Mid-Term Exam/Microeconomics/R. Ziegler
Name______________________________
Answer Sheet
Part I Matching
__1. full employment		__8. stagflation	 __16. diminishing marginal returns
__2. disinflation		__9. opportunity cost		__17. ^S
__3. public sector complex	__10. economic growth	       __18. ^Qs
__4. capacity utilization	__11. economic development	__19. leakages
__5. accelerated depreciation	__12. capital goods		__20. laissez faire
	allowance		__13. consumer goods	       __21. invisible hand
__6. factors of production	__14. human capital		__22. production possibility
__7. inelasticity		__15. underemployment		curve
								__23. demand
								
Part II Matching
__1. net taxes			__9. social surplus		__16. externalities
__2. public goods		__10. corporatism 		__17. collectivism
__3. economic powers	        __11. economic functions	__18. usury
	of government			of government		__19. expansionary 
__4. price floor		__12. price ceiling			disequilibrium
__5. elasticity			__13. elasticity coefficient	__20. marginal cost
__6. marginal utility		__14. consumer surplus	        __21. paradox of value
__7. tax incidence		__15. supply shock		__22. supply side economics 
__8. marginal revenue		__16. opiate 			__23. consumer sovereignty
								__24. Great American Desert
Part III Matching
__1. fixed cost			__8. variable cost		__16. total costs
__2. AVC			__9. AFC			__17. ATC
__3. MC = MR		        __10. Total Profit		__18. Malthus
__4. shut down 		        __11. breakeven 		__19. Liebniz
__5. economic profit		__12. normal profit		__20. economic loss
__6. accounting loss		__13. monad			__21. anomie	
__7. economy of scale		__14. diseconomy of scale	__22. Elijah McCoy
				__15. New Deal	__23. Arsenal of Democracy 
								__24. alienation

66-72	A	59-65	B	52-58	C	45-49	D









ANSWERS TO MATCHING PART I
A. attributable to changes in taste, this results in a new curve.
B. period of high inflation accompanied by a stagnant economy such as we experienced
	in the middle and late 1970's. 
C. price mechanism
D. more economic activity given the same level of technology.
E. goods and services consumed as part of the population's standard of living. 
F. attributable to changes in price, it is represented by movement along a curve.
G. land, labor, capital, and entrepreneurship
H. actual consumption of a good or service.
I. plots the opportunity costs of a given level of plant and equipment.
J. the demand for gasoline is fairly unresponsive to changes in its price.
K. increasing costs.
L. would be represented by a brain surgeon, and combines factors of production, which is
	a phenomenon which marks modern economies at increasing levels.
M. Adam Smith is generally associated with the use of this term meaning 'hands off.'
N. what must be foregone in order to obtain something else.
O. indicates at what level existing plant and equipment and resources are being used
P. economic activity which occurs as a result of changes in technology.
Q. the combination of public employees and those dependent of the public sector for their
	standard of living.
R.defined by economists at about 5%, which means only frictional unemployment exists.
S. used to produce consumption products.
T. was part of JFK tax program, allowed business to write off the depreciation 
	of investment in plant and equipment at faster rates, 
	to encourage more investment.
U. examples of this in the circular flow model would be imports, net taxes, and savings.
V. a period marked by low inflation which occurs after a time of higher inflation.
W. productive activity which involves a resource not being utilized to its full potential.














ANSWERS TO MATCHING PART II
A. responsiveness of demand for a good or service to a change in its price. 
B. very high interest rates
C. the economic model of fascism which is based on the creation of national industrial 
	councils made up of representatives of government, business, and labor which 
	control all economic decisions in regard to that industry
D. effects of an economic activity on others than those immediately involved in it.
E. additional use value derived from
F. refers to the various forms of socialisms and related alternatives to market capitalism. 
G. what the Great Plains, the bread basket of the world, was thought of before 
	Lincoln's programs.
H. government imposed maximum legal price.
I. injections > leakages
J. though it accepts a positive role for government in support of market forces, it holds 
	that government's role in the economy is too large and hurts incentives to produce, 
	and advocates decreases in tax rates and regulation of business. 
K. disputes the notion that we are controlled by advertising. 
L. difference between what is paid for some good or service and what would have been 
	willingly paid for it by a consumer.
M. are diamonds or water more valuable?
N. taxing, spending, and regulating.
O. suggests that the burden of a tax in shared between producer and consumer.
P. that derived from selling one additional unit of output.
Q. consumed equally by everyone whether they pay or not. 
R. the 'profit' of an entire economy.
S. government imposed minimum price, as used to keep agricultural commodity 
	prices high.
T. total taxes - transfer payments
U. an event, often external, which has an impact on the availability, cost, or value 
	of a resource.
V. %^Q/%^P
W. that incurred as a result of producing one additional unit of output.
X. providing public goods, maintaining a stable rate of economic growth, 
	and redistribution of income and wealth. 
Y. what Karl Marx referred to religion as.











ANSWERS TO MATCHING PART III
A. includes a normal profit
B. more than a normal profit
C.the sum of fixed and variable costs
D. the supply side spike of WWII which ended the Depression.
E. varies with output.
F. exemplary of productivity increase
G. remain unchanged at any level of output.
H. anything less than a normal profit.
I. reduction in average total cost as output rises. 
J. the discrete particular in Liebniz which is not understood in terms of its relationship
	to the field it operates/functions within.
K. this is the point at which businesses operate, with profits maximized or at least losses 
	minimized.
L. FC + VC/Q
M. (P - ATC)Q
N. increase in average total cost as output rises. 
O. defined on Liebniz as the source of alienation, when a discrete particular is 
	'disconnected' from its 'field.'
P. overpopulation theory which overlooked the capacity for human creation 
	of technology.
Q. FC/Q
R. on a balance sheet, costs exceed revenue.
S. argued that in natural and social sciences, there was a relationship between the whole 
	and its composite parts. 
T. although it may have helped some people during the Depression and established some
	worthwhile programs, it also deepened the Depression and made it last longer.
U. equals what an alternative investment would have earned.
V. in socialism, this occurs as the worker is 'divorced' from the productive process 
	or the proceeds of his labor.
W. VC/Q
X. price is below the AVC curve


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