12月英语四级(CT4)真题.docVIP

School of International Business Administration，ZISU Solutions to Assignment A (Note: Assignment A should be finished and handed in on May 2, 2012) I. Interpret the following terms and concepts. (5x3 =15 points) 1. Economics: Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. 2. Equilibrium: The condition that exists when quantity supplied and quantity demanded are equal. 3. Price elasticity of demand: The ratio of the percentage of change in quantity demanded to the percentage of change in price; measures the responsiveness of demand to changes in price. 4. Opportunity cost: The best alternative that we give up when we make a choice or decision. 5. Marginal benefit: The benefit of a one-unit increase in an activity, or it is what you gain when you get one more unit of something. II. Answer the following questions briefly. (4x5 =20 points) 1. What are the three basic questions that microeconomics must answer? Answer: what gets produced? How is it produced? Who gets what is produced? 2. What are the five types of elasticity? Answer: Perfectly inelastic, inelastic, unitarily elastic, elastic, perfectly elastic. 3. List several key factors that influence the quantity of a product demanded by a single household. Answer: The price of the product, the income available to the household, the household’s accumulated wealth, the prices of other products available to the household, the household’s tastes and preferences, the household’s expectations about the future income, wealth and prices. 4. How to distinguish between a change in quantity demanded and a shift of demand? Answer: Change in price of a product leads to change in quantity demanded, ceteris paribus, which is some movement along a demand curve. Change in income, preferences, or prices of other products leads to change in demand, holding price constant, which is a shift of the demand curve. III. Problems solved by