ECON 110 FIRST TEST QUESTIONS
AND CORRECT ANSWERS
Equity ✅✅CORRECT ANSW-fair distribution
positive analysis ✅✅CORRECT ANSW-the study of economic phenomena based on factual
observations and data, focusing on describing "what is" rather than making value judgments
normative analysis ✅✅CORRECT ANSW-a subjective, opinion-based approach to evaluating
economic situations and outcomes.
opportunity cost ✅✅CORRECT ANSW-whatever must be given up to obtain some item
Trade-off ✅✅CORRECT ANSW-the act of giving up one thing in exchange for another
PPF (Production Possibilities Frontier) ✅✅CORRECT ANSW-a curve that shows the maximum
quantity of one good that can be produced for each possible quantity of another good produced
economic growth ✅✅CORRECT ANSW-the ability of the economy to increase the production of
goods and services
Scarcity ✅✅CORRECT ANSW-Limited quantities of resources to meet unlimited wants
Economics ✅✅CORRECT ANSW-The study of how people seek to satisfy their needs and wants by
making choices
productive efficiency ✅✅CORRECT ANSW-a situation in which a good or service is produced at the
lowest possible cost
allocative efficiency ✅✅CORRECT ANSW-where the production of goods and service aligned with
the preference s of it customers and producers
AND CORRECT ANSWERS
Equity ✅✅CORRECT ANSW-fair distribution
positive analysis ✅✅CORRECT ANSW-the study of economic phenomena based on factual
observations and data, focusing on describing "what is" rather than making value judgments
normative analysis ✅✅CORRECT ANSW-a subjective, opinion-based approach to evaluating
economic situations and outcomes.
opportunity cost ✅✅CORRECT ANSW-whatever must be given up to obtain some item
Trade-off ✅✅CORRECT ANSW-the act of giving up one thing in exchange for another
PPF (Production Possibilities Frontier) ✅✅CORRECT ANSW-a curve that shows the maximum
quantity of one good that can be produced for each possible quantity of another good produced
economic growth ✅✅CORRECT ANSW-the ability of the economy to increase the production of
goods and services
Scarcity ✅✅CORRECT ANSW-Limited quantities of resources to meet unlimited wants
Economics ✅✅CORRECT ANSW-The study of how people seek to satisfy their needs and wants by
making choices
productive efficiency ✅✅CORRECT ANSW-a situation in which a good or service is produced at the
lowest possible cost
allocative efficiency ✅✅CORRECT ANSW-where the production of goods and service aligned with
the preference s of it customers and producers
