ECON 202 (ECON202)

Principles of Economics: People face trade-offs CORRECT ANSWER Have to make choices because of scarcity Scarcity CORRECT ANSWER A situation in which unlimited wants exceed the limited resources available to fulfill those wants Principles of Economics: The cost of something is what you give up to get it. CORRECT ANSWER Opportunity Costs Principles of Economics: Rational people think at the margin CORRECT ANSWER Weighs marginal costs and marginal benefits. (See Transactional Utility) T...

Real GDP Growth Rate CORRECT ANSWER [real GDP per capita(cy)-Real GDP per capita(py)]/ (Real GDP per capita (py)) x 100% OR Nominal GDP Growth Rate- Inflation Rate- Population Rate Compounding Formula CORRECT ANSWER GDP(yearA)=GDP(YearB)x(1+Growth rate)^(A-B) Rule of 70 CORRECT ANSWER Years until income doubles= 70/ Real GDP Growth Rate Components of Productivity CORRECT ANSWER Physical capital, human capital, tech improvements, and natural resources Convergence Theory CORRECT ANSW...

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

Includes: What to know for exam 3, What to study ( answers) and responses to what to know Class Grade: A+ Exam Grades: 93+ on all exams

Includes: What to Study for Exam 1, what to know and answers Class Grade: A+ Exam Grades: 93+ on all exams

Includes: Thorough Chap 1-5 notes, corresponding lecture notes, What to know for exams Class Grade: A+ Exam Grades: 93+ on all exams