EC 111 || All Correct.

A firm is a price taker if it takes the market price as given and ... correct answers sells goods at that price A market in which economic forces operate unimpeded is called a correct answers perfectly competitive market A perfectly competitive market exhibits the following 2 conditions correc...

What are the functions of money? correct answers Medium of exchange Unit of account Store of Value What are the types of money? correct answers commodity and Fiat money. Without money correct answers Trade would require Barter. Requires a double coincidence of wants waste of resou...

Economics assumes that people... correct answers are rational, self-interested, and respond to incentives Economics is the study of correct answers how individuals, firms, and society make decisions to allocate limited resources during competing wants Microeconomics is the study of correct ans...

What is the study of economics correct answers The study of how society manages its scarce resources microeconomics correct answers the study of how households and firms make decisions and how they interact in markets macroeconomics correct answers The study of the economy wide phenomena inclu...

measures total income of everyone in the economy and total expenditure on the economy's output of goods and services correct answers gross domestic product (GDP) Every dollar of you spend is a dollar of _________________ for someone else. correct answers income the market value of all final g...

scarcity correct answers the limited nature of society's resources economics correct answers the study of how society manages its scarce resources -how people decide what to buy, how much to work, how much to save, and spend -how firms decide how much to produce, how many people to hire -how ...

In 2008, the United States was in recession. Which of the following things would you expect to have happened? correct answers - Increased layoffs/firing - Higher bankruptcy rate - Increased unemployment insurance claims The Wealth Effect, Interest-Rate Effect, and Exchange-Rate Effect are all e...

When consumer confidence falls in an economy, _____ will decrease which is going to be _____ by the spending multiplier. correct answers spending; magnified What does the "paradox of thrift" say? correct answers An economy that saves too much can end up with lower savings. How does the spend...

3 functions of money correct answers medium of exchange unit of account store of value types of money correct answers commodity money (gold) flat money (dollars) What is M1 correct answers currency, travelers checks and checkable deposits What is M2 correct answers everything in M1 plus ...

Imports correct answers Goods and services that people and firms in one country buy from firms in other countries Exports correct answers Goods and services firms in one country sell to people and firms in other countries Comparative Advantage correct answers The fundamental force that generat...

The AD shortfall. correct answers The amount of additional aggregate demand needed to achieve full employment after allowing for price level changes is Horizontal distance between the aggregate demand curve necessary for full employment and the aggregate demand curve that intersects AS at the equ...

decreases correct answers inflation ____ the purchasing power of money inflation correct answers an increase in the average level of prices of goods and services increases correct answers if the price of iPods rises 10% during a year when the level of average prices rises 3%, the relative pric...

spending by households on goods and services, with the exception of purchases of new housing correct answers Consumption spending on capital equipment, inventories, and structures, including household purchases of new housing correct answers Investment the study of economy-wide phenomena,...