- Study guides, Class notes & Summaries

Under free trade: Domestic price=$8 per ton Under free trade: World price=$8 per ton Under free trade: QSd=6 tons Under free trade: QDd=24 tons With tariff: Domestic price=$10 per ton With tariff: World price=$8 per ton With tariff: QSd=12 tons With tariff: QDd=20 tons 1. What is the impact on domestic consumers of setting a $2 per ton tariff? - Answer -44 Under free trade: Domestic price=$8 per ton Under free trade: World price=$8 per ton Under free trade: QSd=6 tons Under free t...

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10 pages

Written in 2023/2024

Grade A+

Exampool

In the Keynesian cross diagram, if the marginal propensity to consume is 0.75, then a $100 million increase in government spending will increase output by - Answer $400 million If the marginal propensity to consume is 0.75 and the interest rate is fixed, then a $100 million increase in taxes will eventually change equilibrium output by - Answer -$300 million For any given interest rate, a decrease in government spending causes the planned expenditure curve to shift ---- and the IS curve to...

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4 pages

Written in 2023/2024

Grade A+

Exampool

This document provides an extensive collection of exam-style questions and verified answers for Econ 302. It covers core microeconomics topics including perfect competition, monopoly pricing, production theory, cost analysis, supply and demand, and profit maximization. The material is organized as elaborated practice questions designed to reinforce understanding of economic models and prepare students for advanced microeconomics examinations.

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15 pages

Written in 2025/2026

Grade A+

michaelkalii

This document contains comprehensive final exam practice questions for ECON 302 Intermediate Macroeconomics, designed to help students prepare for cumulative course assessments. The practice questions cover core macroeconomic theory and applied analysis, including national income accounting, GDP measurement, economic growth models, inflation and unemployment, business cycles, aggregate demand and aggregate supply, fiscal and monetary policy, money and banking, and macroeconomic equilibrium. T...

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5 pages

Written in 2025/2026

Grade A+

CertifiedSuccessHub

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17 items

Exampool

Economics - Answer The social science that studies production and trade. Positive Analysis - Answer Analysis that attempts to describe the way things are in reality Normative Analysis - Answer Analysis that attempts to describe the way things should be Theory - Answer A principle that explains some phenomenon. Model - Answer A simplified representation of a phenomenon How models work: - Answer Assumptions → Analysis → Implications The Four Starting Points of Economics - Ans...

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8 pages

Written in 2023/2024

Grade A+

Exampool

What does the study of macroeconomics entail? - Answer The study of economy at the large scale level, examining total output, the price level, and other aggregate measures in the economy. (Think macro as the forest and micro as the trees) What is the capital? What are some examples of capital? - Answer 1 out of 4 resources. The tools, machinery, infrastructure, and knowledge used to produce goods and services. Resources are: A) Relatively plentiful in all countries. B) Relatively evenly di...

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7 pages

Written in 2023/2024

Grade A+

Exampool

Budget Constraint - Answer represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income Marginal Rate of Transformation - Answer the rate at which a consumer is able to trade one good for another, the amount of good Y a consumer must give up to obtain an extra unit of good X, the slope of the budget constraint Utility Function - Answer a mathematical way to represent a consumer's preferences Marginal Utility - An...

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2 pages

Written in 2023/2024

Grade A+

Exampool

price- consumption curve - Answer curve tracing the utility maximizing combinations of two goods as the price of one good changes individual demand curve - Answer a curve that relates the price of good x to the quantity of good x that a consumer will buy holding all other factors -as price falls, consumers can attain higher levels of utility -each point of the idc represents a utility maximizing choice by the consumer income- consumption curve - Answer curve tracing the utility- maximi...

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3 pages

Written in 2023/2024

Grade A+

Exampool

Substitutes.... When the price of Y increases then X goes higher.. - Answer Are they complements or subs? X = M+Py/2Px When Py gets bigger, than X gets higher so this means they are Only can add the exponents when they are being multiplied... if you are adding them then you must plug them in ... if they more than double after plugging in then it is increasing returns to scale. - Answer Other side The s-t run average cost curve reveals nothing regarding returns to scale. - Answer A firm...

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10 pages

Written in 2023/2024

Grade A+

Exampool

Consumer Theory Assumption: - Answer A consumer will choose the best bundle of goods and services that he or she can afford Rational Behavior - Answer People do not make decisions that intentionally make them worse off Budget Constraint Definition - Answer Shows the set of all bundles that a consumer can afford Budget Constraint Assumption - Answer There are two goods: Good X and Good Y Budget Constraint Formula - Answer Px(X) + Py(Y) = M Slope of Budget Constraint - Answer - Px /...

