ECN 211 EXAM PACKAGE DEAL GRADED A+

What is money - The most common exchange/means of payment. EX) cash, credit card, food Cash and checkable bank deposits are most liquid Not the same thing as wealth Assets like cars, houses, securities (stocks, bonds, mutual funds) are not money Those assets have low liquidity therefore take tim...

Define: GDP - Gross domestic product measures the market value of all finals goods and services produced within a country in a given period of time We measure GDP in ___________ to reflect the value society places on each good - dollars The good is included in the GDP when it is... - PRODUCED not...

The opportunity cost of an item is.... - what you give up to get that item Total output in an economy increases when each person specializes because - each person spends more time producing that product in which they have a comparative advantage in. The producer that requires a smaller quantity o...

Utility - Pleasure or satisfaction obtained from consuming a good or service Economizing Problem - Wants exceed means Economizing Problem - Limited resources vs. unlimited wants Individuals Economizing Problem - Budget Line Society's Economizing Problem - Production Possibilities Frontier (PPF)...

GDP is - value of all final goods and services produced within a country in a given period of time. Y = C + I + G + NX - Y = economy's total expenditure C = consumption in economy I = imports in economy G = government spending NX = net exports Net exports equal - exports minus imports CPI is...

market failure - a situation in which a market left on its own fails to allocate resources efficiently economics - the study of how society manages its scarce resources incentive - something that induces a person to act productivity - the quantity of goods and services produce from each unit of l...

Real GDP is commonly used for what? - Short run changes. When real GDP falls, so does what? - - Personal income - Corporate profits - Consumer spending - Investment spending - Industrial production When the overall economy declines that is due to what? - - Reduction in spending in factories -...

Economics - the study of how society manages its scarce resources Macroeconomics - the study of economy-wide phenomena (ex. the federal deficit, the rate of unemployment and policies to improve our standard of living) Microeconomics - the study of how households and firms make decisions and how t...