Introduction to economic theory. The production possibilities frontier for a country producing two types of products is the “what to produce” problem.
Micro- and macroeconomics.
Economics analyzes economic activities mainly at two different levels: microeconomic and macroeconomic.
Microeconomics- a special section of economic theory that studies economic relations between economic entities, their activities and impact on the national economy. Economic entities of microeconomics include consumers, workers, capital owners, enterprises (firms), households, and entrepreneurs. Microeconomics focuses on producers and consumers making decisions about output, sales, purchases, consumption, prices, costs, and profits.
Microeconomics explains how prices for individual goods are set, what funds and why are invested in the development of certain sectors of the national economy, how consumers make decisions about purchasing goods and how their choice is influenced by changes in prices and their income, etc. Microeconomics studies the market behavior of subjects , the relationship between them in the process of production, distribution, exchange and consumption of material goods and services, as well as the relationship between producers, consumers and the state.
Microeconomics as a method of economic analysis is based on assessments and studies of the behavior of individual units of the economic process - entrepreneurs; every individual unit is taken to be free and isolated.
Macroeconomics (national economics)- a section of economic theory that studies economic processes and phenomena covering the national economy as a single system in which all links of material and intangible production are organically connected.
The main problems of macroeconomics are inflation, unemployment, economic growth, gross national product, gross domestic product, national income, level and quality of life of the population, employment, money, interest rates, investment, budget deficit, taxes, methods of government regulation, etc.
Macroeconomics as a method of economic analysis is based on the assessment of macroeconomic indicators, such as gross domestic product, gross national product, national income, disposable income, etc.
Mesoeconomics studies economic phenomena and processes covering all intermediate systems or sectors of the national economy (agribusiness, military-industrial complex, healthcare economics, trade economics, i.e. the economics of individual sectors and spheres of the national economy).
World economy- the sum of all national economies connected by the international division of labor, the world market, and the system of interstate economic relations.
In economics, two more directions of economic processes can be distinguished, depending on the area of application of its results.
Positive (descriptive) economics studies facts and dependencies between them, is designed to proceed from accumulated knowledge and experience and answer the questions: what is and what could be in economics? Practical judgments concerning the real state of the economy are called positive. The main product of this part of economic science is knowledge, generalizations, economic analysis, analytical forecast (collection of facts, generalization of observation results). She describes, analyzes, but does not make recommendations.
Normative economics sets itself a more difficult task - to tell about what should be, how should we act, to achieve the desired results. She operates with categories and recipes containing in the first place the words: must, must, should. Theoretical judgments that consider desired states are called normative. This economy provides recommendations and recipes for action.
Economics as a sphere of social activity.Subject and functions of economic theory.
Economic goals of society.
Methods of economic science. Positive and normative economic theory.
Main directions of economic theory (schools of economic theory).
Economics as a sphere of social activity
Economics is a sphere of society that creates the material base for this society. The economy most often refers to real economic activity (production, exchange, distribution and consumption of goods).Economics studies various aspects of the life of society in conditions of insufficient resources
As a result of development, society created various goods and services. Material production has always been the basis for the development of society. Manufacturing is the main component of any economy.
There are material and intangible production.
Material production is the production of tangible objects. Intangible production is the service sector.
Economics is one of the prerequisites for social life, along with culture and religion, and performs the following functions inherent in it:
production - creating the necessary conditions for the activities of the company;
transactional (exchange function) - due to the impossibility of satisfying all the needs of society within the framework of one economy or enterprise;
redistributive - involves the redistribution of funds received in the sphere of material or intangible production through the state budget system into the sphere of social security, health care and education.
Subject and functions of economic theory
Economic theory is a social science that studies economic relations and laws in the process of production, distribution, exchange and consumption of goods and services, as well as human economic activity in order to increasingly satisfy needs with limited resources.When studying economic theory as a science, economic categories are used.
Economic categories are abstract expressions of social production relations and their interrelations (for example: goods, money, good, utility, demand, supply, price, finance, credit, etc.)
The subject of economic theory are economic relationships in society regarding the satisfaction of needs in conditions of severely limited resources.
Resource limitation in economic theory refers to the low availability or insufficiency of natural, human and material resources (resource limitation = rarity of resources).
Economic theory does not study resources as such, but the behavior of people in relation to them.
Resources are: natural, human and material.
Natural - represent everything that surrounds us (earth, water, flora and fauna, air, sun, etc.).
Humans are the entire working population.
Material assets are everything that is created by man (including all production resources (machines, mechanisms, tools, buildings and structures), as well as intangible assets (patents, licenses, permission to use any invention).
From the point of view of the objects of research, the following sections of economic theory are distinguished:
microeconomics - studies the behavior of business entities (enterprise, household, firm) and processes in the markets for goods and services;
macroeconomics - studies the national economy as a whole and economic processes occurring at a given level (national income, inflation, employment);
mesoeconomics - studies the economy at the regional level or by industry;
world economy - studies the interaction between national economies.
