Con 102 - Study guides, Class notes & Summaries

1) The natural unemployment rate is A) equal to 0 percent. B) the same as the cyclical unemployment rate. C) the rate at which cyclical unemployment is equal to 6 percent. D) the rate at which cyclical unemployment is equal to 0 percent. E) none of the above. the rate at which cyclical unemployment is equal to 0 percent

The production possibilities frontiers in the figure to the right show how many bananas and coconuts you (Y) and your neighbor (N) can consume without trade. Suppose you are initially consuming 10 bananas and 4 coconuts and your neighbor is initially consuming 6 bananas and 8 coconuts. Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative advantage. You give your neighbor half of your production for half of what he produces. (Ent...

Econ 102 Final Exam ISU Questions and Answers 100% Solved Economics ️️a social science that seeks to understand how humans make decisions in the face of scarcity Scarcity ️️One word- Limits factors of production ️️land, labor, capital Division and specialization of labor ️️the process in which workers select specialized tasks to make a product Specialization ️️when workers or firms focus on particular tasks for which they are wellsuited within the overall producti...

Econ 102 Exam: Questions & Verified Answers

ECON 102 Exam 1 Latest Update 100% Pass Economic Analysis People making decisions economic wat of thinking Choices: Costs and Benefits Performing a certain economic action will increase our well-being if the benefits are greater than the costs (choices are the result of scarcity) Self Interest The pursuit of one's own goals (does not always mean increasing one's wealth; could also include prestige, friendship, love, and feeling good) Rationality Assumption The assumption that people do not ...

Econ 102 Final Exam: Questions With Solutions (100%)

Econ 102 Actual Exam Questions and CORRECT Answers Which of the following would be most likely to have monopoly powers? - CORRECT ANSWER- A municipal water company Which of the following is an example of a barrier to entry? - CORRECT ANSWER- Larry obtains a copyright for the new computer game that he invented. The defining characteristic of natural monopoly is? - CORRECT ANSWER- Economies of scale over the relevant range of output

Econ 102 quiz 4 Question 1 of 10 10.0/ 10.0 Points The supply of money in the U.S. economy is determined primarily by A. decisions made by the Federal Reserve and the U.S. Treasury. B. the actions of the Federal Reserve and the banking system. C. consumers and the banking system. D. the demand for money in the economy. Answer Key: B Question 2 of 10 10.0/ 10.0 Points One of the essential functions that a bank performs is A. purchasing government bonds. B. creating deposits by lending required re...

The point where economic activity bottoms out in a full business cycle is known as:The point where economic activity bottoms out in a full business cycle is known as the trough. The low point in a business cycle which precipitates a period of economic growth is known as the trough. A recession is the entire period of time where real GDP is falling. The phrase pre-expansion is not commonly used. One of the primary goals of most governments with regard to the economy is:One of the prim...

Econ 102 Exam review Questions and Answers 100% Solved 1. In the CPI, goods and services are weighted according to a. how long a market has existed for each good or service. b. the extent to which each good or service is regarded by the government as a necessity. c. how much consumers buy of each good or service. d. the number of firms that produce and sell each good or service. C 2. In the calculation of the CPI, books are given greater weight than magazines if a. consumers buy more bo...