Econ 208 - Study guides, Class notes & Summaries

Factors of Production correct answers Resources used to produce goods and services; frequently divided into the basic categories of land, labour and capital Goods correct answers Tangible commodities, such as cars or shoes Services correct answers Intangible commodities, such as haircuts or medical care Production correct answers The act of making goods or services Consumption correct answers The act of using goods or services to satisfy wants Opportunity Cost correct answers The ...

The time period to which quantity demanded refers when constructing demand curves is correct answers any specified time period The term "quantity demanded" refers to the correct answers total amount of a good that purchasers wish to purchase at a given price during a given period of time A variable that is a "stock" correct answers has meaning only at a point in time Ceteris paribus means correct answers other things being equal The "law of demand" hypothesizes that, other thi...

An increase in the personal income tax rate on interest income will correct answers increase desired saving because the expected real after-tax interest rate falls. An increase in expected future output while holding today's output constant would correct answers increase today's desired consumption and decrease desired national saving. Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus of $1000 and he spent $50...

Fundamental problem of economics: correct answers Scarcity of resources relative to human wants Scarcity is a problem that correct answers Exists due to finite resources and unlimited human wants Which is not a factor of production a) bulldozer b) mechanic c) farmhand d) tractor e) haircut correct answers haircut Opportunity cost measures correct answers Amount of 1 good forfeit to obtain unit of other good If a DVD costs $20 and a videocassette costs $10, opportunity cost of 5 ...

Disagreements over positive statements correct answers are best handled by an appeal to the facts A positive statement is one that states correct answers what is, was, or will be Positive statements correct answers are falsifiable in principle by appeal to factual evidence A normative statement correct answers is one that involves a value judgment Suppose an economist tells you that the unemployment rate in Canada last year was 7.8%. This is an example of a(n) ________ statement. co...

Which of the following is NOT a determinant of market structure? correct answers The capital-labour ratio of the firm The term "perfect competition" refers to correct answers a type of market structure In economics, perfect competition refers to a market structure where correct answers each firm has zero market power A firm is said to have "market power" only when correct answers it has the ability to influence the price of its product The theory of perfect competition is built o...

Society's resources are often divided into broad categories. They are correct answers land, labour, and capital A basic underlying point in economics is that correct answers people have unlimited wants in the face of limited resources Economics can best be described as correct answers the study of the use of scarce resources to satisfy unlimited human wants Scarcity is likely to be correct answers a problem that will always exist The concept of scarcity in economics usually refers t...

Refer to Figure 6-2. Suppose the price of X is $2, the price of Y is $1, and the consumer's income is $10. The consumer is currently buying 4 units of good X and 2 units of good Y. In order to maximize his utility, he should: a. buy more of X and less Y b. buy the same amount of X but less Y c. buy more Y and less X. d. buy more of X but the same amount Y e. make no changes - he is already maximizing his total utility. correct answers c. buy more Y and less X. If the price elasticity of...

Perfect competition is characterized by all of the following except: A) a horizontal demand curve for individual sellers B) heavy advertising by individual sellers C) sellers are price takers D) homogeneous products correct answers B) heavy advertising by individual sellers Identify the current Fed Funds rate. A) .25 to .5 percent B) .75 to 1.0 percent C) 0 percent D) 3.5 percent correct answers A) .25 to .5 percent In response to the destructive bank panics of the Great Depression...

When a person gets an increase in current income, what is likely to happen to consumption and saving? correct answers Consumption increases and saving increases Last year, Linus earned a salary of 25,000 and he spent 24,000 thus saving 1000. AT the end of the year, he received a bonus of 1000 and he spent 500 of it, saving the other 500. What was his marginal propensity to consume? correct answers .50 An increase in expected future output while holding today's output constant would correc...