Functions of economic theory:
cognitive - consists of studying economic phenomena and patterns according to which the economy develops, and this function also formulates the principles on which any economy is based;
methodological - lies in the fact that the identified patterns and principles serve as the foundation for other economic sciences;
practical (applied) - lies in the fact that the identified patterns can be used in practical human activities. This primarily concerns forecasting and planning in economic policy. Based on forecasts, economic models of social development are built.
Economic goals of society
To achieve goals, economic theory solves the fundamental question of economics: WHAT, HOW AND FOR WHOM TO PRODUCE?
The question is what? associated with material production.
The question is how? concerns production technology.
Question for whom? concerns the interests of consumers and their tastes.
The main problem in economics that leading economists are trying to solve is limited resources with unlimited needs.
All economic goals of society are achieved through the fullest use of resources.
Economic goals of the society:
economic growth - the sustainability of economic growth can be used to judge the “economic health” or “ill health” of any society.
Economic growth refers to the growth of gross domestic product (GDP), and the problem of growth comes down not to quantity, but to the quality of its constituent elements.
achieving economic efficiency - since all resources are limited, they must be combined and used in such a way as to obtain the maximum possible return;
achieving full employment of the working population - a situation in the economy when everyone who wants to work can find a job;
price stability and lack of inflation.
Inflation is a depreciation of the national currency, accompanied (expressed) in an increase in prices for goods and services;
economic freedom - manifested in freedom of consumer choice;
ensuring social justice - implies proper distribution of income and the absence of differentiation (difference on any basis); the gap between high- and low-income groups should not exceed a ratio of 1:6;
social security - is associated with the state’s material provision for the sick, disabled, elderly and other dependents (socially vulnerable segments of the population);
maintaining a solvent balance and the exchange rate of the national currency is due to the fact that the outflow and inflow of capital into the country must be regulated.
Methods of economic theory
Methods of science are principles, approaches, forms and ways of knowing.Among all the methods used in economic theory, general scientific and specific ones can be distinguished:
General scientific - used in all sciences. These include:
method of scientific abstraction - consists of highlighting the most significant aspects of the phenomenon being studied and abstracting from everything unnecessary and unimportant, i.e. attention is drawn to those facts that are directly related to the object being studied;
method of analysis - during analysis, an object (phenomenon) is divided into its component elements, each of which is subjected to detailed study;
synthesis method - during synthesis, the analyzed elements are combined (combined) into a single whole and thus the internal connection between the elements is found and contradictions between them are revealed;
induction method - a method that represents the movement of thought from a particular conclusion to a general one (i.e. from facts to hypothesis).
deduction method - a method that represents the movement of thought from a general conclusion to a particular one (i.e., from a hypothesis to facts confirming it).
method of systems approach - involves the interpretation of an economic object as a system of some (certain) models.
Private methods:
method of economic experiment,
modeling method,
statistical,
mathematical,
historical, etc.
Positive and normative economics
Positive economic theory studies those facts and phenomena that exist now (in fact), i.e. examines the actual state of the economy (answers the question - what is there?).
Normative economic theory embodies the value judgments of individuals (groups of individuals) regarding what the economy should be or what specific political action should be recommended (answers the question - how (what) should it be?).
| C modern trends in economic theory (schools of economic theory) |
|||
| Schools, directions, | Representatives | Formation period | Key ideas |
| Mercantilism |
Thomas Mun (1571-1641), Englishman | 16th - 17th centuries | 1. The main wealth of society is money (gold, silver) . 2. The source of wealth is the sphere of circulation (trade and money circulation). 3. Wealth accumulates as a result of foreign trade (exports must be greater than imports) |
| Physiocrats | François Quesnay, (1694-1774), Frenchman |
18th century. | 1. The wealth of a nation is the product produced in agriculture. 2. The first attempts to derive the increase in wealth from the production process (in this case, agriculture), rather than circulation. |
| English classical political economy | William Petty (1623-1687), Adam Smith (1723-1790), David Ricardo (1772-1823), English |
17th - 19th centuries | 1. Wealth is created in material production, not in the sphere appeals. 2. The main source of wealth is labor. 3. The foundations of the labor theory of value are laid. |
| Marxism | Karl Marx (1818-1883), Friedrich Engels (1820-1895), Germans |
From the mid-19th century. | 1. The theory of value and the theory of surplus value have been developed. 2. The law of value was discovered as the basis for the development of commodity production. 3. The theory of reproduction and economic crises has been developed. 4. The laws of the capitalist mode of production were discovered |
| Marginalism | Carl Menger (1840-1921,), Friedrich von Wieser (1851-1926), Eugenia Böhm-Bawerka (1851-1914), Austrians, | Late 19th century - 30s 20th century | 1. The subject of the study is consumption (demand). 2. The theory of marginal utility has been developed. 3. The usefulness of a product was recognized as a psychological characteristic from the perspective of a specific person. |
| Neoclassical direction | Alfred Marshall (1842-1924), Englishman |
Since the end of the 19th century. | 1. A market system with a predominance of private enterprise, capable of self-regulation and maintaining economic balance. 2. The state creates unfavorable conditions for the functioning of a market economy. 3. The theory of supply and demand and equilibrium price has been developed. |
| Keynesianism | John Maynard Keynes (1883-1946), Englishman |
Since 1930 | 1. The state must actively regulate the economy, because the market is not capable of ensuring socio-economic stability. 2. The state must regulate through fiscal and monetary policies, eliminating crises, ensuring full employment and high production growth. 3. The theory of effective demand and the theory of effective investment have been developed. |
| Neoclassical synthesis | John Hicks (1904-1989), Paul Samuelson (1915-2009), Americans |
Since 1950 | 1. Depending on the development of the economy, it is proposed to use either Keynesian recommendations government regulation, or recipes from economists who take the position of limiting government intervention in the economy. 2. The best regulator is monetary methods. 3. The market mechanism is capable of establishing a balance between supply and demand, production and consumption. |
| New Institutional Economics | Ronald Coase (b. 1910), Douglas North (b. 1920), Oliver Williamson (born 1932) | Since 1980 | 1. Transaction cost theory, 2. Property rights theory, 3. The theory of opportunistic behavior, 4. Public choice theory, 5. The theory of bounded rationality |
The concept of “institutionalism” includes two aspects.
