ECON 100 Midterm Exam 1 – Questions With
Comprehensive Solutions
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Practice questions for this set
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situations where government intervention don't help much or makes things worse
Choose an answer
1 the basic economic problem 2 economic theory
3 the invisible hand theory 4 government failures
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Terms in this set (67)
, the basic economic problem the fact that resources are scarce
economics the study of how human beings coordinate their wants
and desires in a world of limited resources
macroeconomics the study of the economy at the aggregated level
coordination in economics any economic system must solve "three" basic
coordination problems: what and how much to produce,
how to produce it, for whom to produce it
the invisible hand theory a market economy will, through the price mechanism,
allocate resources efficiently.
prices tend to fall when the quantity supplied is great
than the quantity demanded. prices tend to rise when he
quantity demanded is greater than the quantity supplied
seven basic economic terms 1. marginal benefit
2. marginal cost
3. opportunity cost
4. sunk cost
5. macroeconomics
6. microeconomics
7. economic policy analysis
economic reasoning decisions are made by comparing marginal costs and
marginal benefits
marginal cost (MC) the additional cost over and above costs already
incurred. typically, the costs of one more unit
marginal benefit (MB) the additional benefit above and beyond what has
already accrued . typically, the benefits of one more unit
the economic decision rule if the MB of doing something exceeds the MC - do it
if the MC of doing something exceeds the MB - don't do
it
Comprehensive Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Practice questions for this set
Learn 1/7 Study with Learn
situations where government intervention don't help much or makes things worse
Choose an answer
1 the basic economic problem 2 economic theory
3 the invisible hand theory 4 government failures
Don't know?
Terms in this set (67)
, the basic economic problem the fact that resources are scarce
economics the study of how human beings coordinate their wants
and desires in a world of limited resources
macroeconomics the study of the economy at the aggregated level
coordination in economics any economic system must solve "three" basic
coordination problems: what and how much to produce,
how to produce it, for whom to produce it
the invisible hand theory a market economy will, through the price mechanism,
allocate resources efficiently.
prices tend to fall when the quantity supplied is great
than the quantity demanded. prices tend to rise when he
quantity demanded is greater than the quantity supplied
seven basic economic terms 1. marginal benefit
2. marginal cost
3. opportunity cost
4. sunk cost
5. macroeconomics
6. microeconomics
7. economic policy analysis
economic reasoning decisions are made by comparing marginal costs and
marginal benefits
marginal cost (MC) the additional cost over and above costs already
incurred. typically, the costs of one more unit
marginal benefit (MB) the additional benefit above and beyond what has
already accrued . typically, the benefits of one more unit
the economic decision rule if the MB of doing something exceeds the MC - do it
if the MC of doing something exceeds the MB - don't do
it
