What is a normative statement?

Describes how things should be.

What is an absolute advantage?

Being able to produce more regardless of opprotunity cost.

What is market demand?

The total demand of the market (all of the demand curves added together)

Dual Mandate describes the government's job to do what?

Keeping inflation low while growing the economy

The non money expense of an activity

The physical money spent on something

What is deficit spending?

Spending more money than you have.

What is the law of demand?

As price goes up demand goes down

Opprotunity costs are

The next best thing given up in a decision, Implicit + Explicit costs

What is a comparative advantage?

Being able to produce more at a lower opprotunity cost.

where supply is greater than demand

Overrall prices going down in an economy

Consumer Efficiency is

Goods that are consumed by those who want them most

What is market supply?

The total supply of the market (all of the supply curves added together)

where demand is greater than supply

What is the law of supply?

As price goes up supply goes up

What is a negative income tax?

People below a certain income bracket recieving money.

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ECO 2013 exam 1 (Murf)

30 termsStudBud Administration14 plays

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Questions 30

Answers

1
What Describes Marginal Analysis?
Cost minimization
lowest opprotunity cost
Per dollar analysis
Per unit analysis
2
What is a normative statement?
Describes how things are.
describes what is normal.
Describes the economy
Describes how things should be.
3
What is an absolute advantage?
Being able to produce more of something without trade.
Being able to be self sufficient
Being able to produce more at a lower opprotunity cost.
Being able to produce more regardless of opprotunity cost.
4
What is market demand?
surplus
The total supply of the market (all of the supply curves added together)
shortage
The total demand of the market (all of the demand curves added together)
5
Dual Mandate describes the government's job to do what?
Keeping inflation low while shrinking the economy
Keeping inflation low while growing the economy
keeping inflation down
Keeping inflation up while growing the economy
6
Implicit Costs are
The total cost of an activity
The physical money spent on something
Opprotunity cost
The non money expense of an activity
7
Explicit Costs are
The non money cost of an activity
Input costs
Total cost of an activity
The physical money spent on something
8
What is deficit spending?
Saving leftover money for next year.
Investing extra money
Spending less money than you have.
Spending more money than you have.
9
In this PPF, which point is Efficient
Y
B
Z
X
10
What is the law of demand?
As price goes up demand goes up
where demand is greater than supply
As price goes up demand goes down
As supply goes up, price goes up
11
Opprotunity costs are
The next best thing given up in a decision
Implicit + Explicit costs
The physical money spent on a decision
Everything given up in a decision
12
Production Efficiency is
highest profit
highest production costs
most revenue
lowest production costs
13
What is a comparative advantage?
self sufficiency
Being able to produce more overrall.
Being able to produce more of a good without trade.
Being able to produce more at a lower opprotunity cost.
14
In a circular flow diagram, who owns the products and services market?
Firms
Households
15
In this PPF, which point is Impossible
B
X
Z
Y
16
What is a surplus?
where supply is greater than demand
where demand is greater than supply
where demand equals supply
17
What is inflation?
Gas prices going up
Overrall loan prices going up
Overrall prices going down in an economy
Overrall prices going up in an economy
18
Consumer Efficiency is
Goods that are consumed by those who want them most
Lowest costs to producer
Highest profit
Firms and Households
19
In this PPF, which point is inefficient
Z
Y
X
B
20
What is market supply?
The total supply of the market (all of the supply curves added together)
The total demand of the market (all of the demand curves added together)
shortage
surplus
21
A pair of goods where as the price of one goes up, the demand for the other goes down
subsitute
compliment
normal good
inferior good
22
In a circular flow diagram, who owns the factors market?
Households
Firms
23
A pair of goods where as the price of one goes up, the demand for the other goes up as well
compliment
subsitute
inferior good
normal good
24
A good that has its demand go up when consumers have more income is a:
compliment
subsitute
inferior good
normal good
25
What is a shortage?
where demand is greater than supply
where demand equals supply
where supply is greater than demand
26
What is the law of supply?
where demand is greater than supply
As price goes up demand goes up
As supply goes up, price goes up
As price goes up supply goes up
27
What is a positive statement?
Describes Scarcity
Describes how things are
describes how things move in the economy
describes how things should be
28
What is a negative income tax?
People below a certain income bracket recieving money.
People above a certain income bracket recieving money.
People getting money from the government.
People below a certain income bracket paying less taxes.
29
What is equilibrium?
where demand is greater than supply
where supply is greater than demand
where demand equals supply
30
A good that has its demand go down when consumers have more income is a:
normal good
subsitute
inferior good
compliment

ECO 2013 exam 1 (Murf) Flashcards | StudBud