Ch1&2 Economic Principles & Economic Science
Ch3 Optimization
Ch4 Demand, Supply, and Equilibrium
Ch5 Macroeconomic Aggregates
Ch6 Aggregate Incomes
100
What is the median and mean of this set of data:
1, 2, 3, 6, 8, 12, 17
Median: 6
Mean: 7
100
True or False: Marginal analysis and total value will produce the same answer
True
100
What is the point where the supply and demand curve called?
Equilibrium
100
Name one of the 3 conditions that must be met to be considered unemployed
1) does not have a job
2) actively looked for a job in the prior 4 weeks
3) is currently available for work
100
_____ capital is the stock of all machines and buildings used for production
Physical capital
200
A _______ experiment is an empirical study in which some process - out of the control of the experimenter - has assigned subjects to control and treatment groups in a random way
Natural Experiment
200
Calculate marginal commuting cost
--- or 50
50
50
50
200
A new taco producing machine is invented that makes taco production significantly more efficient. What happens to equilibrium price?
Equilibrium price goes down
200
What is the difference between Real and Nominal GDP?
Real GDP uses base year market prices to try to account for the price increase of goods over a period of time
200
What is the equation for GDP Per Capita?
GDP / Total Population
300
People with a high level of education are less likely to be unemployed - this statement implies a _______ correlation
Negative correlation
300
Calculate marginal rental cost
--- or 1180
-90
-60
-30
300
Tacos and hamburgers are substitute goods. Hamburgers go up in price. What happens to equilibrium price of Tacos?
Equilibrium price goes up
300
The cost of buying David's Collection of Goods is $210 in 2026, then it costs $250 in 2027. What is the CPI (consumer price index) in 2027?
119
(250/210) x 100 = 119
300
True or false: Country A has higher income per capita than Country B, therefor most of the citizens of Country A will have higher incomes than most citizens than Country B
False. One citizen with an extremely high income can sway income per capita greatly
400
What are the 3 principles of Economics?
Optimization, Equilibrium, and Empiricism
400
Calculate total cost for each option
$1,230
$1,190
$1,180
$1,200
400
What happens in the taco market when there is a price increase for tacos?
Points move up along the supply and demand curve and there is EXCESS SUPPLY
400
(Price Index in 2025 - Price Index in 2020) รท Price Index in 2020 = ________
Inflation Rate
400
What does the Aggregate Production Function (Y = A x F(K,H) describe?
The relationship between the Aggregate GDP of a nation and its factors of production
500
If I calculated the benefits and subtracted the costs of Option 1, that would be the __________. If I compared that with the same type of calculation for Option 2 to find the most optimal option, this would be a ___________
If I calculated the benefits and subtracted the costs of Option 1, that would be the NET BENEFIT. If I compared that with the same type of calculation for Option 2 to find the most optimal option, this would be a COST-BENEFIT ANALYSIS
500
____________ is the extra benefit generated by moving from one feasible alternative to the next feasible alternative
Marginal Benefit
500
Describe diminishing marginal benefit
As you consume more of a good, your willingness to pay for an additional unit declines. AKA you value additional units less as you have more of them
500
What is GDP (gross domestic product)?
GDP is the market value of the final goods and services produced in a country during a given period of time
500
Describe the Law of Diminishing Marginal Product
The marginal contribution of a factor of production to GDP diminishes when we increase the quantity used of that factor of production. AKA As you add more workers to a factory, eventually you'll have so many workers that adding more doesn't increase productivity very much