Review Topics for Econ 210 Midterm Exam Fall 2016:
1. Importance of financial institutions and banking (both domestically and
internationally) in general terms (what role do they play in promoting
economic growth, etc.)
2. Debt vs. equity market
NATIONAL INCOME: Where it
Comes From and Where It Goes
Four questions about the sources
and uses of GDP
What determines total income?
Who gets the income from production?
Who buys the output of the economy?
What equilibrates the dema
THE SCIENCE OF
What macroeconomists study
List three macroeconomic issues that have
been in the news lately
Business cycle fluctuations?
What do macroeconomists do?
Collect data on income, prices,
In economics, perfect competition refers to
a) cooperative behaviour among firms
b) the ideal market structure
c) rivalrous behaviour
the economic system of the entire
e) a type of market structure
Total utility is at its maximum when marginal utility is
In economics, the term "utility" is defined as the
a) a service such
Consider a firm that uses only labour and capital as inputs. At the present use of
labour and capital, the MP of labour is four times the MP of capital, and the price of
labour is twice the price of capital. In order to minimize it
Marginal utility is zero when total utility is
The marginal utility of the second unit of the good consumed is
Undistributed profits of a firm are
a) profits that are paid out to owners of the firm
b) earnings that are used to cover the costs of production
profits that are available to be reinvested in the firm's
d) earnings that a