Marginal Analysis
What is the primary focus of marginal analysis in economics?
What is the comparison of additional benefits and costs associated with a decision?
What law states that, all else being equal, as the price of a good increases, the quantity demanded decreases?
What is the law of demand?
What does a production function describe?
What is the relationship between the quantity of inputs used and the quantity of output produced?
What does the price elasticity of demand measure?
What is the responsiveness of quantity demanded to a change in price?
What is the capital city of France?
What is Paris?
In marginal analysis, what is meant by "marginal benefit"?
What is the additional satisfaction or utility gained from consuming one more unit of a good or service?
How does a decrease in consumer income affect the demand for normal goods?
What is it leads to a decrease in demand for normal goods?
In a production function, what is the term for the additional output generated by adding one more unit of input?
What is marginal product?
If the price elasticity of demand for a good is greater than 1, what type of demand is it considered?
What is elastic demand?
Who wrote the play "Romeo and Juliet"?
If a company increases production and the marginal cost exceeds the marginal revenue, what should the company do?
What is decrease production to maximize profit?
What is a trade deficit?
What is when a country imports more goods and services than it exports?
What happens to the marginal product of labor as more workers are added to a fixed amount of capital, according to the law of diminishing marginal returns?
What is the marginal product eventually decreases?
What is the formula for calculating the price elasticity of demand?
What is the percentage change in quantity demanded divided by the percentage change in price?
What is the process by which plants convert sunlight into food?
What is photosynthesis?
How does diminishing marginal returns affect decision-making in production?
What is it leads to a decrease in the additional output gained from each additional unit of input, influencing the utility maximizing outcome?
How do taxes impact supply and demand in a market?
What is taxes can decrease supply by raising production costs, which can lead to higher prices and lower quantities demanded?
How can a firm avoid the negative effects of diminishing marginal returns?
What is by increasing the quantity of fixed inputs or improving technology?
How does the concept of cross-price elasticity of demand apply to substitutes and complements?
What is for substitutes, cross-price elasticity is positive, while for complements, it is negative?
In what year did the Titanic sink during its maiden voyage?
What is 1912?
Explain how marginal analysis can be applied to labor decisions within a firm.
What is firms should hire additional workers as long as the marginal revenue product of labor exceeds the marginal cost of hiring those workers, maximizing overall profit?
Describe the effect of a government-imposed price ceiling on a market.
What is it creates a shortage when the price is set below equilibrium, leading to excess demand?
Explain how diminishing marginal returns can affect a firm's production decisions and cost structure.
What is as marginal returns decrease, the firm may face increasing costs per unit of output, influencing decisions on optimal production levels and input allocation to maximize efficiency?
Explain how income elasticity of demand can help businesses understand consumer behavior.
What is it measures how the quantity demanded of a good changes in response to changes in consumer income, helping businesses identify whether their products are normal or inferior goods?
Explain the significance of the Magna Carta in the history of democracy.
What is no one is above the law, including the king?