Econ 103 Carpenter UNR Exam Questions
With Verified Answers
Economics - ANSWER the study of choice under conditions of scarcity
Scarcity - ANSWER describes the limited nature of society's resources
Microeconomics - ANSWER the study of how households and firms make
decisions and how they interact in markets
Macroeconomics - ANSWER the study of the behavior of the overall economy
including inflation, unemployment, and economic growth
Positive statements - ANSWER descriptive statements; statements that are
testable and able to be confirmed or refuted
Normative statements - ANSWER prescriptive statements; arguments about how
the world 'should be.' ;statements that are not testable and able to be confirmed
or refuted.
opportunity cost - ANSWER what must be given up to obtain that item
A factor of production - ANSWER anything used to produce a good or service
Labor - ANSWER the time human beings spend producing goods and services
Capital - ANSWER any long-lasting tool that is itself produced and helps us make
other goods and services
Human capital - ANSWER the skills and training of the labor force
, Physical capital - ANSWER The part of capital consisting of physical goods like
machinery, equipment and factories
Land - ANSWER the physical space on which production takes place, as well as
the useful materials - natural resources - found under it or on it. (crude oil, iron,
coal, soil, etc)
Entrepreneurship - ANSWER the ability (and the willingness to use it) to combine
the other resources into a productive enterprise
the production possibilities frontier - ANSWER graph that shows the
combinations of output that the economy can possibly produce given the
available factors of production and the available production technology
The law of increasing opportunity cost states - ANSWER that the more of
something that is produced the greater the opportunity cost of producing even
more of it
Specialization - ANSWER a method of production in which each person
concentrates on a limited number of activities
Absolute advantage - ANSWER the ability to produce a good or service using
fewer inputs than another producer uses
Comparative advantage - ANSWER the ability to produce a good or service at a
lower opportunity cost than another producer
Imports - ANSWER goods that are produced abroad and sold domestically
Exports - ANSWER goods that are produced domestically and sold abroad
Economics agree on 3 important macroeconomic goals - ANSWER 1.Economic
Growth 2.Full Employment 3.Stable Prices
inflation - ANSWER an increase in the average level of prices during a given
period of time
Deflation - ANSWER decrease in the average level of prices during a given
period of time
The inflation rate - ANSWER he percentage increase in the average level of
prices
the income approach - ANSWER measures GDP by summing all the payments to
the owners of resources that are used in production (inputs)
With Verified Answers
Economics - ANSWER the study of choice under conditions of scarcity
Scarcity - ANSWER describes the limited nature of society's resources
Microeconomics - ANSWER the study of how households and firms make
decisions and how they interact in markets
Macroeconomics - ANSWER the study of the behavior of the overall economy
including inflation, unemployment, and economic growth
Positive statements - ANSWER descriptive statements; statements that are
testable and able to be confirmed or refuted
Normative statements - ANSWER prescriptive statements; arguments about how
the world 'should be.' ;statements that are not testable and able to be confirmed
or refuted.
opportunity cost - ANSWER what must be given up to obtain that item
A factor of production - ANSWER anything used to produce a good or service
Labor - ANSWER the time human beings spend producing goods and services
Capital - ANSWER any long-lasting tool that is itself produced and helps us make
other goods and services
Human capital - ANSWER the skills and training of the labor force
, Physical capital - ANSWER The part of capital consisting of physical goods like
machinery, equipment and factories
Land - ANSWER the physical space on which production takes place, as well as
the useful materials - natural resources - found under it or on it. (crude oil, iron,
coal, soil, etc)
Entrepreneurship - ANSWER the ability (and the willingness to use it) to combine
the other resources into a productive enterprise
the production possibilities frontier - ANSWER graph that shows the
combinations of output that the economy can possibly produce given the
available factors of production and the available production technology
The law of increasing opportunity cost states - ANSWER that the more of
something that is produced the greater the opportunity cost of producing even
more of it
Specialization - ANSWER a method of production in which each person
concentrates on a limited number of activities
Absolute advantage - ANSWER the ability to produce a good or service using
fewer inputs than another producer uses
Comparative advantage - ANSWER the ability to produce a good or service at a
lower opportunity cost than another producer
Imports - ANSWER goods that are produced abroad and sold domestically
Exports - ANSWER goods that are produced domestically and sold abroad
Economics agree on 3 important macroeconomic goals - ANSWER 1.Economic
Growth 2.Full Employment 3.Stable Prices
inflation - ANSWER an increase in the average level of prices during a given
period of time
Deflation - ANSWER decrease in the average level of prices during a given
period of time
The inflation rate - ANSWER he percentage increase in the average level of
prices
the income approach - ANSWER measures GDP by summing all the payments to
the owners of resources that are used in production (inputs)
