Econ 2305 Study guides, Class notes & Summaries

GDP - The market value of all final goods and services produced within a country in a given period of time Circular Flow Diagram - Households buy goods and sevices from firms, and firms' use their revenue from sales to pay wages to workers, rent to landowners, and profit to firm owners. GDP equals the total amount spent by households in the market for goods and services. It also equals the total wages, rent and profit paid by firms in the markets for the factors of production Includ...

Scarcity? - fundamental problem of economics. Finite. Limited Opportunity cost? - Best foregone alternative Formula for economics? - W Upward arrow infinite (unlimited wants) -------- R (resources) Cobb-Douglas Production Function? - Q= f (K, L) output is a function of K (capital_ and L (Labor) Karl Marx- Das Kapital What is capital-intensive production? - W/ machines its cheaper than labor intensive Labor intensive production? - more expensive than capitol intensive

In the basket of goods that is used to compute the consumer price index, which of the following categories of consumer spending is the largest? - education& communication, recreation, medical care. A transfer payment is a payment made by - a payment for which the government receives neither good nor services in return. he law of supply states that, other things equal, when the price of a good - rises, the quantity supplied of the good rises. Among economic models, the circular-flow di...

*Decrease in equilibrium interest rate* and an *increase in the equilibrium quantity* of *loanable funds* could be explained by? - The supply of loanable funds shifted *rightward* If the *supply for loanable funds shifts to the left*, then the equilibrium *interest rate*? - *Rises* and the *quantity of loanable funds fall* Inflation - an increase in the overall level of prices in the economy. CPI - measures overall cost of Goods and Services brought by a tyical consumer CPI Equation STE...

1. If the government were to double taxes on people who earn more than $1 million per year, the deficit would disappear. a. True b. False 2. Refer to this graph. Which one of the following shocks could have caused this to happen? a. an increase in marginal tax rates b. an increase in the foreign exchange value of the dollar c. an increase in government spending d. an increase in wage rates or other resource costs 3. Money creates wealth. a. True b. False //See the video "How the Econ...

1. The largest source of revenue for the federal government is a. sales tax receipts b. individual income tax receipts c. corporate income tax receipts d. Social Security tax receipts 2. If the government enacts a tax on Uber corporate profits, which of the following is likely to occur? a. Uber riders will pay the tax in the form of higher fares. b. Uber drivers will pay the tax in the form of lower wages c. Uber shareholders will pay the tax in the form of reduced profit d. the tax w...

1. Refer to this graph. Which one of the following shocks could have caused this to happen? a. an increase in the amount of money in circulation b. a decrease in consumer confidence c. more government spending d. an increase in the supply of labor 2. P- price level, Q- real GDP, and U = the unemployment rate. If the economy is in equilibrium and then the AD curve shifts leftward, we expect to see the following outcome in the short run: a. P down Q down U up 3. Refer to this graph. Which on...

ECON 23051.Refer to this graph. Which one of the following shocks could have caused this to happen? increase in the amount of money in circulation b. a decrease in consumer confidence government spending increase in the supply of labor

These notes cover and introduce what CPI is in economics and the Business Cycle. It talks about the flow of business and how CPI is calculated and used.

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