Question

問題 1

1. The marginal rate of substitution is

   		the slope of the utility curve.
   		the slope of the contract curve.
   		the slope of the utility possibilities curve.
   		none of the above.

10 分   

問題 2

1. The Edgeworth Box should

   		lie inside the PPF.
   		lie partially inside the PPF.
   		lie completely outside of the PPF.
   		never touch the PPF.

10 分   

問題 3

1. The Second Fundamental Theorem of Welfare Economics requires

   		that indifference curves be convex to the origin.
   		that isoquants be concave to the origin.
   		that there are no set prices for Pareto efficient allocations.
   		that production be twice as large as consumption.
   		all of the above.

10 分   

問題 4

1. The First Fundamental Theorem of Welfare Economics requires

   		producers and consumers to be price takers.
   		that there be a market for every commodity.
   		that the economy operate at some point on the utility possibility curve.
   		all of the above.

10 分   

問題 5

1. When the First Fundamental Theorem of Welfare Economics doesn't hold, there is a market failure.

   		True.
   		False.
   		Uncertain.

10 分   

問題 6

1. Normative economics is more important than positive economics.

   		True.
   		False.
   		Uncertain.

10 分   

問題 7

1. Welfare economics is concerned with individual desirability of alternative economic states.

   		True.
   		False.
   		Uncertain.

10 分   

問題 8

1. The contract curve is the collection of points where utility curves are tangent in the Edgeworth box.

   		True.
   		False.
   		Uncertain.

10 分   

問題 9

1. A social welfare function

   		is a function made by the Department of Welfare.
   		is a function that shows that the utilities of society are incorporated into society's well-being.
   		can never be derived numerically.
   		is all of the above.

10 分   

問題 10

1. The Utility Possibility Curve is derived from utility curves.

   		True.
   		False.
   		Uncertain.

Answer 1

Answer 1 - correct Option is D

Reason - marginal rate of substitution of the slop of indifference curve

Answer 2 - correct option is A

Reason - Edgeworth box should lie inside the PPF

Answer 3 - option C is the correct answer

Reason - second fundamental Theorem of welfare ecnomies requires that there are no price set for the pareto efficient allocation

Answer 4 - correct option is A

Reason - first fundamental theorem of welfare ecnomics requires that producers and consumers should be price takera as market is going to operate at competitive equlibrium

Answer 5 - true

Reason - if first fundamental theorem of welfare ecnomics do not hold then it will result in market failure because then firm will not be able to achieve the competitive equlibrium

Answer 6 - false

Reason - positive ecnomies is more important because it gives judgement on the basis of facts while normative ecnomies give values judgements

Answer 7 - false

Reason - welfare ecnomics is basically based on the desirable factor of ecnomics values that have valuable judgement

Answer 8 - True

Reason - statement given in the ques is correct

Answer 9 - correct option is B

Reason - A social welfare function is the function that shows society utility is incorporated for society well being

Answer 10 - true

Reason - utility possibility curve is derived from utility curves