- Study guides, Class notes & Summaries

Scarcity - limited resources and unlimited wants Economics - the study of how society manages its scarce resources Efficiency - the property of society getting the most it can from its scarce resources equality - the property of distributing economic prosperity uniformly among the members of society opportunity cost - Whatever is given up to get something else rational people - systematically and purposefully do the best they can to achieve their objectives marginal change - An increment...

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21 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Council of Economic Advisers (CEA) - a group of three economists appointed by the president to provide expertise and assistance on economic matters Discretionary changes in government spending and taxes are - at the option of the Federal government. They do not occur automatically. Changes that occur without congressional action are - nondiscretionary (or "passive" or "automatic") expansionary fiscal policy may be in order when - recession occurs. it uses increases in govern...

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8 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Lower bound - Set by the interest rate paid on deposits at the Bank of Canada (interest on reserves). Upper bound - Set by the Bank of Canada's standing lending rate (overnight lending facility). Policy Interest Rate - Set by the Bank to influence the economy. Neutral Interest Rate - The theoretical rate consistent with stable inflation and output. Open Market Operations - Bank buys/sells short-term bonds to influence liquidity and keep rates near target. Quantitative Easing - An uncon...

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21 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

working age population - Total population - under 16 yr olds, military, and institutionalized working age population (labor force) - Labor force + not in labor force Not in labor force - Homemakers Full time students Retirees Disability People who choose not to work Labor force equation - employed + unemployed Employed - 1. Worked at least 1 hour in the past week as a paid employee 2. Worked 15 hours as an unpaid employee in family business 3. Temporary Absence Unemployed - 1. 16 yr o...

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12 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Business Cycle - fluctuations in economic activity Parts of the Business Cycle - expansion, recession, (NBER, and depression) Expansion - a period of growing real GDP and falling unemployment Recession - a period of declining real GDP and rising unemployment NBER (National Bureau of Economic Research) - the agency that identifies a recession Two quarters of of falling real GDP = - recession Depression - server and long-lasting recession Characteristics of Recession - irregular economic fl...

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7 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

In the consumption function: C = 100 + 0.8Yd, 0.8 represents: - the MPC (Marginal Propensity to Consume) The difference between planned Investment and actual Investment - are unplanned changes in inventories The 45° line on a graph with AE and Y is where - planned Aggregate Expenditure is equal to output If planned aggregate expenditure is greater than output - inventories will shrink causing firms to increase output AE > Y: inventories shrink, output increases AE < Y: inventorie...

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5 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

If GDP is calculated by adding up the market value of goods and services produced, then more expensive items: - Receive a higher weighting than cheaper items The value of intermediate goods are excluded from the measurement of GDP in order to: - Avoid double counting Which of the following would increase the investment component of U.S. GDP? - Disney World purchases tires for the monorail from a firm in Ohio. Educational services provided by public schools are: - included in GDP at cost I...

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14 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Saving equals: - current income minus spending on current needs Wealth equals: - assets minus liabilities Which of the following is a liability of a family? A. checking account balance B. share of stock C. house D. mortgage - D. mortgage Which of the following is a flow? A. saving B. wealth C. assets D. money - A. saving

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9 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

10 principles of economics consist of - 1. people face tradeoffs 2. the cost of something is what you give up to get it 3. rational people think at the margin 4. people respond to incentives 5. trade makes everyone better off 6. markets are usually a good way to organize economic activity 7. governments can sometimes improve market outcomes 8. a country standard of living depends on its ability to produce goods and services 9. prices rise when government prints too much money

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7 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

The basic problem addressed in economics is - scarce resources and unlimited wants All the problems studied in economics arise from - the scarcity of resources The four main categories of resources are - land, capital, labor, natural resources, and entrepreneurship Macroeconomics is the study of - what is happening in the economy as a whole Which of the following would be studied in macroeconomics? - total output in the nation Macroeconomics studies the determination of - total output, tot...

