ECON 1202

People have limited resources. - Answer scarcity Everything you do requires giving up something (time, money, etc.). - Answer Tradeoffs An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost. - Answer marginal decisions Ava finds that there is not enough time after work to have dinner, exercise...

scarcity - Answer - a situation in which unlimited wants exceed the limited resources available to fulfill those wants economics - Answer - the study of the choices people make to attain their goals, given their scarce resources. economic model - Answer - a simplified version of reality used to analyze real-world economic situations marginal analysis - Answer - analysis that involves comparing marginal benefits and marginal costs centrally planned economy - Answer - an...

perfectly competitive market - Answer a market that meets the conditions of (1) many buyers and sellers, (2) all firms selling identical products, and (3) no barriers to new firms entering the market demand schedule - Answer a table that shows the relationship between the price of a product and the quantity of the product demanded quantity demanded - Answer the amount of a good or service that a consumer is willing and able to purchase at a given price demand curve - Answer ...

What can low-income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improved technology? - Answer Provide savings incentives Potential GDP - Answer increases over time as the labor force grows. increases over time as technological change occurs. Which of the following equals the amount of public saving? - Answer Government tax revenue minus the sum of government purchases and transfer payments to h...

long-run economic growth - Answer process by which rising productivity increases the average standard of living business cycle - Answer alternating periods of economic expansion and economic recession most commonly used measure of the average standard of living - Answer real GDP per capita real GDP per capita - Answer the amount of production in the economy, per person, adjusted for changes in the price level Real GDP growth - Answer (real GDP in current year - real GD...

The National Bureau of Economic Research announced that the U.S. economic recession that began in December of 2007 hit a trough in June of 2009. During that period, which type of unemployment increased for sure? - structural - natural - cyclical - frictional - Answer cyclical Analysts believe that generous unemployment benefits in Europe are associated with: - weak labor unions in Europe. - high unemployment rates in Europe. - low unemployment rates in Europe. - relatively co...

Inflation affects people adversely because: -the budget deficit increases. -it causes money to lose its value over time. -nominal income falls. -purchasing power tends to increase. - Answer it causes money to lose its value over time. Expansionary monetary policy will lead to which of the following? -A decrease in interest rates and an increase in the unemployment rate -An increase in interest rates and an increase in the unemployment rate -An increase in interest rates an...

Many countries engage in trade protection by imposing import tariffs or quotas for at least some goods. This is because: -while such restrictions harm consumers, they benefit producers, who are usually a more cohesive and politically influential group. -while such restrictions harm consumers and benefit producers, the losses to consumers are outweighed by the gains to producers. -economists have established that such restrictions are welfare-improving for certain categories of goods (such ...

The effect of an increase in productive inputs such as labor and capital can be shown by a(n): -inward shift of the production possibility frontier. -outward shift of the production possibility frontier. -movement from one point to another along the production possibility frontier. -point inside of the production possibility frontier. - Answer outward shift of the production possibility frontier. Wheat and Aluminum. The United States and Germany can produce both wheat and aluminum. T...