Firstly, these are customs, traditions, norms of behavior accepted in society - “institutions”.
Secondly, it is the consolidation of norms and customs in the form of laws, organizations, institutions, that is, “institutions.”
Institutions are the forms and boundaries of human activity. They represent political organizations, forms of entrepreneurship, and systems of credit institutions. These are tax and financial legislation, social security organization related to business practices.
The institutional approach means the analysis of not only economic categories and processes in their pure form, but also institutions and external economic factors. It is important not just to regulate economic processes, but to change the picture of economic development. The theory of public management should be part of the economic doctrine. Science should not be limited to the study of functional dependencies, and government regulation should be reduced only to maintaining competitive conditions. This is too narrow an approach. The problems of the evolution of economic systems, revealing the mechanism of ongoing changes, should be in the foreground.
(positive economics) A branch of economic analysis that examines real economic processes, phenomena that occur in reality, and therefore requires a large amount of institutional and statistical information. Positive economic theory differs from normative economics, which examines trends in economic development. Positive economic theory also analyzes real economic processes, taking into account certain institutional conditions, such as the existence of a monopoly company, or motivating factors, such as profit maximization.
When analyzing those phenomena that can occur based on certain premises, positive economic theory uses models that simulate and simplify ideas about real activity. Economic policy should be based on both positive and normative economic theory. Normative economics helps determine policy goals, and knowledge of positive economics is necessary for those who implement this policy in practice, since any economic policy is doomed to failure if it is unable to achieve tangible results. Economy. Dictionary. - M.: "INFRA-M", Publishing House "Ves Mir".. 2000 .
J. Black. General editor: Doctor of Economics Osadchaya I.M.
POSITIVE ECONOMIC THEORY
part of economic theory that studies and explains observed economic facts, events, processes, establishes a connection between them, in contrast to normative economic theory, which prescribes and advises how economic policy should be pursued and the economy should be managed.. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. 1999 .
Modern economic dictionary. - 2nd ed., rev. M.: INFRA-M. 479 pp.. 2000 .
Economic dictionary
Part of economic theory designed to answer the question of the size of real economic phenomena and their interrelationship. Dictionary of business terms. Akademik.ru. 2001... Dictionary of business terms
Positive economics- (positive economics), a section of economics, theories that do not contain any value judgments. Considers real economic processes, phenomena occurring in reality. When analyzing those phenomena that are defined. conditions may occur, P.e.t... Peoples and cultures
J. Black. General editor: Doctor of Economics Osadchaya I.M.- POSITIVE ECONOMICS Objective research in economics. theory is called scientific, or positive, economics. theory. Pat. is used when there is an assumption that if event A occurs, it will be followed by event B. This assumption... ... Encyclopedia of Banking and Finance
Positive economics- POSITIVE ECONOMICS Analysis of actual phenomena in the economy, as opposed to value judgments about what these phenomena should be. For example, the statement that unemployment is growing is based on the real situation in the economy and is confirmed by... ... Dictionary-reference book on economics
Positive economics- part of economic theory that studies facts and relationships between them... Dictionary of economic terms and foreign words
positive economics- part of economic theory that studies and explains observed economic facts, events, processes, establishes a connection between them, in contrast to normative economic theory, which prescribes, advises how to... ... Dictionary of economic terms
- (see POSITIVE ECONOMIC THEORY) ... Encyclopedic Dictionary of Economics and Law
THEORY, POSITIVE ECONOMIC- analysis of facts or data in order to derive scientific generalizations regarding economic behavior... Large economic dictionary
The answer to this question is: positive economics presupposes study and explanation of existing events and connections between them. In fact, research concerns those phenomena in the economy that are occurring at the present time.
