ECO 301 EXAM 1 STUDY GUIDE
Consumer Price Index - Answers - measure of the aggregate price level
Extent of a market - Answers - boundaries of a market, both geographical and in terms
of range of products produced and sold within it
Macroeconomics - Answers - branch of economics that deals with aggregate economic
variables, such as the level and growth rate of national output, interest rates,
unemployment, and inflation
Market ** - Answers -
Market Definition - Answers - determination of the buyers, sellers, and range of products
that should be included in a particular market
Market Price ** - Answers - price prevailing in a competitive market
Microeconomics ** - Answers - Branch of economics that deals with the behavior of
individual economic units--consumers, firms, workers, and investors--as well as the
markets that these units comprise
Nominal Price ** - Answers - Absolute price of a good, unadjusted for inflation
Normative Analysis - Answers - is a part of economics that expresses value or
normative judgments about economic fairness or what the outcome of the economy or
goals of public policy ought to be.
Perfectly Competitive Market ** - Answers - Market with many buyers and sellers, so
that no single buyer or seller has a significant impact on price
Positive Analysis - Answers - is the branch of economics that concerns the description
and explanation of economic phenomena. It focuses on facts and cause-and-effect
behavioral relationships and includes the development and testing of economics
theories.
Real Price ** - Answers - price of a good relative to an aggregate measure of prices;
prices adjusted for inflation
Complements ** - Answers - two goods for which an increase in the price of one leads
to a decrease in the quantity demanded of the other
Completely inelastic demand - Answers - principle that consumers will buy a fixed
quantity of a good regardless of its price
Consumer Price Index - Answers - measure of the aggregate price level
Extent of a market - Answers - boundaries of a market, both geographical and in terms
of range of products produced and sold within it
Macroeconomics - Answers - branch of economics that deals with aggregate economic
variables, such as the level and growth rate of national output, interest rates,
unemployment, and inflation
Market ** - Answers -
Market Definition - Answers - determination of the buyers, sellers, and range of products
that should be included in a particular market
Market Price ** - Answers - price prevailing in a competitive market
Microeconomics ** - Answers - Branch of economics that deals with the behavior of
individual economic units--consumers, firms, workers, and investors--as well as the
markets that these units comprise
Nominal Price ** - Answers - Absolute price of a good, unadjusted for inflation
Normative Analysis - Answers - is a part of economics that expresses value or
normative judgments about economic fairness or what the outcome of the economy or
goals of public policy ought to be.
Perfectly Competitive Market ** - Answers - Market with many buyers and sellers, so
that no single buyer or seller has a significant impact on price
Positive Analysis - Answers - is the branch of economics that concerns the description
and explanation of economic phenomena. It focuses on facts and cause-and-effect
behavioral relationships and includes the development and testing of economics
theories.
Real Price ** - Answers - price of a good relative to an aggregate measure of prices;
prices adjusted for inflation
Complements ** - Answers - two goods for which an increase in the price of one leads
to a decrease in the quantity demanded of the other
Completely inelastic demand - Answers - principle that consumers will buy a fixed
quantity of a good regardless of its price
