Econ 130 - Study guides, Class notes & Summaries

Metropolitan area (MSA) correct answers group counties into socioeconomically linked surroundings; contain city w/ 50k+ inhabitants or urban area with 100k+ population Commuting Zone ("CZ") correct answers group of counties based on commuting flows (i.e. economically integrated); covers entire USA Counties correct answers vary in size (often many counties in "metro area"); administratively based (subdivision of states) Census tracts correct answers statistically based - no need to c...

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: A. all consumers. B. buyers and sellers. C. producers and input suppliers. D. producers and government planning committees. correct answers B. buyers and sellers. In the ____________, households work and receive payment from firms. A. financial investment market B. financial capital market C. labor market D. savings market correct answers C. labor market In a command ec...

The word that comes from the Greek word for "one who manages a household" is correct answers economy. The word "margin" means correct answers edge. Which of the following products would be considered scarce? correct answers All of the above are correct. The primary determinant of a country's standard of living is correct answers the country's ability to produce goods and services. Guns and butter are used to represent the classic societal tradeoff between spending on correct an...

Efficiency in production refers to the situation where all but one of the following apply: A. Production can not be increased B. production of one good means forgoing some other good C. all given resources are fully employed D. production must be reduced correct answers D. production must be reduced Which of the following is NOT one of the three factors of production? A. Labor B. Capital C. Markets D. Natural resources correct answers C. Markets Which of the following describes ...

PPC Shifters correct answers 1. Change in quality or quantity of resources. 2. Change in technology. Equilibrium is the state that correct answers Where supply meets demand. The system moves towards spontaneously. Opportunity cost correct answers The next most desirable alternative given up to make a choice. Market correct answers Time is correct answers a scarce resource for everyone. Utility correct answers Capital correct answers refers to things that have already be...

Which of the following defines economics? Economics is the social science that studies ___________. correct answers The choices made to cope with scarcity, how incentives influence those choices, and how the choices are coordinated Microeconomics is the study of correct answers How individual households and firms make decisions. Which of the following areas of study typifies microeconomics as opposed to macroeconomics? correct answers The impact of minimum-wage laws on employment in the fa...

GDP is officially measured by adding together the... correct answers ...market value of all final goods and services produced within the borders of a nation Which of the following items is included in the calculation of GDP? correct answers None (not purchase of apple stock, purchase of used car, value of homemakers services, or sale of gulf war military surplus) Which of the following expenditures would not be included in GDP? correct answers Purchase of silver cup previously sold new in...

The total product of labor is... A. The change in total output when an additional worker is hired. B. The total output produced by a given number of workers. C. The labor required to make a single good. D. The labor required to make one more good. correct answers B. The total output produced by a given number of workers. The marginal product of labor is... A. The change in total output when an additional worker is hired. B. The total output produced by a given number of workers. C....

Efficiency from The First Fundamental Theorem of Welfare Economics requires correct answers that the economy is competitive. The marginal rate of substitution is correct answers the slope of the indifference curve. Market failure can occur when correct answers monopoly power exists in the market. when there is incomplete information. when goods are non-rival and non-exclusive A public good must be correct answers nonexcludable in consumption. A social welfare function correct answe...

Money Market correct answers Where financial instruments with high liquidity and short maturities are traded. Capital Market correct answers - Capital generates economic output - Market in which stocks and bonds are sold. - Consists of primary (new stocks sold directly from company to investor) and secondary (existing stocks traded amongst investors) markets Consol/Perpetuity correct answers - A bond that pays interest forever - P = Z/i Coupon Bond correct answers security that promi...