Economics Question Review

Question: 1

IS-LM Model only explains short-run macroeconomic growth.

(a) A long-run economic growth model uses a mathematical function y=x^n. Explain why 0<1<n .

(b) What is the critical flawness of such a model?

Question 2:

Study the following graphs:

(a) What are the nomenclatures of such 2 models?

(b) Someone claims that such biological occurrence is an example of econophysics. Evaluate the validity of his statement.

(Answers can by found using AI)

. Explain why 0<n<1 .

Question 3:

Game theory is established by John Nash.

(a) Name any one more mathematical contribution by him.

(b) Nash equilibrium is achieved by using backware induction, which is a curical part of mathematical induction in HKAL Pure Mathematics. Explain why HKEAA peels off such a curriculum in the new syllabus assessed since 2006.

(b) Nash equilibrium is achieved by using backward induction

Question 4:

In Taiwan high school curriculum, all arts stream mathematics students need to learn an inequality:

Arithmetic Mean ≥ Geometric Mean ≥ Harmonic Mean

What is the significance of such a knowledge in financial economics?

Question 5:

Is the demand curve for diamonds today still positively sloped?

Question 6:

Show that economics is NOT about how to profit.

Question 7:

In HKCEE Economics syllabus last assessed in 2004, all teachers will introduce income approach of national income accounting.

(a) What are the 4 main sources of income and where are they from.

(b) How is income approach derived by Keynesian circular flow models?

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