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10 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

The overriding reason why households and societies face many decisions is that - resources are scarce Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: Score in Economics Score: Strategy A = 94, Strategy B = 77. Score in statistics, strategy A = 79 Strategy B = 90. The opportunity cost of receiving a 90 on the statistics exam is ___________ points on the economics exam.a. 79 b. 17 c. 11 d. 90 - 17 Refer to Figure 2. Unemployment could cau...

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6 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Inflation Rate - - the % change in CPI from one year to the next (the percent increase in the general price level) CPI - Consumer Price Index - the average level of prices of goods typically bought by households - used to measure the general price level Steps to make the CPI (4) - 1.) Fix the basket 2.) Find the current prices of the goods in the basket 3.) Calculate the cost of the basket 4.) Compare the cost of the basket to the cost of the basket in the BASE YEAR CPI Formula - (Cost ...

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14 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Gross Domestic Product (GDP) - - The market value of all final goods and services produced within a country during a specific time period GDP Components - - Consumer Spending - Business Investments - Net Exports - Government Spending and Investments - Resource Costs - Non-Income Costs - Depreciation - Net Income of Foreigners GDP Calculations - - Expenditure Approach - Resource Cost-Income Approach Expenditure Approach - - Method for measuring GDP - Has 4 Components

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12 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

this buddle has several Economic exams with verified answers. this is a crack to your upcoming exams. there will another package of ECON 203, check on my profile. success on your exams

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8 items

ProfessorFrancis

The lower the unemployment rate - The higher the level of GDP Natural rate of unemployment - the normal rate of unemployment around which the unemployment rate fluctuates Cyclical unemployment - year to year fluctuations around the natural rate of unemployment Cyclical unemployment is closely associated with _______________ in economic activity - short-run ups and downs 4 explanations for the natural rate of unemployment - Job search Minimum wage laws Unions Efficiency Wages Unions - ...

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22 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Gross domestic product (GDP) is - the total value of all final goods and services produced for the marketplace during a given period, within a nation's borders What is the difference between an intermediate good and a final good? - Final goods are finished and ready for sale; intermediate goods require further processing. GDP is a flow variable because - it measures the production that takes place over a period of time Which of the following would be included in the income approach to c...

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3 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

In economics, the pleasure, happiness, or satisfaction received from a product is called A. marginal cost. B. rational outcome. C. status fulfillment. D. utility. - D Opportunity costs exist because A. the decision to engage in one activity means forgoing some other activity. B. wants are scarce relative to resources. C. households and businesses make rational decisions. D. most decisions do not involve sacrifices or trade-offs. - A In deciding whether to study for an economics quiz or...

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39 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

Economics - A social science concerned with making optimal choice under conditions of scarcity Scarcity and Choice - Resources are scarce, choices must be made, opportunity cost Opportunity cost - Whatever must be given up to obtain some item (making sacrifices) Marginal Analysis - The comparison of marginal benefits and marginal costs, usually for decision making - Marginal means "extra" or "additional" Microeconomics - The study of the individual consumer, firm, or market M...

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9 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

In a closed economy, what does (Y-T-C) represent? a. government tax revenue b. private saving c. national saving d. public saving - B. private saving When the government's budget deficit increases a. the government is borrowing less and public saving falls b. the government is borrowing less and public saving increases c. the government is borrowing more and public saving falls d. the government is borrowing more and public savings increases - c. the government is borrowing more and...

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6 pages

Written in 2025/2026

Grade A+

ProfessorFrancis

The demand for curve for money - shows the amount of money people would like to hold, given the constraints they face The demand for money - reflects the constraints that people face When economists speak of the demand for money, they refer to the amount of money people would like to hold - at each interest rate The opportunity cost of holding money is - the interest a person could have earned by holding other forms of wealth instead The money demand curve is - downward sloping If the pr...

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4 pages

Written in 2025/2026

Grade A+

ProfessorFrancis