ECON 113 Midterm Test Papers All
Solved 100% Correct Rated A+.
absolute advantage - Answer The ability of a country, individual, company or region to
produce a good or service at a lower cost per unit than the cost at which any other entity
produces that good or service.
Aggregate Demand - Answer the relationship between the quantity of real GDP demanded
and the price level
bond market - Answer the market in which bonds issued by firms and governments are traded
capital - Answer the tools, equipment, machinery, buildings and factories that businesses use
to produce of goods and services
capital deepening - Answer a situation where the capital per worker is increasing in the
economy
causation - Answer "A belief that events occur in predictable ways and that one leads to
another. The relation between an event (the cause) and the second event (the effect) where the
second event is understood as a consequence of the first."
Change in demand - Answer A change in buyers' plans that occurs when some influence on
those plans other than the price of the good changes. It is illustrated by a shift of the demand
curve.
Change in supply - Answer A change in the sellers plan that occurs when some influence on
those plans other than the price of the goods changes. it is illustrated by a shift of the supply
curve.
comparative advantage - Answer The ability of a country, region, firm or indnividual to
produce a good or service at a lower opportunity cost than another country can.
Consumer Price Index (CPI) - Answer An index that measures the average of the price paid by
urban consumers for a fixed basket of consumers for a fixed basket
, Consumption Possibilities Frontier (CCPF) - Answer "A graph of the maximum quantities of
goods (usually two) that an economy can consume in a specified situation."
Cost-Benefit Principle - Answer An action should be taken if, and only if the marginal (extra)
benefits from taking the action are at least as great as the marginal (extra) costs.
cross-price elasticity of demand - Answer "A measure of the responsiveness of the demand for
a good to a change in the price of a substitute (i.e. pizza & burger) or complement (i.e. pizza &
soft drinks), other things remaining the same."
deadweight loss - Answer the loss of economic efficiency in terms of utility for
consumers/producers such that the optimal or allocative efficiency is not achieved.
deflation - Answer A persistently falling prise level
demand - Answer The entire relationship between the price if the good and the quantity
demanded of it when all other influences on buyers plans remain the same.
duopoly - Answer A market structure in which two producers of a good or service compete.
economics - Answer The study of how people interact with one another when making choices.
Understand iour of people. It is a social science. It becomes a tool to help understand the world
around us.
equilibrium price - Answer The price at which the quantity demanded demanded equals the
quantity supplied.
exchange rate - Answer the price of one nation's currency exchanges in terms of another
nation's currency in the foreign exchange market.
Externality - Answer A cost (external cost) or a benefit (external benefit) that arises from
production or consumption of a private good and that falls on someone other than the
producer or consumer of that good
Global Financial Crisis - Answer A worldwide period of economic difficulty experienced by
Solved 100% Correct Rated A+.
absolute advantage - Answer The ability of a country, individual, company or region to
produce a good or service at a lower cost per unit than the cost at which any other entity
produces that good or service.
Aggregate Demand - Answer the relationship between the quantity of real GDP demanded
and the price level
bond market - Answer the market in which bonds issued by firms and governments are traded
capital - Answer the tools, equipment, machinery, buildings and factories that businesses use
to produce of goods and services
capital deepening - Answer a situation where the capital per worker is increasing in the
economy
causation - Answer "A belief that events occur in predictable ways and that one leads to
another. The relation between an event (the cause) and the second event (the effect) where the
second event is understood as a consequence of the first."
Change in demand - Answer A change in buyers' plans that occurs when some influence on
those plans other than the price of the good changes. It is illustrated by a shift of the demand
curve.
Change in supply - Answer A change in the sellers plan that occurs when some influence on
those plans other than the price of the goods changes. it is illustrated by a shift of the supply
curve.
comparative advantage - Answer The ability of a country, region, firm or indnividual to
produce a good or service at a lower opportunity cost than another country can.
Consumer Price Index (CPI) - Answer An index that measures the average of the price paid by
urban consumers for a fixed basket of consumers for a fixed basket
, Consumption Possibilities Frontier (CCPF) - Answer "A graph of the maximum quantities of
goods (usually two) that an economy can consume in a specified situation."
Cost-Benefit Principle - Answer An action should be taken if, and only if the marginal (extra)
benefits from taking the action are at least as great as the marginal (extra) costs.
cross-price elasticity of demand - Answer "A measure of the responsiveness of the demand for
a good to a change in the price of a substitute (i.e. pizza & burger) or complement (i.e. pizza &
soft drinks), other things remaining the same."
deadweight loss - Answer the loss of economic efficiency in terms of utility for
consumers/producers such that the optimal or allocative efficiency is not achieved.
deflation - Answer A persistently falling prise level
demand - Answer The entire relationship between the price if the good and the quantity
demanded of it when all other influences on buyers plans remain the same.
duopoly - Answer A market structure in which two producers of a good or service compete.
economics - Answer The study of how people interact with one another when making choices.
Understand iour of people. It is a social science. It becomes a tool to help understand the world
around us.
equilibrium price - Answer The price at which the quantity demanded demanded equals the
quantity supplied.
exchange rate - Answer the price of one nation's currency exchanges in terms of another
nation's currency in the foreign exchange market.
Externality - Answer A cost (external cost) or a benefit (external benefit) that arises from
production or consumption of a private good and that falls on someone other than the
producer or consumer of that good
Global Financial Crisis - Answer A worldwide period of economic difficulty experienced by
