Price 3 4 5 6 7 8 9
Quantity Demanded 29 26 24 22 19 15 10
Quantity Supplied 17 18 21 22 27 31 36
b) What is the equilibrium quantity and supply of DVD's?
22 when because demanded=supplied
c) What is the equilibrium price of DVD's?
6 dollars when demanded
Economics studies how decision makers use scarce resources to satisfy unlimited wants.
The problem of scarce resources
> is that there are not enough resources to satisfy people's unlimited wants
Economics is best defined as the study o
Tips and Sample Questions for Chapter One
In studying chapter one start with the definition of Economics:
Economics is the most quantitative social science and is defined to study the
allocation of scarce resources to unlimited wants.
Scarcity is a situat
True / False
1. A decrease in unemployment causes the PPF to shift outward (to the right).
NATIONAL STAN United States - BUSPROG: Analytic
LOCAL STANDA United States - OH - Default City
Tips and Sample Questions for chapter 3
To determine the price of any good or service we need to study the behavior of
buyers and sellers of the goods and services in a market. A market consists of the
Demand side and Supply side. Demand represents the be
1. The author of the textbook defines economics as the
a. science of efficiency.
b. science of scarcity.
c. study of markets.
d. study of human activity.
NATIONAL STA United States - BUSPROG: Analytic
True / False
1. When the price of Toyota Corollas rises, ceteris paribus, the demand for Corollas falls.
NATIONAL STANDARDS: United States - BUSPROG: Analytic
United States -
Tips and Sample Questions for chapter 4
The concepts discussed in chapter 4 are:
Price performs two important jobs: (1) It acts as a rationing device, and (2) It
functions as a transmitter of information. Make sure to see the difference
1. A price ceiling is a government-mandated
a. minimum price below which legal trades cannot be made.
b. maximum price above which legal trades cannot be made.
c. minimum price above which legal trades cannot be made.
d. maximum price below which legal tr
Complete the following table and calculate MPC, MPS, breakeven point, and the equilibrium level of
income if investment expenditure is $25,500, government expenditure $16,000, and net export
BUSC 1A Study Guide
Production creation of utility because you are changing the shape of the material to make it useful
o Example: Changing cotton T-shirt or Changing log/wood Table/desk
Consumption destruction of utility because the product is
Homework Assignment 1
1. a) Canada has comparative advantage in producing calculators.
Canada: 280 cals = 340 pens
1 cal = 1.2 pens
Germany: 300 cals = 600 pens
1 cal = 2 pens
b) Germany has absolute advantage i
You are given the balance sheet of Blanca Bank:
Deposited w/ Fed
a. If the Blanca Bank holds
1. Jessica can paint one window frame or two walls in one hour. In the same time, Bob can paint
either two window frames or three walls.
a) Who has the lower opportunity cost in painting window fr
12 July 2016
HW Assignment #4; PG 246 parts A-C
A) Calculate autonomous consumption, MPS, MPC, multiplier, AE, and
equilibrium level of income demanded
28 June 2016
PG 52 #1,2
A) Who has comparative advantage in producing calculators?
OC of producing one more calculator:
1C= 7/5 P
Since Westland h
25 July 2016
Homework Assignment #6
The Bank of Pomona has the following balance sheet
Deposits $ 40,000
Capital $ 60,000
Deposited with the Fed $ 1,500
Loans $ 97,000
Total $ 100,000
1. List three main tools available to the Fed to change the money supply in the economy
a. Required Reserve Ratio
b. Discount Rate
c. Open Market Operations
Which tool do you think is most commonly used?
7 July 2016
PG 144 HW Assignment #3
1. Labor force= People working + People actively looking for a job
= 140 million+ 12 million
= 152 million
Labor force participation rate= (Labor force/ Total people who can legally
Tips for chapter 9, Macro
This chapter uses the AD and AS framework developed in chapter 8 to show how our
Macro Economy works, to describe the three possible states of economy
(recessionary gap, inflationary gap, and long-run equilibrium), and analyzes t
Midterm Study Guide
a. Economics (p 20) the study of human behavior to satisfy unlimited wants and with limited
needs that have alternative uses, to maximize our satisfaction.
b. Macroeconomics (p 36) explains how unemployment rate in the economy can b