BMAL-590 Microeconomics EXAM
WITH ACCURATE QUESTIONS AND
ANSWERS (VERIFIED ANSWERS) |
LATEST (2026/2027) UPDATED
VERSION | 100% GUARANTEED PASS
{JUST RELEASED}
1. Microeconomics - ANSWER ✓ focuses on individual actions of sellers
(producers) and buyers (consumers) and how those actions have
consequences for the availability, distribution, and utilization of scarce
resources.
2. When we refer to "individual" action, we are referring to: - ANSWER ✓ a
variety of actors that in microeconomic terms can be referred to as sellers
(producers) and buyers (consumers). These actors influence the supply of and
demand for goods and services. The means for achieving coordination are
generally money and interest rates.
3. normative science - ANSWER ✓ the idea that science follows objective rules of
evidence and is unaffected by the personal beliefs or values of scientists
, Microeconomics can be considered a normative science. It does not prescribe
a course of action. Rather, it tries to explain what might happen as a result of
certain changes.
For example, if the supply of crude oil decreases, microeconomics suggests
that the price of gasoline may increase. At a certain level, it may even suggest
that buyers will buy less gasoline.
4. Microeconomics has two main schools or streams of thought: - ANSWER ✓
One school is the general equilibrium theory (introduced by Leon Walras in
1874)
2nd, is partial equilibrium theory (introduced by Alfred Marshall in 1890).
This school of thought believes in developing measurable hypotheses related
to economic events, and subjecting the hypotheses to empirical testing to
determine which of the hypotheses work best.
Since it is difficult to replicate tests, economists make several assumptions
such as infinite sellers and buyers, perfect knowledge, homogeneous goods
and services, and static relationships to arrive at solutions.
5. Austrian school - ANSWER ✓ argues that the equilibrium theories are flawed
and unrealistic. The Austrian school acknowledges imperfections and
heterogeneityand tries to explain how economic incentives might facilitate
individuals overcoming the problems posed by uncertainty and ignorance.
, Thus, the Austrian school proposes that markets exist precisely because
people have incomplete knowledge, differing preferences, and other
imperfections.
6. Scarcity - ANSWER ✓ requires choice
7. Choice - ANSWER ✓ refers to people having to choose which of their desires
they will satisfy and which they will leave unsatisfied.
When we, either as individuals or as a society, choose more of something,
scarcity forces us to have less of something else.
8. Trade-offs - ANSWER ✓ Alternatives that must be given up when one is
chosen rather than another
All decisions that people make involve trade-offs of one goal against another.
To get one thing that we like, we usually have to give up another thing that we
also like.
Examples:
- Going to movie night before your final exam leaves less time for a
college student to study.
, - Having more money to buy stuff requires working longer hours, which
leaves less time for family and relaxation.
9. efficiency - ANSWER ✓ when society gets the most from its scarce resources.
10. equality - ANSWER ✓ when prosperity is distributed uniformly among
society's members.
The tradeoff is that to achieve greater equality by redistributing income from
higher wage earners to the poor. But this redistribution reduces the incentive
to work and produce, and it shrinks the size of economic prosperity.
11. A note about the redistribution of income - ANSWER ✓ The redistribution of
income from the wage earners to poorer people is accomplished through a
progressive tax system and well-defined social programs like food stamps and
unemployment insurance that try to provide a safety net for people at the low
end of the income distribution. But, a progressive tax system reduces the
incentive to work. The reward for working hard is a high income. Taxes reduce
this reward and therefore reduce the incentive to work hard.
12. John is an athlete. He has $120 to spend and wants to buy either a heart rate
monitor or new running shoes. Both the heart rate monitor and running shoes
cost $120, so he can only buy one. This illustrates the principle that -
ANSWER ✓ People face trade-offs in the decisions that they make.
WITH ACCURATE QUESTIONS AND
ANSWERS (VERIFIED ANSWERS) |
LATEST (2026/2027) UPDATED
VERSION | 100% GUARANTEED PASS
{JUST RELEASED}
1. Microeconomics - ANSWER ✓ focuses on individual actions of sellers
(producers) and buyers (consumers) and how those actions have
consequences for the availability, distribution, and utilization of scarce
resources.
2. When we refer to "individual" action, we are referring to: - ANSWER ✓ a
variety of actors that in microeconomic terms can be referred to as sellers
(producers) and buyers (consumers). These actors influence the supply of and
demand for goods and services. The means for achieving coordination are
generally money and interest rates.
3. normative science - ANSWER ✓ the idea that science follows objective rules of
evidence and is unaffected by the personal beliefs or values of scientists
, Microeconomics can be considered a normative science. It does not prescribe
a course of action. Rather, it tries to explain what might happen as a result of
certain changes.
For example, if the supply of crude oil decreases, microeconomics suggests
that the price of gasoline may increase. At a certain level, it may even suggest
that buyers will buy less gasoline.
4. Microeconomics has two main schools or streams of thought: - ANSWER ✓
One school is the general equilibrium theory (introduced by Leon Walras in
1874)
2nd, is partial equilibrium theory (introduced by Alfred Marshall in 1890).
This school of thought believes in developing measurable hypotheses related
to economic events, and subjecting the hypotheses to empirical testing to
determine which of the hypotheses work best.
Since it is difficult to replicate tests, economists make several assumptions
such as infinite sellers and buyers, perfect knowledge, homogeneous goods
and services, and static relationships to arrive at solutions.
5. Austrian school - ANSWER ✓ argues that the equilibrium theories are flawed
and unrealistic. The Austrian school acknowledges imperfections and
heterogeneityand tries to explain how economic incentives might facilitate
individuals overcoming the problems posed by uncertainty and ignorance.
, Thus, the Austrian school proposes that markets exist precisely because
people have incomplete knowledge, differing preferences, and other
imperfections.
6. Scarcity - ANSWER ✓ requires choice
7. Choice - ANSWER ✓ refers to people having to choose which of their desires
they will satisfy and which they will leave unsatisfied.
When we, either as individuals or as a society, choose more of something,
scarcity forces us to have less of something else.
8. Trade-offs - ANSWER ✓ Alternatives that must be given up when one is
chosen rather than another
All decisions that people make involve trade-offs of one goal against another.
To get one thing that we like, we usually have to give up another thing that we
also like.
Examples:
- Going to movie night before your final exam leaves less time for a
college student to study.
, - Having more money to buy stuff requires working longer hours, which
leaves less time for family and relaxation.
9. efficiency - ANSWER ✓ when society gets the most from its scarce resources.
10. equality - ANSWER ✓ when prosperity is distributed uniformly among
society's members.
The tradeoff is that to achieve greater equality by redistributing income from
higher wage earners to the poor. But this redistribution reduces the incentive
to work and produce, and it shrinks the size of economic prosperity.
11. A note about the redistribution of income - ANSWER ✓ The redistribution of
income from the wage earners to poorer people is accomplished through a
progressive tax system and well-defined social programs like food stamps and
unemployment insurance that try to provide a safety net for people at the low
end of the income distribution. But, a progressive tax system reduces the
incentive to work. The reward for working hard is a high income. Taxes reduce
this reward and therefore reduce the incentive to work hard.
12. John is an athlete. He has $120 to spend and wants to buy either a heart rate
monitor or new running shoes. Both the heart rate monitor and running shoes
cost $120, so he can only buy one. This illustrates the principle that -
ANSWER ✓ People face trade-offs in the decisions that they make.
