Exam (elaborations)
Introductory Macroeconomics (ECON 1BB3) Test -1
- Course
- Institution
Introductory Macroeconomics (ECON 1BB3) Test -1
[Show more]
Content preview
1-194 of 194What is a diminishing return?
- The more resources devoted to an activity, the less productive additional
resources become (ex. studying).
- As we move more and more resources from good A to good B, the
amount of B increases, but the increase gets smaller and smaller.
,How do the 'prices of related goods' shift market demand (substitutes ONLY)?
- Goods and services that can be used for the same purpose are
substitutes of each other.
- Two goods are substitutes of one another if, when you buy more of one,
you buy less of the other.
- A decrease in the price of a substitute causes the demand curve for a
good to shift to the left.
- An increase in the price of a substitute causes the demand curve for a
good to shift to the right.
What is Invention?
Give this one a go later!
The development of a new good or process for making a good.
What is Net Benefit and how can we optimize net benefit?
Give this one a go later!
- The net benefit is the benefit minus the cost.
- To make the net benefit big as possible, do more of any activity with a
marginal benefit greater than the marginal costs (MB > MC).
What are the effects of 'supply and demand' on equilibrium?
,Give this one a go later!
- When the supply curve shifts to the right, there will be a surplus at the
original equilibrium price, the surplus is eliminated as the equilibrium falls,
and the equilibrium quantity rises.
- If existing firms exit the market, the supply curve will shift to the left,
causing the equilibrium price to rise and the equilibrium quantity to fall.
What do economists mean when they say "people are rational"?
Give this one a go later!
- Economist believe that people make decisions and take actions that they
believe will make them happy.
- Economists tend to think people make decisions that have more benefit
than cost.
How do 'population and demographics' shift market demand (population ONLY)?
Give this one a go later!
- Population determines the total number of consumers who could
demand a product.
- As population increases, the number of consumers grows and so does
demand.
- An increase in population will shift the demand curve to the right.
What are the two distinguishing features of a Market Economy?
Give this one a go later!
, - Markets directly reward people's hard work.
- Decision making is shared by everyone in the market.
What does the Provincial government have to do with property rights?
Give this one a go later!
- The Provincial government deals with personal and real property.
- Provincial property rights legislation is often called the sale of goods act.
- The sale and purchase of land is governed by each province's real estate
law, as well as common law (NA for Quebec).
At what point on the PPF is the best?
Give this one a go later!
- We can choose the best point on the PPF by using allocative efficiency.
- This point is reached when society is making the combination of goods
and services that are most valued by consumers.
What are the 3 classifications of variables?
Give this one a go later!
- Real vs Nominal
- Dependent (endogenous) vs Independent (exogenous)
- Stock vs Flow
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 codersimon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76800 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now