Exam (elaborations)
Economics Final Exam Review Guide|83 Questions & Answers
- Course
- Institution
Economics Final Exam Review Guide|83 Questions & Answers
[Show more]
Content preview
Economics Final Exam ReviewGuide|83 Questions & Answers
What is economics? - -The study of how individuals and societies satisfy their unlimited wants with limited resources. -Scarcity - -Situation that exists when there are not enough resources to meet human needs -What is the land resource? - -All the natural resources on or under the ground that are used to produce goods and services. -What is the labor resource? - -All the human time, effort, and talent used to
produce goods and services. -What is the capital resource? - -All the resources people make and use to produce and distribute goods and services. -What is the entrepreneurship resource? - -The combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses. -What is the circular flow model? - -Visualizes how interactions occur in a market economy. -What are product markets?
Who is the supplier? - -The market for goods and services
Businesses, offer goods and services -What are factor markets?
Who are the suppliers? - -The market for the factors of production, land labor capital entrepreneurship Businesses are the customers and the individual serves them. -What is the US economic system? - -Capitalist -What is capitalism? - -Economic system based on private ownership of factors of production. -What happens in a free enterprise system? - -Producers can produce whatever the consumers want. Anyone is free to start a business or enterprise. -What is the definition of opportunity cost? - -The value of something that is
given up by choosing one alternative over another. What you lose when you choose. -What is the definition of Ceteribus Paribus? - -All things being equal or held
constant. -What are the three economic questions? - -What will be produced?
How will it be produced?
For whom will it be produced? -What is a production possibilities curve? - -Graph used to illustrate the impact of scarcity on an economy by showing the maximum number of goods or services that can be produced using limited resources. -What are the four assumptions of the PPC model? - -1. Resources are fixed
2. All resources are fully employed
3. Only two things can be produced. 4. Technology is fixed. -What does increasing opportunity costs on a PPC curve look like?
What does a constant one look like? - -When it bows out like half of a circle.
One that is a straight line. Increases by the same amount every time. -What causes the PPC curve to shift on the outside?
What points on the inside of the PPC curve? - -Unattainable point. Addition of
new resources or more technology
Unefficent, unemployment -What is the law of demand? - -States that when the price of a good or service goes down, quantity demanded increases, and when the prices go up, quantity demanded falls. -What is a demand curve? - -Graph shows how much of a good or service an
individual will buy at each price. -What is a market demand curve? - -Shows quantity that all consumers, or market as a whole, are willing and able to buy at each price. -What is a normal good? - -Goods that consumers demand more when their incomes rise. -What is a substitute good? - -Products that can be used in place of other products to satisfy consumer wants.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now