ECN 212 TEST SCRIPT 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
CERTIFICATION REVIEW GRADED
A+
◉ good institutions align __ with __. Answer: self-interests with social
interest
◉ we cannot buy everything, which forces us to. Answer: ration our
spending
◉ we cannot do everything we want, which forces us to. Answer: ration
our time
◉ scarcity. Answer: the availability of resources is insufficient for
individuals to satisfy all desires at zero price
*forces us to make decisions and choose among available alternatives
◉ absence of scarcity. Answer: implies that all of our desires for goods
are fully satisfied
◉ price. Answer: used to ration goods and resources in a market setting
◉ market organization (capitalism). Answer: a method of organization
that allows for unregulated prices and the decentralized decisions of
private property owners to resolve the basic economic problems
, ◉ market. Answer: the interaction between all of the potential buyers
and sellers of good or service
◉ economize. Answer: individuals _______, meaning they gain a
specific benefit at the least possible cost
◉ rational behavior. Answer: behavior is based on a careful, deliberate
process that
weighs expected benefits and costs.
People do not make decisions that
make themselves worse of.
◉ subjective. Answer: the value of goods is _____, meaning that goods
(and services) are appreciated in very different ways by different people
◉ Information. Answer: ______ is helpful but not free
the process of gathering it is not costless;
it is scarce
◉ opportunity cost. Answer: requires us to look at the full cost of
making choices, including the value of the next best alternative.
◉ explicit costs. Answer: money used in the pursuit of a goal that could
otherwise have been spent on an alternative objective.
PAPER QUESTIONS AND SOLUTIONS
CERTIFICATION REVIEW GRADED
A+
◉ good institutions align __ with __. Answer: self-interests with social
interest
◉ we cannot buy everything, which forces us to. Answer: ration our
spending
◉ we cannot do everything we want, which forces us to. Answer: ration
our time
◉ scarcity. Answer: the availability of resources is insufficient for
individuals to satisfy all desires at zero price
*forces us to make decisions and choose among available alternatives
◉ absence of scarcity. Answer: implies that all of our desires for goods
are fully satisfied
◉ price. Answer: used to ration goods and resources in a market setting
◉ market organization (capitalism). Answer: a method of organization
that allows for unregulated prices and the decentralized decisions of
private property owners to resolve the basic economic problems
, ◉ market. Answer: the interaction between all of the potential buyers
and sellers of good or service
◉ economize. Answer: individuals _______, meaning they gain a
specific benefit at the least possible cost
◉ rational behavior. Answer: behavior is based on a careful, deliberate
process that
weighs expected benefits and costs.
People do not make decisions that
make themselves worse of.
◉ subjective. Answer: the value of goods is _____, meaning that goods
(and services) are appreciated in very different ways by different people
◉ Information. Answer: ______ is helpful but not free
the process of gathering it is not costless;
it is scarce
◉ opportunity cost. Answer: requires us to look at the full cost of
making choices, including the value of the next best alternative.
◉ explicit costs. Answer: money used in the pursuit of a goal that could
otherwise have been spent on an alternative objective.
