Exam 3 Study Guide
1. What is the income effect? Substitution effect?
a. Income effect: change in the quantity demanded of a product that results
from the change in real income caused by a change in the products price.
b. Substitution effect: a change in
1. What is the definition of price of elasticity of demand?
a. Measures how responsive or how sensitive consumers are to the
quantities they buy when price changes.
2. What is the point elasticity formula? What are the two times we should use
MICRO STUDY GUIDE (BILLY)
1. What are the characteristics of pure competition?
a. Many sellers means that there are enough so that a single seller has no impact on price by
its decisions alone.
b. The products in a purely competitive market are homogeneou
1) Income effect- change in the quantity demanded of a product that results from the change
in real income cause by a change in the products price.
Substitution effect- a change in quantity demanded of a consumer good that results from
a change in its rel
3. Owens, Inst, ' ' . MICROECONOMICS
Review Questions - Exam 3.
What is the income effect? Substitution effect?
What is utility, marginal away and diminishing marginal utility?
Be able to graph total utility curve and marginal utility curve
Student: MAN Anthony Gar-ta MS3S(14)
Lower unemploymentWith higher output and positive economic growth firms
tend to employ more workers creating more employment.
As seen from the graph above, the UK unemployment falls during period
Question 5: Explain how the planning structural reforms (in Abenomics) work to boost
economic growth in Japan.
Abenomics include slashing business regulations, liberalizing the labor market and
agricultural sector, cutting corporate taxes, and increasing
Economics Review Sheet Chapter 4,7 and 9
1. What is the definition of GDP?
The market value of all final goods and services produced by an economy during a time
2. What is an intermediate good? Why are intermediate goods not direct
J. Owens, Instructor
Review questions Exam 1, Chapters 1-3
Chapter 1 & 2
1. What is a theory? What are the steps in deriving a theory?
An economic theory is an abstract representation of the real world with the intent to
Review Questions Exam 3
1. What is the definition of money?
Money is anything that does the following: (anything that performs the function of
money is money)
2. What are the functions of money and what does each of
Benjamin Elleson Church and Government The role of church in society is to unite, educate, inspire and be at the forefront in trying to solve civil rights issues. The Church is to be a light in the dark. The Church is to be Jesus to those in need. It is t