What percentage of your final grade for this course will be determined by your grade in the final exam; and why is it called a "common final"?
10%;
... [Show More] multiple sections of E201 taught by different professors will all have the same exam questions.
Your final grade for this course will be comprised of your grades on which of the following:
Quizzes, exercises, tests, a final exam, & class participation
If I have to miss a test, then in order to be allowed to do the test at another date/time:
I must provide documentary evidence (eg, doctor's note) that I had a valid reason for missing the originally scheduled test/assignment
The first author of the required textbook is ________
Krugman
Clean air is considered scarce good because:
Not enough of it is available for all needs
If the state government allocates additional spending on education, the opportunity cost is:
Measured in terms of the best alternative uses for that money
Marginal analysis:
Refers to decisions about whether to do a bit more or a bit less of an activity, helps when making a choice about "how much," and involves trade-offs
Which of the following is NOT true?
a)People typically make choices that will make themselves better off
b)The real cost of a choice is what you must give up to get that choice
c)Resources are scarce when they can satisfy everyone's wants
d)Rational people use marginal analysis when making decisions about "how much" to buy or produce
C)
Specialization and trade should lead to all of the following EXCEPT:
a)The exchange of goods and services in markets
b)A decrease in total economic output
c)Higher living standards
d)Individuals learning specific skills and earning a salary
B
The opportunity cost of attending university is,
The sum of the cost of tuition, textbooks, and the income given up from not working when going to university
Scarcity
-Limited quantities of resources to meet unlimited wants
- All economic problems arise b/c of scarcity
- We choose the thing we prefer
- Scarcity -> Choice
opportunity cost
the next best alternative use of those resources
- result of choice
Production Possibility frontier (ppf)
curve illustrating the different possible amounts that two separate goods may be produced when there is a fixed availability of a certain resource that both items require for their manufacture
Trade-off
an alternative that we sacrifice when we make a decision
Efficiency
The percentage of the input work that is converted to output work
comparative advantage
the ability to produce a good at a lower opportunity cost than another producer
absolute advantage
the ability to produce a good using fewer inputs than another producer
normative economics
makes prescriptions about the way the economy should work
positive economics
the analysis of facts or data to establish scientific generalizations about economic behavior
supply and demand
an economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply)
the market forces of supply and demand
Determine what is produced at what price and in what quantity: free market
Equilibrium
A state of balance
Demand Shift Factors
1. Society's income
2. The prices of other goods
3. Tastes
4. Expectations
5. Taxes and subsidies
Supply Shift Factors
1. Price of inputs
2. Technology
3. Expectations
4. Taxes and subsidies
Supply shifts to the right
If nominal wages fall, then short-run aggregate
demand shifts right
price rises, quantity rises
Demand shifts to the left
Price falls, quantity falls
Choice
-every choice involves a loss
- You lose the opportunity to use the resource ($, time, etc) in another way
- Choice -> Opportunity Cost
The importance of an economic model is that it allows us to:
focus on the effects of only one change at a time
If an economy is producing at a point on its production possibilities frontier, it is
efficient in production but not necessarily in allocation
Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario BEST sets the stage for economic growth
The percentage of Indiana residents with a college degree rises from 25% to 30%
When a nation's economy grows
its production possibility frontier shifts outward
to achieve gains from trade, each nation should specialize in the production of a good or service if
the country can make that good or service while forgoing the production of fewer alt products than any other country
FALSE
money flows from household to firms as households offer factors of production for sale
Law of Demand
Consumers buy more personal computer because prices have fallen
A negative relationship between quantity demanded and price is
demand
A decrease in the price of eggs will result in an increase in
quantity of eggs demanded
Raclette is a popular wintertime dis in Switerland. It is essentially with cheese and potatoe. If price of cheese decreased, we would expect
an increase in demand for new potatoes
When the economy suffers a downturn and the incomes of many people decrease, vactioners are more likely to take car trips than fly. One explanation is
Air travel is a normal good and travel by car is an inferior good
If goods A and Z are complements an increase in price of good Z will
decrease the demand for good A
If goods A and B are substitutes, a decrease in the price of good B will
decrease the demand for good A
An announcement that smoking will harm your ability to think clearly will MOST likely result
a decrease in the demand for cigarettes
Which factor is likely to cause a rightward shift in the demand for hime-delivered pizza?
a larger population
If the price of eggs decrease, it would probably result in ____ in the demand of bacon
an increase
Suppose that people expect the price of Bluetooth speakers to rise next year. As a result...
observe higher prices for Bluetooth speakers this year
Consider two competing motorcycle manufactures, HD and H. If HD raises the price, expect
a shift to the right in the demand for Hondas and higher prices for Hondas
If economy booms and people's incomes rise, then the demand curve for a normal good like new house will _____ and the rquilibrium quantity of new houses produced will _____
shift to the right: increase [Show Less]