Econ 2101 - Study guides, Class notes & Summaries

condition for monotonicity transformation -the transformation derivative is positive mrs to preference link -if mrs is the same after the transformation then its the same preferences steps for optimal choice using price and MRS -1. set price equal to MRS 2. solve for x1 into budget constraint and solve for x2 diminishing marginal product - marginal product calculation -derivative of the production function with respect to one input

macroeconomic policiesGovernment actions designed to affect the performance of the economy as a whole economic growtha process of steady increases in the quantity and the quality of the goods and services the economy can produce standard of livingdegree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable main goal of macroeconomicshow to achieve a higher standard of living what is average living standard measured byoutput...

What is a broad indicatorreal gross domestic income an example of a leading indicator isthe stock market What will probably rise when the economy is in a recessioninitial unemployment claimes Suppose the economy is in a recession, you would expect to see the unemployment rate:rise above the equilibrium employment rate Which economic indicator tells you about the future expected profits of businessesS&P 500 S&P 500index that shows the price changes of 500 different stocks Which indica...

Exam (elaborations) ECON 2101 Exam+1+KEY

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