01:220:103 Study Guide - Final Guide: Human Capital, Diminishing Returns, Phillips Curve

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burgundyelk884

3 Feb 2014

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Graph: market/ price elasticity, what is opportunity cost and why is there no free lunch, what you give up for something else. Private markets are the primary vehicles used to allocate resources and generate incomes. Economics: macro: study of the behavior of the economy as a whole, micro: studies individual prices, quantities and markets. Depreciation: decline in the value of an asset: definition of real and nominal gdp real: quantity of goods and services produced in a nation during a year. Corrects nominal gdp for inflation nominal: the value, at current market prices, of the total final output produced inside a country during a given year. It is not possible to make profits by acting on old information or at patterns of past price changes. Random walks: movements over time are completely unpredictable. In an efficient market, all predictable things have already been built into the prices; efficient market theory explains why stock prices look so erratic.

Related Questions

True/False

Indicate whether the sentence or statement is true or false.

____ 1. The average fixed cost curve increases as output increases over a relevant range of production.

____ 2. Average revenue is slightly higher than price.

____ 3. Marginal cost curves and average cost curves are both purely upward sloping.

____ 4. A firm that sells at a price below average cost is not making a normal profit.

____ 5. In the short run, it is possible for a perfectly competitive firm to make economic profits or economic losses.

____ 6. If a firm sells its output at a price greater than AC, it will earn economic profit.

____ 7. Zero profit in the economic sense means that firms are earning a normal rate of return.

____ 8. In a free market (laissez-faire) system, the price mechanism dictates the production planning (how to produce) decisions.

____ 9. Free markets produce relatively high levels of efficiency but low rates of growth.

____ 10. A natural monopoly occurs when a single firm can produce the entire output of the market at a lower average cost than could many firms.

bronzemoose966

Microeconomics

A	B	Answer
As a student of economics, when you speak of scarcity, you are referring to the ability of society to.	A. Extra benefit
What is the economic meaning of the expression that "There is no such thing as a free lunch?"	B. Entrepreneur.
Which expression is another way of saying "marginal benefit"?	C. Very limited government role in the economy
A tradeoff exists between two economic goals, X and Y. This tradeoff means that.	D. Price ceilings and the resulting product shortages.
The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the	E. Explicit costs.
The Soviet Union economy of the 1980s would best be classified as	F. Easy entry, many firms, and differentiated products
The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through	G. Product markets
Laissez-faire capitalism is characterized by	H. Satisfy economic wants given limited resources.
Black markets are associated with	I. Oligopoly
Cash expenditures a firm makes to pay for resources are called	J. The Resource Markets
Which set of characteristics below best describes the basic features of monopolistic competition	K. A command System
Mutual interdependence would tend to limit control over price in which market model	L. Getting more of X requires getting less of Y
Markets in which firms sell their output of goods and services are called	M. It means that there is an opportunity cost when resources are used to provide "free" products

chocolatemuskrat416

1.What do so many politicians, and journalist tells us what fair means?

2. After fifty years of poverty fair programs in the US, what are the results?

3.What was an early definition of social justice?

4.What is the current definition of social justice?

5.What are the many ways the US Federal Government taxes us?

6.What is our government's only source of revenues, no matter how our politicians word it?

7.What proportion of income taxes in the US is paid by the top 50%, 10%, and 1% of income earners?

8.Why are payroll taxes regressive?

9. It is true that nearly half the household in the US pays no income tax at all?

10. Do the poor actually lose various welfare benefits if they are trying to climb out of welfare, and their income increases?

11.Who actually pays corporate income taxes?

12.What is the definition of Economics?

13.Is there any form of government or economic system that can prevent a country from facing scarce resources?

14. How are resource allocation decisions made in a centrally planned economy and a free market system?

15.Is political self-interest somehow better than economic self-interest?

16.Is it possible for a small group of people in Washington D.C. to know the massive amounts of information required to get the right amount of milk on the local grocery stores' shelves?

17.What does voluntary exchange driven by self-interest require that each party to the exchange do?

18.What is the purpose of prices in a free market system?

19.What is crony capitalism, and why is it detrimental?

20.Why is issue emotionalism a shaky foundation upon which to make policy decisions?

21.We do not need to care what the stated intentions of politicians are regarding their proposed regulations. Instead, what should our concerns focus upon?

salmonelephant221

01:220:103 Study Guide - Final Guide: Human Capital, Diminishing Returns, Phillips Curve

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