Econ 2013 Study Guide For Exam 1
Know that Economics is the study of how we make choices under scarcity
Understand the concept of scarcity
Scarcity The concept that there is less of a good. Freely available from nature than
people would like
8 guideposts to
Chapter 1: Basic Economics
the concept that there is less of a good freely available from nature then people would like
1. Not the same thing as poverty, poverty has changed over time
2. Leads to all
Study Guide for Exam 1: What you need to know
1. Definition of GDP
a. The total value of goods and services produced in an economy.
2. Production approach of GDP
a. GDP is the current market value of all final goods and services newly produced i
Micro study sheet
What is economics?
- The study of how we make choices under scarcity. Economics effects everything we do.
- The act of selecting among alternatives.
- The concept that there is less of a good freely available fr
Role for Government
Size and Growth of the U.S.
Rational Ignorance Effect
Median Voter Theory
The 4 Ways We Spend Money
When the Political Process
When the Political Process
Does Not Work
Money market instruments
Less fluctuations=less risky
US Treasury Bills
o Short term debt, 1, 3, 6 month maturities to finance fed gov. Paid at maturity, no
interest payments, but get profit because theyre sold at a discount. Most liqui
Structure of Financial Markets
Debt and equity markets
2 ways to obtain funds in financial markets. Most common is debt instrument, such as
bonds or mortgages, which is a contractual agreement by the borrower to pay the
holder of the instrument fixed dol
Primary and Secondary Markets
Primary market is financial market in which new issues of a security, such as a bond or a
stock, are sold to initial buyers by the corporation or government agency borrowing the
funds. A secondary market is a financial market
Function of Financial Markets
The lender-savers and the spender-borrowers. The LS are typically households, but can
be businesses, governments, or foreigners. The key SBs on the other hand are business
and government (particularly federal government), bu
ECO 2013 Final
changes in the money supply by the Federal Reserve
changes in the government spending and tax rates by the government
accounting office of the U.S. Government. They pay the bills of the government and
2. Distribution of National Income
Factors of production and production
function determine output and therefore
Circular flow: national income flows from
firms to households through the markets
for the factors of production
ECO2013-2 EC Quiz 1
Identify the choice that best completes the statement or answers the question.
1. All but one of the following are elements of the economic way of thinking. Which one is NOT part of the
economic way of thinking?
Problem Set 1
Due at the beginning of class: Tuesday, September 13, 2016
Question 1. The productivity in production of each good is shown below:
Barrels of oil per labor hour
Bushels of wheat
A price ceiling is the act of putting a cap on the maximum price a seller is legally allowed
to charge on a service or good. A good example of price ceilings is when the U.S. government
put a price ceiling on gasoline in order to make it a
THE PRE-ISLAMIC MIDDLE EAST
How was political power distributed in the Middle East in the period prior to
the rise of Islam?
>Large multi-ethnic empires (the Byzantine and the Sassanid) controlled those
regions appropriate for agricultura
Value of money is determined by demand relative to the supply
M1- Currency + checkable deposits + travelers checks
Currency= cash and coins
Checkable deposits = anything in checking account
Definition of money
M1- is the more liquid form
DO NOT COPY Surviva+ Guide
Principles of Microeconomics
Prof. Ioab Corey
Exam 2 Study Guide
0 The Tax System
0 Average tax rate (ATR): The percentage of income paid in taxes.
ATR= tax liability/taxable income
Income Taxes ATR
1. $100 $5 5%
Public Sector Economics Test Questions
Randall Holcombe Fall 2015
3. What is the median voter model? Explain three ways in which the conclusion of the model
can be reached. Use graphs to assist your explanation. What condition must be satisfied in order
Climbing the Macroeconomic
14. Modern Macroeconomics and Monetary
13. Money and the Banking System
12. Incentives and Secondary Effects
11. The Keynesian View and Historical
1ECO 3223 - SP 2014 EVANS
STUDY GUIDE FOR EXAM #2
Understand how default risk affects bond prices and interest rates on
bonds. An increase in default risk will lower demand, which lowers bond
prices and increases interest rates. US treasury
1) You are holding a corporate bond, and have been advised that the company has just declared
most significant type of risk you are most likely now facing is
tax (consideration) risk
all of the above
why bond prices and interest rates are inversely
related, using the concept of PV.
-As the yield to maturity increases, all
denominators in the bond price formula
must necessarily increase, because the rise
in i lowers the present value of all future
Final Exam ECON 203 OL2 Fall 2014
I. MULTIPLE CHOICE (40 questions 2 points each). Choose the one alternative that best completes
the statement or answers the question.
1) Economics is the study of: 1) _
A) how society uses limited resources.
B) how to in
Study Guide for Principle of Macroeconomics 1
1. Which of the following is not a basic decision that all nations must confront?
A. Should we have economic growth?
B. How should we produce goods and services?
C. For whom should goods and services be produc