Macro – Final Quiz (take home style)
Macro – Final Quiz (take home style)
Short essay – 10 point each
1. Describe and graph the result when a current price proves higher than the equilibrium price.
2. State the difference in behavior between a Normal Good vs. an inferior good.
3. Summarize the concept of efficient Allocation.
4. If a supply curve for a product shifts to the left, grapgh and summarize the resulting effects. What will happen at the cureenet market price?
5. What’s the result of a supply-side market failure, and how do they usually occur?
6. Summarize the concept of Consumer Surplus.
7. Describe the characteristics of a Public Good
8. Explain what is meant by a “Sticky Price”.
9. What components keep us from double counting with GDP (Gross Domestic Product)?
10. Summarize the Expenditures Approach to GDP.