Econ 203 - Study guides, Class notes & Summaries

Multiplier effect correct answers The increase in consumer spending that occurs when spending by one person causes others to spend more too Disposable income correct answers Income left after paying taxes -consumption is based on the amount of disposable income -people usually consume part of their disposable income and save the rest MPC correct answers Marginal propensity to consume -the amount consumption increases when disposable income increases by $1 -the MPC is a number between 0...

People face trade-offs correct answers (principle 1 of economics) To get one thing, you have to give up something else. Making decision requires trading off one goal against another. efficiency correct answers the property of a resource allocation of maximizing the total surplus received by all members of society. Refers to the size of the economic pie equality correct answers the property of distributing economic prosperity uniformly among the members of society. Refers to how the pie is ...

ECON 203 Lab 9 Question 1 Introduction to Macroeconomics (Concordia University)

Explain in simple words what do "sticky prices" mean. correct answers Some prices, like wages and long term contracts, cannot adjust right away when the conditions in the economy change. Since prices cannot react, that means that the self-adjustment mechanism that we studied in the past will be ineffective and unable to bring the economy back to full employment on its own without intervention. The Multiplier: a) What is the definition of the MPC? What is the definition of the Multiplier? ...

Which of he following about the Chi-squared distribution is FALSE a. We use the Chi-squared distribution to perform a test on variance. b. The Chi-squared is not symmetrical. c. Only positive Chi-squared values are possible. d. The Chi-squared distribution is asymptotic to the horizontal axis to the right. e. 1 is an approximation to the center of the distribution. correct answers e. 1 is an approximation to the center of the distribution REASON: The center of Chi-squared distributio...

1) If the MPC is 0.95, then a $10 million increase in disposable income will: A) increase consumption by $200 million. B) increase consumption by $9.5 million. C) decrease consumption by $105 million D) increase consumption by $950 million. correct answers B) increase consumption by $9.5 million. 3) The basic aggregate demand and aggregate supply curve model helps explain A) short-term fluctuations in real GDP and the price level. B) long-term growth. C) price fluctuations in an indivi...

Econ 203 Exam 1 Detailed Questions And Expert Answers 2024

What are 3 gains from society when countries decide to specialize? correct answers -specialization and trade -more resources -Improvements in technology/productivity True or False: Every country have comparative advantage in something. correct answers True What are 2 gains when two countries engage in specialization and trade? correct answers -total production increases -new points reached on the PPF that were originally unattainable What are the 4 characteristics of competitive mark...

Elastic Demand correct answers Change in price (%) causes a relatively large change in the quantity demanded (%) Quantity changes faster than price Total revenue increases when price decreases, consumers are more responsive to change >1.0 is elastic Inelastic Demand correct answers Change in price (%) causes a relatively small change in the quantity demanded (%) aka QD is not very sensitive to a change in price Also occurs if the percentage change in QD is less than the percent...

Macroeconomics correct answers The branch of economics that studies the economy as a whole 1) Slowing/rising production in the economy 2) Rising/falling unemployment in the economy 3) Inflation/Deflation in the economy correct answers Macroeconomics examines the causes and consequences of: Gross Domestic Product (GDP) correct answers Value of all new production in a nation (or region) in a given period of time. Gross Domestic Product (GDP) correct answers What is the most commonly-u...