As a rule, economic theory is concerned with providing an explanation of economic processes and ways of solving various problems. However, it does not provide any specific recommendations. This way of studying economic processes is called positive. This is the analytical part of economics.
For example, the statement: “trade turnover decreased by 20%” - positive. It only informs, but does not speak of any decision, like, say, the phrase: “trade turnover needs to be increased.”
What is normative economic theory?
In turn, the normative nature of economic science lies in developing a policy or action plan in order to make rational decisions. Normative economic theory makes specific recommendations regarding the actual situation in the economic sphere.
We can say that normative economic theory answers the question “what to do.” It covers not only knowledge, but also actual performance, guided by information obtained through the application of positive economics.
This area of science helps determine the goals of society in the economic sphere. If we are talking about the micro level, then the goal of the normative theory is to create a correct market mechanism that will be regulated by the state. At the macro level, the goal is economic growth, lower unemployment, overall balance and stability.
Differences between positive and normative economics
Normative economic theory, unlike positive economic theory, provides solutions to problems and establishes which criteria are desirable and which should be avoided. If a positive theory says what is, then a normative theory determines how it should be or how one should act further, based on existing data.
Normative theory is designed to change the negative manifestations of the current economic system. This part of the economy causes a lot of controversy among experts.
Economy as a special sphere of human life is the object of:
The system of economic sciences includes:
b) concrete economic sciences;
B) functional economic sciences;
3. The most complete and specific definition of the subject of economic theory is:
The definition of the subject of economic theory is as follows:
C) economic theory studies the relations of production, distribution, exchange and consumption in their interrelation and interdependence in conditions of limited resources;
^ 4. Microeconomics as a branch of economic theory studies:
A) economic behavior of individual subjects in a market economy;
5. Macroeconomics as a branch of economic theory studies:
C) the national economy as a single whole;
^ 6. The main significance of economic theory today is that it:
C) shows the best ways to organize the social economy to meet people's needs;
^ 7. Positive economic theory studies:
A) “what is what”?
8.Normative economic theory studies:
B) “what should be”?
^ 9. The methodological function of economic theory is that it:
C) it determines the essence of economic phenomena and possible tools for studying them.
^ 10.Economic theory:
D) cannot predict the future, but can explain the relationships between certain phenomena in economic development.
11. Establish the sequence of emergence of the main economic schools:
A) Marxism;
B) institutionalism;
B) marginalism;
D) physiocrats;
D) mercantelists;
E) classics.
Correct answer : e), d), f), a), c), b). 546132
^ 12. The concept of scientific method includes:
A) ways of optimal use of all cognitive tools;
13. The methodology of economic theory is the doctrine:
C) about the principles and methods of economic knowledge.
^ 14. What methods of studying economic processes arose in the twentieth century?
B) modeling;
B) economics and mathematics;
15. If the economy is studied as an integral system, then this analysis:
B) macroeconomic;
^ 16. The economic school that expressed the interests of the trading bourgeoisie of the era of primitive accumulation of capital is:
A) mercantilism;
17. E. Gaidar’s shock therapy was based on the theory:
D) monetarism.
18. Economic benefits are characterized by:
B) are created in the labor process;
B) it is rare.
^ 19. Limited resources are:
C) the impossibility of fully satisfying the growing needs of humanity.
20. A non-economic good is:
B) wind energy;
21. The economic system determines:
B) what, where, how to produce;
^ 22. Economic theory is the science of:
C) about the essence of ongoing economic processes and the laws of their development;
23. Scientific foresight is related to:
B) with forecasting;
^ 24. One of the main directions of development of modern economic theory is:
A) school of institutionalism;
25. The fundamental problem of modern economic theory is:
D) limited resources and choice;
^ 26. Limited resources are a problem that:
D) exists in all countries.
27. The study of economics as an integral system is:
A) macroeconomic analysis;
^ 28. Microeconomics is a branch of economic theory that studies:
B) how consumers, firms and resource owners behave in the market;
29. Macroeconomics defines:
C) a set of economic factors and processes operating within a single country;
^ 30. The economic system of Sweden is:
B) mixed economy;
Topic 2. “General principles of economic development.”
1. The most accurate list of factors of production considered by economic theory is as follows:
1. land, labor, capital, entrepreneurship;
^ 2. The choice of ways to use limited resources is rational if it:
3. minimizes costs and maximizes beneficial effects;
3. Solving the problem “What to produce?” reflects:
4. a set of goods that can satisfy current and future needs.
^ 4. Opportunity costs are called:
5. costs of realizing the best of unrealized opportunities.
