ECN 211 EXAMINATION TEST 2026
COMPREHENSIVE Q&A STUDY GUIDE
◉Chapter 2: Scarcity. Answer: - Occurs when the materials for
producing things that people desire are
insufficient to satisfy all wants
◉Production:. Answer: - Any activity that results in the conversion
of resources into products that can
be used in consumption
◉Land. Answer: -Natural resources or the gifts of nature
◉Labor. Answer: - The human resource
◉Physical Calpital. Answer: All manufactured resources
◉Human Capital. Answer: Accumulated training and education of
workers
◉Entrepreanurship. Answer: The person who organizes, manages,
and assembles the other
,resources; also, the risk taker of the organization
◉Goods:. Answer: Things from which individuals derive satisfaction
or happiness.
◉Economic Goods:. Answer: - Scarce goods for which the quantity
demanded exceeds the quantity
supplied at zero price
◉Services. Answer: Tasks that are performed for someone else; also
called intangible goods
◉Opportunity Costs. Answer: The highest-valued, next-best
alternative that must be sacrificed to
obtain something or to satisfy a want
◉Production possibilities curve (production possibilities frontier).
Answer: All possible
combinations of maximum outputs that could be produced,
assuming a fixed amount of
productive resources of a given quality
◉Technology. Answer: Society's pool of applied knowledge
concerning how goods and services can
, be produced
◉Efficiency. Answer: Producing the maximum output with given
technology and resources
◉Inefficient Point. Answer: Any point below the production
possibilities curve at which the use of
resources is not generating the maximum possible output
◉Law of increasing additional cost. Answer: The opportunity cost of
additional units of a good
generally increases as society attempts to produce more of that
good. This accounts for the
bowed-out shape of the production possibilities curve
◉Consumption. Answer: The use of goods and services for personal
satisfaction
◉Comparative Advantage. Answer: The ability to produce a good or
service at a lower opportunity
cost
◉Abs Advantage. Answer: The ability to produce more units of a
good or service by using a
COMPREHENSIVE Q&A STUDY GUIDE
◉Chapter 2: Scarcity. Answer: - Occurs when the materials for
producing things that people desire are
insufficient to satisfy all wants
◉Production:. Answer: - Any activity that results in the conversion
of resources into products that can
be used in consumption
◉Land. Answer: -Natural resources or the gifts of nature
◉Labor. Answer: - The human resource
◉Physical Calpital. Answer: All manufactured resources
◉Human Capital. Answer: Accumulated training and education of
workers
◉Entrepreanurship. Answer: The person who organizes, manages,
and assembles the other
,resources; also, the risk taker of the organization
◉Goods:. Answer: Things from which individuals derive satisfaction
or happiness.
◉Economic Goods:. Answer: - Scarce goods for which the quantity
demanded exceeds the quantity
supplied at zero price
◉Services. Answer: Tasks that are performed for someone else; also
called intangible goods
◉Opportunity Costs. Answer: The highest-valued, next-best
alternative that must be sacrificed to
obtain something or to satisfy a want
◉Production possibilities curve (production possibilities frontier).
Answer: All possible
combinations of maximum outputs that could be produced,
assuming a fixed amount of
productive resources of a given quality
◉Technology. Answer: Society's pool of applied knowledge
concerning how goods and services can
, be produced
◉Efficiency. Answer: Producing the maximum output with given
technology and resources
◉Inefficient Point. Answer: Any point below the production
possibilities curve at which the use of
resources is not generating the maximum possible output
◉Law of increasing additional cost. Answer: The opportunity cost of
additional units of a good
generally increases as society attempts to produce more of that
good. This accounts for the
bowed-out shape of the production possibilities curve
◉Consumption. Answer: The use of goods and services for personal
satisfaction
◉Comparative Advantage. Answer: The ability to produce a good or
service at a lower opportunity
cost
◉Abs Advantage. Answer: The ability to produce more units of a
good or service by using a
