PRINCIPLES OF ECONOMICS II (MACROECONOMICS) EXAM #1 STUDY GUIDE ACTUAL EXAM ALL QUESTIONS AND WELL ELABORATED ANSWERS TOP RATED VERSION FOR ALREADY A+ GRADED HIGHLY RECOMMENDED |NEW AND REVISED

PRINCIPLES OF ECONOMICS II
(MACROECONOMICS) EXAM #1
STUDY GUIDE ACTUAL EXAM ALL
QUESTIONS AND WELL
ELABORATED ANSWERS TOP RATED
VERSION FOR ALREADY A+ GRADED
HIGHLY RECOMMENDED |NEW AND
REVISED
Microeconomicsm-
mCORRECTmANSWERmStudymofmhowmHouseholdsmandmFirmsmmakemdecisions,minterac
tminmmarkets,mandmhowmthemgovernmentmattemptsmtominfluencemtheirmdecisions.



Macroeconomicsm-
mCORRECTmANSWERmThemstudymofmthemeconomymasmamwholem(inflation,munemploy
ment,meconomicmgrowth,m&mhowmgovt.mpolicyminfluencesmit)



Economicsm-
mCORRECTmANSWERmStudymofmhowmscarcemresourcesmaremallocatedmamongmcompeti
ngmuses.



EconomicmResourcesm(FactorsmofmProduction,mInputs)m-
mCORRECTmANSWERmThingsmthatmaremneededmtomincrease/producemoutput.



EconomicmResourcem#1:mLandm-
mCORRECTmANSWERmEncompassesmthemlandmthatmproductionmtakesmplacemandmallm
naturalmresources.m

Ex:)mwater,msheep,mcows,mmetal,mtimber,m&mminerals.

, EconomicmResourcem#2:mLaborm(L)m-
mCORRECTmANSWERmPhysicalm&mMentalmabilitiesmofmworkersm

Ex:)mQuantitym&mQualitym(HumanmCapital)



EconomicmResourcem#3:mPhysicalmCapitalm(capital,mK)m-
mCORRECTmANSWERmGoodsmproducedminmeconomymthatmaremusedmtomproducemoth
ermgoodsmandmservices.m

Ex:)Machines,mTools,mStructuresm(Buildings/Factories).



EconomicmResourcem#4:mEntrepreneursm-mCORRECTmANSWERm-
Individualsmwhomorganizemresourcesmformproductionm&mpossiblymintroducemnewmprod
ucts/techniques.m

-Innovatorsm&mRisk-Takers.



Outputsm-mCORRECTmANSWERm-Resultmofminputs.m

-Twomtypesmofmoutputs:m

1.)mGoodsm(tangible)

2.)mServicesm(intangible).



Marketsm-mCORRECTmANSWERm-Amgroupmofmbuyersm&msellers.m

-Wheremscarcemresourcesmaremallocated.



WealthmofmNationsm(AdammSmith-1776)m-
mCORRECTmANSWERmBookminmwhichmAdammSmithmexplainsmwhym&mhowmnation-
statesmobtainmwealth.