AGEC Final Exam 2022/2023 with 100% correct answers

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Substitution of a product for another because the price of the former has declined or increased. Substitution effect The connection or locus of all tangency points between budget lines and ind ... ifference curves. Price consumption curve A measure of the response of consumption of a good or service to changes in the price of another good or service. Cross-Price Elasticity of Demand Captures the individual demand schedules of consumers participating in the market. Demand curve Personal income after the payment of tax obligations. Disposable Income A graph of the locus of consumption bundles that provide a consumer a given level of satisfaction. Indifference/Isoutility curve Goods A and B are __________ if the cross-price elasticity of demand is positive. Substitutes As income of a consumer increases, the percentage of income spent on food decreases if all other factors remain constant. Engle's Law A branch of economics that focuses on determining what should be issues; assigns specific values with specific goals or objectives. Normative Can be decomposed into natural and biological resources, human resources and manufactured resources. Scarce resources The schedule that shows how many units of a good the consumer will purchase at different levels of income, all other things constant. Engle's curve Expenditures by consumers for food, non-food, nondurable goods, durable goods and services. Consumption Reflects the pattern of movements in the economy's real output, interest rates, or unemployment. Business cycle Rise in the general price level resulting from businesses and unions raising their prices and wage rates. Cost push inflation Indicators of changes in economic activity about one or two quarters before they occur. Leading indicators Sum of outstanding federal government securities and other claims on the federal government. National debt Unemployment of labor associated with adverse trends in the business cycle. Cyclical unemployment Consumer expenditures, business investment, government spending and net exports. Gross domestic product The monetary amount by which a nation's merchandise imports exceed exports during a given time period, usually one year. Trade deficit Reflects the extent to which annual federal government expenditures exceed federal government spending. Federal budget deficit Minimum amount of deposits that a bank or other depository institution must hold in reserve. Required reserves [Show More]

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