Name: _ Class: _ Date: _
Unit 2 test prep
Identify the choice that best completes the statement or answers the question.
1. Rapidly increasing health costs have been a major political concern for several decades. Suppose that to cont
Answer only 4 out of 5 Questions
Consider the following pairs of goods. For which of the two goods would you expect the demand to
be more price elastic? Why?
a. water or diamonds
b. insulin or nasal decongestant spray
c. food in general o
Chapter 3: Supply and Demand
1. Change in demand: shift in demand curve
a. Demand shifters
2. The supply side of the market
A. Defining: supply, quantity supplied, supply schedule, supply curve
B. The law of supply
1. Measuring unemployment: Household Survey
A. The U.S. working-age population
a. Who is in labor force
b. Who is not in labor force
2. Measuring unemployment: Unemployment rate
A. Problems with unemploym
Chapter: Measuring price level and inflation
1. Measuring price level: price indexes
A. GDP Deflator. What does it measure?
B. Consumer Price Index. What does it measure?
C. Producer Price Index. What does it measure?
1. Midterm exam results
Chapter 12: Aggregate demand and aggregate supply
1. Short-run aggregate supply (SRAS)
a. Relationship between price level and short-run aggregate supply
b. Change in quantity supplied of Real GDP in th
Chapter: Economic Growth, the Financial System and Business Cycle
1. Defining and measuring the long-run economic growth
2. Sources of the long-run economic growth
a. An increase in quantity and quality of economic resources
b. An increase
Chapter 1 and 2
1. Introduction to the course. Going over the course syllabus
2. Chapter 1: What Economics is about?
A. Defining economics: Key concepts:
A. Scarcity of resources
B Choice: benefit and cost
C. Opportunity cost
Chapter: Production Possibilities Model
1. Using PPF to illustrate the key concepts in economics
C. Opportunity cost: increasing opportunity cost
D. Economic efficiency
E. Economic inefficiency
Chapter 7: Measuring total output and income
1. Why do we measure economic activity?
2. How do we measure an amount of economic activity? Gross Domestic Product (GDP)
3. Defining Gross Domestic Product (GDP
a. What is included