top-rated free essay

Econ 101 Study Guide

By calguard11a Dec 15, 2013 265 Words
Chapter 01

Three important ideas:  People are rational.  People respond to incentives.  Optimal decisions are made at the margin. How an economy answers these questions:  What goods and services will be produced? How will they be produced?  Who will receive the goods and services? Role of models in economic analysis.

Distinguish between microeconomics and macroeconomics.
People must make choices as they try to attain their goals.  The choices people make reflect the trade-offs made necessary by scarcity. Become familiar with important economic term:
 -Scarcity and tradeoff
 -Opportunity cost
 -Positive and normative economics
 -Efficiency of markets

Chapter 19

Factors of production (labor, capital, natural resources, and entrepreneurship) The Bureau of Economic Analysis (BEA) divides its statistics on GDP into four major categories of expenditures: consumption, investment, government purchases, and net exports. GDP measurement

Real GDP versus Nominal GDP
Components of spending in GDP of the United States
Federal budget deficit
Federal government debt
GDP deflator
Measures of total Income

Chapter 20

Labor force and Unemployment
Types of unemployment
Labor force participation rate
Unemployment rate
Factors that determine the unemployment rate
Measuring Inflation
Inflation and unemployment are key macroeconomic problems. It is essential to understand how these concepts are defined and computed. The U.S. Bureau of Labor Statistics uses the results of the monthly household survey to calculate the unemployment rate and the labor force participation rate.

Chapter 21

The U.S. economy has experienced both long-run economic growth and the business cycle. Long-Run Economic Growth
Labor productivity 
Potential GDP
Saving vs. investment
Financial System
Loanable funds
Real interest rate
Business cycle
The Great Depression

Cite This Document

Related Documents

  • study Guide Econ 101 #3

    ...Principles of MacroEconomics: 101 Problem Set #3: Answer Key 1. Explain each of the following: (a) the wealth effect, (b) interest rate effect, and (c) international trade effect. The real balance effect states that the inverse relationship is established through changes in the value of monetary wealth. As the pric...

    Read More
  • Econ 103 Study Guide

    ...Aggregate Expenditure: relationship showing (at a given price level) Real GDP. * Y=C+I+G+NX Consumption Function (C): A relationship between disposable income (income-tax) and consumption * C=a+b(Y-T) * a-autonomous spending * b-MPC * Y-Aggregate expenditure * T-net taxes (tY) * Marginal Propensity to C...

    Read More
  • Econ 2301 Study Guide

    ...ECON 2301: Principles of Macroeconomics Hennessy ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120 Instructor: Gregory Hennessy Office: NRG PB3 Hours: Th 6:30 pm – 7:00 pm Th 9:45 pm – 10:15 pm And by appointment Phone: Email: Course Description Principles of Macroecon...

    Read More
  • Econ 204 Study Guide

    ...EXAM 2 STUDY GUIDE – CHAPTERS 7 - 10 (partial) ECON 204 SPRING 2013 Chapter 7 Inflation Deflation Effects of Inflation 1. Price effects a. Real vs. nominal income 2. Income effects 3. Wealth effects Money illusion Measuring inflation • Consumer Price Index (CPI) • Market basket Construction of a Price Index 1. Calculate cost of baske...

    Read More
  • Econ Study Guide

    ...Economics 111 – Study Guide CHAPER 1 – Economic and Economic Reasoning Economics: The study of how human beings coordinate their wants and desires given the decision making mechanism, social customs and political realities of society. The three central coordination problems any economy must solve are: 1. What and How much to pro...

    Read More
  • Macro Econ study guide

    ...Review sheet for Exam 2 – Principles of Macroeconomics What are the two focal areas of macroeconomics? What are business fluctuations? The phases of a business cycle, and the characteristics of each phase. Business fluctuations in the growth rate of real GDP around its trend growth rate. Employment and Labor force concepts includin...

    Read More
  • Econ 101 sample exam

    ...Econ 101 practice question for Exam 1 (answer key at the end) 1. Each month Jacquelyn spends exactly $50 on ice cream regardless of the price. Jacquelyn's price elasticity of demand for ice cream is: A) zero. B) one. C) greater than one. D) less than one, but greater than zero. 2. Egg producers know that the elasticity of demand for egg...

    Read More
  • Econ Study Guide 1 CORRECT: increases its resources. 14. Scarcity always exists because CORRECT: our needs and wants are not limited, but our resources are limited. 15. Which is NOT capital? CORRECT: the person whose photograph is snapped by the candid photographer 16. Entrepreneurs are people who CORRECT: put together land, labor, and capital to create n...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.