UNT ECON 1100 EXAM 3 EXAM PREP
GUIDE 2026 CORE ECONOMIC
PRINCIPLES AND SOLVED ITEMS
◉ Inflation
Answer: an overall increase in the level of prices prevalent in a
country over time
◉ Consumer Price Index (CPI)
Answer: measure of the average change over time in the prices of
paid by urban consumers for a market basket of goods/services
◉ Deflation
Answer: declining prices over time
◉ Barter
Answer: the exchange of one good for another between two people
◉ Dual Coincidence of Wants
Answer: the technical way of saying that for a barter trade to take
place, one side of the transaction has to want what the other side
has, and vice versa
, ◉ Money Supply
Answer: the amount of money in circulation
◉ Equation of Exchange
Answer: ties together the amount of money created by a government
and the prices charged by business people in general M X V = GDP =
PXQ
◉ Relative Price
Answer: an expression of the price of a unit of the good in terms of
number of units of some other good
◉ Menu Costs
Answer: costs of changing price
◉ Hyperinflation
Answer: an extremely high rate of inflation, generally greater than
100% per year
◉ Transaction Costs
Answer: costs that must be incurred in order to participate in a
market are dramatically increased
GUIDE 2026 CORE ECONOMIC
PRINCIPLES AND SOLVED ITEMS
◉ Inflation
Answer: an overall increase in the level of prices prevalent in a
country over time
◉ Consumer Price Index (CPI)
Answer: measure of the average change over time in the prices of
paid by urban consumers for a market basket of goods/services
◉ Deflation
Answer: declining prices over time
◉ Barter
Answer: the exchange of one good for another between two people
◉ Dual Coincidence of Wants
Answer: the technical way of saying that for a barter trade to take
place, one side of the transaction has to want what the other side
has, and vice versa
, ◉ Money Supply
Answer: the amount of money in circulation
◉ Equation of Exchange
Answer: ties together the amount of money created by a government
and the prices charged by business people in general M X V = GDP =
PXQ
◉ Relative Price
Answer: an expression of the price of a unit of the good in terms of
number of units of some other good
◉ Menu Costs
Answer: costs of changing price
◉ Hyperinflation
Answer: an extremely high rate of inflation, generally greater than
100% per year
◉ Transaction Costs
Answer: costs that must be incurred in order to participate in a
market are dramatically increased
