Econ 103 exam - Study guides, Class notes & Summaries

Opportunity Cost - ANSWER-The value of what we give up when we make a choice (Explicit Cost + Implicit Costs) (money + another cost of something like time) marginal benefit - ANSWER-the extra benefit of adding one unit marginal cost - ANSWER-Extra cost of producing one additional unit of production. actors in economic terms - ANSWER-Consumers, workers, businesses, bureaucrats, etc. They are assumed to to maximize something Rational Behavior - ANSWER-Rational actors in the economy res...

ECON 103 Exam 1 Questions and Answers 100% accurate! What is economics? - ANSWER-the science of purposeful human actions and the unintended consequences of that action What are some spontaneous orders? (6) - ANSWER-The Price System, Money, Banks, Stock and Bonds, Future Markets, and Accounting Systems What is the difference of Normative and Positive questions? - ANSWER-N: "what should be..?" P: "What is..?" (Science cannot answer normative questions) What are the four assumptio...

ECON 1103 Exam Questions with 100% Correct Answers Consumer surplus - The difference between the highest price a consumer is willing to pay for a good or service and the price the consumer actually pays. Measures the benefit to consumers from buying a particular product Marginal benefit - the additional benefit to a consumer from consuming one more unit of a good or service - We can use the demand curve to measure the total consumer surplus in a market. Demand curve show the willingness...

Purpose of Economics To make the world more understandable. Explains how the society we live in "hangs together." How hundreds and millions of strangers work together in a society. What is the difference between a positive statement and a normative statement? A positive statement is a statement of a fact. A normative statement is of opinion. Econ focuses on positive statements. Ad hominem fallacy By demand; Committed when someone judges the correctness of the argument based on the person del...

Econ 103: Exam 1 Study Guide with Complete SolutionsEcon 103: Exam 1 Study Guide with Complete SolutionsEcon 103: Exam 1 Study Guide with Complete SolutionsEcon 103: Exam 1 Study Guide with Complete Solutions it is reduced - ANSWER-when government spending, and lump sum taxes are reduced, what happens to GDP? automatic stabilizers - ANSWER-revenue and expenditure items in the federal budget that automatically change with the state of the economy in such a way as to stabilize the economy. ...

Econ 103 Final Exam Study Guide with Complete Solutions Econ 103 Final Exam Study Guide with Complete Solutions Econ 103 Final Exam Study Guide with Complete Solutions Economics - ANSWER-the social science which seeks to understand how humans make decisions in the face of scarcity given unlimited wants Scarcity - ANSWER-human wants for goods, services and resources exceed what is available Factors of Production - ANSWER-land, labor, capital Gross Domestic Product (GDP) - ANSW...

First Principle of Economics - ANSWER-People try to optimize; they try to choose the best available option Second Principle of Economics - ANSWER-Economic systems tend to be in equilibrium, a situation in which nobody would benefit by changing his or her behavior Third Principle of Economics - ANSWER-Empiricism-analysis that uses data. Economicsts use data to test theories and to determine what is causing thhings to happen in the world Scarcity - ANSWER-the situation of having unlimited...

What are the four assumptions of microeconomics? - ANSWER-1. Scarcity 2. Only individuals choose 3. Rational Choice 4. Unlimited wants Is labor a source of value? - ANSWER-No What is the phenomenon of the subjective mind? - ANSWER-Value is in the mind of the valuer Scarcity imposes a margin (T/F) - ANSWER-True What are Mengers requirements to be considered a good? - ANSWER-1. Must be a human need 2. Properties that allow the object to satisfy a need 3. Knowledge of a connection ...

Econ 103- Exam 1 (Chapters 1-4) with Complete SolutionsEcon 103- Exam 1 (Chapters 1-4) with Complete SolutionsEcon 103- Exam 1 (Chapters 1-4) with Complete SolutionsEcon 103- Exam 1 (Chapters 1-4) with Complete Solutions what percent of the worlds economics experience scarcity - ANSWER-100% economics is the study of - ANSWER-how society manages its scarce resources the principle that "people face tradeoffs" applies to - ANSWER-individuals, families, societies the opportunity cost...