Econ 202 Study guides, Class notes & Summaries

Multiplier effect CORRECT ANSWER The increase in consumer spending that occurs when spending by one person causes others to spend more too Disposable income CORRECT ANSWER Income left after paying taxes -consumption is based on the amount of disposable income -people usually consume part of their disposable income and save the rest MPC CORRECT ANSWER Marginal propensity to consume -the amount consumption increases when disposable income increases by $1 -the MPC is a number between 0 an...

Because people's wants are unlimited but resources are scarce, Ans: choices must be made In economics, capital is define as Ans: the natural, unskilled abilities of people The labor market is an example of a Ans: resource market In macroeconomics, we analyze Ans: the overall performance of the economy as a whole An economic model Ans: is a simplification of the real world The basic purpose of economic models is to Ans: provide explanations for, and predictions of, economic events Ec...

A normal good is a good for which Correct Answer-demand increases when income increases. Which of the following is NOT one of the factors that influences the supply of a product? Correct Answer-income Which of the following is a microeconomic topic? Correct Answer-the reasons why Kathy buys less orange juice When supply decreases and demand does not change, the equilibrium quantity Correct Answer-decreases and the price rises If two variables are positively related Correct Answer-the...

scarcity Ans: a situation in which unlimited wants exceeds the limited resources available economics Ans: the study of the choices people make to attain their goals, given their scarce resources economic model Ans: a simplified version of reality used to analyze real-world economic situations market Ans: a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade What are the three key economic ideas? Ans: 1.People are rat...

ECON 202 Exam#3 Questions with Correct Answers

Elasticity Ans: A measure of how much one economic variable responds to changes in another economic variable. Price elasticity of demand Ans: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price. Equation for Measuring the Price Elasticity of Demand Ans: (Percentage change in quantity demanded) / (Percentage Change in Price) Price Elasticity o...

A normal good is a good for which Ans: demand increases when income increases. Which of the following is NOT one of the factors that influences the supply of a product? Ans: income Which of the following is a microeconomic topic? Ans: the reasons why Kathy buys less orange juice When supply decreases and demand does not change, the equilibrium quantity Ans: decreases and the price rises If two variables are positively related Ans: they move in the same direction over time When the dema...

Econ 202 - Study Guide Chapter 8 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

Scarcity Ans: More wants than there are resources to fulfill them Macroeconomics Ans: Study of the aggregate effects on the national economy and the global economy of the choices that individuals, businesses, and governments make Opportunity Cost Ans: The bet thing that you must give up to get something- the highest valued alternative forgone Calculating Opportunity Cost Ans: OC = Explicit Cost + Implicit Cost Marginal Cost Ans: Opportunity cost of a one unit increase in an activity...

ECON 202 Final Exam 2023 All Questions and Answers (CSU) As a student representative, one of your roles is to organize a secondhand textbook market between the current and former first-year students. After a survey, you estimate the demand and supply curves to be the ones shown in Figures 8.1 and 8.2. For example, you estimate that pricing the book at $7 would lead to a supply of 20 books and a demand of 26 books. Which of the following statements is correct?