Introduction to
Microeconomics (ECON 2106)
- Exam #1 Review (41
questions and answers)
Scarcity - answer Fundamental concept of economics that indicates that
there is less of a good freely available from nature than people would like.
Choice - answer The act of selecting among alternatives.
Resources - answer An input used to produce economic goods. Land, labor,
skills, natural resources, and human-made tools and equipment provide
examples. Throughout history, people have struggled to transform available,
but limited, resources into things they would like to have - economic goods.
Capital - answer Human-made resources (such as tools, equipment, and
structures) used to produce other goods and services. They enhance our
ability to produce in the future.
Objective - answer A fact based on observable phenomena that is not
influenced by differences in personal opinion.
Subjective - answer An opinion based on personal preferences and value
judgements.
Rationing - answer Allocating a limited supply of a good or resource among
people who would like to have more of it. When price performs the ratioing
function, the good or resource is allocated to those willing to give up the
most "other things" in order to get it.
, Economic Theory - answer A set of definitions, postulates, and principles
assembled in a manner that makes clear the "cause-and-effect"
relationships.
Opportunity Cost - answer The highest valued alternative that must be
sacrificed as a result of choosing an option.
Economizing Behavior - answer Choosing the option that offers the greatest
benefit at the least possible cost.
Utility - answer The subjective benefit or satisfaction a person expects from a
choice or course of action.
Marginal - answer Term used to describe the effects of a change in the
current situation. For example, a producer's marginal cost is the cost of
producing an additional unit of a product, given the producer's current
facility and production rate.
Secondary Effects - answer The indirect impact of an event or policy that
may not be easily and immediately observable. In the area of policy, these
effects are often both unintended and overlooked.
Scientific Thinking - answer Developing a theory from basic principles and
testing it against events in the real world. Good theories are consistent with
and help explain real-world events. Theories that are inconsistent with the
real world are invalid and must be rejected.
Positive Economics - answer The scientific study of "what is" among
economic relationships.
Microeconomics (ECON 2106)
- Exam #1 Review (41
questions and answers)
Scarcity - answer Fundamental concept of economics that indicates that
there is less of a good freely available from nature than people would like.
Choice - answer The act of selecting among alternatives.
Resources - answer An input used to produce economic goods. Land, labor,
skills, natural resources, and human-made tools and equipment provide
examples. Throughout history, people have struggled to transform available,
but limited, resources into things they would like to have - economic goods.
Capital - answer Human-made resources (such as tools, equipment, and
structures) used to produce other goods and services. They enhance our
ability to produce in the future.
Objective - answer A fact based on observable phenomena that is not
influenced by differences in personal opinion.
Subjective - answer An opinion based on personal preferences and value
judgements.
Rationing - answer Allocating a limited supply of a good or resource among
people who would like to have more of it. When price performs the ratioing
function, the good or resource is allocated to those willing to give up the
most "other things" in order to get it.
, Economic Theory - answer A set of definitions, postulates, and principles
assembled in a manner that makes clear the "cause-and-effect"
relationships.
Opportunity Cost - answer The highest valued alternative that must be
sacrificed as a result of choosing an option.
Economizing Behavior - answer Choosing the option that offers the greatest
benefit at the least possible cost.
Utility - answer The subjective benefit or satisfaction a person expects from a
choice or course of action.
Marginal - answer Term used to describe the effects of a change in the
current situation. For example, a producer's marginal cost is the cost of
producing an additional unit of a product, given the producer's current
facility and production rate.
Secondary Effects - answer The indirect impact of an event or policy that
may not be easily and immediately observable. In the area of policy, these
effects are often both unintended and overlooked.
Scientific Thinking - answer Developing a theory from basic principles and
testing it against events in the real world. Good theories are consistent with
and help explain real-world events. Theories that are inconsistent with the
real world are invalid and must be rejected.
Positive Economics - answer The scientific study of "what is" among
economic relationships.
