1. Which of the following does NOT describe the role of the concept of maximizat
ID: 2440210 • Letter: 1
Question
1. Which of the following does NOT describe the role of the concept of maximization in microeconomic theory?
Maximization is the ability of a firm to produce a particular quantity, regardless of market constraints.
Economists generally assume that economic decisionmakers are attempting to maximize something subject to constraints.
Consumers are assumed to maximize utility subject to an income constraint, and firms are assumed to maximize profits subject to a production function constraint.
All of these.
2. There are some private goods that have such strong external benefits, the market will provide sub-optimal amounts of it, like with vaccinations. In these cases, public provision or public subsidization of private provision will encourage the market to provide the optimal amount.
True
False
3. The defendant is the person alleged to have injured the victim in a civil trial.
True
False
4. Which of the following can supersede common law in a country with a common law tradition?
Civil law
Natural law
Statutory law
Nothing
5. Common law, unlike civil law, looks to reason.
True
False
Maximization is the ability of a firm to produce a particular quantity, regardless of market constraints.
Economists generally assume that economic decisionmakers are attempting to maximize something subject to constraints.
Consumers are assumed to maximize utility subject to an income constraint, and firms are assumed to maximize profits subject to a production function constraint.
All of these.
2. There are some private goods that have such strong external benefits, the market will provide sub-optimal amounts of it, like with vaccinations. In these cases, public provision or public subsidization of private provision will encourage the market to provide the optimal amount.
True
False
3. The defendant is the person alleged to have injured the victim in a civil trial.
True
False
4. Which of the following can supersede common law in a country with a common law tradition?
Civil law
Natural law
Statutory law
Nothing
5. Common law, unlike civil law, looks to reason.
True
False
Explanation / Answer
1. Option 1, Market constraints play important role in determining maximization
2. True. Subsidising goods which produce strong external benefits would realise optimal amounts
3. True, defendant is the alleged person who is accused of hurting someone
4. Option 1
5. True
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