- Page 1 and 2:
PRINCIPLES OF ECONOMICS JEFF HOLT S
- Page 3 and 4:
Principles of Economics, 6th Editio
- Page 5 and 6:
16. Study Guide for Chapter 7 17. C
- Page 7 and 8:
11. Appendix: Book Review - “The
- Page 9 and 10:
20. Appendix: The NCAA Cartel 21. S
- Page 11 and 12:
Introduction: A Brief History of U.
- Page 13 and 14:
In the twentieth century, per capit
- Page 15 and 16:
Appendix: The 35 Largest National E
- Page 17 and 18:
Multiple Choice: ___ 1. The Jamesto
- Page 19 and 20:
2. Describe the economic cost of th
- Page 21 and 22:
Chapter 1 Scarcity and Choices The
- Page 23 and 24:
Example 5B: At the end of 1982, the
- Page 25 and 26:
Example 11: When Cindy quits her jo
- Page 27 and 28:
consequences may result in failure
- Page 29 and 30:
An upward sloping curve (as in Exam
- Page 31 and 32:
In making decisions, humans tend to
- Page 33 and 34:
5. ______________________ _________
- Page 35 and 36:
___ 13. If the value of one variabl
- Page 37 and 38:
Y Point X Y A 0 1 B 3 3 C 6 5 D 9 7
- Page 39 and 40:
Chapter 2 Trade and Economic System
- Page 41 and 42:
Example 4B: The following quantitie
- Page 43 and 44:
1. An increase in the quantity of r
- Page 45 and 46:
3. For whom to produce? This is det
- Page 47 and 48:
The graph below illustrates the shi
- Page 49 and 50:
The two primary economic systems ar
- Page 51 and 52:
___ 12. The capitalist vision sees
- Page 53 and 54:
___ 25. According to the book “Ca
- Page 55 and 56:
Chapter 3 Demand, Supply, and Equil
- Page 57 and 58:
. For inferior goods, income and de
- Page 59 and 60:
The same information can be placed
- Page 61 and 62:
Not only does a free market elimina
- Page 63 and 64:
$7 - 6 - 5 - S 3 S1 S 2 Price 4 - 3
- Page 65 and 66:
Example 17: The graph below illustr
- Page 67 and 68:
Questions for Chapter 3 Fill-in-the
- Page 69 and 70:
___ 12. Assuming a market originall
- Page 71 and 72:
$8 - 7 - 6 - 5 - Price 4 - 3 - 2 -
- Page 73 and 74:
Chapter 4 Inflation and Unemploymen
- Page 75 and 76:
Computing the Rate of Inflation The
- Page 77 and 78:
Full Employment Though unemployment
- Page 79 and 80:
3. Cyclical unemployment - due to d
- Page 81 and 82:
During the Great Depression, the ec
- Page 83 and 84:
Appendix: Think Like an Economist -
- Page 85 and 86:
Answer questions 8. and 9. based on
- Page 87 and 88:
___ 25. The extension of unemployme
- Page 89 and 90:
Chapter 5 Measuring Total Output: G
- Page 91 and 92:
5. Leisure. Leisure time is by defi
- Page 93 and 94:
The U.S. is a high per capita GDP c
- Page 95 and 96:
Example 17: In “An International
- Page 97 and 98:
The simple circular flow diagram be
- Page 99 and 100:
___ 3. Which of the following would
- Page 101 and 102:
2. Explain what nonproduction trans
- Page 103 and 104:
Chapter 6 The Aggregate Market The
- Page 105 and 106:
Example 2C: Assume the same facts a
- Page 107 and 108:
Example 5B: The price of crude oil
- Page 109 and 110:
Price Level Real GDP SRAS AD 2 AD 1
- Page 111 and 112:
Appendix: Why the Aggregate Demand
- Page 113 and 114:
___ 3. DEF Company can invest in ne
- Page 115 and 116:
2. List and explain the two factors
- Page 117 and 118:
Chapter 7 Classical Economic Theory
- Page 119 and 120:
Notice that the investment demand c
- Page 121 and 122:
Long-Run Equilibrium If Real GDP is
- Page 123 and 124:
Example 6B: When the economy is in
- Page 125 and 126:
Laissez-faire If the economy is sel
- Page 127 and 128:
