Microeconomics Answers

Distinguish between the cardinal utility theory and the ordinal approach

Define the law of diminishing MU in details?

Differentiate between value and price and what are the determnenents of value?

Discuss the kinds of data?

Define consumer behavior , utility ,MU ,TU and their relationship?

(i) Under what conditions firm will shut down temporarily? Explain.

Demand

. The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Using diagrams to describe Larry, Judy, and Carol’s risk preferences if their utility as a function of income is given as follows

a) Larry:

b) Judy:

c) Carol:

Sarah and Jane are two representative individuals living in an economy that produces two goods, X and Y. Sarahʹs and Janeʹs utility functions are given as

Sarah:

Jane:

Jane marginal utilities

Sarah marginal utilities