ECO 1104 Study Guide - Midterm Guide: Frozen Yogurt, Midpoint Method, Price Floor
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9 Apr 2017
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Opportunity cost: the loss of potential gain from other alternatives when one alternative is chosen. Scarcity: the limited nature of society(cid:495)s resources (cid:498)there ain(cid:495)t no such thing as a free lunch. (cid:499: making decisions requires trading-off one goal against another one, e. g. : how to allocate your time, your income, efficiency vs. equality: efficiency: the property of society getting the maximum benefits from its scares resources, equity: the property of distributing economic prosperity fairly among the members of, 1. People face trade-offs: how people make decisions: society, 2. The cost of something is what you give up to get it: the opportunity cost: whatever must be given up to obtain some item, when calculating the cost of something you need to take into account (ex. Cost of university: the explicit cost (direct and obvious): fees, books, etc, the implicit cost (indirect): your time and energy, example: you have a free ticket for a concert and cannot resell it.
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21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.