2.4 out of 2.4 points
An explicit cost is defined as
Answer Selected Answer:
0 out of 2.4 points
Consider a good whose consumption takes place publicly. Your decision to buy that good depends
Answer Selected Answer:
1.4 out of 1.4 points
Changes in the health of the average person are relatively unimportant as an indicator of changes in the standard of living
Answer Selected Answer: False
1.4 out of 1.4 points
In the real world we don't observe
What are the five most important variables that cause the market demand curve for labor to shift?
Answer Selected Answer: The five most important variables that cause the labor demand curve to shift are:
(a) increases in human capital. Human capital refe
Chapter 8- Terms- Nov 5, 2012
Avoiding an act that would create a risk.
Any activity that reduces the probability that a loss will occur.
Any activity that lessens the severity of loss once it o
Chapter 4- Terms- Sep 25, 2012
Cash Management: The routine, day-to-say administration of cash and near-cash resources, also
known as liquid assets, by an individual or family,
Internet Bank: An online commercial bank.
Share Draft Account
Chapter 3- Terms- Sep 10, 2012
Taxes: The dues paid for membership in our society; the cost of living in this country.
Income Taxes: A type of tax levied on taxable income by the federal government and by many
state and local government.
Chapter 2- Terms- Aug 23, 2012
Personal Financial Statements: Balance sheets and income and expense statements that serve as
essential planning tools for developing and monitoring personal financial plans.
Balance Sheet: A financial state
Chapter 1- Terms- Aug 23, 2012
Standard of Living: The necessities, comforts, and luxuries enjoyed or desired by an individual
Average Propensity to Consumer: The percentage of each dollar of income, on average, that a
Yes having no substitute helps firms become monopolistic. But you should look at it from the
supply point of view. For example, there is no substitute for drinking water. A water company
can a monopoly if it controls the su
I do not agree because the monopolistically competitive must cut the price to sell more so its
marginal revenue curve will slope downward and will be below its demand curve.
Zero accounting profit means total revenue -
The price that the company was actually charging. A company in highly (or perfectly)
competitive market has no choice but to set a profit-maximizing price, which will probably equal
to marginal cost. Except marginal cost is
Chapter 5- Terms- Sep 25, 2012
Depreciation: The loss in the value of an asset, such as an automobile, that occurs over its period
of ownership; calculated as the difference between the price initially paid and the subsequent sale
Chapter 6 - Terms- Oct 16, 2012
Debt safety ratio
The proportion of total monthly consumer credit obligations to monthly takehome pay.
Open account credit
A form of credit extended to a consumer in advance of any transaction
Chapter 15- Terms- Dec 3, 2012
The process of developing a plan to administer and distribute your assets after death in a manner
consistent with your wishes and the needs of your survivors, while minimizing taxes
Chapter 14- Terms- Dec 3, 2012
Employee Retirement Income Security Act (ERISA)
A law passed in 1974 to ensure that workers eligible for pensions actually receive such benefits;
also permits uncovered workers to establish individual taxshe
Chapter 13- Terms- Nov 5, 2012
A process whereby investors buy into a diversified portfolio of securities for the collective
benefit of individual investors.
Openend investment company
A firm that can issue an unlim
Chapter 12- Terms- Nov 5, 2012
The degree of uncertainty associated with a firms cash flows and with its subsequent ability to
meet its operating expenses on time.
A type of risk associated with the amount of
Chapter 11- Terms- Nov 5, 2012
The process of placing money in some medium such as stocks or bonds in the expectation of
receiving some future benefit.
A form of investing in which future value and expected returns a
Chapter 10- Terms- Nov 5, 2012
Insurance coverage that protects real and personal property from catastrophic losses caused by a
variety of perils, such as fire, theft, vandalism, and windstorms.
Chapter 9- Terms- Nov 5, 2012
Group health insurance
Health insurance consisting of contracts written between a group, (employer, union, etc.) and the
health care provider.
Indemnity (feeforservice) plan
Health insurance plan in which the
Chapter 7 - Terms- Oct 16, 2012
Loans made for specific purposes using formally negotiated contracts that specify the borrowing
terms and repayment.
An item of value used to secure the principal portion of a loan
The correct answer is D (A firm cuts its workforce and is able to maintain its initial level of
output). Technical change will cause the production function to shift upward. It is normally
exogenous variable. On the contrar
Chapter 6 ECO201
The law of demand tells firms only that demand curves slope downward. Elasticity o A measure of the responsiveness of the quantity demanded to a change in price. Key determinants of the price elasticity of demand for a good are: o Availab
Chapter 5 ECO201
Negative externality o For example, air pollution is a cost that affects someone who is not directly involved in the production or consumption of a good or service. Positive externality o For example, medical research is a benefit that af
Chapter 4 ECO201
Consumer surplus o The dollar net benefit consumers receive from buying goods and services at market prices less than the maximum prices they would be willing to pay. Producer surplus o The net dollar benefit producers receive from sellin
Demand Side of the Market o The most important factor affecting the demand for a product is its price. o Other factors that affect demand include prices of related goods (substitutes and complements), income, tastes, population and demograp
Chapter 2 ECO201
o o o The economic resources nations have to produce goods and services are scarce. The time available to households and firms is also scarce. Decision-makers face trade-offs as the result of scarcity. The model of the production possibil