ECON 150C1 An Economics Perspective FINAL EXAM Revised The a
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Course
Esc1501
Institution
Esc1501
ECON 150C1 An Economics Perspective FINAL EXAM Revised The a
Allocation - answershow limited resources are gathered to satisfy unlimited human wants/needs
Distribution - answersThe way the total wealth is distributed among people and companies
Prices convey what information about value wit...
ECON 150C1 An Economics Perspective
FINAL EXAM Revised The actual one
questions with answers
Allocation - answershow limited resources are gathered to satisfy unlimited human
wants/needs
Distribution - answersThe way the total wealth is distributed among people and
companies
Prices convey what information about value without having to do any calculations? -
answers1. Tells how much you value something by how much you're willing to spend on
the product
2. Tells the maximum amount of input needed to make something
also makes sure the right amount of a product is produced
Supply - answersthe total amount of a specific good or service that is available to
consumers at a certain price
Demand - answersa consumer's desire and willingness to pay a price for a specific
good or service
i. Higher prices means consumers want less, vice versa
Price Takers - answerswhen individual firms or households do not have enough power
to influence the overall market price
i. Ex: individual's, small boutiques
Supply Curve - answersHow much producers make at that price.
i. Ex: If you can sell each car for more money than you will make more cars
-Moves in: inputs become more expensive
, -Move Out: Supplies to make a product becomes cheaper
Demand Curve - answersHow much people will buy at each price.
-Moves In: bikes come in style
-Moves out: Incomes go up
*shifts in demand curve do not deal with prices
Substitutes - answersThings/services that can be swapped for each other
i. Ex: coke and pepsi
Compliments - answersThings that help each other sell
i. Ex: Wii and video game disks
Equilibrium - answersThe point where supply and demand are equal
a. People want the same amount as what has been made
Market Surplus - answers(supply>demand) When there is too much product for what
people want
-The seller has made too much to be selling at the price they are selling at
Market Shortage - answers(supply<demand) Where there is not enough product to
satisfy the market
-The buyer has not made enough product to sell at the given price, or has not charged
enough to bring down the demand
Market Clearing Price - answersWhen supply=demand
Opportunity Cost - answersThe thing you sacrifice when you go for something else,
forgoing the next best option
---Example: you get a free ticket to a play but if you go to the play you can't go get
dinner with your friends. Dinner with your friends would cost $10. The amount you
would've paid for the play ticket was $20. What's the opportunity cost of skipping the
play and going to get dinner instead? (-20)
Three things that make electricity special - answers1. No ability to store it
2. No fluctuation in prices
3. Expensive plants use cheap fuel
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