Chapter 9 Revision Notes and Practice Quizzes for Chapter 7
1. Economic cost can best be defined as payments that must be received by resource owners to insure the resources'
2. An example of an implicit cost for Company X is forgone ren
January 29, 2017
Economic 202- I
1. What is an opportunity cost? How does the idea relate to the definition of economics?
Which of the following decisions would entail the greatest opportunity cost: Allocating a
square block i
Chapter 6 Study Notes and QUIZZES
1. The price elasticity of demand coefficient measures buyer responsiveness to price changes.
2. The basic formula for the price elasticity of demand coefficient is percentage change in quantity
Econ 202 Section I
February 22. 2017
Module 6 Chapter 9 Assignment_Business and Cost of Production
1. Distinguish between explicit and implicit costs, giving examples of each. What are some
explicit and implicit costs of attending college.
Module 3 Chapter 3 Assignment_Supply and Demand
1. Explain the law of demand. Why does a demand curve slope downward? How is a
market demand curve derived from individual demand curves?
The demand curve slopes downwards d
Module 4 Chapter 6 Assignment_Elasticity
3. What are the major determinants of price elasticity of demand? Use those determinants
and your own reasoning in judging whether demand for each of the following products is
January 29, 2017
Economic 202- I
3. Why is private property, and the protection of property rights, so critical to the success
of the market system? How do property rights encourage cooperation?
The ownership of private proper
February 21, 2016
Econ 202 I
Module 5 Chapter 7 Assignment_Marginal Utilitty
1. Complete the following table and answer the questions below:
a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an
4. Measuring GDP
The following table shows data on consumption, investment, exports, imports, and government
expenditures for the United States in 2011, as published by the Bureau of Economic Analysis. All
figures are in billions of dollars.
Fill in the m
a. What is the difference between a "change in demand" and a "change in quantity
The difference in change in demand and quantity demanded is a change in demand is usually due to
the product/service changing. For some reason, the pe
5. Real versus nominal GDP
Consider a simple economy that produces two goods: pens and envelopes. The following table shows
the prices and quantities for the goods over a three-year period.
Module 9 Answers
Are credit cards and debit cards money? What's the difference between credit and debit
1A. Yes, credit cards and debit cards are money. The difference is a debit card is linked directly
to the cardholders bank account. You can r
Module 13 Assignment
1. What is the difference between monetary policy and fiscal policy?
1A. The Federal Reserve Bank controls monetary policy. Monetary policy are policies that affect
the supply of money in the economy. Fiscal policy is conducted by the
Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix
the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and
Jacque be better off if she pays him $45 per meal t