100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
FECN Fundamentals of Economics questions with correct answers £22.86   Add to cart
Quickly navigate to
Preview
  2.  
  3. FECN Fundamentals Of Economics Questns With Corr
  4.  
  5. FECN Fundamentals of Economics questns with corr

Exam (elaborations)

FECN Fundamentals of Economics questions with correct answers

1 review
 13 views  0 purchase
  • Module
  • FECN Fundamentals of Economics questns with corr
  • Institution
  • FECN Fundamentals Of Economics Questns With Corr

Name | A graph that shows the combinations of two goods that the economy can produce given the available scarce resources and available technology is called a - ANSWproduction possibilities frontier The opportunity cost of an item is - ANSWwhatever must be given up to obtain the item. Economists ...

[Show more]

Preview 2 out of 7  pages

Document information

  • June 7, 2024
  • 7
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • fecn fundamentals of economics questions with corr
  • fecn fundamentals of economics questions with cor
  • fecn fundamentals of economics questions with

Written for

  • FECN Fundamentals of Economics questns with corr
  • FECN Fundamentals of Economics questns with corr

1  review

review-writer-avatar

By: WORLDNURSE • 3 months ago

Seller

avatar-seller
perfectnurse

Reviews received

Content preview

FECN Fundamentals of Economics questions with correct answers 1. Name | A graph that shows the combinations of two goods that the economy can produce given the available scarce resources and available technology is called a - ✔✔ ANSW✔✔ production possibilities frontier The opportunity cost of an item is - ✔✔ ANSW✔✔ whatever must be given up to obtain the item. Economists frequently say there' s no such thing as a free lunch. What do they mean by this? - ✔✔ ANSW✔✔ Even if someone literally offers you a free lunch, there is an PAGE 1 opportunity cost to the resources that are used to produce your free lunch When an economy does not fully use its factors of production, then it ends up at a location _____the production possibilities frontier. - ✔✔ ANSW✔✔ Outside As the income of consumers increases, the demand for pizza decreases. Pizza is called - ✔✔ ANSW✔✔ an inferior good Which of the following would lead to an increase in the current price of beef? Assume beef is a normal good. - ✔✔ ANSW✔✔ All of the above In words, what does it mean when an economic consultant states: Café Ana's elasticity of supply of fine meals is equal to +3? - ✔✔ ANSW✔✔ If the market pri ce increases by 1 percent, then Café Ana's quantity supplied of fine meals will increase by 3 percent. In words, what does it mean when an economic consultant states: Carl's income elasticity of chicken is equal to +2? - ✔✔ ANSW✔✔ If Carl's income increases by 1 percent, then his quantity demanded of chicken will increase by 2 percent. The profit maximizing rule states that a business maximizes profits when it produces where marginal revenue equals average variable cost. - ✔✔ ANSW✔✔ FALSE The four components of aggregate expenditure are - ✔✔ ANSW✔✔ Consumption, net exports, government spending and investment The negative movement from peak to trough of a business cycle is called _____because over this segment of the business cycle, real GDP is smaller than in the previous period. - ✔✔ ANSW✔✔ an economic contraction The measure of the economic value of all final goods and services sold inside the boundaries of the country, adjusted for changes in the price level, is called - ✔✔ ANSW✔✔ Real gross domestic product. The negative movement from peak to trough of a business cycle is called an economic contraction because over this segment of the business cycle real GDP is larger than the previous period. - ✔✔ ANSW✔✔ FALSE The measure of the cost of a ba sket of goods and services in any period relative to the cost of the same basket of goods and services of the base year is called - ✔✔ ANSW✔✔ The consumer price index Money demand increases when the Federal Reserve Bank decreases the desired reserve deposit ratio. - ✔✔ ANSW✔✔ TRUE Money demand decreases when the Federal Reserve Bank increases the Federal Reserve discount rate. - ✔✔ ANSW✔✔ TRUE A decrease in the value of money from one period to the next is called - ✔✔ ANSW✔✔ Inflation Money demand decreases whe n the Federal Reserve Bank buys back government bonds. - ✔✔ ANSW✔✔ FALSE What is some intrinsically valuable good that also serves as money? - ✔✔ ANSW✔✔ Commodity money A decrease in the value of money from one period to the next is called inflation. - ✔✔ ANS W✔✔ TRUE If the price level ___(1)___, the value of money ___(2)___. - ✔✔ ANSW✔✔ Increases, decreases An item that buyers give to sellers when they want to purchase goods and services is called - ✔✔ ANSW✔✔ Medium of exchange Misperceptions, sticky wages, and sticky prices are each theories that explain why in the short run the - ✔✔ ANSW✔✔ aggregate supply curve has a positive slope An inflationary gap occurs when an economy's - ✔✔ ANSW✔✔ real GDP is greater than its potential real GDP Suppose that the economy is in an inflationary gap. Which of the following public policies could help the

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

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 perfectnurse. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £22.86. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79223 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£22.86
  • (1)
  Add to cart