C211 OA Final EXAM Questions AND Correct Answers
% change in quantity demanded / % change in income - ✔✔income elasticity of
demand equation
% change in quantity demanded / % change in price - ✔✔price elasticity of
demand equation
% change in quantity demanded of Y / % change in price of X - ✔✔cross
elasticity of demand equation
1. consumption
2. investment
3. government purchases
4. net exports (exports minus imports) - ✔✔4 components of GDP
above, below price, up to - ✔✔producer surplus is measured in the area ______
the supply curve, _____ the price, ______ the quantity supplied
absolute - ✔✔under free trade, a nation gains by specializing in economic
activities in which it has _____advantage
antitrust laws - ✔✔what prevents oligopolistic firms from behaving like
monopolies?
balance of trade - ✔✔The aggregation of importing and exporting that leads to
the country-level trade surplus or deficit.
,bounded rationality - ✔✔the necessity of making rational decisions in the
absence of complete information
budget constraint - ✔✔a piece of analysis that shows the combination of goods
the consumer can afford given their income and price of goods
budget constraint - ✔✔the limit on consumption bundles that a consumer can
afford
budget constraint - ✔✔the slope of the indifference curve equals the slope of
the
by signaling which conduct is legit and which is not - ✔✔how do institutions
reduce uncertainty?
capital inflow, technology spillovers, advanced management know-how, creates
jobs - ✔✔what benefits exist to a country receiving FDI?
centrally planned and market - ✔✔two polar types of economies
change in total cost / change in quantity - ✔✔formula to calculate marginal cost
civil - ✔✔law that uses comprehensive statutes and codes as a primary means
to form legal judgements
, civil - ✔✔less confrontational, shorter, less specific form of law
classical - ✔✔mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade
cognitive - ✔✔pillar of informal institution, taken for granted values and beliefs
that guide behavior
command - ✔✔factors of production should be government owned or state
owned and all supply, demand and pricing are planned by the government
common - ✔✔law that is shaped by precedents and traditions from previous
judicial decisions
comparative - ✔✔focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of one good
where it has ______ advantage
complements - ✔✔hot dogs and hot dog buns are examples of
complements and substitutes - ✔✔the positive or negative numbers of cross
price elasticity of demand represent what?
consumer surplus - ✔✔the difference between what a buyer is willing to pay for
a good or service and what they actually pay
% change in quantity demanded / % change in income - ✔✔income elasticity of
demand equation
% change in quantity demanded / % change in price - ✔✔price elasticity of
demand equation
% change in quantity demanded of Y / % change in price of X - ✔✔cross
elasticity of demand equation
1. consumption
2. investment
3. government purchases
4. net exports (exports minus imports) - ✔✔4 components of GDP
above, below price, up to - ✔✔producer surplus is measured in the area ______
the supply curve, _____ the price, ______ the quantity supplied
absolute - ✔✔under free trade, a nation gains by specializing in economic
activities in which it has _____advantage
antitrust laws - ✔✔what prevents oligopolistic firms from behaving like
monopolies?
balance of trade - ✔✔The aggregation of importing and exporting that leads to
the country-level trade surplus or deficit.
,bounded rationality - ✔✔the necessity of making rational decisions in the
absence of complete information
budget constraint - ✔✔a piece of analysis that shows the combination of goods
the consumer can afford given their income and price of goods
budget constraint - ✔✔the limit on consumption bundles that a consumer can
afford
budget constraint - ✔✔the slope of the indifference curve equals the slope of
the
by signaling which conduct is legit and which is not - ✔✔how do institutions
reduce uncertainty?
capital inflow, technology spillovers, advanced management know-how, creates
jobs - ✔✔what benefits exist to a country receiving FDI?
centrally planned and market - ✔✔two polar types of economies
change in total cost / change in quantity - ✔✔formula to calculate marginal cost
civil - ✔✔law that uses comprehensive statutes and codes as a primary means
to form legal judgements
, civil - ✔✔less confrontational, shorter, less specific form of law
classical - ✔✔mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade
cognitive - ✔✔pillar of informal institution, taken for granted values and beliefs
that guide behavior
command - ✔✔factors of production should be government owned or state
owned and all supply, demand and pricing are planned by the government
common - ✔✔law that is shaped by precedents and traditions from previous
judicial decisions
comparative - ✔✔focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of one good
where it has ______ advantage
complements - ✔✔hot dogs and hot dog buns are examples of
complements and substitutes - ✔✔the positive or negative numbers of cross
price elasticity of demand represent what?
consumer surplus - ✔✔the difference between what a buyer is willing to pay for
a good or service and what they actually pay
