Exam (elaborations)
ECO201 Final Exam - Miami University - Professor Elliot
- Course
- Institution
ECO201 Final Exam - Miami University - Professor Elliot
[Show more]
Seller
Follow
EXAMQA
Reviews received
Content preview
ECO201 Final Exam - Miami University -Professor Elliot
The definition of supply assumes there is always a positive relationship between price
and quantity supplied - ANS-False
Land - ANS-inputs that exist around us - "natural resources"
Labor - ANS-Human input/capital - any input from people
Capital - ANS-stuff that makes stuff - things we produce that we then use to produce
things
Money is capital - ANS-false
Entrepreneurship - ANS-the process of bringing together land, labor, and capital to
create a good
Technology is capital - ANS-true
postive economics - ANS-the branch of economic analysis that describes the way the
economy actually works - what does the world look like
normative economics - ANS-how SHOULD the world work and how SHOULD things be
allocated
Free Markets - ANS-influenced by market participants without government influence in
markets
Economic tradeoff - ANS-Resources are limited so we must receive something for
giving them up
Land earns - ANS-rent
Labor earns - ANS-wages
capital earns - ANS-interest
, Entrepreneurship earns - ANS-profit
opportunity cost - ANS-the most desirable alternative given up as the result of a
decision
Scarcity Principle - ANS-I am going to do things that I am good at because it will be less
opportunity cost to me - I will not do things that I am not good at as it will be more
opportunity cost for me
Productions Possibilities Curve - ANS-All the possible combinations that a producer
may produce of two distinct products given the resources and technology
Why is the PPC bowed outwards? - ANS-Resources are scarce so you cannot always
produce items on a one to one scale - it represents opportunity cost
Absolute Advantage - ANS-when one person (firm or country) can produce a good
using less time or resources than another
Comparative Advantage - ANS-When a person (firm or country) can produce a good at
a lower opportunity cost - this is at the hub of international trade
Producing at a point inside the production possibilities curve - ANS-is inefficient
Demand - ANS-the relationship between people who want to buy things and the price of
that
The demand curve is _____ sloped - ANS-downward
Law of Demand - ANS-consumers will buy more of a good when its price is lower and
less when its price is higher
A change in quantity demanded is a - ANS-move along a given demand curve (price
change)
A change in demand is a - ANS-shift of the demand curve (unit change)
Determinants of Demand - ANS-tastes, income, price of other goods, expectations,
number of buyers
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 EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now