ECN 211 Tests Bundle Set

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

opportunity cost Correct Answer-whatever must be given up to obtain some item calculating opportunity cost Correct Answer-what you give up / what you get The table above shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 800 bushel...

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

market failure Correct Answer-a situation in which a market left on its own fails to allocate resources efficiently economics Correct Answer-the study of how society manages its scarce resources incentive Correct Answer-something that induces a person to act productivity Correct Answer-the ...

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

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

Macroeconomics ECN211 Terms

Demand-Pull Inflation Correct Answer-increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand Cost-Push Inflation Correct Answer-increases in the price level (inflation)resulting from an increase...

Tariff Correct Answer-A tax on imported goods Who benefits/loses from free trade? Correct Answer-1. Foreign producers of steel (exports steel to US) 2. Buyers of steel and steel-related products (price falls and quantity increases) Who is worse off because of free trade? 1. Domestic producer...

ECN 211 ASU Final Exam Marburger questions with correct answers

What is a recession? Correct Answer-economic contraction; two straight quarters of negative GDP growth What is a boom? Correct Answer-economic expansion; boom length does not predict a recession What are the characteristics of a good economy? Correct Answer-lots of job openings, firms are rais...