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ECON Review
Fall 2022-Econ 102
| Question | Answer |
|---|---|
| Which of the following is not listed in the book as a reason to study economics? | To learn how to make lots of money |
| Among the fundamental concepts in economics is ... | opportunity cost, marginalism, efficient markets |
| Which of the following is the best definition of economics? | The study of how individuals and societies choose to use the scarce resources that nature and previous generations provided |
| The rise of the modern factory system in England during the late eighteenth and early nineteenth centuries is known as the | Industrial Revolution |
| Which of the following statements is not correct? | If poverty were eliminated, there would be no reason to study economics. |
| The study of economics | Is a way of analyzing decision-making process caused by scarcity |
| Supposed you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discover that parking costs you an additional $15. In this siutation, the addicitional you pay for parking is an example of... | Marginal cost |
| You have decided that you want to attend a costume party. You estimate that it will cost $40 to assemble your costume. After spending the $40, you realize the additional pieces you need will cost $25 more. The marginal cost of completing the costume is... | $25 |
| The concept of opportunity cost ? | Can be applied to the analysis of any decision-making process |
| Opportunity coat is? | That which we forgo, or give up, when we make a choice or a decision |
| The reason that opportunity costs arise is that ... | resources are scarce. |
| This years tuition is $5,000, books cost $600, you can only work 20 instead of 40 hours per week in the 15 weeks of taking classes and make $15 per hour. Room and board is $3,000 this semester (same if not attending college), whats your opportunity cost? | $10,100 |
| If your tuition is $25,000 this sem, books cost $1,500 and only work 20 instead of 40 hours during the 15 weeks of classes, making $15 an hour, room and board is $7,500(same if not attending college) then opportunity cost of this semester is | $31,000 |
| According to the theory of comparative advantage, _____ raise(s) productivity by lowering opportunity cost | trade and specialization |
| When two people trade, | The both expect to be made better off by the exchange |
| If someone has a comparative advantage in growing pineapples | she can grow pineapples at a lower opportunity cost that other pineapple growers |
| what is not constitute of an act of investment, the way an economist uses the term? | Buying stocks and making profits from shares |
| In economics, investment always refers to | The creation of capital |
| The process of using resources to produce new capital is | investment |
| An example of forgoing benefits in order to recieve future benedits is | Saving |
| Because resources are scarce, the opportunity cost of investment in capital is | forgone present consumption |
| An example of an investment is | the purchase of a printer for use by a business |
| The opportunity cost of investment in capital is forgone present consumption because | resources are scare |
| If the unemployment rate increases from 10% to %14, the economy will | move away from the ppf towards the origin |
| Periods of less than full employment corresponds to | points underneath the ppf |
| An increase in the price of a good or service leads to a(n) _______ that leads to a(n) | decrease in quantity demand; movement along the demand curve |
| A change in income leads to a ___ that causes a ___ | change in demand; shift to demand curve |
| In a business cycle, a peak occurs before the beginning of a(n) ___ and a trough occurs before the beginning of a(n) ____ | recession; expansion |
| In a business cycle, the end of an expansion is represented by | a trough |
| it has become conventional to classify an economic downturn as a ___ when aggregate _____ declines for two consecutive quarters | recession; output |
| If the labor force is 400 and employment is 380, then the unemployment rate is | 5% |
| A depression is a | prolonged and deep recession |
| Since most economies on average _____ over time, business cycles show a _____ trend. | grow; positive |
| Government policymakers would like to have a high ____ and a low ____ | output growth; unemployment and inflation |
| Economists define the unemployed as individuals who are | not currently working but are actively looking for work |
| Unemployment implies that in the labor market there is | an excess supply of workers |
| If 5 million workers are unemployed and 45 million are employed, then the unemployment rate is | 10% |
| The period in the business cycle from a ____ to a ____ is called an expression. | trough; peak |
| The period in the business cycle from a ____ to a ______ is called a recession. | peak; trough |
| Unemployment generally rises during ____ and falls during ______. | recession; expansion |
| Microeconomics is concerned with | indicidual prices |
| The total market value of all final goods and services produced within a given period by factors of production located within a country is | gross domestic product |
| Gross domestic product measures... | - total spending of everyone in the economy - the value of all output in the economy - the total income of everyone in the country |
| A computer purchased by Federal Express to track a shipment is an example of | a final good and service |
| A new tire you buy for your personal car is an example of | good or service in GDP |
| What is an example of an intermediate good? | the pizza sauce you purchase to sell for a fund-raiser for an organization you belong to |
| Double counting can be avoided by | not counting the value of intermediate goods in GDP |
| T or F: The value of a 2008 boat you purchased from a boat dealer in 2016 is counted in the 2016's GDP | False |
| T or F: The bonus check a stockbroker gets from his/her company in 2016 is counted in the 2026 GDP | True |
| A company produces 8 dishwasher machines in 2015. It sells 6 in 2015 and added 2 ti its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the companies output that includes the 2015 GDP | $1,600 |
| A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as | a part of gross private domestic investment |
| The change in business inventories is measured as | GDP minus final sales |
| In 2016 final sale s equal $200 billion, and the change in business inventories is $50 billion. GDP in 2016 9s | $250 billion |
| Fiscal policies are government policies regarding _____ and _____. | taxes; expenditures |
| Then the government changes taxes and spending, it is implementing | fiscal policy. |
| The government wants to discourage consumer spending through raising income taxes. This is an example of | a fiscal policy |
| Households purchase stocks and bonds from firms in the _____ market. | money |
| The _____ affecting supply of a money is known as monetary policy | Federal reserve |
| Monetary policies are designed to affect the | quantity of money |
Created by:
rrojas2003
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