ECON 100 Final Exam Study Guide || GUARANTEED
PASS!!
Economics correct answers The study of how best to allocate scarce resources among
competing uses
Opportunity cost correct answers The most desired goods and services that are forgone in
order to obtain something else
Three Economic Questions correct answers WHAT to produce (PPC), HOW to produce,
FOR WHOM to produce
Production Possibilities Curve correct answers The alternative combination of goods and
services that could be produced in a given time period with all available resources and
technology (2 goods max)
Operating with the PPC correct answers On the PPC: Efficient
Outside: Unreasonable
Inside: Inefficient
Market Failure correct answers Market mechanism generates suboptimal economic outcomes
Government Failure correct answers Occurs when a government intervention fails to improve
or worsen economic outcomes
Macroeconomics correct answers The study of the economy as a whole and the behavior of
the entire economy
Microeconomics correct answers The study of individual behavior in the economy, of the
components of the larger economy
Factor Market correct answers Any place where factors of production are bought and sold
Product Market correct answers Any place where finished goods and services are bought and
sold
Supply correct answers The quantities of a good or service that producers are willing and able
to sell at all possible prices during a given time period, ceteris paribus
Demand correct answers The quantity of goods or services that buyers(consumers) are
willing and able to buy at all possible prices during a given period of time, ceteris paribus
Supply Curve correct answers Always upward sloping
Demand Curve correct answers Always downward sloping b/s as the price of a good or
service falls, people tend to purchase more of that good or service
Law of Demand correct answers The quantity demanded of good or service increases as the
price decreases, and vice versa, ceteris paribus
PASS!!
Economics correct answers The study of how best to allocate scarce resources among
competing uses
Opportunity cost correct answers The most desired goods and services that are forgone in
order to obtain something else
Three Economic Questions correct answers WHAT to produce (PPC), HOW to produce,
FOR WHOM to produce
Production Possibilities Curve correct answers The alternative combination of goods and
services that could be produced in a given time period with all available resources and
technology (2 goods max)
Operating with the PPC correct answers On the PPC: Efficient
Outside: Unreasonable
Inside: Inefficient
Market Failure correct answers Market mechanism generates suboptimal economic outcomes
Government Failure correct answers Occurs when a government intervention fails to improve
or worsen economic outcomes
Macroeconomics correct answers The study of the economy as a whole and the behavior of
the entire economy
Microeconomics correct answers The study of individual behavior in the economy, of the
components of the larger economy
Factor Market correct answers Any place where factors of production are bought and sold
Product Market correct answers Any place where finished goods and services are bought and
sold
Supply correct answers The quantities of a good or service that producers are willing and able
to sell at all possible prices during a given time period, ceteris paribus
Demand correct answers The quantity of goods or services that buyers(consumers) are
willing and able to buy at all possible prices during a given period of time, ceteris paribus
Supply Curve correct answers Always upward sloping
Demand Curve correct answers Always downward sloping b/s as the price of a good or
service falls, people tend to purchase more of that good or service
Law of Demand correct answers The quantity demanded of good or service increases as the
price decreases, and vice versa, ceteris paribus
