FREE ECONOMICS AND STUDY GAMES ABOUT ECON 210

PDF Download

FREE ECONOMICS AND STUDY GAMES ABOUT ECON 210

FINAL EXAM EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -5 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: What is incentive? Give one real life example.

Answer:

Definition: You can have a positive or negative incentive. They can make a person want to do something more or less and it can make the opportunity cost larger or smaller.

Example: Sleep vs making exam

Question 2: What is GDP? How is GDP calculated using the expenditure approach? What is CPI?

Answer:

GDP- Gross Domestic Product : Sum of market value of G&S in a country with in a certain amount of time

Expenditure Approach: C+I+G+Nx

Nx = exports-imports

CPI - consumer price index: sum of basket G&S of a n individual/household

Question 3: Explain the problem of "double counting" and how it can be avoided.

Answer:

counting a G&S twice

we can this by only counting NEW things

Question 4: What are the limitations of GDP measures?

Answer:

• GDP doesn't measure the cost of living/quality of life

• GDP doesn't measure if someone has a job

• GDP doesn't measure economic activities

Question 5: What is opportunity cost? Give a real life example.

Answer:

Definition: value of opportunities lost when making a decision

Example: When you are given two options to pick from the one you didn't pick is the opportunity cost