Answer Module prompts (Module 1)
1) What are the four categories of resources? Give an example of a resource from each
Labor- time spent working on a fishing boat
Capital- fishing nets
Entrepreneurship- opening of
Economics Film Project
The thought of having to pay for music has now been a thing of the past as new apps such as
Spotify, MP3Skull, and much more allow us to listen to music for free. The new generation has been
raised in a tech
Fiscal Policy and Deficits, Surplus & Public Debt
and Loanable Funds Market Worksheet
1. In the short run which of these causes an increase in output and an ambiguous impact on overall
A. an increase in oil prices and a decrease in tax
Chapter 38: Exchange Rates, and the Balance of Payments, and Trade Deficits
Financing International Trade
A. Foreign exchange markets enable international transactions to take place by providing
markets for the exchange of national currencies.
UNIT 3-1 PERFECT COMPETITION STUDY GUIDE
1. Pure (Perfect) Competition: Characterized by a large number of firms, no
barriers to entry/exit, homogenous products (no differentiation), and price
2. Price-taking Firm: A market in which the selle
The Income-Consumption and Income Saving Relationship
A. Many factors determine the nations level of consumption and saving.
B. Most significant is income
C. The focus is on the relationship between income and consumption and savings.
D. Investment s
Functions of Money
A. Medium of exchange: Money can be used for buying and selling goods and services.
B. Unit of account: Prices are quoted in dollars and cents.
C. Store of value: Money allows us to transfer purchasing power from
Chapter 14: How Banks and Thrifts Create Money
Although we are fascinated by large sums of currency, people use checkable deposits for
A. Most transaction accounts are created as a result of loans from banks or thrifts.
Aggregate demand is a schedule that shows the various amounts of real domestic output that
domestic and foreign buyers will desire to purchase at each possible price level.
A. The aggregate demand curve is shown in Figure 11-1.
1. It shows an inverse r
A. Resources must be used by all firms in producing their goods or services
B. Significance of resource pricing:
1. Money incomes are determined by resources supplied by the households. In other words,
Chapter 24: Pure Monopoly
A. Definition: Pure monopoly exists when a single firm is the sole producer of a product for
which there are no close substitutes.
B. There are a number of products where the producers have a substantial amou
Chapter 12 Fiscal Policy
A. One major function of the government is to stabilize the economy (prevent unemployment or
B. Stabilization can be achieved in part by manipulating the public budgetgovernment
spending and ta
The United States in the Global
Economy, Foreign Exchange
Final Presentation Econ
What is FOREX?
Nations are interdependent on one
When a nation can sell their goods/services
to another nation's consumers.
Involves the buying and selling
A. Americans spend trillions of dollars on goods and services each yearmore than 95 percent
of their after-tax incomes, yet no two consumers spend their incomes in the same way. How
can this be explained?
B. Why does a consumer buy
Chapter 22: The Cost of Production
Costs of Production
A. Explicit costs are payments to nonowners for resources they supply.
B. Implicit costs are the money payments the selfemployed resources could have earned in their
best alternative employments. .
Chapter 23: Pure Competition
A. Pure competition entails a large number of firms, standardized product, and easy entry (or
exit) by new (or existing) firms.
B. At the opposite extreme, pure monopoly has one firm that is th