Economics for MTTC 105 Exam | Questions And Answers Latest {2024- 2025} A+ Graded |
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Economics - the study of the ways specific societies allocate resources to individuals and groups within
that society
In general, the economic system that drives an individual society is based on: what goods are produced,
how those goods are produced, and who acquires the goods or benefits from them
Macroeconomics - the study of economy-wide phenomena, including inflation, unemployment, and
economic growth
studies larger systems
Looks at economic trends and structures on a national level
variables studied include: output, consumption, investment, government spending, net exports
Microeconomics - the study of the economic behavior and decision making of small units, such as
individuals, families, and businesses
studies smaller systems
elements studied are factors of production, cost of production, and factor income. These factors
determine production decisions of individual firms, based on resources and costs
A Market economy - is based on supply and demand which is determined by consumers
Demand - has to do with what customers want and need, as well as what quantity those consumers are
able to purchase based on other economic factors
Supply - Refers to how much can be produced to meet demand, or how much suppliers are willing and
able to sell
Market Equilibrium Price - where the needs of consumers meet the needs of suppliers.
This price varies depending on many factors, including the overall health of a society's economy and the
overall beliefs and considerations of individuals in society
, Market Economy: Elasticity - this is based on how the quantity of a particular product responds to the
price demanded for that product. If quantity responds quickly to changes in price, the supply/demand
for that product is said to be elastic. If it does not respond quickly, then the supply/demand is inelastic
Market Economy: Market Efficiency - this occurs when a market is capable of producing output high
enough to meet consumer demand
Market Economy: Comparative Advantage - in the field of international trade, this refers to a country
focusing on a specific product that it can produce more efficiently and more cheaply, or at a lower
opportunity cost, than another country, thus giving it a comparative advantage in production
Planned Economy - A public entity or planning authority makes the decisions about what resources will
be produced, how they will be produced, and who will be able to benefit from them. The means of
production such as factories, are also owned by a public entity rather than by private interests
Market Socialism - the economic structure falls somewhere between the market economy and the
planned economy. Planning authorities determine the allocation of resources at higher economic levels,
while consumer goods are driven by a market economy
Classification of various markets by economists - -existence of a competition
-number and size of suppliers
-influence of suppliers over price
-variety of available products
-ease of entering the market
5 types of Market Failure - -inadequate competition
-inadequate information
-immobile resources
-negative externalities, or side effects
-failure to provide public goods
100% Verified
Economics - the study of the ways specific societies allocate resources to individuals and groups within
that society
In general, the economic system that drives an individual society is based on: what goods are produced,
how those goods are produced, and who acquires the goods or benefits from them
Macroeconomics - the study of economy-wide phenomena, including inflation, unemployment, and
economic growth
studies larger systems
Looks at economic trends and structures on a national level
variables studied include: output, consumption, investment, government spending, net exports
Microeconomics - the study of the economic behavior and decision making of small units, such as
individuals, families, and businesses
studies smaller systems
elements studied are factors of production, cost of production, and factor income. These factors
determine production decisions of individual firms, based on resources and costs
A Market economy - is based on supply and demand which is determined by consumers
Demand - has to do with what customers want and need, as well as what quantity those consumers are
able to purchase based on other economic factors
Supply - Refers to how much can be produced to meet demand, or how much suppliers are willing and
able to sell
Market Equilibrium Price - where the needs of consumers meet the needs of suppliers.
This price varies depending on many factors, including the overall health of a society's economy and the
overall beliefs and considerations of individuals in society
, Market Economy: Elasticity - this is based on how the quantity of a particular product responds to the
price demanded for that product. If quantity responds quickly to changes in price, the supply/demand
for that product is said to be elastic. If it does not respond quickly, then the supply/demand is inelastic
Market Economy: Market Efficiency - this occurs when a market is capable of producing output high
enough to meet consumer demand
Market Economy: Comparative Advantage - in the field of international trade, this refers to a country
focusing on a specific product that it can produce more efficiently and more cheaply, or at a lower
opportunity cost, than another country, thus giving it a comparative advantage in production
Planned Economy - A public entity or planning authority makes the decisions about what resources will
be produced, how they will be produced, and who will be able to benefit from them. The means of
production such as factories, are also owned by a public entity rather than by private interests
Market Socialism - the economic structure falls somewhere between the market economy and the
planned economy. Planning authorities determine the allocation of resources at higher economic levels,
while consumer goods are driven by a market economy
Classification of various markets by economists - -existence of a competition
-number and size of suppliers
-influence of suppliers over price
-variety of available products
-ease of entering the market
5 types of Market Failure - -inadequate competition
-inadequate information
-immobile resources
-negative externalities, or side effects
-failure to provide public goods
