Economics 101 Exam 1 - SDSU
Cullivan Questions with Accurate
Answers
Aggregate correct answer Means "total"
-Used in macroeconomics (aggregation)
Aggregation correct answer In macroeconomics:
-Adds up output across all industries
-Adds up prices to arrive at one measure of how expensive goods and services are
this year compared to last year
-Adds up data about who’s employed and who isn't so we know the state of all
labor markets and develop a measure of the unemployment rate
Allocation correct answer The process of assigning a good, service, or resource to
one use instead of another
(proposal that would change the allocation of public space for recreational use by
demolishing a skating park and building an arboretum)
Binding price ceiling correct answer A maximum legal price that is set below the
existing equilibrium price.
-Because the market equilibrium price is greater than the price ceiling, the ceiling
restricts trade
-Binding
Binding price floor correct answer A minimum legal price that is set above the
existing equilibrium price
, -Because the market equilibrium price is lower than the price floor, the floor
restricts trade
-Binding
Buyers correct answer Market participants who seek to obtain goods, services
and resources
Capital correct answer The tools, machinery, infrastructure and knowledge used
to produce goods and services.
-Sometimes divided into "physical" and "human"
Change in demand correct answer An increase or a decrease in the quantity
demanded of a good, service, or resource at each possible price.
-Graphically:
-Represented by a shift in the demand curve
-Changes in demand are caused by changes in the nonprice determinants of
demand
Change in supply correct answer an increase or decrease in the quantity supplied
of a good, service, or resource at every price.
-Graphically:
-Changes are represented by a shift of the supply curve
-Changes in supply are caused by changes in a nonprice determinant of supply
Circular flow model correct answer A model that concisely describes how goods,
services, resources, and money flow back and forth in an economy.
Cullivan Questions with Accurate
Answers
Aggregate correct answer Means "total"
-Used in macroeconomics (aggregation)
Aggregation correct answer In macroeconomics:
-Adds up output across all industries
-Adds up prices to arrive at one measure of how expensive goods and services are
this year compared to last year
-Adds up data about who’s employed and who isn't so we know the state of all
labor markets and develop a measure of the unemployment rate
Allocation correct answer The process of assigning a good, service, or resource to
one use instead of another
(proposal that would change the allocation of public space for recreational use by
demolishing a skating park and building an arboretum)
Binding price ceiling correct answer A maximum legal price that is set below the
existing equilibrium price.
-Because the market equilibrium price is greater than the price ceiling, the ceiling
restricts trade
-Binding
Binding price floor correct answer A minimum legal price that is set above the
existing equilibrium price
, -Because the market equilibrium price is lower than the price floor, the floor
restricts trade
-Binding
Buyers correct answer Market participants who seek to obtain goods, services
and resources
Capital correct answer The tools, machinery, infrastructure and knowledge used
to produce goods and services.
-Sometimes divided into "physical" and "human"
Change in demand correct answer An increase or a decrease in the quantity
demanded of a good, service, or resource at each possible price.
-Graphically:
-Represented by a shift in the demand curve
-Changes in demand are caused by changes in the nonprice determinants of
demand
Change in supply correct answer an increase or decrease in the quantity supplied
of a good, service, or resource at every price.
-Graphically:
-Changes are represented by a shift of the supply curve
-Changes in supply are caused by changes in a nonprice determinant of supply
Circular flow model correct answer A model that concisely describes how goods,
services, resources, and money flow back and forth in an economy.
