ECON 101 Final: Econ 101 - Microeconomics - All Chapters on Exam

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bluescorpion134

27 Sep 2011

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ECON 101 Full Course Notes

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Labour aka human capital (the main factors of input/production whatever you use in a production process), physical capital (machines, computers, tools), Monopoly: even if you have one, you cannot charge the highest price (will not maximize your pro t because ppl demand will drop as people look for alternatives/substitutes. Car, cab, bikes instead of taking the bus). Even if there are no substitutes, charging very high is not a good way to maximize pro ts. Efficiency: the allocation of resources that maximizes total surplus (bene t) received by all members of a society. Equity: the fairness of distribution of well-being among the members of a society. How people make decisions: people face tradeoffs to get one thing you usually give up another. I. e. if you want to work 10 hrs instead of 8, then you have 2 hours less for leisure. Efficiency (bigger pie) vs equity (equal slices: opportunity cost what you give up to get what you want.

Related Questions

The idea of efficiency often arises when measuring a society's well-being. There are two kinds of efficiency: productive efficiency and allocative efficiency.

What can the government do to promote allocative efficiency?

(i) Allocate resources so that all types of goods and services are produced in the same amount.

(ii) Allocate all resources to maximize the production of the one product most desired by society.

(iii) Take responsibility for distributing resources equally among the rich and the poor, regardless of people's preferences.

(iv) Impose a minimum of interference in the market, thus enabling the people who are willing to pay the most for a given good or service to obtain it.

ultramarinerabbit662

Efficiency means our economic pie is divided into equal slices:

a. society is conserving resources in order to save them for the future.

b. society's goods and services are divided equally among society members

c. society's goods and services are distributed fairly though not necessarily equally among the members

d. society is getting the maximum benefits from its scarce resources

tanmule758

Chapter 12: production, and growth.

5. Which of the following is human capital?

A. a student loan

B. understanding how to use a company's accounting software

C. training videos for new corporate employees

D. All of the above are correct.

6. One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

A. conserve resources for future generations.

B. sacrifice consumption of goods and services now in order to enjoy more consumption in the future.

C. recycle resources so that future generations can produce goods and services with the accumulated capital.

D. None of the above is correct.

7. Other things the same, a country that increases its savings rate will have

A. higher future capital and higher future real GDP per person.

B. higher future capital but not higher future real GDP per person.

C. higher future real GDP per person but not higher future capital.

D. neither higher future capital nor higher future real GDP per person.

limelouse103

ECON 101 Final: Econ 101 - Microeconomics - All Chapters on Exam

ECON 101 Full Course Notes

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