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7 pages

Written in 2023/2024

Grade A+

Exampool

Profit - Answer difference between revenue and total cost pi(q) = R(q)-TC(q) Revenue - Answer Price multiplied by quantity R = P*q Price Talker - Answer When firms (or buyers) take the market price as given and make their selling (or buying) decisions accordingly. Level of output has no effect on price. For price takers, Price = Marginal Revenue Firms are more likely to be price takers when - Answer -there are many buyers and sellers -there is product homogeneity -the market has fre...

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3 pages

Written in 2023/2024

Grade A+

Exampool

economics of ideas - Answer -involves increasing returns to scale -lead to problems with Adam-Smiths invisible hand theory Romer Model divides the world into - Answer 1. Objects -capital and labor inputs from Solow Model -these are finite 2. Ideas -used in production of goods -virtually infinite *this distinction forms the basis for modern theories of economic growth Sustained economic growth occurs because of __________________ - Answer new ideas ideas ---> nonrivalry ---&g...

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15 pages

Written in 2023/2024

Grade A+

Exampool

The law of diminishing marginal returns assumes that A. Additional inputs are added in smaller and smaller increments B. there is at least one fixed input C. All inputs are changed by the same percentage D. All inputs are held constant - Answer B If indifference curves cross, then A. Consumers minimize their satisfaction B. The assumption of a demising marginal rate of substitution is violated C. The assumption of completeness is violated D. The assumption of transivity is violated E...

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5 pages

Written in 2023/2024

Grade A+

Exampool

We assume that the representative consumer's preferences exhibit the properties that - Answer consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundle. We assume leisure is a normal good. This implies that - Answer an increase in taxes decreases the demand for leisure. In the model presented in Chapter 4, the vertical intercept of the consumer's budget line is equal to - Answer wh + π -T At the optimal consumption bundle, th...

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8 pages

Written in 2023/2024

Grade A+

Exampool

In the supply and demand model, we assume that there are _____ buyer(s) and _____ seller(s) in the market. - Answer Many; Many Which of the following factors shift the demand curve? I)Consumer Income II)Price of the Good III)Prices of Substitute Goods IV)The Number of Consumers - Answer I, III, IV Electric guitars and amplifiers are complement goods, and electric guitars and acoustic guitars are substitute goods. A decrease in the price of amplifiers _____ the number of electric guitar...

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6 pages

Written in 2023/2024

Grade A+

Exampool

rational behavior - Answer a consumer will choose the best bundle of goods that he or she can afford bundle of goods - Answer a collection of goods, amount is specified budget constraint - Answer what we "can afford", limited based on how much money they have vs. the price of the good "what is the best" - Answer best bundle of goods is based on consumers' preferences ex-ante behavior - Answer consumers don't make choices that make them worst off, "before the fact", make decis...

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5 pages

Written in 2023/2024

Grade A+

Exampool

Price-Consumption Curve (PCC) - Answers Shows how the consumer's optimal bundle changes when the price of a good changes while holding the price of other goods and income constant Steps for PCC: U(X,Y) = X*Y - Answers 1) Use M/Px and M/Py to draw all budget constraints 2) X* = (α/(α+β)) * (M/Px) and Y* = (β/(α+β)) * (M/Px) and plot these points on the budget constraint [for each Px]; connect points to form the PCC 3) Make a table with Px, X, and Y 4) Plot Px on y-axis and X on x-ax...

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6 pages

Written in 2023/2024

Grade A+

Exampool

Law of Demand - Answer There is an inverse relationship between price and quantity demanded When the price RISES , quantity demanded FALLS Choke Price - Answer The price at which quantity demanded is equal to zero. The intercept of the inverse demand curve Ceteris Paribus Conditions (in demand) - Answer Income • Prices of related goods • Everything else -Tastes/Quality -Expectations -Number of buyers Normal Good (definition and elasticity sign) - Answer When consu...

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15 pages

Written in 2023/2024

Grade A+

Exampool

Marginal Rate of Transformation - Answer the rate at which a consumer can trade one good for another -the amount of good y that a consumer has to give up in order to obtain an extra unit of good x -slope of the budget constraint -value is -Px/Py Marginal Rate of Substitution - Answer the rate at which a consumer is willing to trade one good for another -the amount of good y that a consumer is willing to give up to obtain an extra unit of good x -slope of the indifference curve -value is...

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4 pages

Written in 2023/2024

Grade A+

Exampool