1. True/False: Partial equilibrium analysis only concerns supply or demand alone, whereas general equilibrium analysis concerns supply and demand simultaneously.
2. True/False: In general equilibrium analysis, an allocation is said to be as a reasonable allocation if each consumer consumes the same bundle its value is no more than the value of the consumer's income.
3. True/False: In general equilibrium analysis, an allocation is said to be as a reasonable allocation if each consumer consumes the same bundle its value is no more than the value of the consumer's income.
4. True/False: From Walras' law it can be concluded that in the market with two goods, if demand equals supply in one market, then demand must be equal to supply in other markets.
5. True/False: If the assumptions of the first theorem of welfare economics hold and if the economy is in competitive equilibrium, then any reallocation What benefits one person must harm another.
6. True/False: If there is a consumption externality, then balance allocation competitive is not necessarily Pareto optimal.
7. True/False: A competitive Equilibrium allocation must be feasible allocation.
8. True/False: The welfare theorem of both economies states that if convex preferences, then each Pareto optimal allocation can be achieved as competitive balance after some initial endowment reallocation.
9. True/False: In a purely competitive exchange economy, if the total value excess demand for all types of food is zero, then the total value of excess demand for all non-food commodities must be zero.
10. True/False: If the initial endowment is on the contract curve, it must always be there is a competitive balance in which no trading occurs.
11. True/False: Nash equilibrium occurs when each firm in a industry chooses the optimal strategy considering the strategy chosen by its competitors.
12. True/False: Reverse induction technique involves starting from the beginning of the tree decisions and work to the end.
13. True/False: Adverse selection can occur when one person has information that is not available to others.
14. True/False: If a life insurance company does not require medical examination to the prospective policyholder, then it is possible large companies will charge premiums above the average.
15. True/False: Physical examination is not a good screening tool for life insurance company if a threatening disease is not detected.
16. True/False: Companies may price discrimination when some the customer is not informed about the difference in quality among similar products sold.
17. True/False: When consumers have asymmetric information and when costs search and number of large enterprises, single price balance in competitive market occurs where price is the price that will be set by monopoly.
18. True/False: In a Dutch auction with bidders rationally, the object being sold can go to someone who values his bid for it was not as high as some of the other bidders.

Answer rating: 100% (QA)

True Partial equilibrium analysis only concerns supply or demand alone whereas general equilibrium analysis concerns supply and demand simultaneously ... View the full answer