EC 111 Exam 1 || A Verified A+ Pass.
scarcity correct answers the limited nature of society's resources
economics correct answers the study of how society manages its scarce resources
-how people decide what to buy, how much to work, how much to save, and spend
-how firms decide how much to produce, how many people to hire
-how society decides how to divide its resources between national defense, consumer goods,
protecting the environment, and other needs
efficiency correct answers the property of society getting the most it can from its scarce
resources
equality correct answers the property of distributing economic prosperity uniformly among the
members of society
opportunity costs correct answers whatever must be given up to obtain some item
--it is the relevant cost for decision making
rational people correct answers people who systematically and purposefully do the best they can
to achieve their objectives
marginal change correct answers a small incremental adjustment to a plan of action
incentive correct answers something that induces a person to act
market economy correct answers an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
property rights correct answers the ability of an individual to own and exercise control over
scarce resources
market failure correct answers a situation in which a market left on its own fails to allocate
resources efficiently
externality correct answers the impact of one person's actions on the well-being of a bystander
market power correct answers the ability of a single economic actor (or small group of actors) to
have a substantial influence on market prices
productivity correct answers the quantity of goods and services produced from each unit of labor
input
inflation correct answers an increase in the overall level of prices in the economy
scarcity correct answers the limited nature of society's resources
economics correct answers the study of how society manages its scarce resources
-how people decide what to buy, how much to work, how much to save, and spend
-how firms decide how much to produce, how many people to hire
-how society decides how to divide its resources between national defense, consumer goods,
protecting the environment, and other needs
efficiency correct answers the property of society getting the most it can from its scarce
resources
equality correct answers the property of distributing economic prosperity uniformly among the
members of society
opportunity costs correct answers whatever must be given up to obtain some item
--it is the relevant cost for decision making
rational people correct answers people who systematically and purposefully do the best they can
to achieve their objectives
marginal change correct answers a small incremental adjustment to a plan of action
incentive correct answers something that induces a person to act
market economy correct answers an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
property rights correct answers the ability of an individual to own and exercise control over
scarce resources
market failure correct answers a situation in which a market left on its own fails to allocate
resources efficiently
externality correct answers the impact of one person's actions on the well-being of a bystander
market power correct answers the ability of a single economic actor (or small group of actors) to
have a substantial influence on market prices
productivity correct answers the quantity of goods and services produced from each unit of labor
input
inflation correct answers an increase in the overall level of prices in the economy
