Econ 101 UW-Madison Final Exam
Questions With Correct Answers
Income Effect - CORRECT ANSWER✔✔-the change in consumption that
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results when a price change moves the consumer to a higher or lower
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indifference curve |
Substitution Effect - CORRECT ANSWER✔✔-the change in consumption
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that results when a price change moves the consumer along a given
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indifference curve to a point with a new marginal rate of substitution
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Marginal Product of Labor - CORRECT ANSWER✔✔-the increase in the
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amount of output from an additional unit of labor
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Diminishing Marginal Product - CORRECT ANSWER✔✔-the property
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whereby the marginal product of an input declines as the quantity of
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the input increases
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Value of the Marginal Product - CORRECT ANSWER✔✔-the marginal
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product of an input times the price of the output
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, Indifference Curve - CORRECT ANSWER✔✔-a curve that shows
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consumption bundles that give the consumer the same level of
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satisfaction
Perfect Substitutes - CORRECT ANSWER✔✔-two goods with straight-
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lined indifference curves
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Perfect Complements - CORRECT ANSWER✔✔-two goods with right-
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angled indifference curves
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Utilitarianism - CORRECT ANSWER✔✔-the political philosophy
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according to which the government should choose policies to maximize
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total utility of everyone
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Utility - CORRECT ANSWER✔✔-measure of happiness or satisfaction
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Liberalism - CORRECT ANSWER✔✔-the political philosophy according to
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which the government should choose policies deemed just, as
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evaluated by an impartial observer behind a "veil of ignorance"
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Maximin Criterion - CORRECT ANSWER✔✔-the claim that the
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government should aim to maximize the well-being of the worst-off
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person in society
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Questions With Correct Answers
Income Effect - CORRECT ANSWER✔✔-the change in consumption that
| | | | | | | | |
results when a price change moves the consumer to a higher or lower
| | | | | | | | | | | | |
indifference curve |
Substitution Effect - CORRECT ANSWER✔✔-the change in consumption
| | | | | | | |
that results when a price change moves the consumer along a given
| | | | | | | | | | | |
indifference curve to a point with a new marginal rate of substitution
| | | | | | | | | | |
Marginal Product of Labor - CORRECT ANSWER✔✔-the increase in the
| | | | | | | | | |
amount of output from an additional unit of labor
| | | | | | | |
Diminishing Marginal Product - CORRECT ANSWER✔✔-the property
| | | | | | |
whereby the marginal product of an input declines as the quantity of
| | | | | | | | | | | |
the input increases
| |
Value of the Marginal Product - CORRECT ANSWER✔✔-the marginal
| | | | | | | | |
product of an input times the price of the output
| | | | | | | | |
, Indifference Curve - CORRECT ANSWER✔✔-a curve that shows
| | | | | | | |
consumption bundles that give the consumer the same level of
| | | | | | | | | |
satisfaction
Perfect Substitutes - CORRECT ANSWER✔✔-two goods with straight-
| | | | | | |
lined indifference curves
| |
Perfect Complements - CORRECT ANSWER✔✔-two goods with right-
| | | | | | |
angled indifference curves
| |
Utilitarianism - CORRECT ANSWER✔✔-the political philosophy
| | | | | |
according to which the government should choose policies to maximize
| | | | | | | | | |
total utility of everyone
| | |
Utility - CORRECT ANSWER✔✔-measure of happiness or satisfaction
| | | | | | |
Liberalism - CORRECT ANSWER✔✔-the political philosophy according to
| | | | | | |
which the government should choose policies deemed just, as
| | | | | | | | | |
evaluated by an impartial observer behind a "veil of ignorance"
| | | | | | | | |
Maximin Criterion - CORRECT ANSWER✔✔-the claim that the
| | | | | | | |
government should aim to maximize the well-being of the worst-off
| | | | | | | | | |
person in society
| |
