Bus 626 - Study guides, Class notes & Summaries

According to the monetarists, which of the following is true? - ANSWER-Instability in the money supply is the primary cause of economic instability. When the interest rate decreases, the opportunity cost of holding money - ANSWER-decreases, so the quantity of money demanded increases. If the Fed wanted to institute a more expansionary monetary policy, which of the following would it be most likely to do? - ANSWER-buy government bonds from the public When the Fed unexpectedly increases t...

Which of the following will be included in the study of microeconomics? - ANSWER-The study of the individual consumers in a market Which of the following provided the foundation for economic analysis? - ANSWER-The basic ideas of scarcity and choice, along with the trade-offs Oliver can choose to have a burger, a pizza, a hot dog, or a smoothie. The burger, the pizza, the hot dog, and the smoothie cost the same. The utility gained from the burger is greater than that obtained from the slice...

Please watch the video, Chapter 9: Video Case: Economics of Trade Deficits (John Stossel), and then answer the following questions 1-2: When a nation is experiencing a trade deficit, it is - ANSWER-importing more goods and services than it is exporting If foreigners are investing more in the United States than Americans are investing abroad, this is likely to result in - ANSWER-a balance of trade deficit in the United States. Please watch the video, Chapter 11: Video Case: Broken Window F...

Less of a good freely available than people would like - ANSWER-scarcity Human made resources (such as tools, equipment, and structures) used to produce other goods and services. - ANSWER-Capital The highest valued alternative that must be sacrificed as a result of choosing an option. - ANSWER-Opportunity Cost The subjective benefit or satisfaction a person expects from a choice or course of action. - ANSWER-Utility A condition in which the amount of good offered for sale by producer...