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ECN Exam 4 |145 Questions| With Correct Solutions, Graded A+

The Circular Flow Diagram CORRECT ANSWER Green arrows represent the flow of money and red represents to flow of goods/services Production possibilities Frontier/ Curve PPF: PPC CORRECT ANSWER The curve shows what is possible within an economy D- impossible A&B - feasible efficient C - feasible & inefficient PPF shifts out when... CORRECT ANSWER the economy can produce more of everything Opportunity Cost CORRECT ANSWER the cost of what you give up to get something else in terms of tim...

GDP is CORRECT ANSWER value of all final goods and services produced within a country in a given period of time. Y = C + I + G + NX CORRECT ANSWER Y = economy's total expenditure C = consumption in economy I = imports in economy G = government spending NX = net exports Net exports equal CORRECT ANSWER exports minus imports CPI is used to CORRECT ANSWER monitor changes in the cost of living over time Inflation rate CORRECT ANSWER percentage change in the price level from the prev...

Recession CORRECT ANSWER -a period of mildly falling incomes and rising unemployment ex. 2007-2009 -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression CORRECT ANSWER a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle CORRECT ANSWER the short-run fluctuations of the economy Economic Fluctuations CORRECT ANSWER -are irregular and unpredictable -most macroeconomic variables measuring income, ...

Economics deals primarily with the concept of CORRECT ANSWER scarcity. Scarcity means CORRECT ANSWER 1. we cannot have everything that we want. 2. we have to make choices between the things we desire. 3. we must give up some things in order to obtain other things. Which of the following is not scarce? 1. A's in Microeconomics 2. workout tapes 3. trash that no one wants 4. tender porterhouse steaks CORRECT ANSWER 3. trash that no one wants The word economy comes from the Greek word oiko...