Chapter 2 Review MULTIPLE CHOICE 1. Which is the best statement about the way economists study the economy? a. They study the past, but do not try to predict the future. b. They use a probabilistic approach based on correlations between economic events. c. They devise theories, collect data, then analyze the data to test the theories. d. They use controlled experiments much the same way a biologist or physicist does. 2. Terms used by an economist would include
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country economy growth when the inflation is baked into the figure of the Nominal GDP.Economics is the use of resources that have alternative uses. Consumers need resources to fulfil desires. The economics has been divided into microeconomics and macroeconomics. Microeconomics is the combination word of ‘micro’ and ‘economics’ that means the study of the small individual unit. Microeconomics is known as how individuals and societies uses the resources to the production of goods and services to satisfy
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Chapter 4 Measuring GDP and Economic Growth 1 Gross Domestic Product 1) Gross domestic product is the total ________ produced within a country in a given time period. A) market value of all final and intermediate goods and services B) market value of all goods and services C) amount of final and intermediate goods and services D) market value of all final goods and services Answer: D Topic: GDP Skill: Recognition Question history: Previous edition, Chapter 4 AACSB: Reflective Thinking 2)
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Macro Economy Systems Macroeconomics AIU Online Abstract In the following paper, I will be discussing the open and closed system of the two circular diagram presented in my textbook. I will explain what a closed system and open system is and provide examples for the both. Next, I will discuss the inner and outer flows of both systems. Then I will define the leakage and injections in an open system. Lastly, I will provide personal examples of the leakage and injection and describe and
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Chapter 2 Circular-Flow Diagram- a visual model of the economy that shows how dollars flow through markets among households and firms Production Possibilities Frontier- a graph that shows the combinations of output that the economy can possible produce given the available factors of production and the available production technology Microeconomics- the study of how households and firms make decisions and how they interact in markets Macroeconomics- the study of economy-wide phenomena, including
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Part B Question 1 Figure 1 The circular flow of income (Figure 1) shows connections between different sectors of our economic system. It revolves around flows of goods and services and factors of production between firms and households. Businesses produce goods and services and in the process of doing so, incomes are generated for factors of production such as wages and salaries going to people in work. Injections: The three injections -- investment, government purchases and export. These
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Module 1 (Chapters 1, 2). Assignment 1-1 1. The overriding reason why households and societies face many decisions is that |a. |resources are scarce. | |b. |goods and services are not scarce. | |c. |incomes fluctuate with business cycles.
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Economic Activities Paper Jose G. Montoya ECO 372 September 9, 2013 Howard Blitz Economic Activities Paper In the study of macroeconomics there are many terms used to describe an economic event. In this paper it will describe terms such as gross domestic product, unemployment rate, interest rate, etc. that apply to these events. The effects of purchasing groceries, massive layoff of employees, and decrease in taxes on government, households, and businesses will also be described. Terms
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Fundamentals of Macroeconomics April Sheffler Principles of Macroeconomics ECO/372 January 24, 2014 Gaminie Meepagala Terms There are a few terms that should be defined before exploring macroeconomics. • Gross domestic product (GDP) - refers to the total market value of the goods and services that are produced in a country in a year. • Real GDP- refers to the value of the goods and services that are produced in a country in a year, after being adjusted for inflation. • Nominal GDP- refers
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make a choice from the scarcity. All economic choices can be summarized in three questions: What gets produced? How is it produced? Who gets what is produces? Economists define their work in micro and macro perspective. Microeconomics and Macroeconomics are the two major branches of economics. What is Microeconomics? Microeconomics is the study of how households and firms make decisions and how they interact in markets. So all these problems belong to microeconomics: how the consumer reacts
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