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ECO 201 Final 3 Exam Questions and Answers 100% Pass The marginal productivity of labor is defied as the amount of output produced by a particular level of an input. - False Accounting Profit is always ______________ Economic Profit because Economic Profit ____________________ - greater than, Includes opportunity cost. The marginal productivity of labor is defined as the additional output produced by an additional unit of labor - True In Economics the short run is always defined as the ...

ECO 201 Miami University Exam 2 Questions and Answers 100% Pass consumer surplus - the sum (of each unit sold) of the difference between what the buyer is willing to pay (given by the height of the demand curve) and the price the buyer actually pays (market price) how is consumer surplus calculated? - area beneath the demand curve and above market price for the number of units sold 1/2 base * height producer surplus - the difference between the price received by the seller (market price...

ECO 201 Chapter 11 Exam Questions and Answers 100% Pass Review the table below. Assume taxes are zero. National Income = Real GDP (Y)Consumption (C)Savings (S)$8000$5400$2600$9000$6000$3000$10,000$6600$3400$11,000$7200$3800 In this example, the marginal propensity to consume (MPC) is: - MCP= changes in consumption/change in income $5,400-$6,00/ $9,000 - $8,000 -600 / 1,000 = -.6 When the economy is in a recession, the government will want to increase output. If the multiplier equals 2...

ECON 201 Final Study Guide Questions and Answers 100% Pass The marginal revenue curve of a monopolist lies below the demand curve because: a. the marginal revenue curve coincides w/ the average revenue curve b. the monopolist is a price taker c. the monopolist must lower price on all units sold in order to sell additional units d. the demand curve is unit elastic - c. the monopolist must lower price on all units sold in order to sell additional units A monopolist: a. can choose any pric...

Economics 201 Final Exam Questions and Answers 100% Pass Definition of Economics - A social science concerned chiefly with description and analysis of the production and consumption of goods and services Definition of Scarcity - Not abundant or plentiful 4 types of economic resources - Land, Labor, Capital, Entrepreneurship Definition of Opportunity Cost - The value of what is sacrificed to get something else Explicit cost - a direct payment made to others in the course of running a busi...

ECON 201 MODULE 7 QUESTIONS AND ANSWERS 100% PASS law of supply - a higher price will lead to a higher quantity supplied price elasticity - the ratio between the percentage change in the quantity demanded (Qd) or quantity supplied (Qs) and the corresponding percent change in price price elasticity of supply - the percentage change in quantity supplied divided by percentage change in price infinite/perfect, constant unitary, or zero - what are the cases of elasticity? infinite/perfect ela...

ECON 201 EXAM 1 STUDY GUIDE QUESTIONS AND ANSWERS 100% PASS Opportunity cost - The real cost of an item: what you must give up in order to get it Marginal decisions - A decision made at the "margin" of an activity to do a bit more or a bit less of that activity. Equilibrium - An economic situation in which no individual would be better off doing something different Efficiency and equity - The difference between efficiency and equity is people or governments being able to make them...

ECO 201 Exam 3 Questions and Answers 100% Pass What are the assumptions underlying perfectly competitive markets? - 1. Large number of buyers and sellers 2. Identical products 3. Easy entry and exit 4. Perfect information (buyers know price of all sellers) If marginal cost begins below average cost and is everywhere increasing, what is true about the shape of the average cost cover? - Average cost intersects marginal cost at its lowest point possible. Marginal Revenue (MR) - the extra ...

ECO 201 Chapter 15 Exam Questions and Answers 100% Pass What is a monopoly? - A firm that is the only seller of a good or service that does not have a close substitute. A firm is a monopoly if.. - 1. It can ignore the actions of all other firms. 2. It's economic profits are not competed away in the long run. To have a monopoly barriers to entry must be what? - So high that know the firm can enter. What are the four barriers to entry for a market that is a monopoly? - 1. Government bl...

ECO 201 Chapter 6 Exam Questions and Answers 100% Pass GNP counts production by the economy's citizens wherever they are in the world - What part of the definition of GDP is critical to distinguish the GDP from the GNP Takes into account only final goods and services - To avoid the "double counting" problem, GDP It will count in this year's GDP as part of investment - Corn produced this year that was not sold Will it count in the GDP? corporate profits - Which of the followin...