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C211 OA Exam 1 updated 2024 with Correct Answers accurately defined guaranteed success
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C211 OA Exam 1 updated 2024 with Correct Answers accurately defined guaranteed success
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C211 OA Exam 1 updated 2024 withCorrect Answers accurately defined
guaranteed success
view that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - Answer new
view that claims globalization is a long-run historical evolution since the dawn of humanity. Says
it is nothing new and that it will always exist - Answer evolutionary
how the quantity demanded of one good changes in response to a change in the price of
another good - Answer cross-price elasticity
substitute goods have a ______ cross elasticity - Answer positive
complementary goods have a _____ cross elasticity - Answer negative
price elasticity of demand equation - Answer % change in quantity demanded / % change in
price
income elasticity of demand equation - Answer % change in quantity demanded / % change in
income
cross elasticity of demand equation - Answer % change in quantity demanded of Y / % change
in price of X
tools the federal reserve has in regards to monetary control - Answer open market operations,
discount rates, reserve ratios
,purchase or sale of US treasury or US government bonds in the open market - Answer open
market operations
when the fed buys bonds, what happens to the money supply and AD? - Answer increases
money supply and shifts AD to the right
when the fed sells bonds, what happens to the money supply and AD? - Answer decreases
money supply and shifts AD to the left
the interest rate on loans that the Fed makes to the bank - Answer discount rate
reducing the discount rate does what? - Answer increases money supply, increases AD
increasing the discount rate does what? - Answer decreases money supply, decreases AD
ratio of money that banks are required to hold whenever an entity deposits money with them -
Answer reserve ratio
when the reserve ratio is increased, what happens to the money supply and AD - Answer
decreases, shifts to the left
when the reserve ratio is decreased, what happens to the money supply and AD - Answer
increases, shifts to the right
if the government uses fiscal policy and cuts taxes, what effect will this have on interest rates
and AD? - Answer cutting taxes will increase demand for money, increase interest rates and
cause AD to shift to the right
the difference between what a buyer is willing to pay for a good or service and what they
actually pay - Answer consumer surplus
, consumer surplus is measured in the area _____ the demand curve, _______ the price,
_______ the quantity consumed - Answer under DC, above price, up to quantity consumed
the benefit sellers receive from participating in a market - Answer producer surplus
producer surplus is measured in the area ______ the supply curve, _____ the price, ______ the
quantity supplied - Answer above, below price, up to
total surplus equation - Answer value to buyers - cost to sellers
the study of economy wide phenomena such as inflation, unemployment and economic growth
- Answer macroeconomics
the study of how households and firms make decisions and how they interact in markets -
Answer microeconomics
income must _______ expenditure in an economy - Answer equal
the market value of all final goods and services produced within the border of a given country
during a specified period of time - Answer gross domestic product
gross domestic product measures what two things? - Answer total amount of expenditures and
total income of everyone in the economy
4 components of GDP - Answer 1. consumption
2. investment
3. government purchases
4. net exports (exports minus imports)
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