative Advantage

• Specialization
• Lower Opportunity cost ⇒ less input
• If opportunity cost are the same
• Exploitation

Should we base on comparative advantage for export

• No
  • Have existing recourses
  • Well-experienced and good at producing
  • Take time to move to other
• Yes
  • Comparative advantage can be changed
  • Not benefit in long run

II. Elasticity

Need to add formulas and explanation for answer

$$Elasticity(E)=\frac{\%\Delta R}{\%\Delta P}\Rightarrow \Delta P=\frac{\%\Delta Q}{E}=\frac{\Delta \%0}{2}=20\%$$ $$Slope=\frac{\Delta y}{\Delta x}$$