The flow of gross domestic product during a given interval must always be
equivalent to the flow of gross domestic
income within that same period because
spending by one group is income to another.
profit is defined as what is left over
Taxes, and Public
Lecture 7: ECO 202
February 9, 2016
Miller text, chapter 5.
How do taxes affect markets?
We can use our model of supply and demand to
analyze how taxes affect buyers and sellers
February 11, 2016
text, end of chapter 5.
Shortsightedness of the political process
Rational ignorance of the voter
And why we have such a large national
Lecture 6: ECO 202
February 4, 2016
Miller text, chapter 5.
Roles of government in markets
The Role of Government in
Protective Role of Government
Enforcement and protection of private prope
Practice Exam 2, Microeconomics ECO 202
1. A firm could lower prices and still increase revenue if
a. demand is elastic.
b. elasticity of demand is equal to unity.
c. demand is inelastic.
d. elasticity of demand is equal to zero.
2. When two goods are sub
ECO 202 Exam 1, Practice
Multiple Choice Questions:
1. The overriding reason why households and societies face many decisions is that
a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by n
Lecture 5: ECO 202
January 28, 2016
Miller text, chapter 4.
Be sure to read appendix B on consumer and
Consumer and Producer Surplus
What was scarci
Indirect business taxes and transfers
Government transfer payments
PI taxes and nontax payments
Corporate taxes and retained earnings
The impact of the national debt on the economys unemployment is an example of
Decisions must frequently be made by individuals, organizations, and even nations.
Facilitating better decision-making is a fundamental goal of econo
a. Bounded Rationality
b. Rationality Assumption
c. Bounded Rationality
Anything that you might have given up to see the concert.
weather shouldn't change the cost unless it takes even longer than usual.
The relevant opportuni
QUIZ 1 ANSWERS
QUIZ 1 ANSWE
1. According to your readings, and from what you have learned in Module 5, how could war
stimulate the economy? Explain in detail, making sure to mention the impact government
purchases have on Gross Domestic Product (GDP). Also, make sure you make mentio
Mod 6 Writing Assignment #2
One method of price discrimination for firms is the use of coupons and rebates. Firms are
basically allowing consumers to self-identify their respective price elasticities of demand for a
Thinking and Doing Ethics
Mod 3 Writing Assignment #1
After going through some news articles for my writing assignment, I found one article to
choose. It is, Luxury Cars Offer More Models, but Find Fewer Buyer. It article was very
The current exchange rate is $1: El.
Suppose that Americans prefer to huy domestic products rather than European products.
What would he expected to happen to the value of the dollar and the value ofthe euro?
iii-d. The dollar will depreciate and the euro
Select the most appropriate answer for questions 1 through 20.
Suppose the adult population equals 150,000; there are 72,500 employed persons
and 10,000 unemployed persons. How many people are not in the labor force?
HOMEWORK ASSIGNMENT ONE
Individuals, firms, governments, and countries are faced with choices
because all resources are scarce. A production possibility curve (see below)
measures the maximum combination of outputs that can be achieved from a
Homework Assignment 5
Deficit Spending and Public Debt
In each of the past few years, the federal government has regularly borrowed funds to pay
for at least one-third of expenditures that tax revenues were insufficient to cover. More
than 60 percent o
Homework Assignment 3
1. Will a direct increase in the price of U.S. goods relative to foreign goods lead to a
decrease in real GDP demanded or a to decrease in aggregate demand?
Decrease in real GDP
2. Will a change in the exchange rate that subsequently
Ch 32 ECO
Which of the following statements is true about the importance of international trade in the
Trade accounts for an increasingly lower share of a country's economic activity.
Trade is not important in the world economy.
Ch 16 ECO
Which of the following is not a reason people choose to hold
Money holdings are good assets during periods of inflation.
Your answer is correct.
Having cash to pay for unplanned expenditures and emergencies.
Ch 33 ECO
Suppose that during a recent year for the United States, merchandise
imports were $1.9 trillion, unilateral transfers were a net outflow of $0.2
trillion, service exports were $0.3 trillion, service imports were $0.1 trillion,
and merchandise ex
Ch 15 ECO
Until 1946, residents of the island of Yap used large doughnut-shaped stones as financial
assets. Although prices of goods and services were not quoted in terms of the stones, the
stones were often used in exchange for particularly large purchas
Principles of Macroeconomics ECO 201
Gross Domestic Product
In the text book Economics Today, by Roger LeRoy Miller, defines gross domestic product
as the total market value of all final goods and services produced during a year b
Chapter 10 Case Study:
Analyzing Managerial Decisions: eBay.com
February 12, 2017
1. eBay offers value in multiple methods. One is that it provides convenience
for buyers and sellers to negotiate the price in relation to quality and or
Module 3 Terminology
Perfect Competition- the situation prevailing in a market in which buyers and sellers are so
numerous and well informed that all elements of monopoly are absent and the market price of
a commodity is beyond the control of individual b
Module 5 Terminology
Focal Point- exists when there is a reasonable and obvious way to behave
-a Nash equilibrium could be an example
-the firm is a focal point for a set of contracts
-indicates that the firm always is one of the parties to each of the ma
Module 6 Terminology
Centralization-the concentration of control of an activity or organization
under a single authority; the action or process of bringing activities together
in one place
Centralized decision system- is one that assigns the most importan