Econ 231 Midterm Study Guide || All Correct.
The invisible hand correct answers concept was developed by Adam Smith.
The invisible hand correct answers It states "people get their
greatest reward by satisfying the needs and wants of others.
Demand correct answers is the willingness to buy.
income effect and substitution effect. correct answers There are two reasons an individual buys
less of something when the price goes up:
Law of Demand correct answers states the lower the price the greater the quantity demanded.
Demand Curve correct answers is a graph that shows the relationship of price and quantity
demanded.
Price correct answers is found on the y-axis
Quantity correct answers found on the x axis
The demand curve correct answers an example of the rationing function of price. Reflect
consumers choices.
Demand Curve correct answers reflects the law of demand.
represents an increase in demand correct answers When the demand curve shifts to the right of
the original demand curve what happens?
represents a decrease in demand correct answers When the demand curve shifts to the left of the
original demand curve what happens?
Income correct answers What shifts the demand curve?
Supply correct answers the willingness to sell.
Law of Supply correct answers states the higher the price the greater the quantity supplied
Supply Curve correct answers a graph that shows the relationship of price and quantity supplied
Supply Curve correct answers What curve reflects producers choices.
: rationing function and production motivating function correct answers Two functions of price
Equilibrium correct answers is the point where the demand curve and supply curve intersects and
there are no surplus and shortages.
, Price Ceiling correct answers is the legal maximum price that can be charged for goods and
services.
It protects the consumer.
Price Floor correct answers is the legal minimum price that can be charged for goods and
services. It
protects the producer.
Inferior Good correct answers is a good that is purchased in order to save money
Aggregate correct answers is defined as total or combining many individual markets into one
overall.
total spending correct answers The key to understanding macroeconomics is
unemployment, inflation, and economic
growth. correct answers The main concerns of macroeconomics
Inflation correct answers is a sustained increase in prices.
Recession correct answers is when the economy slows down.
GDP correct answers is an economic indicator used to help measure the speed of the economy.
C + I + G + (Ex - Im) correct answers The equation used to determine GDP is
C- Consumers, I - Investment by the Producers
G - Government Spending Ex - Exports Im - Imports correct answers What do the letters stand
for in the GDP equation=C + I + G + (Ex - Im)?
Consumers correct answers spend 2/3 of all the spending in our economy.
Consumer Price index, Producers Price index, GDP, Unemployment Stats, &
Inflation correct answers are known as leading economic indicators
Nominal GDP correct answers is gdp that has not been adjusted for inflation
Real GDP correct answers is gdp that has been adjusted for inflation.
Nominal GDP divided by Price Index
times 100 correct answers The model used to determine Real GDP is
final goods and services correct answers GDP only includes
GDP correct answers is a measure of production
The invisible hand correct answers concept was developed by Adam Smith.
The invisible hand correct answers It states "people get their
greatest reward by satisfying the needs and wants of others.
Demand correct answers is the willingness to buy.
income effect and substitution effect. correct answers There are two reasons an individual buys
less of something when the price goes up:
Law of Demand correct answers states the lower the price the greater the quantity demanded.
Demand Curve correct answers is a graph that shows the relationship of price and quantity
demanded.
Price correct answers is found on the y-axis
Quantity correct answers found on the x axis
The demand curve correct answers an example of the rationing function of price. Reflect
consumers choices.
Demand Curve correct answers reflects the law of demand.
represents an increase in demand correct answers When the demand curve shifts to the right of
the original demand curve what happens?
represents a decrease in demand correct answers When the demand curve shifts to the left of the
original demand curve what happens?
Income correct answers What shifts the demand curve?
Supply correct answers the willingness to sell.
Law of Supply correct answers states the higher the price the greater the quantity supplied
Supply Curve correct answers a graph that shows the relationship of price and quantity supplied
Supply Curve correct answers What curve reflects producers choices.
: rationing function and production motivating function correct answers Two functions of price
Equilibrium correct answers is the point where the demand curve and supply curve intersects and
there are no surplus and shortages.
, Price Ceiling correct answers is the legal maximum price that can be charged for goods and
services.
It protects the consumer.
Price Floor correct answers is the legal minimum price that can be charged for goods and
services. It
protects the producer.
Inferior Good correct answers is a good that is purchased in order to save money
Aggregate correct answers is defined as total or combining many individual markets into one
overall.
total spending correct answers The key to understanding macroeconomics is
unemployment, inflation, and economic
growth. correct answers The main concerns of macroeconomics
Inflation correct answers is a sustained increase in prices.
Recession correct answers is when the economy slows down.
GDP correct answers is an economic indicator used to help measure the speed of the economy.
C + I + G + (Ex - Im) correct answers The equation used to determine GDP is
C- Consumers, I - Investment by the Producers
G - Government Spending Ex - Exports Im - Imports correct answers What do the letters stand
for in the GDP equation=C + I + G + (Ex - Im)?
Consumers correct answers spend 2/3 of all the spending in our economy.
Consumer Price index, Producers Price index, GDP, Unemployment Stats, &
Inflation correct answers are known as leading economic indicators
Nominal GDP correct answers is gdp that has not been adjusted for inflation
Real GDP correct answers is gdp that has been adjusted for inflation.
Nominal GDP divided by Price Index
times 100 correct answers The model used to determine Real GDP is
final goods and services correct answers GDP only includes
GDP correct answers is a measure of production
