Availability of close substitutes
Passage of time
luxuries versus necessities
Definition of the market
The share of the good in the consumers budget
Availability of close substitutes
Consumers react to change in the price of a product dependi
Fiscal policy should be flexible while still trying to maintain discipline. Fiscal policy
is often viewed as less efficient than monetary policy in terms of guiding the economy
because in the majority of other countries, it takes a very long time to get a
In the year 1994, the North American Free Trade Agreement (NAFTA) was put into
effect in turn, it created one of the worlds largest free trade zones while paving the
way for strong economic growth and rising prosperity for Canada, the United States,
Compare and contrast fiscal policy and monetary policy in terms of their flexibility, speed, and their effectiveness in both
recessions and times of inflation. Then, explain the difference between the discount rate, federal funds rate, the prime rate
1. What are the functions of money?
There are four primary functions of money, medium of exchange,unit of account,
store of value and standard of deferred payment. Medium of exchange is something
that is normally accepted by sellers in exchange for any go
1. What are the characteristics for the purely competitive firm? Explain each one
of them and why they are important.
The term pure competition can be described as a market that has wide range of
different competitors that are selling the exact same produ
What is the difference between discretionary fiscal policy and automatic fiscal
policy? Is it discretionary or not? Explain.
Discretionary Fiscal policy is used when there is a problem within inflation or
unemployment in which they set up a policy obje
Personality Profile Questionnaire
Pursuing a masters degree has always been one of my long lifetime goals; I strongly feel
that obtaining my masters degree is an immense responsibility that I owe to myself as well as
my family. With that being said I consider obtaining a masters degree as
The demand curve shows the relationship between the price of a product and the quantity of the
product demanded. Anytime there is an increase or decrease within the price, there is moment
along the demand curve.
Management Information Systems are utilized by businesses and firms worldwide.
Management Information Systems (MIS) have other subsets, such as Decision Support Systems
and Executive Information Systems. Management Information Systems get
Why are you seeking this particular degree?
Pursuing a masters degree has always been one of my long lifetime goals, I strongly feel that
obtaining my Masters degree is an immense responsibility that I owe to myself as well as a
devotion I have to my fami
Management Information systems are utilized by businesses and firms worldwide.
Management Information Systems (MIS) have other subsets, such as Decision support Systems
and Executive Information Systems. Management Information Systems get t
1. Opportunity cost is basically anytime you have to make a choice and you place value upon
your choice without much thought. When you make one choice over another it is because the
one you chose holds more value than the choice you did not choose. In oth
1. What are the goals of monetary policy? Explain each one and how it works (20)
Money policies represent the different actions taken by the Fed to manage the economys interest
rate and money supply. They set up monetary po
1. What is the difference between explicit and implicit costs? Which of the costs is most
closely associated with opportunity costs and why? Give three examples of each type of
costs that you have incurred over the past 30
March 3, 2016
1. What are the functions of money? (10)
Money is a medium of exchange. Meaning, Money is acceptable to a wide
variety of parties as a form of payment for goods and services.
Money is a unit of account. It is a way of measu
Assignment # 5a.
1. What are the characteristics for the purely competitive firm? Explain each one of them and why they are
In a purely competitive firm the follow characteristics applies
1. There are many buyer
Economics: Final Exam
1. Compare and contrast fiscal policy and monetary policy in terms of their flexibility, speed, and their effectiveness in
both recessions and times of inflation. Then, explain the difference between the discount ra
Chapter 3. Demand and Supply Notes
The quantity demanded of a good or service is the quantity buyers are willing and able to buy at
a particular price during a particular period, all other things unchanged.
A demand schedule is a table that shows the qu
Chapter 7 Notes
Potential output is the level of output an economy can achieve when labor is employed at its
natural level. When an economy fails to produce at its potential, the government or the central
bank may try to push the economy toward its poten
Chapter 8 Economic Growth
Economic growth is the process through which an economys production possibilities curve
shifts outward. We measure it as the rate at which the economys potential level of output
Measuring economic growth as the rate
Chapter 10 Financial Markets and the Economy
A bond represents a borrowers debt; bond prices are determined by demand and supply.
The interest rate on a bond is negatively related to the price of the bond. As the price of a bond
increases, the interest
Major macroeconomic policy tools
In dealing with problems such as inflation and unemployment, the Federal government
has a number of policy tools at its disposal.
The two most important:
Fiscal policy tools
To stimulate t
Macroeconomics in our personal lives
Macroeconomics helps you make important decisions:
Is it a good time to switch jobs?
Should you ask for a raise?
Go buy that new house now or wait?
Get a fixed or variable rate mortgage?
Macroeconomics in our p