ECON 3100

Microeconomics Correct Answer-The study of the allocation of scarce resources. How individuals and firms make themselves as well off as possible in a world of scarcity and the consequences of those individual decisions for the markets and the entire economy. Trade-off Correct Answer-Which goods and services to produce, how to produce, and who gets the goods and services Market Correct Answer-An exchange mechanism that allows buyers to trade with sellers Model Correct Answer-A descriptio...

After WWII, the Allied countries met to discuss issues such as... Correct Answer-high trade barriers and unstable exchange rates In 1947 the General Agreement on Tariffs and Trade (GATT) was established to... Correct Answer-reduce barriers to trade between nations Some of the GATT's main provisions Correct Answer-1. A nation must extend the same tariffs to all trading partners that are GATT members 2. Tariffs may be imposed in response to unfair trade practices such as dumping 3. Countr...

A single indifference curve in the individual choice model of labor supply shows: Correct Answer-the tradeoff between income and non-market time for a given level of utility. Sally is indifferent between (1) working 8 hours a day and earning $160 a day and (2) working 9 hours a day and earning $200 a day. This implies that: Correct Answer-When Sally makes $160 in an 8 hour job, she puts a $40 value on the non-market time foregone to work a 9th hour. In the individual choice model of labor ...

The Law of Demand Correct Answer-as price increases, quantity demanded decreases. If price decreases, quantity demanded increases. The Law of Supply Correct Answer-producers offer more of a good as its price increases and less as its price falls. Demand Scheduled Correct Answer-Shows relationship between price & quantity demanded Equilibrium Correct Answer-When the demand and supply curves intersect. This is the best price to set and quantity to produce. If price goes up, producers w...

World Bank Correct Answer-A Bretton Woods institution, originally charged with the responsibility of providing financial and technical assistance to the war-torn economies of Europe Bretton Woods conference Correct Answer-A small town in New Hampshire that was, in July 1944, the site of talks establishing the international financial and economic order after World War II. The International Monetary Fund and the World Bank emerged from this common external tariff Correct Answer-the policy of...

To pay piece rates in order to elicit effort, it must be the case that Correct Answer-the firm can monitor individual worker output. Suppose a firm overpays its workers at the start of the job, and then the firm slowly lowers wages over time until eventually the firm pays the workers considerably less than the worker's marginal product of labor. What prevents this "reverse of a delayed-compensation scheme" from being implemented? Correct Answer-Workers would leave the job as soon as the fi...

In 2017, approximately what percent of adults in the United States had not graduated from high school? Correct Answer-8%. In 2017, approximately what percent of adults in the United States had received more education than a high school degree? Correct Answer-67%. Which group tends to have the highest unemployment rate in the United States? Correct Answer-Blacks. Labor force participation rates tend to: Correct Answer-Increase with education for both men and women. Present value calcu...

Opportunity Cost Correct Answer-The cost of a good measured by the alternative uses that are foregone by producing the good. Accounting Cost Correct Answer-The actual cost paid for inputs Economic Cost Correct Answer-The amount required to keep an input in its present use or the amount that input would be worth in its next best alternative use. Labor Costs Correct Answer-Costs involving the compensation of employees for their labor - Wage payments are an explicit costs -Wage rate is...

The demand curve shows... Correct Answer-the quantities that buyers are willing to purchase at different prices. A supply schedule shows Correct Answer-the quantities of a good that producers are willing to provide at different prices A market is said to be in equilibrium when ... Correct Answer-the quantity demanded equals the quantity supplied. Suppose we observe that as the price of lettuce increases from $1 to $2 per head, consumers buy only half the number of heads of lettuce. This...

Globalization Correct Answer--increasing interaction of people, companies, states or countries -through the growth of international flows of people, culture, money, goods and ideas -in the economic sphere it's also called international economic integration Globalization: First Wave Correct Answer-- (< WWI) -New technologies -Transportation costs DOWN --Steam-powered ships, railroads, telegraph... --Also had large flows of goods and FDI Globalization: Second Wave Correct Ans...