ECN 211 MIDTERM 1 2026 PRACTICE TEST
QUESTIONS AND DETAILED CONSUMER
THEORY PRODUCTION COSTS AND MARKET
STRUCTURES BREAKDOWN FULL REVIEW
◉ Macroeconomics. Answer: the study of economy-wide phenomena
(ex. the federal deficit, the rate of unemployment and policies to
improve our standard of living)
◉ Microeconomics. Answer: the study of how households and firms
make decisions and how they interact in markets
◉ Mixed Economies. Answer: a system with free markets, but with
some government intervention (ex. U.S.)
◉ Scarcity. Answer: there is not enough of something to go around
for everyone to have as much as they want of it at a zero price
◉ Resources. Answer: are scarce for economies and households
◉ Property Rights. Answer: the ability of an individual to own and
exercise control over scarce resources
, ◉ Efficiency. Answer: society is getting the maximum benefits from
its scarce resources or the size of the economic pie
◉ Equality. Answer: that benefits are distributed uniformly among
society's members or how the pie is divided into individual slices
◉ Productivity. Answer: the amount of goods and services produced
from each unit of labor input
◉ Incentives. Answer: something that induces a person to act or
change a behavior
◉ Cost. Answer: money, time, activities, etc. you give up
◉ Opportunity Cost. Answer: whatever you give up to get something
else
◉ Marginal Benefit. Answer: the benefit/revenue of producing an
item or of a choice
◉ Marginal Thinking. Answer: if the benefits of your choice outway
the cost of it
QUESTIONS AND DETAILED CONSUMER
THEORY PRODUCTION COSTS AND MARKET
STRUCTURES BREAKDOWN FULL REVIEW
◉ Macroeconomics. Answer: the study of economy-wide phenomena
(ex. the federal deficit, the rate of unemployment and policies to
improve our standard of living)
◉ Microeconomics. Answer: the study of how households and firms
make decisions and how they interact in markets
◉ Mixed Economies. Answer: a system with free markets, but with
some government intervention (ex. U.S.)
◉ Scarcity. Answer: there is not enough of something to go around
for everyone to have as much as they want of it at a zero price
◉ Resources. Answer: are scarce for economies and households
◉ Property Rights. Answer: the ability of an individual to own and
exercise control over scarce resources
, ◉ Efficiency. Answer: society is getting the maximum benefits from
its scarce resources or the size of the economic pie
◉ Equality. Answer: that benefits are distributed uniformly among
society's members or how the pie is divided into individual slices
◉ Productivity. Answer: the amount of goods and services produced
from each unit of labor input
◉ Incentives. Answer: something that induces a person to act or
change a behavior
◉ Cost. Answer: money, time, activities, etc. you give up
◉ Opportunity Cost. Answer: whatever you give up to get something
else
◉ Marginal Benefit. Answer: the benefit/revenue of producing an
item or of a choice
◉ Marginal Thinking. Answer: if the benefits of your choice outway
the cost of it
