Economics 101 Exam 1 - SDSU Cullivan
Questions With Correct Answers
Microeconomics - CORRECT ANSWER✔✔-the study of the economy at| | | | | | | | |
the small-scale level, examining individuals and specifics markets
| | | | | | |
-deals with individual households and markets (gasoline market)
| | | | | | |
-how market prices are determined and how they will adjust to a variety
| | | | | | | | | | | |
of different events (weather and government regulation)
| | | | | | |
Macroeconomics - CORRECT ANSWER✔✔-The study of the economy at | | | | | | | | |
the large-scale level, examining total output, the price level, and other
| | | | | | | | | | |
aggregate measures of the economy | | | |
-examines entire economy of a state, a country, or the world
| | | | | | | | | |
-deals with large-scale issues of an economy like total output, average
| | | | | | | | | | |
price levels (and inflation) and unemployment
| | | | |
-the whole economy can be affected by important national and global
| | | | | | | | | | |
events (wars, natural disasters, and technological innovation, decisions
| | | | | | | |
made by government policy makers)
| | | |
Aggregate - CORRECT ANSWER✔✔-Means "total"
| | | |
-Used in macroeconomics (aggregation)
| | |
,Aggregation - CORRECT ANSWER✔✔-In macroeconomics: | | | |
-Adds up output across all industries
| | | | |
-Adds up prices to arrive at one measure of how expensive goods and
| | | | | | | | | | | | |
services are this year compared to last year
| | | | | | |
-Adds up data about whos employed and who isn't so we know the
| | | | | | | | | | | | |
state of all labor markets and develop a measure of the unemployment
| | | | | | | | | | | |
rate
Economics - CORRECT ANSWER✔✔-The study of how individuals and
| | | | | | | | |
societies allocate scarce resources among many competing uses
| | | | | | |
Resource - CORRECT ANSWER✔✔-Any item, whether a gift of nature,
| | | | | | | | | |
the result of production, or the result of human effort, that is used to
| | | | | | | | | | | | | |
produce goods and services | | |
Land - CORRECT ANSWER✔✔-All natural resources used in production;
| | | | | | | | |
sometimes referred to as "gifts of nature" | | | | | |
Labor - CORRECT ANSWER✔✔-All physical and mental activity devoted
| | | | | | | | |
to producing goods and services
| | | |
Capital - CORRECT ANSWER✔✔-The tools, machinery, infrastructure
| | | | | | |
and knowledge used to produce goods and services.
| | | | | | | |
-Sometimes divided into "physical" and "human" | | | | |
, Physical capital - CORRECT ANSWER✔✔-refers to tangible items that are
| | | | | | | | |
created to increase productivity
| | | |
Human capital - CORRECT ANSWER✔✔-refers to the knowledge and
| | | | | | | | |
skills that people acquire in order to increase productivity
| | | | | | | |
Entrepreneurial ability - CORRECT ANSWER✔✔-The talent or ability to | | | | | | | | |
combine land, labor, and capital to produce goods and services.
| | | | | | | | | |
-Different from human capital and in that it primarily involves assuming
| | | | | | | | | | |
risk and organizing resources into a productive process
| | | | | | |
Scarcity - CORRECT ANSWER✔✔-A condition that results from the
| | | | | | | | |
inability of limited resources to satisfy unlimited wants
| | | | | | |
-reflects the fact that unlimited wants cannot be completely satisfied
| | | | | | | | | |
with limited resources
| |
Relative scarcity - CORRECT ANSWER✔✔-The comparison of the scarcity
| | | | | | | |
of one good, service or resource to that of another
| | | | | | | | | |
(relative scarcity of drinkable water as compared to water in general)
| | | | | | | | | |
Allocation - CORRECT ANSWER✔✔-The process of assigning a good,
| | | | | | | | |
service, or resource to one use instead of another
| | | | | | | |
Questions With Correct Answers
Microeconomics - CORRECT ANSWER✔✔-the study of the economy at| | | | | | | | |
the small-scale level, examining individuals and specifics markets
| | | | | | |
-deals with individual households and markets (gasoline market)
| | | | | | |
-how market prices are determined and how they will adjust to a variety
| | | | | | | | | | | |
of different events (weather and government regulation)
| | | | | | |
Macroeconomics - CORRECT ANSWER✔✔-The study of the economy at | | | | | | | | |
the large-scale level, examining total output, the price level, and other
| | | | | | | | | | |
aggregate measures of the economy | | | |
-examines entire economy of a state, a country, or the world
| | | | | | | | | |
-deals with large-scale issues of an economy like total output, average
| | | | | | | | | | |
price levels (and inflation) and unemployment
| | | | |
-the whole economy can be affected by important national and global
| | | | | | | | | | |
events (wars, natural disasters, and technological innovation, decisions
| | | | | | | |
made by government policy makers)
| | | |
Aggregate - CORRECT ANSWER✔✔-Means "total"
| | | |
-Used in macroeconomics (aggregation)
| | |
,Aggregation - CORRECT ANSWER✔✔-In macroeconomics: | | | |
-Adds up output across all industries
| | | | |
-Adds up prices to arrive at one measure of how expensive goods and
| | | | | | | | | | | | |
services are this year compared to last year
| | | | | | |
-Adds up data about whos employed and who isn't so we know the
| | | | | | | | | | | | |
state of all labor markets and develop a measure of the unemployment
| | | | | | | | | | | |
rate
Economics - CORRECT ANSWER✔✔-The study of how individuals and
| | | | | | | | |
societies allocate scarce resources among many competing uses
| | | | | | |
Resource - CORRECT ANSWER✔✔-Any item, whether a gift of nature,
| | | | | | | | | |
the result of production, or the result of human effort, that is used to
| | | | | | | | | | | | | |
produce goods and services | | |
Land - CORRECT ANSWER✔✔-All natural resources used in production;
| | | | | | | | |
sometimes referred to as "gifts of nature" | | | | | |
Labor - CORRECT ANSWER✔✔-All physical and mental activity devoted
| | | | | | | | |
to producing goods and services
| | | |
Capital - CORRECT ANSWER✔✔-The tools, machinery, infrastructure
| | | | | | |
and knowledge used to produce goods and services.
| | | | | | | |
-Sometimes divided into "physical" and "human" | | | | |
, Physical capital - CORRECT ANSWER✔✔-refers to tangible items that are
| | | | | | | | |
created to increase productivity
| | | |
Human capital - CORRECT ANSWER✔✔-refers to the knowledge and
| | | | | | | | |
skills that people acquire in order to increase productivity
| | | | | | | |
Entrepreneurial ability - CORRECT ANSWER✔✔-The talent or ability to | | | | | | | | |
combine land, labor, and capital to produce goods and services.
| | | | | | | | | |
-Different from human capital and in that it primarily involves assuming
| | | | | | | | | | |
risk and organizing resources into a productive process
| | | | | | |
Scarcity - CORRECT ANSWER✔✔-A condition that results from the
| | | | | | | | |
inability of limited resources to satisfy unlimited wants
| | | | | | |
-reflects the fact that unlimited wants cannot be completely satisfied
| | | | | | | | | |
with limited resources
| |
Relative scarcity - CORRECT ANSWER✔✔-The comparison of the scarcity
| | | | | | | |
of one good, service or resource to that of another
| | | | | | | | | |
(relative scarcity of drinkable water as compared to water in general)
| | | | | | | | | |
Allocation - CORRECT ANSWER✔✔-The process of assigning a good,
| | | | | | | | |
service, or resource to one use instead of another
| | | | | | | |
