Global Econ 2101
GaTech (146 questions
and answers)
Opportunity Cost - answer what you sacrifice for something else. Both the
money you paid for something and the money you could have made.
(Doesn't include things like room and board would have had to pay for that
no matter what)\
Demand Curve - answer downward-sloping line that graphically shows the
quantities demanded at each possible price. price is on the y, Q is on the x.
Production Possibility Curve - answer Displays what you give up to have
something else (opportunity cost). productive resources fully employed
(wheat for steal)
Production Possibility Front - answer when the opportunity cost is linear (ie.
the resources for steal directly transfer over to wheat -- doesn't usually
happen)
Marginal Benefit - answer gain from small increase in some activity
Marginal Cost - answer the cost of producing one more unit of a good
Marginal Principle - answer Increase the level of an activity as long as its
marginal benefit exceeds its marginal cost. When MB = MC, you have
maximized your profits.
MB = MC - answer Marginal Cost goes up with quantity, Marginal Benefit
goes down with quantity,
, Application of Opportunity Cost - answer If they include costs that they would
face even if not renting out a building, then they overprice it and dont make
as much.
Automobile Emissions Standars - answer govt should continue to make
emissions pollution standards stricter as long as mb>mc.
Principal Of Voluntary Exchange - answer makes most parties feel better off,
allows for specialization.
Principle of Diminishing Returns - answer micro short run phenomenon where
one factor is fixed so output begins to increase at diminishing rates
Returns to Scale - answer micro long run where no factor is fixed so overtime
the supply and demand laws can occur.
Point of Diminishing Returns - answer when output begins to increase at a
diminishing rate
Real Nominal Principle - answer real value is more important than nominal
value
Nominal Value - answer Face Value ie. $5.
Real Value - answer Purchasing power, what really matters to individuals
Things affected by inflation - answer Social Security, Cost of Living
Adjustments (COLA), Published stats (adjusted)
GaTech (146 questions
and answers)
Opportunity Cost - answer what you sacrifice for something else. Both the
money you paid for something and the money you could have made.
(Doesn't include things like room and board would have had to pay for that
no matter what)\
Demand Curve - answer downward-sloping line that graphically shows the
quantities demanded at each possible price. price is on the y, Q is on the x.
Production Possibility Curve - answer Displays what you give up to have
something else (opportunity cost). productive resources fully employed
(wheat for steal)
Production Possibility Front - answer when the opportunity cost is linear (ie.
the resources for steal directly transfer over to wheat -- doesn't usually
happen)
Marginal Benefit - answer gain from small increase in some activity
Marginal Cost - answer the cost of producing one more unit of a good
Marginal Principle - answer Increase the level of an activity as long as its
marginal benefit exceeds its marginal cost. When MB = MC, you have
maximized your profits.
MB = MC - answer Marginal Cost goes up with quantity, Marginal Benefit
goes down with quantity,
, Application of Opportunity Cost - answer If they include costs that they would
face even if not renting out a building, then they overprice it and dont make
as much.
Automobile Emissions Standars - answer govt should continue to make
emissions pollution standards stricter as long as mb>mc.
Principal Of Voluntary Exchange - answer makes most parties feel better off,
allows for specialization.
Principle of Diminishing Returns - answer micro short run phenomenon where
one factor is fixed so output begins to increase at diminishing rates
Returns to Scale - answer micro long run where no factor is fixed so overtime
the supply and demand laws can occur.
Point of Diminishing Returns - answer when output begins to increase at a
diminishing rate
Real Nominal Principle - answer real value is more important than nominal
value
Nominal Value - answer Face Value ie. $5.
Real Value - answer Purchasing power, what really matters to individuals
Things affected by inflation - answer Social Security, Cost of Living
Adjustments (COLA), Published stats (adjusted)
