Econ 102 Bundled Exam Questions and CORRECT Answers

Studying the effects choices have on the individual markets within the economy is part of:microeconomics People must make choices because...if scarcity Which of the following is a macroeconomic issue?the effect of increasing the money supply on inflation Which of the following is a microecono...

The production possibilities frontiers in the figure to the right show how many bananas and coconuts you (Y) and your neighbor (N) can consume without trade. Suppose you are initially consuming 10 bananas and 4 coconuts and your neighbor is initially consuming 6 bananas and 8 coconuts. Now, s...

Long-Run (pure competition) firms can expand or contract capacity; firms can enter or exit the industry. Formula for long run equilibrium P=MC (zero economic profit)= min ATC Long-Run Adjustment process firms seek profits and shun losses; free to enter and exit; production will occur at firm'...

1) The natural unemployment rate is A) equal to 0 percent. B) the same as the cyclical unemployment rate. C) the rate at which cyclical unemployment is equal to 6 percent. D) the rate at which cyclical unemployment is equal to 0 percent. E) none of the above. the rate at which cyclical unemploy...

circular flowaggregate production=aggregate earnings= aggregate spending supply= demand at aggregate level GDPtotal market value of all final market goods and services nationally within a yr. Consumption expenditures, private investment expenditures, gov. purchases, net exports Steps from GDP t...

Government purchases include all of the following EXCEPT: -The construction of a new courthouse built by the state government - The salary paid to a high school teacher employed by a local public school catchment - welfare benefits paid by the federal government -The purchase of new military ha...

The point where economic activity bottoms out in a full business cycle is known as:The point where economic activity bottoms out in a full business cycle is known as the trough. The low point in a business cycle which precipitates a period of economic growth is known as the trough. A recessio...

Which of the following would be most likely to have monopoly powers?A municipal water company Which of the following is an example of a barrier to entry?Larry obtains a copyright for the new computer game that he invented. The defining characteristic of natural monopoly is?Economies of scale o...

Econ 102 UPDATED Actual Exam Questions and CORRECT Answers circular flow - CORRECT ANSWER- aggregate production=aggregate earnings= aggregate spending supply= demand at aggregate level GDP - CORRECT ANSWER- total market value of all final market goods and services nationally within a yr. Co...

Econ 102 Actual Exam Questions and CORRECT Answers Which of the following would be most likely to have monopoly powers? - CORRECT ANSWER- A municipal water company Which of the following is an example of a barrier to entry? - CORRECT ANSWER- Larry obtains a copyright for the new computer game...

Econ 102 Quiz 5 UPDATED Actual Exam Questions and CORRECT Answers 3 main factors of production - CORRECT ANSWER- land, labor, capital 3 other factors of production - CORRECT ANSWER- time, entrepreneur, finance why do entrepreneurs take risks - CORRECT ANSWER- because time is unknown

Econ 102 Quiz 3 UPDATED Actual Exam Questions and CORRECT Answers Conditions of a perfectly competitive market - CORRECT ANSWER- 1. No buyer or seller is big enough to impact price 2. Sellers produce identical goods 3. Entry and exit is free in the market 3 Problems Sellers Have - CORRECT AN...

Econ 102 Quiz 4 UPDATED Actual Exam Questions and CORRECT Answers macroeconomics - CORRECT ANSWER- -study of an entire economy -less theoretical than micro -more empirical -aka business economics two main goals of macroeconomics - CORRECT ANSWER- -measure the health of the overall economy ...