eco 561 final exam guide latesteco 561 final exam guide latest
Written for
13F Slc Cde
ECO 561 Final Exam Guide Latest/ECO 561 Final Exam Guide Latest (ECO561FINALEXAMGUIDE)
All documents for this subject (1)
Seller
Follow
mastersolution
Reviews received
Content preview
ECO 561 Final Exam Guide Latest
1. In the theory of comparative advantage, a good should be produced in that nation where:
the production possibilities line lies further to the right than the trading possibilities line
its cost is least in terms of alternative goods that might otherwise be produced
its absolute cost in terms of real resources used is least
its absolute money cost of production is least
2. The simple circular flow model shows that:
businesses are on the selling side of both product and resource markets.
businesses are on the buying side of the product market and on the selling side of the resource
market.
households are on the selling side of the resource market and on the buying side of the
product market.
households are on the buying side of both product and resource markets.
3. Suppose you have a limited money income and you are purchasing products A and B,
whose prices happen to be the same. To maximize your utility, you should purchase A and B
in such amounts that:
their total utilities are the same
their marginal and total utilities are proportionate
the income and substitution effects associated with each are equal
their marginal utilities are the same
4. Contractionary fiscal policy is so named because it:
is expressly designed to expand real GDP
involves a contraction of the nation’s money supply
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mastersolution. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.