ECO 201 Robert W. final exam review CMICH (prompts 1-13)

what is a good. (not the physical thing) and a bad

• good = things people pay for. bad = things people pay to get rid of
• bad = things people pay for. good = things people pay to get rid of

is this a service? Someone writes computer code for you and gives you it

• Yes, the service of coding is still done
• No, since you still get a product in the end

What is a free good

• a good that costs $0
• goods that people usually would pay for, but do not have to, since supply > demand
• goods that people pay for, since supply < demand

During war, do soldiers sometimes trade with one another?

• Only between allies
• no it's never been seen
• Yes, it's been seen in the past
• only between allies and enemies

what is a unit of account

• simply a way to tell the economic value of one thing using something like $
• the actual dollar
• the thing that relates to the dollar

what does increasing the minimum wage do?

• Shifting price above equil. Makes a shortage of workers supplied. take the qs - qd to find the shortage difference
• Shifting price above equil. Makes a surplus of workers supplied. take the qs - qd to find the surplus difference

the effect of making a price ceiling on rent?

• shifting price below equil. makes a shortage of homes rented.
• shifting price below equil. makes a surplus of homes rented.

in global trade, autuarky (free trade) includes the equlibrim?

• No
• Yes

Tariffs

• Can increase gov. revenue
• does not increase gov. revenue, also gives deadweight loss
• Can increase gov. revenue but also gives deadweight loss

Y =

• CGIN(X/E)
• GICNE
• CING(X/E)
• CIGN(X/E)