LATIHAN EKONOMI

1. Express (define) the following terms mathematically.

- Utility

- Util Iso cost

- Indifference curve

- Budget Line

2. Which of the following statements best defines the term economics?

a. Economics is the study of the production and distribution of goods and services.
b. Economics is the study of government programs supporting peace treaties.
c. Economics is the study of money.
d. Economics is the study of relationships among society.

3. Find the values of x1 and x2 where the following two constraints intersect. (Round
your answers to 3 decimal places.)1.10x1+5x2≥502.1x1+2x2≥12

4. The city of Nashville is considering cleaning up pollution. The cost of the cleanup
is estimated at $2 million. Nashville has 100,000 residents. 20% of the residents are
willing to pay $10 each for the cleanup. The rest of the population is wealthier and are
willing to pay $20 each. A city councillor proposes that the cleanup be financed by
charging everyone in the community a tax of $20.

Is this project desirable from the point of view of the Pareto criterion? Explain.

5. Economics is _____.

a. the study of how choices are made because of scarcity.

b. the study of how the values and preferences of human decision makers are formed.
c. interesting but not applicable to the real world.
d. the study of how to make money in business.