Eco 203 week 1 quiz

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This document of ECO 203 Week 1 Quiz includes answers to
the next questions:
1. If an individual’-s income increases, then the demand for a
normal good will
2. An example of investment, as defined in economics, is
3. All but which one of the following could shift the demand
curve?
4. When a firm decides to replace some workers with robots
in its production process, it is making a decision about one of
the basic economic questions. Which one?
5. When price changes, one should expect a change in
6. Demand relates the various amounts that consumers are
willing to buy over a specified time period
7. When the government redistributes income, it is
answering a basic economic question. Which one?
8. Self-interested behavior and incentives are
9. Which of the following would be described as capital by an
economist?
10. When price changes, there is an opposite change in the.
Economics - General Economics
Economics Systems . Discuss how your college education
could be considered an investment in human capital. What is
the opportunity cost of your degree?
Reference: Chapter 1, section 1.1: Economics and Chapter 2,

2. section 2.1: Limited Resources.
Guided Response: Review and respond to at least two of your
classmates’ posts by replying to their posts on how a college
education contributes to human capital and the opportunity
cost of a degree. Be sure to refer to concepts found in the
reading when responding to your classmates.
Role of Government . Economics is the study of how society
chooses to allocate its scarce productive resources (labor,
capital, land, entrepreneurial talent).
In a mixed economy, elements of both central planning and
market allocation of resources are used in allocating
productive resources. The United States economy is a mixed
economy, with a bias towards market allocation of resources.
This means most resources are allocated in the private sector
by way of markets.
Discuss whether you favor a larger or smaller role of
government in the economy. Refer to concepts found in the
reading to support your opinion.
Reference: Chapter 2: Markets, Governments, and Nations:
The Organization of Economic Activity
Guided Response: Review and respond to at least two of your
classmates’ by stating why you agree or disagree which
economic activities the government is more efficient at
providing, and which economic activities the private sector is
more efficient at providing.
The Current State of the Economy and Unemployment.
Imagine a scenario where there is a decline in aggregate
demand. Identify which part of the business cycle is part of a
decline in aggregate demand. Gross Domestic Product (GDP)
measures the amount of new production. A change in the
amount of new production affects employment. Describe

3. what would happen to GDP, the unemployment rate and the
inflation rate if there is a decline in aggregate demand.
Reference: Chapter 6, section 6.3: Aggregate Equilibrium and
Changes in Equilibrium.
Guided Response: Review and respond to at least two of your
classmates’ posts by discussing this question in terms of how
a decrease in aggregate demand impacts GDP, and why the
change in GDP affects unemployment.
Who Benefits and Who Loses from Inflation? Inflation is an
important policy issue because it causes a redistribution of
income and wealth, and discourages saving and investment.
Discuss how inflation affects borrowers and lenders, asset
prices, and households on fixed incomes.
Reference: Chapter 4, section 4.3: Gainers and Losers from
Inflation .
Guided Response: Review and respond to at least two of your
classmates’ posts by sharing any ideas you may have about
how households and businesses can protect themselves
against inflation. Be sure to refer to concepts found in the
reading when responding to your classmates.
Government Fiscal Policy. Between 2007 and 2009 the U.S.
economy experienced a severe recession. In an effort to
stimulate the economy, the federal government passed a
stimulus package. Explain the federal government’s use of
fiscal policy (the stimulus) to promote growth and
employment. Support your ideas with concepts found in the
assigned reading. Include the following in your response:
Discuss some actions taken by the federal government and
whether the recession would have been longer and the
unemployment rate higher if the government had not acted
by passing the stimulus package?

4. If left alone, do you believe the economy would have
corrected itself as suggested by Classical economic theory?
Explain.
Discuss the effect these policies had on increasing the size of
the budget deficits and the national debt.
Reference: Chapter 9, section 9.4: More Recent Tax Changes ,
and Chapter 10, section 10.2: Early 1990s and 2000s
Recessions.
Guided Response: Review the discussion board posts of your
classmates. Respond to at least two of your classmates by
agreeing or disagreeing with their posts. Support your ideas
with concepts found in the assigned reading.
Budget Deficits and the National Debt. Between 2007 and
2011 the federal budget deficit grew from $160.7 billion to
$1,299.6 billion, and the national debt grew from $8.9 trillion
to $14.8 trillion. (Figure 10.1: The ratio of debt to GDP, 1977-
2011.)
In your post, differentiate the budget deficit from the
national debt. How do you think the increases in the budget
deficits and the national debt will affect the economy in the
future?
Reference: Chapter 10, section 10.1: Debt and Deficits , and
section 10.4: Do Deficits Matter?
Guided Response: Review the discussion board posts of your
classmates. Respond to at least two of your classmates with
questions that allow them to extend their thinking. Support
your ideas with concepts found in the assigned reading.
Efforts to Reduce the Budget Deficit. The rapid growth of the
national debt alarmed some politicians and created pressure
for restricting Congress's unlimited ability to spend. After
reviewing Chapter 10, Section 10.2: Efforts to Reduce the

5. Deficit , write a 2-3 page paper, formatted according to APA
style as outlined in your approved style guide, discussing the
actions taken by the Congress since 1985 to reduce the
budget deficits.
Include some authoritative sources on the current debate
between the White House and Congress on what measures
are necessary to address spending and revenues, i.e. news
reports, official statements, press conferences, as well as
numerous government websites.
Suggested references:
Ashford University Online Library: AULIBRARY Ashford Online
Library Congressional Budget Office: www.cbo.gov.
Internal Revenue Service: www.irs.gov.
The Executive Office of the President: www.whitehouse.gov.
Fed Policy during the 2007-2008 Recession. [Insert
prompt].From 2007-2010, the Federal Reserve Bank (the Fed)
used many practices that had never before been seen from
the central bank of the United States.
Discuss the some of the actions that the Fed took during thi...
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