5.The price scale is:
C) the amount of gold taken as 1 monetary unit;
^ 6. What resources involved in the production process become factors of production:
Establish a correspondence between the resources involved in the production process and whether they become factors of production:
Correct answer
: 1A, 2B, 3B, 4A, 5A, 6A. 1-2-2-1-1-1
^ 7.The opportunity cost of a new residential building is determined by:
C) the number of other goods that had to be given up in order to build this house;
^ 8. The choice of production factors and their combinations in a market economy is carried out:
1.taking into account market prices for resources;
9. Market economy is focused on:
4. meeting effective demand;
^ 10. Commodity production is the organization of the national economy in which products are produced:
4. separate manufacturers.
^ 11. Full use of all resources shows:
B) a point inside the production possibilities frontier;
12. The main goal of the social production of goods and services is:
D) meeting social needs;
^ 13. Property as an economic category expresses:
C) relations between people regarding the appropriation and alienation of various goods;
14. The initial criterion for distinguishing types of economic systems are:
C) a method of coordinating economic life;
^ 15. The consumer properties of a product are not related to the level of development of a nation and can only satisfy personal needs. Is this statement true?
^ 16. Within the framework of the theory of labor value, goods are commensurable if they:
4. the same amount of labor spent on their production;
17. Proponents of the theory of labor value believed that value is:
4. the amount of socially necessary labor spent on the production of goods;
^ 18. Specific labor creates:
2.use value;
19. Specific types of labor are so different from each other that it is possible to reduce them to homogeneity only through measurement in time. Is this statement true?
^ 20. Abstract work acts as:
3. costs of physical and mental energy of the employee;
21. Individual time is the cost of working time:
A) a separate manufacturer;
^ 22. Socially necessary time is the time required to create a specific product when:
4. average, normal production conditions for the modern period;
^ 23. The value of a product is directly proportional to labor productivity. Is this statement true?
24. Indicate what characteristics of noble metals singled them out for the role of universal equivalent:
A) qualitative homogeneity;
D) easy divisibility;
D) portability;
E) corrosion resistance;
G) long-term preservation;
Correct answer : a), d), e), f), g).
^ 25. Proponents of the labor theory of value define price as:
4. monetary expression of the value of the product.
26. Marginal utility is:
4. utility of an additional unit of consumed good;
^ 27. The value of money in modern conditions is determined by:
D) the amount of money in circulation;
28. A product with absolute liquidity is:
D) money;
29. The use value of a commodity, labor power, is:
1. the ability to create value greater than the labor cost of the product itself;
^ 30. Capital is:
D) money put into circulation for the purpose of generating income.
Topic 3. “Market as an economic system.”
1. Competition in a market economy:
B) is associated with limited resources and the sovereign right of each of the subjects;
^ 2. Despite the presence of many disadvantages, the market mechanism has an undeniable advantage. It is expressed:
D) in the efficient allocation of resources.
^ 3. Which of these characteristics refers to a market economy?
A) competition;
4. Price competition is:
A) price changes;
D) cost reduction.
^ 5. What problems in a market economy should the state deal with:
The state in a market economy must:
B) do what the market cannot do;
^ 6. Producers in a market economy produce exactly what people need because:...
C) the competition mechanism operates;
7. The experience of post-war European countries has shown that a market economy, as a rule, is more effective than a command-administrative one. This:…
B) explained by the action of the competition mechanism;
^ 8. Market as an economic category is:
B) a set of connections and relationships between sellers and buyers;
9. In a market economy, the interests of society as a whole will be respected even if everyone strives to achieve their own goals. This is achieved as a result of:…
A) the fact that a market economy is built on the principles of competition;
d) the market ensures rational distribution of resources and changes in the proportions of production depending on needs;
^ 10. What markets exist in modern conditions?
a) free market;
11.The main subjects of market relations are:
A) state;
B) buyers;
D) sellers.
^ 12. A competitor in an industry market is a manufacturer who:
B) increases the volume of products produced;
C) maneuvers prices.
13. Price in a market economy performs such functions as: the following functions:
A) simulating;
B) accounting;
D) distribution.
^ 14. Market infrastructure performs the following main functions:
B) ensures the work of all market entities;
15.Objects of market relations can be:
A) economic benefits,
B) services,
^ 16. The solution to the problem of “what to produce” in a market economy is associated with:
D) effective demand.
17. What characterizes perfect competition?
C) the inability of the manufacturer to influence the market price;
^ 18. There is an element in the market mechanism in which government intervention can lead to the breakdown of the market mechanism. This:
Topic 4. “Fundamentals of the theory of supply and demand”
A horizontal demand curve is completely inelastic.
^ 2. A simultaneous increase in supply by 12% and demand by 40% will lead to:
D) an increase in prices and an increase in the quantity of goods;
3. Movement along the demand curve will occur in the case of:
C) Changes in the price of a given product;
^ 4.Which of the following factors could be the reason for the increase in demand for the product?
A) increase in income;
5. Product A is normal if:
b) an increase in consumer income causes an increase in demand for product A;
^ 6. The price of a product will fall if:
D) all of the above factors are true;
7. The fact that a fall in the price of a good pushes the producer to reduce its supply is illustrated:
A) the law of supply;
^ 8. Which of the following factors will shift the supply curve for good “x” to the left?
