Question

1. the concept of economic equilibrium

a. is useful in describing conditions in actual commercial markets.
b. is a theoretical concept that marks the start and finish of mental experiments with models..
c. shows why markets do not react to changes in prices, income, and tastes..
d. is applied only to quantity variables (rates of sale) but not to market prices.

1. if a good can be used in only one way, then

a. using in that way generates no opportunity cost.
b. it cannot be a market good that can be owned and exchanged in markets.
c. it cannot be scarce.
d. all of the above

1. microeconomists use the phrase ceteris paribus

a. to signal that they are doing mental experiments using models with multivariate functions.
b. to show that they are assuming constancy of all independent variables in a function but one.
c. to define a standard demand curve.
d. all of the above

1. the defense of markets by libertarians such as the late robert nozick

a. asserts that only market economies allow the protection and assertion of basic human rights.
b. consists of arguments that markets tend to equalize economic opportunities.
c. is based on the theory that markets produce just distributions of income among citizens.
d. all of the above

Explanation:

• Question 31: Economic equilibrium is a theoretical concept used in mental - model experiments. It's not a perfect description of real - world commercial markets, and markets do react to changes in various factors. It applies to both quantity and price variables. So, it marks the start and finish of mental experiments with models.
• Question 32: If a good has only one use, there is no alternative use, so using it in that way generates no opportunity cost. It can still be a market - good and scarce.
• Question 33: The ceteris paribus assumption is used to assume constancy of all independent variables in a function but one in mental experiments with models. It is also used in defining a standard demand curve.
• Question 34: Libertarians like Nozick do not claim that only market economies protect human rights, nor that markets equalize economic opportunities or produce just income distributions.

Answer:

1. B. is a theoretical concept that marks the start and finish of mental experiments with models.
2. A. using in that way generates no opportunity cost.
3. B. to show that they are assuming constancy of all independent variables in a function but one.
4. None of the above.