McGill Econ 208 Midterm 1 Questions And Answers With Verified Study Solutions Rated A+

Opportunity Cost Formula - CORRECT ANSWER-what you give up/what you gain Four Key Economic Problems - CORRECT ANSWER-1. What is Produced and How 2. What is consumed and by whom 3. Why are resources sometimes idle 4. Is Productive capacity growing The Circular Flow of Income and Expenditure - CORRECT ANSWERpositive statement - CORRECT ANSWER-a factual claim about how the world actually works normative statement - CORRECT ANSWER-statement which describes how the world should be endogenous variable - CORRECT ANSWER-a variable that is determined within the model exogenous variable - CORRECT ANSWER-A variable determined outside the model flow of purchase - CORRECT ANSWER-expressed as so much per period of time stock of purchase - CORRECT ANSWER-at a period in time ceteris paribus - CORRECT ANSWER-a Latin phrase that means "all other things held constant" shifts in the demand curve - CORRECT ANSWER-income, prices of related goods, tastes, expectations, number of buyers shifts in supply curve - CORRECT ANSWER-Prices of Inputs, Technology, Government Taxes or Subsidies, Prices of Other Products, Significant Changes in Weather, Number of Suppliers movements along demand curve - CORRECT ANSWER-A change in quantity demanded caused by a change in a good's price. Elascity formula - CORRECT ANSWER-Percentage change in quantity demanded/Percentage change in price (Q1 - Q0/Q1 + Q0)/(P1 - P0/P1+P0)total expenditure - CORRECT ANSWER-Price x Quantity income elasticity of demand - CORRECT ANSWER-% change in quantity demanded / % change in income elascity of inferior goods - CORRECT ANSWERcross-price elasticity of demand - CORRECT ANSWER-Percentage change in quantity demanded of good X / Percentage change in price of good Y