ECN 211 Exam 1 questions with correct answers

Economics Correct Answer-the study of how society manages its scarce resources Macroeconomics Correct Answer-the study of economy-wide phenomena (ex. the federal deficit, the rate of unemployment and policies to improve our standard of living) Microeconomics Correct Answer-the study of how households and firms make decisions and how they interact in markets Mixed Economies Correct Answer-a system with free markets, but with some government intervention (ex. U.S.) Scarcity Correct 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 Correct Answer-are scarce for economies and households Property Rights Correct Answer-the ability of an individual to own and exercise control over scarce resources Efficiency Correct Answer-society is getting the maximum benefits from its scarce resources or the size of the economic pie