Econ 103 Study guides, Class notes & Summaries

EconomicsStudy of allocation of scarce resourse Factors of productionLand Labor Capital Human capital Production PossibilityAll possible combination of the maximum amounts of two goods that can be produced by an economy, given fixed and unchanging resources and technology. Choices of points on PPC•Custom(tradition) •Plan(government decides) •Market Growth of curve•Division of labor

Econ 103 Past Exam Questions an The development of money as a medium of exchange has facilitated - ANSWER-Money eliminates double coincidence of wants If interest rates are lower than what individuals consider normal, they will - ANSWER-increase their speculative money demand The interest rate that banks are charged when they borrow from Fed - ANSWER-discount rate Simultaneous increase in the money supply and reduction in government spending. - ANSWER-r will decrease Expansionary Fi...

Econ 103 Exam 1 Questions and AnsweEconomics - ANSWER-The study of peoples choices; how agents choose to allocate scarce resources and how those choices affect society First Principle of Economics - ANSWER-People try to optimize; they try to choose the best available option Second Principle of Economics - ANSWER-Economic systems tend to be in equilibrium, a situation in which nobody would benefit by changing his or her behavior Third Principle of Economics - ANSWER-Empiricism-analysis t...

ECON 103- First Exam Questions and Answers 10 GDP is defined as - ANSWER-value of all final goods and services produced within a country in a given period of time Over time, people have come to rely more on market produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own homes, hire people to clean their houses. By itself, this change has - ANSWER-caused measured GDP to rise John buys ...

Melody decides to spend three hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is - ANSWER-the enjoyment she would have received had she gone to the park If a tax is levied on the buyers of a product, then the demand curve will - ANSWER-shift down Which of the following is not an example of a graph of a single variable a) a pie chart b) bar graph c) time-series graph d) a scatterplot - ANSW...

ECON 103 Exam 1 Questions and Answers 100% accurate! What is economics? - ANSWER-the science of purposeful human actions and the unintended consequences of that action What are some spontaneous orders? (6) - ANSWER-The Price System, Money, Banks, Stock and Bonds, Future Markets, and Accounting Systems What is the difference of Normative and Positive questions? - ANSWER-N: "what should be..?" P: "What is..?" (Science cannot answer normative questions) What are the four assumptio...

Four factors of Production Land, labor, capital, & entrepreneurship; the four groups of resources that are used to make all goods/services Macroeconomics Study of the performance of the national and global economics Opportunity Cost Highest value alternative that must be given up to get something How are rational choices typically made? Costs vs. benefits Scarcity Wanting more goods/services than can be afforded Comparative Advantage When a producer can produce a good at a lower opportuni...

ECON 103 - Exam #1 Questions and Answers 100% accurate! Economics - ANSWER-The study of how an economy manages its scarce resources; the study of how societies provisions (Reardon). Microeconomics - ANSWER-The study of how household and firms make decisions and how they interact in markets. Macroeconomics - ANSWER-The study of economy world wide phenomena. Opportunity Cost - ANSWER-What is given up to get an item; what is given up to gain/do something. Capitalism - ANSWER-Market...

Economics is a - ANSWER-science difficult to make predictions a search for understanding normative statements - ANSWER-opinion, expression of opinions not right or wrong positive analysis - ANSWER-pertaining to verifiable reality/facts/not opinions econonomis has what kind of statments? - ANSWER-positive! ceteris paribus - ANSWER-all things equal, all else unchanged what are the logical fallacies for economics? - ANSWER-ad hominem, post hoc, naturalistic, composition, fallacy o...

ECON 103: Microeconomics (Rustici) Test #1