Econ 201 exam questions - Study guides, Class notes & Summaries

Econ 201 Exam 3 Questions & answers

Econ 201 Exam 3 Questions & answers

Econ 201 Prediction Exam Questions Correctly Answered. The ___ propensity to consume is the fraction or percentage of total income that is consumed. - CORRECT ANSWER average The investment demand curve shows the amount of investment forthcoming at each nominal interest rate. - CORRECT ANSWER False To economists, the term "aggregate" means... - CORRECT ANSWER total combined The slope of the savings function is the ____ propensity to save. - CORRECT ANSWER marginal Real interest...

Econ 201 Practice Exam Questions and Answers Latest Version 2023 100% Complete Guide

Econ 201 Exam 1 Questions And Verified Detailed Answers...

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...

Econ 201 Exam 3 Questions & answers

Econ 201 Practice Exam Questions and Answers Latest Version 2023 100% Complete Guide

Econ 201 Exam 3 Questions And Answers Once it becomes obvious that a public good is being underprovided, - ANS the marginal benefit of further production to an individual fails to outweigh the individual's marginal cost. Conditions under which externalities can be solved in a decentralized manner. - ANS The Coase Theorem 3. The market failure of moral hazard may occur when one party - ANS -Has symmetric information about the other party's ACTION 4. The libertarian positio...