1.
What is the price commonly called in the labor market?
Price in labor market is estimated by annual salary or hourly wages which is paid to a laborer.
In financial capital market is the rate of ret
1. Watch this video: https:/www.youtube.com/watch?v=zcPRmh5AIrI
Explain the logic of the Coase Theorem. Explain under what conditions the Coase Theorem fails.
The logic of the Coase Theorem is that wh
Externalities
1. Provide one example of a negative externality and draw a graph depicting the socially optimal quantity and the
market quantity. Explain why this is a market failure. Explain the simil
Econ 200: Lecture 7
October 20, 2016
1.
2.
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4.
Learning Catalytics Session:
Economic Efficiency
Price Ceilings and Floors and Efficiency
Taxes and Efficiency
How Much Output is Efficient?
Two ways o
Econ 200: Lecture 8
October 25, 2016
0.
1.
2.
3.
4.
Learning Catalytics Session: 26244662
Taxes and Efficiency
Externalities and Efficiency
The Coase Theorem
Pigovian Taxes and Subsidies and Other
Gov
Section 10 Practice Test
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. In the short run:
a. all inputs are fixed.
b. all inputs are variable.
c. s
AP Macroeconomics Multiplier Worksheet
Name _
Given: GDP = DI = C = 390 and Ig = 20, MPC = .75
Find:
Spending Multiplier = 1 / .25 = 4
GDP = DI = C + Ig = 390 + (20 * 4) = 470
Given: GDP = DI = C = 20
Equation of Exchange
1. If GDP is $1,000 and the velocity of money is 4, what is the money
supply?
1000 / 4 = 250
Bond Prices and Interest Rates
2. What is the interest rate of a bond originally price
Economics is the study of scarcity and choice.
At basic level, it comes down to individual choice
The economy is a system that coordinates choices about production with choices about consumption
and
Households give factors (labor) to factor markets who then give factors (now raw materials) to firms
who make it into goods and services to give to product markets who give g/s to households.
Money fl
Change in demand is a shift of the demand curve changing quantity at a given price
Movment along D curve changes the good's price but along the quantity.
Reasons to shift: Change price of related g/s,