BRCC MACROECONOMICS 2213 FINAL EXAM
QUESTIONS AND VERIFIED ANSWERS
What is Economics - Answers - The study of choices entities make to allocate resources
What is Scarcity - Answers - The inability to satisfy unlimited wants with limited
resources
What are the factors of production and their rewards - Answers - lsnf: Rent, Labor:
wages, Profit: Entrepreneurship, Interest: Use of capital
What is oportunity cost? - Answers - the loss of potential gain from other alternatives
when one alternative is chosen.
What points are attainable on a PPF (Production Possibilities Frontier) - Answers -
Anything Inside or on the curve of the PPF
What points are unattainable on a PPF (Production Possibilities Frontier) - Answers -
Any point oterm-47n the outside of the curve of the PPF
How do you calculate Inflation using CPI? - Answers - Inflation: CPI Current year- CPI
Base Year/CPI base year x 100
Why are some points unattainable on a PPF? - Answers - In order to reach the
unattainable points, there needs to be an increase in resources or advancement in
technology. Until then the only possible amount of production is what is on the PPF.
Which points are efficient/full employment on a PPF - Answers - When the PPF is
marked on the curve of the PPF at any point.
Which points are inefficient/unemployment on a PPF - Answers - When the PPF is
marked UNDER the curve of the PPF at any given point.
What is Law of Demand - Answers - Price and Quantity demanded are negatively
related OR When PRICE is HIGH, quantity demanded is LOW, when price is LOW
quantity demanded is HIGH
What are the determinants that shift demand - Answers - Price, Income, Preference,
Cost of Substitute Goods, Expectation of Price, Number of buyers.
What is the shape of the supply curve? - Answers - Upward Sloping
What is the shape of the demand curve? - Answers - Downward sloping
QUESTIONS AND VERIFIED ANSWERS
What is Economics - Answers - The study of choices entities make to allocate resources
What is Scarcity - Answers - The inability to satisfy unlimited wants with limited
resources
What are the factors of production and their rewards - Answers - lsnf: Rent, Labor:
wages, Profit: Entrepreneurship, Interest: Use of capital
What is oportunity cost? - Answers - the loss of potential gain from other alternatives
when one alternative is chosen.
What points are attainable on a PPF (Production Possibilities Frontier) - Answers -
Anything Inside or on the curve of the PPF
What points are unattainable on a PPF (Production Possibilities Frontier) - Answers -
Any point oterm-47n the outside of the curve of the PPF
How do you calculate Inflation using CPI? - Answers - Inflation: CPI Current year- CPI
Base Year/CPI base year x 100
Why are some points unattainable on a PPF? - Answers - In order to reach the
unattainable points, there needs to be an increase in resources or advancement in
technology. Until then the only possible amount of production is what is on the PPF.
Which points are efficient/full employment on a PPF - Answers - When the PPF is
marked on the curve of the PPF at any point.
Which points are inefficient/unemployment on a PPF - Answers - When the PPF is
marked UNDER the curve of the PPF at any given point.
What is Law of Demand - Answers - Price and Quantity demanded are negatively
related OR When PRICE is HIGH, quantity demanded is LOW, when price is LOW
quantity demanded is HIGH
What are the determinants that shift demand - Answers - Price, Income, Preference,
Cost of Substitute Goods, Expectation of Price, Number of buyers.
What is the shape of the supply curve? - Answers - Upward Sloping
What is the shape of the demand curve? - Answers - Downward sloping
