Section B (20x3=60 points): Multiple Choice Questions. For each question, choose only one
1. Economics is best defined as the study of:
A. inflation, interest rates and the stock market.
B. supply and demand.
C. how people make choices in the face
ECON 203 Midterm
1. Explain GDP identity in detail.
2. We use Real GDP instead of Nominal GDP to compare GDP levels over time. Why?
Economics is best defined as the study of:
a. inflation, interest rates and the stock market
b. supply and demand
c. the fi
The determinants of Average Labor Productivity are:
1. Human Capital- The talents, education, training, and skills of workers raise productivity.
Human capital is a the result of a combination of factors such as education, training,
5. Entrepreneurship and Management-The productivity of workers depends on the people who
decide what to produce and how to produce it the entrepreneurs Henry Ford and mass
production. Bill Gates and standardized graphical user interface operating system.
2. Physical Capital- Worker productivity depends not only on their skills (human capital) but on
es (physical capital) they have to work with. An excellent surgeon needs his equipment to
When businesses invest in a new pla
7. Derive Saving-Investment identity in a closed economy and explain the intuition of the
Y= C + I + G
Production is spent by those entities
Private saving = Y - T - C
Pub S= T- G
S= priv. saving - pub. saving = Y-T-C+T-G=Y-C-G
Wednesday September 30th, 2015
Prior to senior year I dreaded writing. English had never been my strong point, until I took
a class with Mrs. McDonald. I lacked confidence in all aspects of writ
The Small Business Administration (SBA) is an independent agency that helps to aid,
counsel, assist and protect all concerns of small businesses. Their goal is to reserve
free competitive enterprise, sustain and strengthen the total economy of the United