AAEC 2305 TTU EXAM 1 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Ceteris Paribus
Answer:
a Latin phrase that means "all other things held constant"
Question:
2. economic growth
Answer:
the ability of the economy to increase the production of goods and services
Question:
3. Economics
Answer:
The study of how people seek to satisfy their needs and wants by making choices
Question:
4. Efficiency
Answer:
The percentage of the input work that is converted to output work
Question:
5. efficient market
Answer:
a market in which profit opportunities are eliminated almost instantaneously
Question:
6. empirical economics
Answer:
the collection and use of data to test economic theories
Question:
7. Equity
Answer:
a condition in which people receive from a relationship in proportion to what they give to it
Question:
8. Macroeconomics
Answer:
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
Question:
9. Microeconomics
, Answer:
the study of how households and firms make decisions and how they interact in markets
Question:
10. normative economics
Answer:
The part of economics involving value judgments about what the economy should be like; focused on
which economic goals and policies should be implemented; policy economics.
Question:
11. Ockham's Razor
Answer:
states "when given two equally valid explanations for a phenomenon, one should embrace the less
complicated formulation"
Question:
12. opportunity cost
Answer:
the most desirable alternative given up as the result of a decision
Question:
13. post hoc ergo propter hoc
Answer:
This fallacy is Latin for "after which therefore because of which," meaning that it is incorrect to always
claim that something is a cause just because it happened earlier. One may loosely summarize this fallacy
by saying that correlation does not imply causation.
Question:
14. scarce
Answer:
in short supply
Question:
15. stability
Answer:
A condition in which national output is growing steadily, with low inflation and full employment of
resources.
Question:
16. Variable
Answer:
A symbol used to represent a quantity that can change
Question:
17. absolute advantage
AND CORRECT ANSWERS
Question:
1. Ceteris Paribus
Answer:
a Latin phrase that means "all other things held constant"
Question:
2. economic growth
Answer:
the ability of the economy to increase the production of goods and services
Question:
3. Economics
Answer:
The study of how people seek to satisfy their needs and wants by making choices
Question:
4. Efficiency
Answer:
The percentage of the input work that is converted to output work
Question:
5. efficient market
Answer:
a market in which profit opportunities are eliminated almost instantaneously
Question:
6. empirical economics
Answer:
the collection and use of data to test economic theories
Question:
7. Equity
Answer:
a condition in which people receive from a relationship in proportion to what they give to it
Question:
8. Macroeconomics
Answer:
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
Question:
9. Microeconomics
, Answer:
the study of how households and firms make decisions and how they interact in markets
Question:
10. normative economics
Answer:
The part of economics involving value judgments about what the economy should be like; focused on
which economic goals and policies should be implemented; policy economics.
Question:
11. Ockham's Razor
Answer:
states "when given two equally valid explanations for a phenomenon, one should embrace the less
complicated formulation"
Question:
12. opportunity cost
Answer:
the most desirable alternative given up as the result of a decision
Question:
13. post hoc ergo propter hoc
Answer:
This fallacy is Latin for "after which therefore because of which," meaning that it is incorrect to always
claim that something is a cause just because it happened earlier. One may loosely summarize this fallacy
by saying that correlation does not imply causation.
Question:
14. scarce
Answer:
in short supply
Question:
15. stability
Answer:
A condition in which national output is growing steadily, with low inflation and full employment of
resources.
Question:
16. Variable
Answer:
A symbol used to represent a quantity that can change
Question:
17. absolute advantage
