Microeconomics Exam 1:
What is economics?
Long definition:
The study of how people allocate their limited resources to satisfy their unlimited
wants
Underlying problem:
Scarcity
Short definition:
The study of choice
What are economic resources?
1. L
Chapter 9: Elasticity:
Elasticity:
Price of elasticity of demand.
Income elasticity of demand.
Crossprice elasticity of demand.
Price of Elasticity of Demand (Ed):
Measures price sensitivity when price changes How much QD will change?
Calculate Ed

Inelastic Demand + Total Revenue Scenario
Price Rise Total Revenue Rise
Elastic Demand + Total Revenue Scenario
Price Lowered Total Revenue Rise
Scenario of supply of a particular good or
service over time.
It (good or service) becomes more Elastic.
Natur
Name: _ Date: _
A)
B)
C)
D)
1.The best available measure of the standard of living in a country is:
nominal GDP per capita.
real GDP per capita.
the unemployment rate.
the growth rate of productivity.
A)
B)
C)
D)
2.A typical family in the United States in
Exam 1 Practice Problems
A)
B)
C)
D)
A)
B)
C)
D)
1. Scarcity in economics means that:
we do not have sufficient resources to produce all of the goods and
services we want.
the wants of people are limited.
there must be poor people in rich countries.
short
Finite Mathematics for Business Exam 1 Study Guide Solutions
If you find ANY mistakes, please let me know.
1. Please go over the Webwork assignments on sections 3.1,3.2,3.3,3.4, 4.2,4.3.
2. Use simple interest formula.
1
For the client, P = 5500, r = .08,
Finite Mathematics for Business Exam 1 Study Guide Solutions
If you find ANY mistakes, please let me know.
1. Please go over the Webwork assignments on sections 1.5, 1.6, 1.7, 1.8, 2.1, 2.2, 2.3,2.4,2.5,2.6,2.7
2. Solve the given equations
(a)
3x
x
7
x=
+
Brett Morris
Exam 3 Review
Chapter 13: Fiscal Policy, Deficits, and Debt

Fiscal Policy: consists of the changes made by the federal government in its budget expenditures and tax
revenues to expand or contract the economy.
o Expansionary Fiscal Policy: i
Brett Morris
Exam 2 Review
Chapter 9: Inflation
 Inflation: an increase in the general level of prices in the economy.
o Consumer Price Index (CPI): the primary measure of inflation in the United States
Calculated by comparing the prices of a market bas
Brett Morris
Econ 204: Exam 1 Review
Chapter 7: Measuring Domestic Output and National Income
 National Income Accounting: consists of concepts that enable those who use them to
measure the economys output to compare it with past outputs, to explain its
Sample Questions Exam 1
Multiple Choice
_
_
_
_
_
_
_
_
1. If the variance of a data set is correctly computed with the formula using n  1 in the denominator, which of
the following is true?
a. the data set is a sample
b. the data set is a population
c.
Pr(A) = # of outcomes in event A
total # of outcomes
compound event cfw_even or 3. A compound
event is formally defined as the union of two or
more individual events.
Pr(A or B) = Pr(A) + Pr(B) Pr(A and B)
where cfw_A and B is the joint event, often calle
Discrete vs
Continuous
Integers
Finite # of outcomes
Infinite # Outcomes
(coins, dice,cards)
Count # of successes
Compute Probability of (ntrials)
an interval of outcome
Probability of 1 event
Probability of 1 Outcome > 0
event Outcome =0
Ex: Packers win
Confidence intervals
X bar plus or minus z times the standard error = standard deviation /square root of n
Pie hat plus or minus z times square root of pie times 1 minus pie divided by n
If we want to be more confident of parameters we create a range (aro
Descriptive Statisticsdescribe data
InferentialDraw conclusions about pop using sampl
Qualitative Characteristics (Zip code)
Quantitative# that mean something
Discretefixed increments(integers)
Continuousno fixed increments(height)
Time series Inde
statistics are a set of mathbased tools that permit decision makers to summarize and use information
relevant to the judgment calls required of economists and business professionals.
Descriptive:describe the data that you observe.
inferential statistics
Descriptive Statisticsdescribe data
InferentialDraw conclusions about pop using sampl
Qualitative Characteristics (Zip code)
Quantitative# that mean something
Discretefixed increments(integers)
Continuousno fixed increments(height)
Time series Inde
Econ 204Practice QuestionsEconomic Growth
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Assuming all else equal, if the production technology available to a nation improves, its
aggregate
Econ 204Midterm IVersion A
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Real GDP will increase
A) only if the quantity of final goods and services produced rises.
B) only if the price le
Econ 204Practice QuestionsBusiness Cycles and Fiscal/Monetary Policy
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following rises during a recession?
A) Unemployment
C) Inve
Econ 204Midterm IVersion B
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Table 818
Product
Camera
Legal services
Books
2008
Quantity
100
50
200
Price
$10
15
40
2013
Quantity
120
45
210
Pric
Labor Market Practice Questions
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Labor supply
A) increases if the substitution effect exceeds the income effect.
B) increases when taxes increase.
C)
Econ 204Practice QuestionsDemand and Supply
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If, in response to a decrease in the price of coffee, the quantity demanded of coffee increases,
econom
Econ 204Midterm IVersion C
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following would cause the number of vacancies firms create to increase?
A) More uncertainty about the
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Tariff Model Review
1.
Free Trade
With Tariff
World price
$5
$5
Tariff
$0
Import price
$5
$6
Domestic production
100
120
Domestic consumption
190
160
Imports
a.
Import country imposed a tariff; fill in blanks in table above.
b.
Is this importing country l
Tariff Model Review
1.
Free Trade
With Tariff
World price
$5
$5
Tariff
$0
Import price
$5
$6
Domestic production
100
120
Domestic consumption
190
160
Imports
a.
Import country imposed a tariff; fill in blanks in table above.
b.
Is this importing country l
1Supply and Demand Free Trade
Name_Key_
Use the domestic supply and demand curves for minerals (tons) in Doon and Pern at the end of this homework. Make
sure you properly label your graphs and clearly identify relevant points and areas when asked.
1a. Wha