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UWEC Econ 103 Exam 1 questions well answered to pass
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UWEC Econ 103 Exam 1 questions well answered to pass
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UWEC Econ 103 Exam 1Define micro economics - correct answer ✔✔The study of how households and firms make decisions
and how they interact in markets
Define macroeconomics - correct answer ✔✔the study of economy wide phenomena
Define Opportunity Cost (O. C.) - correct answer ✔✔what is given up to get an item
Define the overall system: Socialism - correct answer ✔✔Means of production is owned by the
GOVERNMENT
Define the overall system: Communism - correct answer ✔✔Means of production is owned by
EVERYONE
- Motivation: Good of the people
- Examples: China, North Korea
Define market force - correct answer ✔✔the interaction between demand and supply. Suggesting that
there are two major stakeholders in the determination of the price of any good.
Law of Demand
- Define
- Picture - correct answer ✔✔All else equal, the quantity demanded of a good falls when the price of a
good rises: the quantity of a good increases when the price of the good falls.
Law of Supply
- Define
- Picture - correct answer ✔✔All else equal, the quantity of a good supplied increases when the price of
a good increases and vice versa.
Factors means that any of these go up or down then the line will change:
, -Price of inputs
-Technology
-Expectations
-Numbers of sales
What is the difference between the quantity demanded and the demand supplied? - correct answer
✔✔demand curve slopes downward, supply curve is upward sloping
Equilibrium:
- define
-provide picture - correct answer ✔✔the quantity supplied equals the quantity demanded
This DOES NOT mean that it will last.
Qd=Qs (quantity)
No surplus or shortage
Define Shortage - correct answer ✔✔too little, the quantity supplied is less than the quantity demanded
Define Surplus - correct answer ✔✔too much, the quantity supplied is greater than the quantity
demanded
define inferior product - correct answer ✔✔When the elasticity of a product is negative
define luxury product - correct answer ✔✔When its elasticity is 1+
define necessity product - correct answer ✔✔When its elasticity is between 0-1
Define norma product - correct answer ✔✔When the elasticity of a product is positive
Demand held constant; supply increases. What happens to the Price? - correct answer ✔✔Price will
decrease
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