ECON 103 GMU Q&A Exam Bundle

Assumptions of Economics: Scarcity (1/4) limited nature of society's resources Assumptions of Economics: Methodological Individualism (2/4) - only individuals act - choices are made based on an individuals needs Assumptions of Economics: Rational Choice (3/4) humans first allocate scarce goods to...

What are the six assumptions of the Perfect Price Competition Model -Large numbers of buyers and sellers -Free exit and entry into the market -Information is free and costless -Everyone is a price taker (price set by market) -No transactions costs -Everyone is selling like goods What is an assumpti...

In the market for automobiles, the private benefit of one more small SUV is $20,000 and the social cost of one more small SUV is $30,000. . In the market for really good ideas, ideas that will dramatically change the world for the better, the private benefit of one more cre External Cost or Benefit?...

Purpose of Economics To make the world more understandable. Explains how the society we live in "hangs together." How hundreds and millions of strangers work together in a society. What is the difference between a positive statement and a normative statement? A positive statement is a statement o...

What is the real cash balance effect? And what example did Boudreaux use in class? The real cash balance effect is what tells us the real value of money depends on the amount of real things it can buy. Boudreaux's example is Mr. Lee making trillions in America and then deciding to burn all of his ...

Which of the following is among the reasons identified by Adam smith for why the division of labor increases an economy's total output? a) specialized workers are happier than are non specialized workers b) specialized workers each work on tasks for which they each have a comparative advantage c)sp...