EC120 Study Guide - Final Guide: Budget Constraint, Iqvia, Perfect Competition
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EC120 Full Course Notes
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Scarcity the limited nature of society"s resources. Economics the study of how society manages the scarcity resources. How people make decisions: people face trade-offs, the cost of something is what you give up to get it, rational people think at the margin, people respond to incentives. How people interact: trade can make everyone better off, markets are usually a good way to organize economic activity, government can sometimes improve market outcomes. Micro: study of the decisions of individuals, households, and firms, and how they interact in an economy. Macro: the study of aggregated economic outcomes such as inflation, unemployment or economic growth. Positive: a question that potentially has a right answer. Normative: a question that could not have a right answer (has should in the question, many opinions. Simplification to 2 outputs, (often) one output. Highlights 2 main concepts: trade-offs (opportunity cost, efficiency. Can be used to think about economic growth.
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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.