FINAL EXAM REVIEW
1. The circular flow model shows that households use income for:
A) consumption, saving, and factor payments.
B) consumption, taxes, and factor payments.
C) taxes, saving, and factor payments.
D) consumption, taxes, and saving.
2. In the
1. The field of _ would most likely study how all consumers
respond to a hike in cigarette taxes, and the field of _ would
most likely study how Bob responds to the tax.
A. microeconomics; microeconomics
B. microeconomics; macroeconomics
The term market refers to:
the physical location where buyers and sellers meet to exchange goods for money.
the buyers and sellers who trade a particular good or service, not to a physical location.
the location where buyers go to fulfill thei
Deadline: April 22, Wednesday, @ 9am (during class time)
1. For an imaginary closed economy, T = $5,000; S = $11,000; C = $48,000; and the government is
running a budget surplus of $1,000. Then
a private saving = $10,000 and GDP
Which of the following statements best describes the
study of economics?
Economics studies how th
Reserve handles fluctuatio
B. Economics studies how individuals and groups manage resources.
C. Economics studies how people maximize returns i
1. The invisible hand refers to:
A. the coordination that occurs from everyone working in their own selfinterest.
B. the coordination that occurs from a government agency finding
C. the coordination that occurs from everyone working for the
Deadline: April 29, Wednesday, @ 9am (during class time)
1. Bank runs
a will affect neither the money supply nor the money multiplier.
b increase the money supply.
c can be neither prevented nor mitigated by the Federal Re
Deadline: April 27, Monday, @ 9am (during class time)
1. In a system of 100-percent-reserve banking, the purpose of a bank is to
make loans to households.
influence the money supply.
give depositors a safe place to keep their
Deadline: April 24, Friday, @ 9am (during class time)
A: Maximum amount money supply could increase: $200
B: Minimum amount money supply could increase: $0
2. Which of the following is included in both M1 and M2?
Deadline: May 01, Friday @ 9 am (during class time)
Labor force: 155.6 Million
2. Unemployment that results because the number of jobs available in some labor markets may be
insufficient to give a job to everyone wh
Chapter 1: Ten Principles of Economics
What is Economics?
Economics is the study of how people manage scarce resources
Decisions made by individuals/groups
Resources are both physical/intangible (oil, time)
Divided into two groups:
What is Economics?
Economics is the study of how people manage resources.
Decisions made by individuals and also by groups.
Resources are both physical objects and intangibles such as time.
Economics is divided into two broad field
Review Questions . CHAPTER 7
1. Suppose that over the course of a year 100 people are unemployed for 4 weeks each (the
short-term unemployed), while 10 people are unemployed for 52 weeks each (the longterm unemployed). Approximately what percentage of the
Review Questions - CHAPTER 8
1. The formula for steady-state consumption per worker (c*) as a function of output per
worker and investment per worker is:
A) c* = f(k*) k*.
B) c* = f(k*) + k*.
C) c* = f(k*) k*.
D) c* = k* f(k)*.
2. When an economy begins a
ECO 3311 INTERMEDIATE MACROECONOMICS
(Due by Last Day of the class)
The data sheet provides some important economic data for three different economies in the
world. USA represents the Developed countries, China represents the emerging econom
Introduction to Economic
Introduction to Economic Fluctuations
IN THIS CHAPTER, YOU WILL LEARN:
facts about the business cycle
how the short run differs from the long run
an introduction to aggregate demand
A seller's willingness to sell:
A. is the maximum price that a seller is willing to accept in exchange for a good or service.
B. is the minimum price that a seller is willing to accept in exchange for a good or service.
C. is their reserved minimum bid
Take Home Quiz
1. List at least 4 important things that the textbook says about symbolism.
-A symbol creates a direct meaningful equation between (I) a specific object, scene, character, or
action and (2) ideas, values, people,
Note Sheet 7
o Costs are costs arising from the way inflation makes money a less reliable
Nominal interest rate
o The interest rate expressed in dollar terms
Real interest rate
o The nominal interest rate minus the rate of inflation
Note Sheet 8
o A set of principles for understanding how individual choices interact
o The quantity of a good or service is the amount of a good that sellers are
willing and able to sell at a particular price
Note Sheet 9
o Anything that can be used to produce something else
o What you must give up in order to get something
o The quantity available is not large enough to satisfy all productive uses
o Wen you compare t
Note Sheet 10
o Means that everyone gets his or her fair share
Production possibility frontier
o Shows all feasible and efficient in production points, feasible points, and
feasible but not efficient points on a graph
Economic growth can come from
Note Sheet 6
o Equal to the sum of employment and unemployment
Labor force participation rate
o In the percentage of the population aged 16 or older that is in the labor
o The percentage of the total number of people in
Note Sheet 5
o the value of all final goods and services produced in the economy during a
given year, calculated using the current prices in the year in which the
output is produced
o the method of calculating changes in real G
Note Sheet 2
Short-run individual supply curve
o Shows how an individual producers optimal output quantity depends on
the market price, talking fixed costs as given
Natural rate of unemployment
o The normal unemployment rate around which the actual unempl
Note Sheet 3
o An economy in which decisions about production and consumption are
made by individual producers and consumers
o A set of principles for understanding economy-wide interactions
o Is a very d
Note Sheet 4
Long-run economic growth
o The sustained upward trend in the economys output over time
o A rising aggregate price level
o A falling aggregate price level
o Is the annual percentage change in the aggregate pr
Note Sheet 1
When they supply is less than the demand there is a shortage
If quantity changes in the same direction as price then this suggests the demand
curve has shifted
If quantity changes in the opposite direction as price, the likely cause is a shif
Office MW 1:00-2:30
Chapter 1 (8-30-16) What is Economics?
Scarcity inability to satisfy all the wants due to limited resources. Because we face scarcity
we must make choices. The choices we make depend on the incentiv
Practice Exam [Chapters 21, 22 and 25]
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Gross domestic product is the total _ produced within a country in a given time period.
A) market value