ECONOMICS 101 Study guides, Class notes & Summaries

Economics 101 Questions and Answers Already Passed economics the study of how people make choices under conditions of scarcity and of the results of those choices for society rational person someone with well-defined goals who tries to fulfill those goals as best as he or she can economic surplus the benefit of taking any action minus its cost opportunity cost the value of the next-best alternative that must be foregone in order to undertake the activity positive economics economic analysis ...

economics - ANSthe study of how people make choices under conditions of scarcity and of the results of those choices for society rational person - ANSsomeone with well-defined goals who tries to fulfill those goals as best as he or she can economic surplus - ANSthe benefit of taking any action minus its cost opportunity cost - ANSthe value of the next-best alternative that must be foregone in order to undertake the activity positive economics - ANSeconomic analysis that offers c...

1. Congress decreases personal income taxes. Aggregate demand will increase. decrease. remain the same. Score: 3 of 3 2. Congress decreases personal income taxes. Which determinant of aggregate demand causes the change? Price Consumer spending Investment spending Government spending Net exports Productivity Resource cost Government intervention (taxes, subsidies, or regulations) None of the above Score: 3 of 3 3. Consumers rush...

Real wages fall. Productivity increases. Personal income taxes increase. Transfer payments decrease. A major hurricane hits the southeastern United States. Score: 3 of 3 21. If Congress cuts personal income taxes and business taxes at the same time, then aggregate demand, short-run aggregate supply, and price level will change in which of the following ways: AD / SRAS / Price Level Increase / No Change / Increase No Change / Increase / Increase Increase / ...

1. According to economists, which of the following would explain why the above production possibilities curve is shaped as it is? I. Society must choose how to use scarce resources. II. Law of increasing opportunity costs. III. Resources must be allocated between consumer and capital goods. I only. II only. III only. I and II only. I, II, and III. 2. Given the production possibilities curve above which of the following would cause a shift from cu...

1. All of the following are included in the bundle of legal rights EXCEPT A. right of control of the property. B. right of enjoyment. C. right of exclusion. D. right of survivorship. 1. D - The right of survivorship is a right found in joint tenancy and tenancy by the entirety, but it is not a part of the bundle of legal rights. The bundle of legal rights include the right of possession, control, enjoyment, transfer, exclusion, and disposition (lease, sell, leave to someone in a will, gi...

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