___ 5. According to Say’s Law: a.
- Page 129 and 130:
3. On the graph below, draw an aggr
- Page 131 and 132:
Chapter 8 Keynesian Economic Theory
- Page 133 and 134:
Example 2B: The graph below illustr
- Page 135 and 136:
Example 5: Assume that the table be
- Page 137 and 138:
Notice on the graph on the previous
- Page 139 and 140:
According to Keynesian theory, a ch
- Page 141 and 142:
“The General Theory” also inclu
- Page 143 and 144:
___ 8. If the consumption function
- Page 145 and 146:
3. If the MPC is .667, and investme
- Page 147 and 148:
Chapter 9 Fiscal Policy The basic e
- Page 149 and 150:
Keynesian Fiscal Policy Theory and
- Page 151 and 152:
Example 5A: The federal government
- Page 153 and 154:
The Laffer Curve What will happen t
- Page 155 and 156:
Appendix: The Importance of Incenti
- Page 157 and 158:
___ 4. A decrease in government exp
- Page 159 and 160:
2. Explain what automatic stabilize
- Page 161 and 162:
Chapter 10 Money, Money Creation, a
- Page 163 and 164:
Example 4B: The castaways on Gillig
- Page 165 and 166:
Looking at the balance sheet below,
- Page 167 and 168:
Demand-side One-shot Inflation Exam
- Page 169 and 170:
4. Inflation increases uncertainty
- Page 171 and 172:
life; it came into existence not by
- Page 173 and 174:
calculated by using the potential d
- Page 175 and 176:
___ 12. If the required-reserve rat
- Page 177 and 178:
4. Referring to the balance sheet f
- Page 179 and 180:
Chapter 11 The Federal Reserve Syst
- Page 181 and 182:
5. After Bank X sells the $300,000
- Page 183 and 184:
Low Mortgage Interest Rates Mortgag
- Page 185 and 186:
Relaxed Standards for Mortgage Loan
- Page 187 and 188:
The Bursting of the Housing Bubble
- Page 189 and 190:
On February 17, 2009, the federal g
- Page 191 and 192:
Fed policies caused short-term inte
- Page 193 and 194:
___ 10. The Fed’s most important
- Page 195 and 196:
___ 25. In response to the recessio
- Page 197 and 198:
Chapter 12 Monetary Policy The basi
- Page 199 and 200:
2. A change in aggregate demand (AD
- Page 201 and 202:
Monetarist Transmission Mechanism C
- Page 203 and 204:
3. Borrowers do not have to seek ou
- Page 205 and 206:
Appendix: Book Review - “The Age
- Page 207 and 208:
Questions for Chapter 12 Fill-in-th
- Page 209 and 210:
___ 16. The primary source of incom
- Page 211 and 212:
7. According to Alan Greenspan, wha
- Page 213 and 214:
Chapter 13 Taxes, Deficits, and the
- Page 215 and 216:
Example 5: In 2015, Taxpayer A had
- Page 217 and 218:
of $5 and a quantity of 10 units. T
- Page 219 and 220:
The complexity of the tax law also
- Page 221 and 222: the current government spending and
- Page 223 and 224: cut of 1964. The top rate was lower
- Page 225 and 226: ___ 6. Federal excise taxes: a. are
- Page 227 and 228: 3. How would eliminating the loopho
- Page 229 and 230: Chapter 14 Economic Growth The basi
- Page 231 and 232: 2. Labor. Labor can contribute to e
- Page 233 and 234: estricting international trade (e.g
- Page 235 and 236: An improvement in technology (e.g.
