ECON 201Test quizzes and answers
rated 100%
Monopoly - ANS✅✅one seller, no close substitutes, complete barriers to entry
Market power - ANS✅✅when any agent in the economy can impact the price market
Monopoly resources - ANS✅✅sole ownership of a resource
Gov't created monopoly - ANS✅✅gov't gives exclusive rights of production
Natural monopoly - ANS✅✅a single firm can produce for the entire market at a lower average cost
than 2 or more firms
GDP - ANS✅✅Gross domestic product; measures both expenditure and income; every transaction
has a buyer and a seller; every dollar of spending is also a dollar of income for someone else; market
value of all final goods and services produced within a country over a given period of time(legal
production)
consumption (c) - ANS✅✅spending my households on g and s(new housing not included)
COMPONENTS OF GDP
investment (I) - ANS✅✅spending on capital equipment, inventories and structures COMPONENTS
OF GDP
Gov't purchases(g) - ANS✅✅the spending on g and s by local, state and fed gov't (does not include
transfers) COMPONENTS OF GDP
net exports(nx) - ANS✅✅exports minus imports COMPONENTS OF GDP
components of GDP(y) - ANS✅✅y=c+i+g+nx
nominal GDP - ANS✅✅calculated at current prices
rated 100%
Monopoly - ANS✅✅one seller, no close substitutes, complete barriers to entry
Market power - ANS✅✅when any agent in the economy can impact the price market
Monopoly resources - ANS✅✅sole ownership of a resource
Gov't created monopoly - ANS✅✅gov't gives exclusive rights of production
Natural monopoly - ANS✅✅a single firm can produce for the entire market at a lower average cost
than 2 or more firms
GDP - ANS✅✅Gross domestic product; measures both expenditure and income; every transaction
has a buyer and a seller; every dollar of spending is also a dollar of income for someone else; market
value of all final goods and services produced within a country over a given period of time(legal
production)
consumption (c) - ANS✅✅spending my households on g and s(new housing not included)
COMPONENTS OF GDP
investment (I) - ANS✅✅spending on capital equipment, inventories and structures COMPONENTS
OF GDP
Gov't purchases(g) - ANS✅✅the spending on g and s by local, state and fed gov't (does not include
transfers) COMPONENTS OF GDP
net exports(nx) - ANS✅✅exports minus imports COMPONENTS OF GDP
components of GDP(y) - ANS✅✅y=c+i+g+nx
nominal GDP - ANS✅✅calculated at current prices
