Macro – Final Quiz (take home style)

Macro – Final Quiz (take home style) Short essay – 10 point each 1.    Describe and graph the result when a current price proves higher than the equilibrium price. 2.    State the difference in behavior between a Normal Good vs. an inferior good. 3.    Summarize the concept of efficient Allocation. 4.    If a supply curve for a product shifts to the left, grapgh and summarize the resulting effects. What will happen at the cureenet market price? 5.    What’s the result of a supply-side market failure, and how do they usually occur? 6.    Summarize the concept of Consumer Surplus. 7.    Describe the characteristics of a Public Good 8.    Explain what is meant by a “Sticky Price”. 9.    What components keep us from double counting with GDP (Gross Domestic Product)? 10.    Summarize the Expenditures Approach to GDP.