B) an increase in the cost of equipment with which product x is manufactured;
^ 9. If available resources can be used to produce both goods “A” and goods “B”, then therefore “A” and “B” are:
A) substitute goods in production;
^ 10. If both demand and supply increase in the same proportion, then:
C) the price and sales volume will not change;
11. The law of demand states that, other things being equal:
D) prices and quantities demanded are inversely proportional.
^ 12. If two goods are substitute goods and the price of one of them increases, then the demand for the other goods will be:
B) grow;
13. The law of supply states that, other things being equal:
D) price and quantity supplied are directly proportional.
^ 14. Changes in the volume of supply may be due to changes in:
15. A price above the equilibrium price can lead to the following consequences:
D) excess supply.
^ 16. In markets, the equilibrium price is determined by:
D) supply and demand.
17. Excessive supply of goods on the market is a consequence of the fact that:
B) the price of a product is higher than the equilibrium price;
^ 18. Excess demand for a product (shortage) is a consequence of the fact that:
B) the price is below the equilibrium price;
19. Other things being equal, an increase in demand will lead to:
A) to an increase in the equilibrium price and an increase in supply;
^ 20. The elasticity of supply is influenced by:
B) time factor;
21. Interchangeable goods:
D) compete with each other in the market;
^ 22. Complementary products:
C) complement each other in the process of consumption;
23. The reason for the shift in the supply curve may be:
D) the introduction of new income taxes.
^ 24. The reason for the shift in the demand curve can be everything except:
B) reducing the price of a product;
25. If an increase in the price of a product by 1% causes an increase in supply by 1.2%, then this supply:
A) elastic;
^ 26. If the price elasticity of demand is 2.5, and demand increased by 10%. then the percentage increase in price will be:
27. The elasticity of demand is influenced by:
A) consumer income level;
Topic 5: “Theory of consumer behavior.”
Indicate the main factors influencing consumer behavior:
B) need;
D) income;
According to the law of diminishing marginal utility, the marginal utility of each additional unit of the same good as consumption increases is:
^ Marginal utility is:
The indifference curve shows:
Under which of the following conditions is consumer equilibrium satisfied?
The ability of consumers to purchase more goods as a result of lower prices is explained by:
The negative slope of the indifference curve reflects the fact that:
The budget constraint equation represents the equation of the straight line: I = …………………
The difference between marginal utility and total utility is......
^ Fill in the blanks in this table:
| Quantity of good consumed (Q) | Total utility (TU) | Marginal utility (MU) |
| PC. | Yutil. | Yutil. |
| 1 | 10 | 10 |
| 2 | 17 | (d)… |
| 3 | 20 | (b)… |
| 4 | (G)… | 1 |
| 5 | (d)… | -2 |
Correct Answers : d) = 21; d) = 19; b) = 7; d) = 3.
In this graph, the consumer's equilibrium is indicated by the point………………….
I 
/P2 A
Correct answer : E
^ 12. Find Establish a correspondence between definitions and their content:
Establish a correspondence between definitions and concepts:
A) usefulness;
B) need;
B) general utility;
D) marginal utility.
1) a change in total utility caused by a change in the consumption of a given good by one unit, provided that the consumption of other goods remains unchanged;
2) a measure of overall satisfaction received from the consumption of goods over a certain period of time;
the ability of an economic good to satisfy human needs.
a person's desire to consume various goods.
The tenth candy does not give as much pleasure as the first. That's an example:
The consumer reaches optimal consumption when:
^ 15. Check the correct statement:
B) the consumer makes decisions under conditions of limited income;
Match the definitions and categories:
a) indifference curve;
b) marginal rate of substitution;
c) budget constraint;
1). the maximum quantity of one good that a consumer is willing to give up in order to obtain an additional unit of another good.
2). the amount of money available that can be spent on purchasing goods;
3). various combinations of economic goods that have the same utility for the consumer.
Correct answer : a-3, b-1, c-2..
^ 17. As the total utility from consuming a good increases, marginal utility:
B) decreases;
The rate of substitution of one product for another:
^ 19. The cardinalist theory of utility differs from the ordinalist theory in that:
B) considers it possible to quantitatively measure utilities;
20. Usefulness is:
A) the property of a product to bring any benefit during its use;
^ 21. Sets of goods that have the same utility lie on:
B) one indifference curve;
22. If the consumer’s income changes, then the budget line:
A) moves;
23. Consumer choice is:
B) choice that maximizes utility under a limited budget;
^ 24. The substitution effect is:
C) a change in the consumption structure as a result of a decrease in price by one;
25. The income effect is:
C) a change in the consumer’s real income as a result of price changes;
Topic 6. “The company, its costs and profits
Normal profit is:
Which of the following definitions most closely matches the concept of “normal profit”?
