©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
Econ 211 Unit 1 Exam Study Guide with
Complete Solutions
What is a social science concerned with making optimal choices under
conditions of scarcity - Answer✔️✔️-Economics
Economic _______ exceed society's productive capacity - Answer✔️✔️-wants
Resources are _____ - Answer✔️✔️-scarce
"There is no such thing as a free lunch" is the phrase from - Answer✔️✔️-
opportunity cost
Decisions that will make customers better off, the goal is to maximize
utility or satisfaction - Answer✔️✔️-rational self-interest
a well-tested economic theory is often called
a prototype.
a hypothesis.
a principle.
an anomaly - Answer✔️✔️-a principle
Refer to the production possibilities curve. At the onset of the Second
World War, the Soviet Union was already at full employment. Its economic
1
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
adjustment from peacetime to wartime can best be described by the
movement from point - Answer✔️✔️-c to b (just moving up the line)
according to economists, economic self-interest
has the same meaning as selfishness.
is usually self-defeating.
means that people never make wrong decisions.
is a reality that underlies economic behavior. - Answer✔️✔️-is a reality that
underlies economic behavior
Economic theories
are generalizations based on hypotheses tested and supported with
observed facts
are abstractions and therefore of no application to real situations.
are useless because they are not based on laboratory experimentation.
2
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
that are true for individual economic units are never true for the economy
as a whole. - Answer✔️✔️-are generalizations based on hypotheses tested
and supported with observed facts
Any combination of goods lying outside of the budget line
yields less utility than any point inside the budget line.
yields less utility than any point on the budget line.
implies that the consumer is not spending all of the consumer's income.
is unattainable, given the consumer's income. - Answer✔️✔️-is unattainable,
given the consumer's income
A positive statement is one that
focuses on facts,
descriptions, and theoretical relationships.
focuses on the best course of action and is based on value judgments.
is derived by deduction.
3
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
is derived by induction. - Answer✔️✔️-focuses on facts, descriptions, and
theoretical
(graph) the economy will experience unemployment if it produces at point
- Answer✔️✔️-inside the curve
A production possibilities curve shows
the maximum amounts of two goods that can be produced, assuming the
full use of available resources.
combinations of capital and labor necessary to produce specific levels of
output.
that people prefer one of the goods more than the other.
that resources are unlimited. - Answer✔️✔️-the maximum amounts of two
goods that can be produced, assuming the full use of available resources
Microeconomics is concerned with
establishing an overall view of the operation of the economic system.
4
Econ 211 Unit 1 Exam Study Guide with
Complete Solutions
What is a social science concerned with making optimal choices under
conditions of scarcity - Answer✔️✔️-Economics
Economic _______ exceed society's productive capacity - Answer✔️✔️-wants
Resources are _____ - Answer✔️✔️-scarce
"There is no such thing as a free lunch" is the phrase from - Answer✔️✔️-
opportunity cost
Decisions that will make customers better off, the goal is to maximize
utility or satisfaction - Answer✔️✔️-rational self-interest
a well-tested economic theory is often called
a prototype.
a hypothesis.
a principle.
an anomaly - Answer✔️✔️-a principle
Refer to the production possibilities curve. At the onset of the Second
World War, the Soviet Union was already at full employment. Its economic
1
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
adjustment from peacetime to wartime can best be described by the
movement from point - Answer✔️✔️-c to b (just moving up the line)
according to economists, economic self-interest
has the same meaning as selfishness.
is usually self-defeating.
means that people never make wrong decisions.
is a reality that underlies economic behavior. - Answer✔️✔️-is a reality that
underlies economic behavior
Economic theories
are generalizations based on hypotheses tested and supported with
observed facts
are abstractions and therefore of no application to real situations.
are useless because they are not based on laboratory experimentation.
2
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
that are true for individual economic units are never true for the economy
as a whole. - Answer✔️✔️-are generalizations based on hypotheses tested
and supported with observed facts
Any combination of goods lying outside of the budget line
yields less utility than any point inside the budget line.
yields less utility than any point on the budget line.
implies that the consumer is not spending all of the consumer's income.
is unattainable, given the consumer's income. - Answer✔️✔️-is unattainable,
given the consumer's income
A positive statement is one that
focuses on facts,
descriptions, and theoretical relationships.
focuses on the best course of action and is based on value judgments.
is derived by deduction.
3
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
is derived by induction. - Answer✔️✔️-focuses on facts, descriptions, and
theoretical
(graph) the economy will experience unemployment if it produces at point
- Answer✔️✔️-inside the curve
A production possibilities curve shows
the maximum amounts of two goods that can be produced, assuming the
full use of available resources.
combinations of capital and labor necessary to produce specific levels of
output.
that people prefer one of the goods more than the other.
that resources are unlimited. - Answer✔️✔️-the maximum amounts of two
goods that can be produced, assuming the full use of available resources
Microeconomics is concerned with
establishing an overall view of the operation of the economic system.
4
