Macroeconomics 1110 Final Exam with 100% correct solutions2024
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Economics correct answers A social science that studies the choices individuals and societies make regarding the use of resources.
Macroeconomics correct answers Uses economic aggregates, such as unemployment and GDP, to measure economic activity.
Three major economic goals correct answers...
Macroeconomics 1110 Final Exam Review
Economics correct answers A social science that studies the choices individuals and societies make regarding the use of resources.
Macroeconomics correct answers Uses economic aggregates, such as unemployment and GDP, to measure economic activity.
Three major economic goals correct answers 1. Full employment 2. Price level stability 3. Economic growth
Scarcity correct answers Condition that exists when wants or needs exceed resources available.
Choice correct answers Decision made or course of action taken when faced with a set
of alternatives.
Opportunity Cost correct answers The value of the best alternative that must be given up when a choice is made.
Factors of Production correct answers Land, Labor, Capital, Entrepreneurs.
Land correct answers Encompasses all gifts of nature and natural resources.
Labor correct answers Services that represents the physical and mental talents of people.
Capital correct answers The physical plant and equipment used in production. Refers to the structures that have been built and the machines, tools, and equipment that have been produced in the past, which can now be used to produce goods and provide services.
Entrepreneurs correct answers Innovators who start or operate a business in the expectation of earning a profit.
Production Possibilities Model correct answers The PPM illustrates the limits to what can be produced in a given time period, ceteris paribus.
Assumptions of the PPM correct answers 1. Constant level of technology 2. Efficient production 3. Fixed amount of resources 4. Full employment of available resources 5. Given time period
Points on the PPF correct answers Attainable and represent full employment and efficient production.
Points inside the PPF correct answers Attainable but inefficient.
Points outside of the PPF correct answers Unattainable given current resources and technology .
PPF may shift outward if correct answers 1. there is an increase in the resources or quality of resources available for production 2. there is an increase in the technology used in production (Outward shift shows economic growth)
Elements of Capitalism correct answers Private Property: private ownership of the factors of production De-centralized decision making Laissez-faire: Limited role for government
Elements of Socialism correct answers Centralized decision making Role of Gov't is fairly big in deciding what to produce, how to produce and who consumes output
Demand correct answers Demand shows the relationship between Price and Quantity Demanded
Law of Demand correct answers A greater quantity will be demanded at lower prices than at higher prices
What happens to quantity demanded if prices go down? correct answers Quantity demanded goes up (and vice versa) Price and Quantity Demanded are inversely related
Law of Supply correct answers A greater quantity will be supplied at a higher price
What will happen to Quantity Supplied if prices go up? correct answers Quantity Supplied will also go up. Qs and Price are directly related.
Ceteris Parabis, an increase in the domestic price level causes correct answers an increase in imports and a decrease in exports
Surplus correct answers Caused by the PRICE FLOOR being above equilibrium
Shortage correct answers Cause by the PRICE CEILING being set below equilibrium
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