ECO 201 Unit 1 Assignment
- Give three examples of important trade- offs that you face in your life.
- What is the difference between a positive and a normative statement? Give an example of each.
ECO 201 Unit 2 Assignment
- Why is it desirable for a country to have a large GDP? Give an example of something that would raise GDP and yet be undesirable.
- Which do you think has a greater effect on the consumer price index: a 10 percent increase in the price of chicken or a 10 percent increase in the price of caviar? Why
ECO 201 Unit 3 Assignment
- In what way is a college degree a form of capital?
- Does a higher rate of saving lead to higher growth temporarily or indefinitely?
- What is investment? How is it related to national saving?
ECO 201 Unit 4 Assignment (Midterm Exam Questions)
- How does the study of economics depend on the phenomenon of scarcity?
- Explain why an economy’s income must equal its spending.
- What is the difference between the GDP deflator and the Consumer Price Index?
- Explain how higher savings leads to a higher standard of living.
ECO 201 Unit 5 Assignment
- What distinguishes money from other assets in the economy?
ECO 201 Unit 6 Assignment
- Define net exports and net capital outflow. Explain how and why they are related.
- Why are budget deficits and trade deficits sometimes called the twin deficits?
ECO 201 Unit 7 Assignment
- Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate
Final Exam Questions
- If the Fed wants to increase the money supply through open-market operations, what does it do?
- If inflation is less than expected, who benefits—debtors or creditors? Explain
- Should the federal government always balance its budget? Why or why not?
- How do falling interest rates and falling prices influence total demand in the economy? Include the “wealth effect” in your answer.