- Page 237 and 238: The table below shows the economic
- Page 239 and 240: will increase both Real GDP and per
- Page 241 and 242: ___ 8. Which of the following is co
- Page 243 and 244: ___ 26. The opinion that economic g
- Page 245 and 246: Chapter 15 Less Developed Countries
- Page 247 and 248: Example 8: Countries A, B, C, and D
- Page 249 and 250: Obstacles to Economic Development f
- Page 251 and 252: c. Restrictions on international tr
- Page 253 and 254: Appendix: Book Review - “The Powe
- Page 255 and 256: Example 25: In Brazil, about half t
- Page 257 and 258: Study Guide for Chapter 15 Chapter
- Page 259 and 260: ___ 13. Among the counterproductive
- Page 261 and 262: 4. List four ways that governments
- Page 263 and 264: Chapter 16 International Trade The
- Page 265 and 266: Other Benefits of Free Internationa
- Page 267 and 268: Example 6: The graph below illustra
- Page 269 and 270: competitive disadvantage. But dumpi
- Page 271: is only 25% as productive as before
- Page 275 and 276: ___ 4. For Country X, what is the o
- Page 277 and 278: ___ 18. Frédéric Bastiat’s “P
- Page 279 and 280: 4. On the graph below: (1) What is
- Page 281 and 282: Chapter 17 Elasticity We are often
- Page 283 and 284: Example 4A: What is price elasticit
- Page 285 and 286: Example 5A: Gertie’s Gas and Go i
- Page 287 and 288: Example 10A: When the price of Good
- Page 289 and 290: Example 13B: On the graph below, su
- Page 291 and 292: $7 - 6 - 5 - Price 4 - 3 - 2 - 1 -
- Page 293 and 294: In the long run, would the deadweig
- Page 295 and 296: ___ 7. The factors that determine w
- Page 297 and 298: 3. a. Which price (or prices) from
- Page 299 and 300: Chapter 18 Utility The basic econom
- Page 301 and 302: Nonetheless, society generally assu
- Page 303 and 304: Example 9: Capital City operates a
- Page 305 and 306: Marginal rate of substitution - the
- Page 307 and 308: The diamond-water paradox is the ob
- Page 309 and 310: Complete the table below to answer
- Page 311 and 312: 4. The graph below shows indifferen
- Page 313 and 314: Chapter 19 The Firm The basic econo
- Page 315 and 316: than contributing to team productio
- Page 317 and 318: 1. Difficulty in raising large amou
- Page 319 and 320: Corporations also use self-financin
- Page 321 and 322: Example 24: A blacksmith who produc
- Page 323 and 324:
For financing needs, proprietorship
- Page 325 and 326:
___ 13. Corporations: a. are comple
- Page 327 and 328:
5. List two things that the absence
- Page 329 and 330:
Chapter 20 Production and Costs The
- Page 331 and 332:
In Example 5B, Birdwell finds that
- Page 333 and 334:
variable cost initially decreases,
- Page 335 and 336:
Quantity TC MC AFC AVC ATC 0 240 X
- Page 337 and 338:
If the scale of operation is increa
- Page 339 and 340:
average total cost. Average fixed c
- Page 341 and 342:
___ 11. Concerning the cost curves:
- Page 343 and 344:
5. Complete the following cost tabl
- Page 345 and 346:
Chapter 21 Perfect Competition The
- Page 347 and 348:
Even though a perfect competitor ca
- Page 349 and 350:
Example 6C: This example builds on
- Page 351 and 352:
At what price will there be neither
- Page 353 and 354:
Appendix: Perfect Competition in th
- Page 355 and 356:
Multiple Choice: ___ 1. A perfect c
- Page 357 and 358:
___ 17. Perfect competition: a. req
- Page 359 and 360:
Answers for Chapter 21 Fill-in-the-
- Page 361 and 362:
Chapter 22 Monopoly Of the four mar
- Page 363 and 364:
3. Exclusive ownership of an essent
- Page 365 and 366:
maximizing quantity (4 units) creat
- Page 367 and 368:
$22 - 20 - 18 - 16 - 14 - Deadweigh
- Page 369 and 370:
2. Negotiating, beginning at a high
- Page 371 and 372:
Legal barriers are created by gover
- Page 373 and 374:
___ 8. The slope of the demand curv
- Page 375 and 376:
Price Quantity 3. List some of the
- Page 377 and 378:
Chapter 23 Monopolistic Competition
- Page 379 and 380:
For Percomp (the perfect competitor
- Page 381 and 382:
Example 7A: The graph below represe
- Page 383 and 384:
Example 9: The Organization of the
- Page 385 and 386:
Example 12 illustrates the dilemma
- Page 387 and 388:
its current price and quantity. The
- Page 389 and 390:
___ 14. Game theory: a. is a method
- Page 391 and 392:
Answers for Chapter 23 Fill-in-the-
- Page 393 and 394:
Chapter 24 Factor Markets The basic
- Page 395 and 396:
$ $240 - 200 - 160 - 120 - 80 - 40
- Page 397 and 398:
Since producers will attempt to equ
- Page 399 and 400:
2. Differences in nonmoney aspects
- Page 401 and 402:
were his strikeouts, walks, and hom
- Page 403 and 404:
___ 3. To maximize profits, a produ
- Page 405 and 406:
___ 19. According to the book, “M
- Page 407 and 408:
Multiple Choice: 1. a. 8. c. 15. d.
