ECON 6-7

Question 1

These are the individual characteristics of each particular industry in our economy.

Answer 1

Market Structure

Question 2

In a Perfect Competition, what is equal?

Answer 2

Price is = to Demand

Question 3

This refers to a market situation where a relatively large amounts of sellers selling products that may not be identical

Answer 3

Monopolistic Competition

Question 3

This is the structure when there are few large firms producing a homogeneous or differentiated product that are dominated or much needed by the market, characterized by few players and dominated by many firms and small number of large producers.

Answer 3

Oligopoly

Question 3

These are payments by the government for which no current goods and services are produced/received and henceforth not included in Government Purchases.

Answer 3

Transfer Payments

Question 4

This means that the proportion of total market sales held by the top number of firms accounts for a huge percentage of all sales in the industry.

Answer 4

Concentration Ratio

Question 4

The demand curve of products under perfect competition are perfectly _____ and should have an output of what?

Answer 4

Perfectly Elastic and should produce an output where MR=MC

Question 5

This structure has a kinked demand curve

Answer 5

Oligopoly

Question 6

This is the total wage, salaries and etc. of the employed and self employed of most economies and this comprises two thirds of the total GDP

Answer 6

Labor Income

Question 6

The demand curve of products under monopolistic competition is?

Answer 6

Elastic

Question 6

This is any tangible asset usually bought or invested on by an organization for the purpose of producing goods and services.

Answer 6

Capital Goods

Question 6

This is the difference between exports and imports

Answer 6

Net Exports

Question 6

This is the spending by firms on final goods and services, primarily capital goods.

Answer 6

Investment

Question 7

The 4 categories of GDP players are?

Answer 7

Household Firm. Government, Foreign Sector

Question 8

This is the spending by households on goods and services, and constitutes the largest share of the nation’s output.

Answer 8

Consumption Expenditure

Question 8

These are the final goods and services bought by the national government and local government units.

Answer 8

Government Purchases

Question 9

Meanwhile this is the total payments made to owners of physical capital, such as rent, royalty fees, and is equal to 1/3rd of the total GDP

Answer 9

Capital Labor

Question 9

This is the total market value of all final goods and services produced within a given period by factors of production owned by a country’s citizens regardless of where the output is produced.

Answer 9

Gross National Product

Question 9

What is Real GDP and Nominal GDP?

Answer 9

Its just a frame of reference when doing calculations, when there is a base year to base prices new and old prices, then it’s real GDP
But if the prices are taken from current year then it’s nominal