EC 202 (EC202)

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Microeconomics 201- AP practice mc questions with answers. * Detailed * For practice purposes * For students

Ch7 Tracking the Economy -GDP &GNI -Gross Domestic Product definition -Consumer Price Index -Graph showing the relationship between govet/ household;d/ financial market and market for goods&services in money and non- money flow -What are include in GDP -How many approaches in calculating GDP -Gross National Product definition and why is it different from GDP -Limitations of GDP approach -Price index summary clear concepts

Ch8 Employment/ Unemployment and Inflation -Employed / unemployed and labor force definition -how to calculate their percentage with the formula -Significance of the unemployment rate -Type of unemployment -Wages type -Cost of inflation -Fisher equation

Ch6 Macroeconomic : the big picture summary -difference between macro and micro -business cycle and policy diminish security -long-run economic growth determine country's standard of living? -inflation and deflation why price stability is preferred -why does international macro matter and how does it interact with deficit and surplus?

Ch9 Long-run economic growth -Real GPD and Real GDP per capita different -Rule 70 in calculate how long it takes for real GDP per capita to double -Source of long-run growth -Aggregate production function with diagram Ch10 Savings/ Investment Spending -Budget surplus/ deficit and govt borrowing -Budget balance equation -National saving -Why does the supply of loanable funds curve upward sloping? all with clear diagran

Ch11-15 CH11 Income and Expenditure: The multiplier effect -importance of multiplier -aggregate consumption function -expected future income affects consumer spending -investment spending Ch12 Aggregate Demand and supply -AD curve- relationship between price and output -AS curve -relationship between price and output -Why SRAS curve different from LRAS -How AD-AS model analyze economic fluctuations -How monetary policy and fiscal policy stabilize economy Ch13 Fiscal Policy -F...

About people and the choices they make in a world of scarce resources. The study of decision-making. correct answer: Economics The study of the economy on a small scale. Individuals, businesses, small markets. correct answer: Microeconomics The study of the economy on a large scale. Looks at total output, total consumption, etc. correct answer: Macroeconomics Any item whether it be a gift of nature, the result of production, or result of human effort that is used to produce goods ...