Econ 201 exam 2 Study guides, Class notes & Summaries

ECON 201 EXAM 2 BALL STATE Study Guide.

Econ 201 Exam 2 UMD Latest Update...

Econ 201 Exam 2 Questions with Correct Answers.

ECON 201 EXAM 2

ECON 201 EXAM 2

Econ 201 Exam 2024 With Questions and Answers ...

NDSU ECON 201 Exam 2 With Correct Answers...

ECON 201 EXAM 1 BALL STATE; Questions and Answers 100% Correct What is Economics? Correct answer-the study of how people and society manages its scarce resources. How people make everyday decisions, purchases, savings, etc. What is the difference between microeconomics and macroeconomics? Correct answer1. Micro - the study of how households and firms make decisions and how they interact in specific markets. 2. Macro - the study of economy-wide phenomena

willingness to pay (reservation price) - the maximum price that a buyer would be willing to pay for a good or service willingness to sell - the minimum price that a seller is willing to accept in exchange for a good or service surplus - a way of measuring who benefits and by how much producer surplus - the net benefit that a producer receives from the sale of a good or service how to measure producer surplus - the difference between the producer's willingness to sell and the actual price...

Price ceiling Correct Answer--a legal maximum on the price of a good or service -Example: Rent Control Price Floor Correct Answer--legal minimum on the price of a good or service -Example: Minimum Wage A price ceiling above the equilibrium price is _____ Correct Answer-Not Binding, has no effect on the market outcome The ceiling is a _______ on the price, which causes a shortage Correct Answer--Binding Constraint -Causes a shortage For supply and demand, price is more elastic in...