Econ 252 exam - Study guides, Class notes & Summaries

capital accumulation - the growth of capital resources, including human capital. when a country saves more, this grows faster. aggregate investment - savings rate x GDP political creative destruction - the process in which economic growth destabilizes existing regimes and reduces the political power of rulers. creative destruction - refers to the process by which new technologies replace old ones, new businesses replace established companies, and new skills make old ones redundant. rev...

Purdue | Econ 252 | Dr. Vargas | Exam 1 Questions and Answers 100% Pass Economic Agent Any group or individual that makes choices. What is Economics the study of? How agents make choices among scarce resources and how those choices affect society Scarcity A situation of having unlimited wants in a world of limited resources When are resources scarce? Resources are scarce when the quantity that people want exceeds the quantity that is available Positive Economics Describes what people actuall...

Purdue ECON 252 Final Exam Questions and Answers Already Passed Properties of economic fluctuations 1) Co-movement in economic aggregates 2) Limited predictability 3) Persistence in the rate of growth The Great Depression of 1929‒1933 illustrates the three key properties of economic fluctuations Aggregate A whole formed by combining several (typically different) elements Marginal product of labor When output price rises, the labor demand curve shifts to the right - more labor is demanded at...

Econ 252 Exam Questions With Correct Answers | 100% VERIFIED Statements that claim to describe the way things are: - ANSWER- are positive statements can be tested for accuracy Both B and C above In determining how to use their resources, resource owners are motivated by: - ANSWER- self-interest Produced goods that are used in the production of other goods are: - ANSWER- capital The basic goal in dealing with the problem of scarcity is: - ANSWER- to produce as much consumer satisfacti...

potential workers - Everyone in the total population except: • Children under 16 years • Active military personnel • Institutionalized persons (nursing homes or jail) number of potential workers - 254.1 Million number of non potential workers - 67.3 million 3 categories of potential workers - Employed Unemployed Not in labor force Employed - persons hold a paid full-time or part-time job Unemployed - persons without a job who have actively searched for one over the last four wee...

world price the price of a good that prevails in the world market for that good tariff a tax on goods produced abroad and sold domestically internalizing the externality altering incentives so that people take account of the external effects of their actions externality the uncompensated impact of one person's actions on the well-being of a bystander Coase theorem the proposition that if private parties can bargain without cost over the allocation of resources, ...

Properties of economic fluctuations - 1) Co-movement in economic aggregates 2) Limited predictability 3) Persistence in the rate of growth The Great Depression of 1929‒1933 illustrates the three key properties of economic fluctuations Aggregate - A whole formed by combining several (typically different) elements Marginal product of labor - When output price rises, the labor demand curve shifts to the right - more labor is demanded at each wage When output price falls, less labor is dem...

This study guide covers all concepts up to the first exam and/or the first seven chapters of the course. Each chapter is covered in detail and includes important definitions, equations, graphs, concepts, and more! I used these notes as my primary source of study for the exam and received an A in the course. I created study guides not only for this course, but the majority of my courses at Purdue. Through my thorough construction of these guides, I earned an overall GPA of a 3.81 from the Krann...

Econ 121 Final Exam Review ● Chapter 1 Quick Check: 1. Accounting is the information system that… 2. Which of the following is not an external user of a business’s financial system? 3. Generally Accepted Accounting Principles (GAAP) are currently formulated by the… 4. Which type of business organization is owned by only one owner? 5. Which of the following characteristics best describes a corporation? 6. Which of the following requires accounting information to be complete, ne...