Introduction to Economic Concepts

Question 1

Define economics:

Answer 1

Concerned with the allocation of scarce resources among alternative uses

Question 2

What is the primary focus of the CPA exam with respect to economic concepts?

Answer 2

• Production
• Distribution
• Consumption of goods and services

Objective- Maximize desired outcomes

Question 3

What are the three major subsections of economics?

Answer 3

1) MICROECONOMICS- Economic activity at the individual decision making unit
2) MACROECONOMICS- Economic activity at the national level
3) INTERNATIONAL ECONOMICS- Economic activity across national boundaries

Question 4

In economics, where is the PRICE located on the graph?

Answer 4

Y-AXIS

Question 5

In economics, where is the QUANTITY located on the graph?

Answer 5

X- AXIS

Question 6

What is it called with the plot line or curve hits the Y-AXIS?

Answer 6

Intercept

Question 7

What is called with the Y-AXIS and the X-AXIS meet?

Answer 7

Origin

Question 8

What is a time series graph?

Answer 8

Time is on the x axis. Measures changes over time.