Review Test Submission: Test 3
SKIP TO COURSE MENUSKIP TO TOP FRAME TABS
Tamra Jeanne Smith
EC 201-Principles of Economics I
11/13/14 12:18 PM
The Economy in 2008:
In the first half of June 2008 the effects of a housing and financial crisis were impacting the economy.
The effects of the housing and financial crises could be shown by shifting
aggregate demand to the right.
CHAPTER 4 OUTLINE:
Markets and Competition
What Is a Market?
Definition of market: a group of buyers and sellers of a particular good or
Markets can take many forms and may be organized (agricultural commodities) or
TEN PRINCIPLES OF ECONOMICS
BRIEF PRINCIPLES OF MACROECONOMICS
By the end of this chapter, you should understand:
that economics is about the allocation of scarce resources.
that individuals face trade-offs.
the meaning of o
Ch 5 Measuring a Nation's Income
Also be aware that you should pay attention to the chapter
titles, not the chapter numbers. The first chapter we will
cover this week is entitled Measuring a Nation's Income.
With this chapter, we start a series of chapter
Income generated by a nations domestic production
is less than its domestic production.
is equal to its domestic production.
is greater than its domestic production.
could be less than, equal to, or greater than its domestic
Save and Submit
Comparative advantage is related most closely to which of the
output per hour
bargaining strength in
Economics is the study of
CHAPTER OUTLINE 3
A Parable for the Modern Economy
Example: two goodsmeat and potatoes; and two peoplea cattle rancher
and a potato farmer (each of whom likes to consume both potatoes and meat).
The gains from trade are obvious if the farmer can
Ch 6 Measuring the Cost of Living
Remember that the big question for this class is, how do
changes in taxes, interest rates, and government
spending affect the economy? By the economy, we
mean GDP, inflation, and unemployment. We have
defined GDP and know