Key Vocab
Formulas & Calculations
Key Graphs
Real World Applications
Miscellaneous
100
Which of the following would not satisfy an economist's definition of the concept of scarce resources?
A. Time
B. Fresh water
C. Measles
C. Measles
100
What is the formula for the output expenditure model?
Y = C + I + G + (X - M)
C = consumption
I = investment
G = government spending
X = exports
M = imports
100
An increase in supply will cause the supply curve to _?
shift rightward
100
An increase in the price of sweaters would cause
An increase in the quantity supplied of sweaters
100
Trade between nations will lead to
An increase in specialization
200
On any standard production possibilities graph a point below the Production Possibilities curve represents
Recession or depression
200
If the market basket for a CPI in 2018 has 5 $2 cookies, 2 $3 brownies, & 1 $110 table, while the CPI in the base year of 2010 is $100, what is the amount of inflation between the 2 years based on changes in the CPI?
5(2) + 2(3) + 1(100) = 116
(116 - 100)/100 = 16%
200
What concept is demonstrated by the graph?
contraction
200
If the supply of cat food increases and the demand for cat food decreases, how will the equilibrium price and quantity be affected?
The equilibrium price will decrease but the change in the equilibrium quantity is unknown
200
Which of the following is a factor of production
A. Capital
B. Rent
C. Interest
D. Money
A. Capital
300
The potential benefit loss to acquire something else is known as
opportunity cost
300
What is the formula for per capita GDP?
GDP/population
300
When the demand curve shifts to the right and the supply curve shifts to the right, what outcomes may occur?
Quantity will increase and price will be indeterminate
300
Which of the following would cause an increase in the supply of coffee?
Increase in price, new machine, price predicted to rise in next year
New machines
300
Assuming A represents households, & B represents firms, what are the real flows H & I?
goods & services
400
What group Includes most people aged 16 or older who are willing and able to work?
The labor force
400
Point A represents the current level of production. What concept is demonstrated by the production possibilities curve?
Underutilization
400
Which of the following increase the demand for coffee?
Tea price decreases, coffee price decreases, recession ends and disposable income rises
Recession ends and disposable income rises
400
What is a continuous rise in the price of goods and services called?
Inflation
500
What is a demand curve?
Graph of the demand schedule
500
What is a complement?
Goods that are used together