Saylor Academy ECON101 Direct Credit Exam Questions and Answers | Latest Update 2025/2026

Saylor Academy ECON101 Direct Credit Exam Questions and Answers | Latest Update 2025/2026 Q: Why does scarcity exist? - answer-Resources are limited. Which of the following is the most fundamental concept in economics? - answer-Scarcity The Greek word for "economy" is oikonomos, which literally means a person who: - answer-manages a household. What does the term "capital" refer to in economics? - answer-The equipment, and buildings used by firms According to the production possibility frontier below, the economy of this country can produce 50 boats and 25 cars (point Z). For strategic reasons the government would like to produce 45 boats and 35 cars (point Y). What advice would you give to the government of this country? IMAGE - answer-It is an impossible goal because there are too few resources. Equality and efficiency are both terms used to judge economic outcomes. Although they share similarities in meaning, they are different in which of the following ways? - answer-Equality refers to a uniform distribution of economic benefits, while efficiency refers to a maximization of economic benefits. A firm has the lowest opportunity cost to produce a product when it: - answer-gives up the least to make the product.In the circular flow model, what are the two main groups of actors in the economy? What are the two markets that make up the economy? - answer-The main groups of actors are households and firms, and the two markets are the goods/services market and the market for the factors of production.