NCSU EC 202 Comprehensive Exam And Already Passed Answers.

Economics - Answer the study of how people make choices to use scarce resources, as they seek to satisfy their unlimited wants Microeconomics (EC 201) - Answer 1 of 2 Branches of Economics: concentrates on individual economic units - e.g. consumers, firms, and focuses on price as an allocative mechanism Macroeconomics (EC 202) - Answer 1 of 2 Branches of Economics: concentrates on the overall performance of the economy - e.g total national output (GDP), unemployment and inflation - topics revolve around the conduct of monetary and fiscal policy Fiscal Policy - Answer 1 of 2 Main Branches of Macroeconomics: concentrates on taxation, government spending and borrowing - we can use supply and demand to analyze the impact of this - components: taxation, government spending, and borrowing (happens through bond markets and interest rates come into play) i.e. the goods and services on which the taxes are spent Monetary Policy - Answer 1 of 2 Main Branches of Macroeconomics: concentrates on central banking - e.g. the Federal Reserve System (Fed, for short), the money supply, and interest rate policy Excise Tax - because it's a per unit tax - Answer What is the easiest tax to analyze? Why? Income Tax - Answer biggie tax at Federal Level largest source of revenue