econ 301 Exam 2025 Questions and Answers

econ 301 Exam 2025 Questions and
Answers


constrained optimization - --CORRECT ANSWER--an analytical tool for making

the best (optimal) choice, taking into account any possible limitations or

restrictions on the choice

objective function - --CORRECT ANSWER--the function being maximized or

minimized (optimized)

endogenous variable - --CORRECT ANSWER--a variable whose value is

determined within the model being studied

exogenous variable - --CORRECT ANSWER--a variable whose value is taken as a

given

marginal cost - --CORRECT ANSWER--the rate of change of the dependent

variable as the independent variable changes

equilibrium - --CORRECT ANSWER--a state or condition that will continue

indefinitely as long as factors exogenous to the system remain constant




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, competitive market (equilibrium) - --CORRECT ANSWER--equilibrium is

achieved at the price at which the market clears

comparative statics - --CORRECT ANSWER--analysis used to examine how a

change in some exogenous variable will affect the level of some endogenous

variable in an economic system




- allows for "before and after analysis" by comparing two snapshots of model

normative analysis - --CORRECT ANSWER--prescriptive questions




social welfare




should we

positive analysis - --CORRECT ANSWER--explanatory questions




what is the effect on x if we do y

derived demand - --CORRECT ANSWER--demand for a good that is derived

from the production and sale of other goods




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