Centralization of production is:
^ 4. The relationship that exists between changes in the values of average (AP) and marginal products (MP) indicates that at the point of intersection of the graphs of these values :
A) average product reaches its maximum;
^ The firm's fixed costs are:
The law of diminishing returns means that in the short run:
^ Economic costs of the company:
Internal costs are:
^ 9. Which of the following statements characterizing the relationship between total, average and marginal product is incorrect? Check the correct statements:
A) average product continues to increase as long as marginal product increases;
Variable costs include:
In the long term:
13. In the short run, a firm produces 500 units of output. Average variable costs are $2, average fixed costs are $0.5. Total costs will be:
B) $1250;
^ 14. The opportunity costs of a new stadium are:
D) the price of other goods and services whose production was sacrificed for the construction of this stadium.
^ 15.The firm’s gross costs can be defined as the sum:
D) fixed and variable costs
16. Positive economies of scale mean that:
B) there is a decrease in average costs.
^ 15. The marginal product of a factor of production is:
C) additional output when the factor increases by one
Maximizing the firm's profit is considered the main goal in:
Transaction costs are:
Correct answer e) ANSWER!!!
Long-run average cost curve:
Accounting profit is:
^ Establish a correspondence between the economic indicators of costs and the formula determining their value:
IZ D E R J K I
Average general average average marginal
Common Constant Variables
A B C D E
AFC = TFC: Q
MC = TC: Q
TC = TFC + TVC
ATC=TC:Q
AVC=TVC:Q
ATC = AFC + AVC
MC = TVC: Q
- ^
The term "marginal cost" means:
c) the cost of producing an additional unit of output
Establish a correspondence between the economic indicator and its definition:
TR TS TR MR MC AS
A B C D E F
revenue received from the sale of general
quantity of product obtained from
production costs
product obtained from use
production costs for the entire volume
Correct answer : 1 E; 2 C; 3 A; 4 F; 5 D; 6E
If the only variable resource is labor and the remaining factors are fixed:
The correct answer is 15 pieces
24. Marginal costs are the costs associated with the production of..... units of production (specify in one word)
Correct answer : additional.
26. Average costs are the costs associated with the production of..... products (specify in one word)
Correct answer : units
^ 27. If long-run average costs decrease as output increases, then occurs :
B) there are positive economies of scale.
^ 28. If the following conditions are given:
Then the total fixed costs will be...
Correct answer 60
29. If, in producing 10 units of output, total fixed costs are $20 and total variable costs are $40, total average costs will be.....
Correct answer : 6.
30. If the volume of a variable resource increases from 3 to 4 units, and the volume of output increases from 90 to 100 units, then the marginal product of the variable resource will be .....
Correct answer 10 units.
31. If the average product of a variable resource is 15 units, and the value of a variable resource is 4 units, then the total output will be equal to.....
Correct answer 60 units.
Topic 7: “Perfect competition”
A typical firm in a perfectly competitive industry:
The equilibrium level of output of a competitive firm is established at:
Choose the correct statement:
If the market price is below AVC, then a typical firm in a competitive industry:
Which 2 of the following descriptions characterize a perfectly competitive market?
D) sellers cannot influence the price.
^ If a firm operating in a perfectly competitive market reduces its supply of products, then:
If the government sets a price on the market that is lower than the equilibrium price, then:
The most efficient allocation of resources can ensure:
^ List three consequences of rising economic profits in a competitive market:
B) the influx of new firms into the industry;
D) increase in prices for used resources.
^ If firms operating in the market do not make economic profit in the long run, then this is:
In the short term, under conditions of perfect competition, it is advisable for an enterprise to expand its output if:
Which of the following markets best represents perfect competition?
Marginal revenue (MR) is:
Competition will be perfect if:
Average income is:
^ 16. The break-even point is:
B) the volume of production at which total costs are equal to total income or average costs are equal to the price of the product
Freedom of entry and exit from the industry means:
Firms operating in conditions of perfect competition in the long run choose the level of output at which the minimum long-run average cost equals price. Is this true?
The rule MR = MC = P is:
The company will close if:
In a perfectly competitive enterprise, accounting profit is:
^ Demand curve for a competitive firm's product:
23 Economic profit of a perfectly competitive firm:
B) exists whenever total costs exceed total revenue.
^ Establish the correct sequence of changes occurring in a perfectly competitive market in the long run with unprofitable production:
B prices start to rise
B entry of new firms into the industry.
D price and average costs level out
D individual firms leave the industry.
Correct answer : e), a), b), d), c). 51243
25. Establish the correct sequence of changes occurring in a perfectly competitive market in the long term when enterprises in the industry receive economic profit:
a) a decrease in the price of a product or an increase in sales support costs.
b) new competing firms enter the market.
c) decrease in profits.
d) reduction in the influx of competitors.
^ Correct answer : b), a), c), d). 2134
Find the volume of products produced by the enterprise.
Correct answer : The enterprise must continue to operate.
^ The disadvantages of a perfectly competitive market include:
***The total costs of a competitive firm with a change in output per unit time change as follows:
Then the marginal cost of the third unit of output.....
Correct answer: 14.
