Chapter 4 Study Guide
1/ If we get less health care and more of other goods than is optimal on the production possibilities
curve, in this case the market has failed. We get the wrong answer to the _right_ question.
2/ A _private_ good is a good that is b
Macro Study Guide
1/ We have scarce resources so in our choices of consumption we wish to maximize the satisfaction we
receive from those choices. The economist terms this maximizing the _utility_
2/ Since it is unlikely that we can grow our own
Chapter 5 Study Guide
1/ We calculate the value of the annual GDP in (units, dollars) _dollars_.
2/ A countrys (GDP, GNP) _GDP_ is the total output of goods and services produced in a
year regardless of where they were produced.
3/ Dishes, laundry, dustin
Chapter 7 Study Guide
1. Would it be advantageous to borrow money if you expected prices to rise? Would you want a fixedrate loan or one with an adjustable interest rate? Yes it would depending on your interest rate. I
would pick a fixed rate loan because
Chapter 6 Study Guide
1/ If the labor force increases more than jobs created we will be (inside,outside) _inside_ the
production possibilities curve.
2/ According to Okuns Law, how much output (real GDP) was lost in 2010 when the nations
Chapter 8 Study Guide
1. Our text uses AD to mean _aggregate demand_.
2. _macroeconomics is the study of aggregate economic behavior of the economy as a whole.
3. The classical economists maintained that the market driven economy was inherently
Macro Study Guide
1. The total market value of all goods and services produced in a nation in a year is _Gross
domestic product (GDP).
2. The ratio of output to population growth in the U.S. is roughly _3.1_
3. U.S. workers are able to pursue th
Profit margin = net earnings = Sales
680.7 = 10.8% 6,295.4
Return on assets = net earnings = 680.7 = 16.1% Assets 4,237.1 Return on equity = net earnings = 680.7 = 39.7% Equity 1,713.4
Comparison of Western Grain Ratios with the Industry profit margin ret