Eco 2305 ttu Study guides, Class notes & Summaries

"other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises" - this relationship between price and quantity demanded is referred to as - Answer-the law of demand a basic principle of economics is that a country's standard of living depends on its - Answer-ability to produce goods and services a bond that never matures is known as a - Answer-perpetuity a circular flow diagram is a model that - Answer-...

Economists recognize that because people have limited resources: - Answer-They have to make trade-offs If all the world's resources were to magically increase one hundredfold, then: - Answer-People would still have to make trade-offs Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is: - Answer-An economic problem because Chris has only one hour, and engaging in one activi...

Scarcity - Answer-Resources are limited (unlimited human needs, but limited resources) The Study of Economics - Answer-How to manage limited resource to maximize the outcome/output Goods - Answer-Tangible Items (clothes, food, etc) Services - Answer-Intangible Items (education, health care) 3 Economic Questions - Answer-What to produce? How to produce? For whom to produce Command/Socialism System - Answer-Centralized decisions about production (ex: soviet union/china) Capitalized/ Fr...

GDP does not directly include intermediate goods because - Answer-that would count the intermediate goods twice. Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and X - M net exports of goods and services. Then GDP equals - Answer-C + I + G + X - M. Two methods of measuring GDP are - Answer-the income approach and the expenditure approach Nominal GDP is the value of final goods and services - Answer-at ...