Intro to Economics Final Exam Questions And Answers 2024

Intro to Economics Final Exam Questions And Answers 2024 Scarce Resources - correct answer-resources that are limited and not free Basic Law of Demand - correct answer-price and quantity demanded are negatively related, ceteris paribus Law of Increasing Costs - correct answer-as resources become scarce--the opportunity cost of using them increases Law of Diminishing Utility - correct answer-we we consume more of a product, our total utility increases at a decreasing rate; our total utility increases, but our marginal utility decreases Economic Rationality - correct answer-we compare the marginal cost to the marginal benefit of making a decision Conglomerate - correct answer-one firm that produces goods in a variety of industries-- to diversify Collusion - correct answer-when oligopoly firms get together and price fix--illegal in U.S. Economies of Scale - correct answer-as quantity of production increases, the average cost of production decreases The benefit to a firm of hiring someone - correct answer-marginal revenue product -- the additional product (MP) that one additional worker produces, times the price that it can be sold for: (MP xP) or (MP x MR) Underground economy - correct answer-production that is not included in GDP because it is not reported or is illegal Recession - correct answer-6 consecutive months of declining economic growth discouraged worker - correct answer-Out of Labour Force -- was in LF-- became unemployed-- couldn't find anything an then stopped looking for work the Philips Curve - correct answer-negative relationship between unemployment and inflation Automatic Stabilizer - correct answer-something that automatically keeps aggregate demand stable even when negative factors works against it-- progressive income tax, welfare, unemployment insurance