Econ 202 Midterm #1 Questions with Complete Correct Answers | Grade A+

Scarcity Ans: More wants than there are resources to fulfill them Macroeconomics Ans: Study of the aggregate effects on the national economy and the global economy of the choices that individuals, businesses, and governments make Opportunity Cost Ans: The bet thing that you must give up to get something- the highest valued alternative forgone Calculating Opportunity Cost Ans: OC = Explicit Cost + Implicit Cost Marginal Cost Ans: Opportunity cost of a one unit increase in an activity Marginal Benefit Ans: What you gain when you get one more unit of something; measured by what you are willing to give up to get one more additional unit of it Rational Choice Ans: A choice that best uses the available resources to best achieve the objective of the person making the choice Tradeoff Ans: An exchange giving up one thing to get something else What do we produce? Ans: Consumption goods, export goods, capital goods, government goods Consumption Goods Ans: Bought by an individual for personal enjoyment Export Goods Ans: Produced in one country and sold in another Capital Goods Ans: Goods bought by businesses to increase their productive resources Government Goods Ans: Items bought by governments How do we produce? Ans: Factors of production are the productive resources used to produce goods and services; land, labor, capital, entrepreneurship Land Ans: Gifts of nature; natural resources Labor Ans: Work time/effort peop