Econ 101 Study guide for exam 1 ISU
Questions With Correct Answers
Economy - CORRECT ANSWER✔✔-comes from the Greek word for
| | | | | | | |
"ones who manages a household"
| | | | |
Economics - CORRECT ANSWER✔✔-is the study of how society
| | | | | | | |
manages its scarce resources to produce
| | | | |
valuable commodities and distribute them
| | | |
among different people. | |
Scarcity - CORRECT ANSWER✔✔-society has limited
| | | | |
resources and therefore cannot produce all
| | | | |
the goods and services people wish to
| | | | | |
have.
How do people make decisions? - CORRECT ANSWER✔✔-1. People face
| | | | | | | | | |
trade offs. |
2. The cost of something is what you give up
| | | | | | | | |
to get it.
| |
3. Rational people think at the margin.
| | | | | |
, 4. People respond to incentives. 5. Trade can make everyone better off.
| | | | | | | | | | |
6. Markets are usually a good way to
| | | | | | |
organize economic activity.
| |
7. Governments can sometimes improve
| | | |
economic outcomes. | |
8. The standard of living depends on a
| | | | | | |
country's production. |
9. Prices rise when the government prints too
| | | | | | |
much money.
|
10. Society faces a short-run tradeoff
| | | | |
between inflation and unemployment.
| | |
Efficiency - CORRECT ANSWER✔✔-when society gets the most from its
| | | | | | | | |
scarce resources
|
Equality - CORRECT ANSWER✔✔-when prosperity is distributed
| | | | | | |
uniformly
among society's members
| |
Trade off - CORRECT ANSWER✔✔-To achieve greater equality
| | | | | | |
Questions With Correct Answers
Economy - CORRECT ANSWER✔✔-comes from the Greek word for
| | | | | | | |
"ones who manages a household"
| | | | |
Economics - CORRECT ANSWER✔✔-is the study of how society
| | | | | | | |
manages its scarce resources to produce
| | | | |
valuable commodities and distribute them
| | | |
among different people. | |
Scarcity - CORRECT ANSWER✔✔-society has limited
| | | | |
resources and therefore cannot produce all
| | | | |
the goods and services people wish to
| | | | | |
have.
How do people make decisions? - CORRECT ANSWER✔✔-1. People face
| | | | | | | | | |
trade offs. |
2. The cost of something is what you give up
| | | | | | | | |
to get it.
| |
3. Rational people think at the margin.
| | | | | |
, 4. People respond to incentives. 5. Trade can make everyone better off.
| | | | | | | | | | |
6. Markets are usually a good way to
| | | | | | |
organize economic activity.
| |
7. Governments can sometimes improve
| | | |
economic outcomes. | |
8. The standard of living depends on a
| | | | | | |
country's production. |
9. Prices rise when the government prints too
| | | | | | |
much money.
|
10. Society faces a short-run tradeoff
| | | | |
between inflation and unemployment.
| | |
Efficiency - CORRECT ANSWER✔✔-when society gets the most from its
| | | | | | | | |
scarce resources
|
Equality - CORRECT ANSWER✔✔-when prosperity is distributed
| | | | | | |
uniformly
among society's members
| |
Trade off - CORRECT ANSWER✔✔-To achieve greater equality
| | | | | | |
