New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Econ 1051 Exam Two Study Guide

Star Star Star Star Star
1 review
by: Abbey Notetaker

Econ 1051 Exam Two Study Guide Econ 1051

Marketplace > University of Missouri - Columbia > Economcs > Econ 1051 > Econ 1051 Exam Two Study Guide
Abbey Notetaker

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes will cover what will be on the next exam.
General Economics
George Chikhladze,Martha Steffens
Study Guide
50 ?




Star Star Star Star Star
1 review
Star Star Star Star Star
"I'm a really bad notetaker and the opportunity to connect with a student who can provide this help is amazing. Thank you so much StudySoup, I will be back!!!"
Norwood Weimann

Popular in General Economics

Popular in Economcs

This 4 page Study Guide was uploaded by Abbey Notetaker on Saturday March 12, 2016. The Study Guide belongs to Econ 1051 at University of Missouri - Columbia taught by George Chikhladze,Martha Steffens in Summer 2015. Since its upload, it has received 59 views. For similar materials see General Economics in Economcs at University of Missouri - Columbia.

Similar to Econ 1051 at Mizzou


Reviews for Econ 1051 Exam Two Study Guide

Star Star Star Star Star

I'm a really bad notetaker and the opportunity to connect with a student who can provide this help is amazing. Thank you so much StudySoup, I will be back!!!

-Norwood Weimann


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 03/12/16
Midterm 2Study Guide 1. The unemployment rate in an economy is 6 percent. The total population of the economy is 290 million and  the size of the civilian labor force is 150 million. The number of unemployed workers in this economy is:  Answer: 9 million. 2. Critics of economic growth:  answer: argue that economic growth does not resolve socioeconomic problems such as an unequal distribution  of income and wealth. 3.  Monopolies are not violating antitrust laws as long as they don't:   answer: put existing or potential rivals at unfair advantage.   4. One defining characteristic of pure monopoly is that:  answer: the monopolist produces a product with no close substitutes.   5. The classic example of a private, unregulated monopoly is:  Answer: De Beers.   6. A firm sells a product in a purely competitive market. The marginal cost of the product at the current output  is $4.00 and the market price is $4.50. What should the firm do?  Answer: Increase output if the minimum possible average variable cost is $3.75.   7. When firms in an industry reach an agreement to fix prices, divide up market share, or otherwise restrict  competition, they are using the strategy of: . Answer: collusion.   8. The knowledge and skills that make workers productive are referred to by economists as:  Answer: human capital..   9. A major characteristic of monopolistic competition is: . Answer: a relatively large number of firms selling the product. 10. Answer the question based on the following price and output data over a five­year period for an economy  that produces only one good. Assume that year 2 is the base year.     The percentage increase in real GDP from year 2 to year 4 is:  Answer: 80 percent.   11.  To practice price discrimination, a monopolist must:   Answer: be able to separate buyers into different markets with different willingness to pay.    12.  The table below shows cost data for a firm that is selling in a purely competitive market.           Refer to the above table. If the market price for the firm's product is $110, the competitive firm will produce:   Answer: 5 units at an economic profit of ­$150.    13.  When calculating GDP government purchases would include expenditures for payments of:   Answer: salaries for current U.S. military officers.    14. Which industry would be the best example of an oligopoly?  Answer: Steel  15.  Candy Cane Corporation (CCC) produces 100,000 boxes of candy bars per year that sell for $1.8 a box. If  variable costs are $2 per box and it has $125,000 in fixed operating costs, in the short run the CCC should:   Answer: shut down as variable costs are not being covered.    16.  Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated increase in inflation occurs in the economy, then:   Answer: lenders are hurt, but borrowers benefit.    17. Which is not a supply factor in economic growth?  Answer: An efficient allocation of resources.   18. One major barrier to entry under pure monopoly arises from:  Answer: ownership of essential resources.   19. If the Consumer Price Index was 115 in one year and 120 in the next year, then the rate of inflation from  one year to the next was:  Answer: 4.3 percent.   20. Under which of the following circumstances would we observe the greatest increase in real income?  Answer: Nominal income falls by 2 percent, and the price level falls by 10 percent.   21. A college graduate using the summer following graduation to search for a job would best be classified as:  Answer: a part of frictional unemployment.   22. If firms are losing money in a purely competitive industry, then in the long run this situation will shift the  industry:  Answer: supply curve to the left, and the market price will increase.   23. Which would be most characteristic of oligopoly?  Answer: Mutual interdependence.   24. One difference between monopolistic competition and pure competition is that:  Answer: there is some control over price in monopolistic competition.  


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.