Questions for test?

Preguntas?

Review for Test

I would behoove you to recall (great word, huh?):

Aggregate Model - AD, SRAS, LRAS, FE, PL, GDPr

Loanable Funds Model - Savers and borrowers in an open market for funds

Investment Demand Curve - Ig buys K, ir inversely related to the quantity of $ for Ig

Automatic Stabilizers - i.e. - how does a market correct overextended? supply shock?

Multipliers - Spending (Keynesian), Tax and Balanced Budget

APC, APS, MPC, MPS

Disposable Income - C or S

Consumption function, Saving Function and Consumption-Savings Link

Yes. I meant demand. Typo. Sorry

Yes. I meant demand. Typo. Sorry. I am fining it now. THanks

Answer to comment question

The term determinates and it subsequent changes are related to the issues that would change (an increase or decrese) in either supply and demand. An example of a determinate in supply would be the available amount of resources or the input capacity of the industry. An example of a change or shift would be an increase in a fad, taste or preference of indivduals for items creating an increase in demand.

Hope this helps. thanks

Questions for test?

Your test will be on Tuesday so this is your opportunity to ask for clarification on any issues that you have found during your studying adventure. Please remember that you were to have read the topics listed on your syllabus for the first unit in your textbook (the green cover McConnell and Brue). Topics for free response should be limited in the fields of PPF, Comparative Advantage, Supply and Demand and FOREX. The multiple choice will be open to all of these topics in addition to those basic economic concepts listed on your syllabus.

Please post comments below or just comment to tell me that you are fine and well prepared for Tuesday. either way I would love to hear from you. Thanks

Comparative Advantage

Newland - 10 cloth, 2 food

Beeland - 10 cloth, 1 food

The table above shows the production possibilities of two nations that are producing cloth and food, using equal amounts of resources.

A1 - Calculate the opportunity cost of producing a unit of cloth in Newland.

A2 - Calculate the opportunity cost of producing a unit of food in Beeland.

B1 - Which nation has the comparative advantage in cloth production?

B2 - Which nation has the comparative advantage in food production?

C - Now assume that the productivity of Beeland's workers triples for each good.

C1 - Which country has a comparative advantage in food production?

C2 - Explain how you determined your answer.

*Taken from the College Board released free response questions

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