Economics

Question 1

Movement along a supply curve

Answer 1

Occurs when PRICE increases or decreases.

Supply curve shifts (change in demand) when other shit happens like a change in technology.

Question 2

CPI calc

Answer 2

TOTAL of (quantity x Year 1 Price)
TOTAL of (quantity x Year 2 Price)

Year 2/Year 1 (base year) **you could x’s it by 100

Question 3

Foreign currency

Answer 3

When a foreign competitors currency becomes WEAKER in the US market, they will have an ADVANTAGE in the US market.
This is bc US consumers will be able to buy their product a cheaper price, bro.

Question 4

National Income

Answer 4

GDP-Dep+Net Income earned abroad-Indirect bus taxes

Question 5

SIM Exchange rates for F.S.

Answer 5

Assets and Liabilities - use exchg rate for current year
Stock and Equity - use exchg rate as of company formation date
Retained Earnings - use Aggregation of rates
I.S. items - use weighted avg rate

Question 6

Determining GDP - Expenditure Approach

Answer 6

Personal Consumption + Gross Private Dom Investment + Govt purchases + Net Exports

OR

GDP = C + I + G +(X-M)

Question 7

Determining GDP - Income Approach

Answer 7

Nat Inc (Wages & salaries + Profits + Interest + Rents) + Indirect bus taxes + Dep + Net Foreign Factor Inc

Question 8

Shift in Curve vs Movement along a curve

Answer 8

Movement along a curve occurs ONLY with a CHANGE IN PRICE.
Shifts in curves occurs with MARKET FACTORS (increase in income, etc)

Question 9

Unemployment

Answer 9

Cyclical - Economic upturns and downturns
Frictional - In-between jobs
Structural - Change in technology