Fsu Eco2013 Exam 2 Hammock Exam Questions With Correct Verified Answers | 100% Pass (A+ Certified)

FSU ECO2013 EXAM 2 HAMMOCK EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS | 100% PASS (A+ CERTIFIED)The market process Vs. The political process Answer People pursuing their own individual self-interest results in an outcome that is beneficial to everyone VS. The political process can work well when the policy being considered has widespread benefits and costs. It can work poorly when the policy being considered has widespread costs and concentrated benefits (or vice versa) Voters Answer Voting for the candidates who's policies they like. *One single vote, YOUR vote does not individually matter Rational Bias Answer Rational based on personal biases Politicians Answer A person who is professionally involved in politics, especially as a holder of or a candidate for an elected office. *They tend to spend more time focused on the next election cycle or so. Bureaucrats Answer Managers in government. They carry out the governments plans. Can't maximize profits! What they want: To achieve their agencies mission, to increase their budget How do they get it: Congress allocates it to them, so they have to please congress Mixon's Law: Bureaucrats always ask for more, even if they are doing well or poorly. Special Interest Effect Answer Basically argues that government grows because, for most government programs there are concentrated beneficiaries and diffused cost bearers This basically means that benefits for government programs fall on relatively small, easily definable and therefore organized groups. i.e. special interests, while the cost will be widespread amongst the population as a whole. Shortsightedness Answer Politicians tend to focus on the next election cycle or two Rent-Seeking Answer -Lobbying the government to obtain a rent, or favor -An income, benefit, or payment that cannot be competed away by the ordinary economy Government Inefficency Answer Bureaucrats tend to minimize costs due to lack of profit motives and because their spending someone else's money. Stocks Vs. Flows Answer Stocks: an amount Flows: Change in that amount GDP Answer (Gross Domestic Product) The market value for all final goods and services produced within a geographic are within a time period Final vs. Immediate goods Answer Final Goods: The product has already reached the final consumer Immediate Goods: Will be used in a final good. (used goods do not count!) Circular flow diagram Answer Income Approach vs. Expenditure Approach Answer Income Approach: Find GDP by adding all incomes *Will get about the same number because one person's income comes from another's expenditure Expenditure Approach: -Y = C+L+NX -GDP = Consumption Spending (clothes) + Investment Spending (business being better) + Government Spending + Net Exports -NX = X - M. Where X is exports and M is imports Y=C+L+NX Answer GDP = Consumption Spending (clothes) + Investment Spending (business being better) + Government Spending + Net Exports (NX = X - M. Where X is exports and M is imports) Per Capita GDP Answer Is a measure of the total output of a country that takes gross