Economic profit is less than accounting profit by the amount:
Topic 8. “Market structures of imperfect competition.”
Imperfect competition differs from perfect competition:
Monoprolistic competition is:
The most efficient allocation of resources can potentially ensure:
^ 4. A firm under conditions of monopolistic competition maximizes income when:
D) marginal revenue equals marginal cost.
5. The market of perfect and monopolistic competition have a common feature:
b) there are many buyers and sellers operating in the market
^ 6. Long-term equilibrium in the market of monopolistic competition leads to:
D) the disappearance of economic profit
The market closest to the market of monopolistic competition is:
An imperfectly competitive firm maximizes its profits when:
Product differentiation is:
The profit maximization rule (MC = MR or the special case MC = MR = P) applies:
^ 11. In a perfectly competitive market, firms offer:
A) less diverse products than under monopolistic competition;
12. In an oligopolistic market there are:
B) several large firms
13. Common features of oligopoly and perfect competition:
A) there are many small firms on the market
^ 14.Common features of oligopoly and monopolistic competition market:
D) firms are able to influence prices.
Oligopoly is characteristic of markets:
The peculiarity of oligopoly is:
Price leadership means focusing on a company that:
^ 18. Natural monopoly is:
A) an industry in which a product can be produced by one firm at lower average costs than if it were produced by more than one firm;
^ 19. An example of a natural monopoly is:
D) Moscow metro.
20. Price discrimination is:
B) Selling the same products at different prices to different groups of buyers at the same costs;
^ 21. A profit-maximizing monopolist will increase output if:
C) Marginal revenue is higher than marginal cost;
22. To get maximum profit, the monopolist must choose a volume of output at which:
C) Marginal revenue equals marginal cost;
^ 23. Cost-plus pricing is based on:
D) average total cost plus average profit
24. Establish a correspondence between the type of market structures and the number of firms in the industry:
Correct answer
: 1-s; 2-b; 3-c; 4-d.
^ 25. There is a single buyer of coal mining equipment on the market. This type of market is characterized as:
B) monopsony;
A monopolist, as opposed to a competitive firm:
To obtain maximum profit, the monopolist must choose a volume of output at which: c) marginal revenue equals marginal cost
28. If a firm, under conditions of imperfect competition, produces a volume of output at which marginal revenue is greater than marginal costs, then to increase profits it should:
A) increase the volume of production;
^ 29.Unlike a competitive firm, a monopoly strives to:
C) change price depending on production volume and demand
Regulation of natural monopolies pursues all of the following goals, except:
C) establishing the amount of monopoly excess profit
^ Topic 9. “Market for production factors”
A student has $100 and decides whether to save it or spend it. If he puts the money in the bank, in a year he will receive $112. Inflation is 14% per year. In this case, the real interest rate will be:
^ Loan interest is:
A competitive firm seeking to maximize profits should hire additional workers only if:
^ When a competitive firm reaches a level of production at which the monetary value of the marginal product of each resource equals the price of that resource, then it:
^ 5. Capital and labor are interchangeable. If the price of capital rises, then the labor demand curve:
A) moves to the right
6.Rent valuation of land is:
A) land rental price;
7. When wages increase, the following will happen:
A) reduction in employment if the demand for labor is elastic;
8. In the first year the price level does not change, the nominal interest rate is 6% per year. In the second year, the inflation rate was 3%. If the real interest rate in the second year remains unchanged, then the nominal interest rate in the second year must:
B) grow by 3%;
^ Which of the following definitions represents a Productive Economic Resource?
Ground rent will increase, other things being equal, if:
Land supply:
The company plans to take out a bank loan for the construction of a new enterprise. The annual interest rate is 18%. The expected rate of return is set at 20%. Under these conditions, the company:
A positive decision on the construction of a bridge, which will serve for 200 years and generate a profit of 10%, will be made provided that the interest rate on the loan for construction is:
^ An increase in the interest rate, other things being equal, will lead to:
The real interest rate is:
Marginal product of a factor of production in monetary terms:
Monopsony in the labor market is:
Marginal labor cost represent :
The interest rate in the country is 20%. The investor is offered to invest 100,000 rubles. for a period of two years. What minimum annual profit must he be promised in order for him to agree?
^ 20. If the supply of a factor of production is completely inelastic, then on the graph it is:
B) vertical line
If the government sets the minimum wage higher than the equilibrium wage rate, then in the labor market:
The value of land rent will decrease if the demand curve for land shifts to the right. Is this true?
Demand for land:
Establish a correspondence between the economic category and its definition:
Economic Real Nominal
Rent interest rate interest rate
1. Interest rate from
Adjusted for inflation
2. Price for the use of land
3. Interest rate expressed
In monetary units according to
Current rate
Correct answer : 1B; 2A; 3B
Land supply:
The “earth” factor means:
Establishing current discounted value is a procedure that allows:
The graph of the marginal return of any resource looks like..... curve (specify in one word)
The theory of "human capital" explains :
Business income is: