Econ 201 Exam 1(North Dakota State University): Latest Updated Solution Guide

Economic issues or Goals (Ans- 1.) Efficiency 2.) Equity 3.) Stability 4.) Economic Growth Efficiency (Ans- making the best possible use of resources when achieving a goal Equity (Ans- Refers to the way society's output of goods is distributed - is it fair? Stability (Ans- 1.) Price - measured by the consumer price index 2.) Jobs - measured by the unemployment rate Economic Growth (Ans- Refers to the substantial and sustained increase in the nation's income or output Technical Efficiency (Ans- efficient use of resources when producing a good or service Allocative Efficiency (Ans- the efficient distribution of society's scarce resources Consumer Price Index (CPI) (Ans- Measures the change in price of market base of consumer goods and services purchased by households. Theory (Ans- Tries to explain why or how things happen in the real world market