- Page 409 and 410:
Chapter 25 Labor Unions The primary
- Page 411 and 412:
The elasticity of demand for union
- Page 413 and 414:
Example 4A: Assume that the graph b
- Page 415 and 416:
Notice from the graph in Example 6
- Page 417 and 418:
Wage Factory A Quantity of Labor S
- Page 419 and 420:
As a cartel, a labor union faces a
- Page 421 and 422:
___ 10. For a monopsony: a. there i
- Page 423 and 424:
3. The graph below represents a lab
- Page 425 and 426:
Chapter 26 Interest, Present Value,
- Page 427 and 428:
An increase in expected rates of re
- Page 429 and 430:
An asset is valuable because we exp
- Page 431 and 432:
Example 13B: General Ordnance prove
- Page 433 and 434:
Appendix: Present Value Table One f
- Page 435 and 436:
___ 4. An increase in expected rate
- Page 437 and 438:
Problems: 1. List and explain the t
- Page 439 and 440:
Chapter 27 Market Failure The basic
- Page 441 and 442:
External Benefit If a market genera
- Page 443 and 444:
Example 2: To encourage the consump
- Page 445 and 446:
$100 - 90 - 80 - MSC 70 - $ 60 - 50
- Page 447 and 448:
A common good is nonexcludable. Non
- Page 449 and 450:
Study Guide for Chapter 27 Chapter
- Page 451 and 452:
___ 5. What government policy would
- Page 453 and 454:
4. Based on the information on the
- Page 455 and 456:
Chapter 28 Public Choice and Govern
- Page 457 and 458:
Candidates and the Median Voter Mod
- Page 459 and 460:
Example 8: According to State and F
- Page 461 and 462:
Example 10: When Elvis Presley was
- Page 463 and 464:
4. Pessimistic bias. This is the te
- Page 465 and 466:
___ 5. An elected official will: a.
- Page 467 and 468:
2. If a certain policy will yield s
- Page 469 and 470:
Chapter 29 Government Regulation of
- Page 471 and 472:
underproduction is the amount that
- Page 473 and 474:
micromanagement results in business
- Page 475 and 476:
market. They may agree with their c
- Page 477 and 478:
Questions for Chapter 29 Fill-in-th
- Page 479 and 480:
___ 10. The public interest theory
- Page 481 and 482:
4. List the four types of costs imp
- Page 483 and 484:
Chapter 30 Agriculture and Health C
- Page 485 and 486:
weather may cause bumper crops. Bad
- Page 487 and 488:
Security and Rural Investment Act o
- Page 489 and 490:
Example 12: From 1960 to 2013, the
- Page 491 and 492:
1. NHI would provide universal heal
- Page 493 and 494:
d. Insurance providers are not allo
- Page 495 and 496:
Study Guide for Chapter 30 Chapter
- Page 497 and 498:
Answer questions 7. through 10. by
- Page 499 and 500:
___ 21. If there were no individual
- Page 501 and 502:
Chapter 31 Income Distribution and
- Page 503 and 504:
Income is more equally distributed
- Page 505 and 506:
over a typical career is the accumu
- Page 507 and 508:
Ideal Income Redistribution The ide
- Page 509 and 510:
Poverty - a family whose income fal
- Page 511 and 512:
Appendix: Income Inequality around
- Page 513 and 514:
How is this story an analogy for th
- Page 515 and 516:
___ 2. In 2013, the Lowest Income 6
- Page 517 and 518:
Problems: 1. Explain the two primar
- Page 519 and 520:
Absolute advantage - when one natio
- Page 521 and 522:
Fiat money - money by government de
- Page 523 and 524:
Nonrivalrous good - a good for whic
- Page 525 and 526:
Absolute advantage, 16-9 Absolute e
- Page 527 and 528:
“Company town”, 25-6 Comparativ
- Page 529 and 530:
Eli Lilly and Company, 22-1 Emergen
- Page 531 and 532:
Houston, Texas, 15-10 Human capital
- Page 533 and 534:
Market, 3-1, 3-8-9 Market basket, 4
- Page 535 and 536:
Political bias, 9-4, 12-7 Political
- Page 537 and 538:
Short run production, 20-2-3 Short-
- Page 539 and 540:
Upturns, 9-4 USDA, 27-9, 30-1-2, 30