ECON 2020 WEEK 2 EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS
even though people may not behave rationally all the time.
Economists assume that rational behavior is useful in explaining choices people make
Scarcity refers to the situation in which unlimited wants exceed limited resources.
Which of the following statements about scarcity is true?
model
An economist ______ is a simplified version of some aspect of economic life used to analyze an
economic issue.
scarcity
The basic economic problem of ______ has always existed and will continue to exist.
market
In economics, the term _____ refers to a group of buyers and sellers of a product and the
arrangement by which they come together to trade.
that consumers value most.
Allocative efficiency is achieved when firms produce goods and services
Productive efficiency
_____ is a situation in which a good or service is produced at the lowest possible cost.
competition among sellers
Which of the following generates productive efficiency?
the government
Consider the following economic agents:
a. the government
b. consumers
, c. producers
Who, in a purely centrally planned economy, decides what goods and services will be produced
with the scarce resources available in that economy?
opportunity cost
The highest valued alternative that must be given up to engage in an activity is the definition of
consumers and producers
Consider the following economic agents:
a. the government
b. consumers
c. producers
Who, in purely market economy, decides what goods and services will be produced with the
scarce resources available in that economy?
the economy as a whole
Macroeconomics is the study of
What factors determine the price of carrots?
Which of the following is a microeconomic question?
What determines the inflation rate?
Which of the following is a macroeconomic question?
how households and firms make choices
Microeconomics is the study of
$810
Calculate the area of the trapezoid X
$2.6 million
Calculate the area of the triangle A
42.9%
WITH DETAILED VERIFIED ANSWERS
even though people may not behave rationally all the time.
Economists assume that rational behavior is useful in explaining choices people make
Scarcity refers to the situation in which unlimited wants exceed limited resources.
Which of the following statements about scarcity is true?
model
An economist ______ is a simplified version of some aspect of economic life used to analyze an
economic issue.
scarcity
The basic economic problem of ______ has always existed and will continue to exist.
market
In economics, the term _____ refers to a group of buyers and sellers of a product and the
arrangement by which they come together to trade.
that consumers value most.
Allocative efficiency is achieved when firms produce goods and services
Productive efficiency
_____ is a situation in which a good or service is produced at the lowest possible cost.
competition among sellers
Which of the following generates productive efficiency?
the government
Consider the following economic agents:
a. the government
b. consumers
, c. producers
Who, in a purely centrally planned economy, decides what goods and services will be produced
with the scarce resources available in that economy?
opportunity cost
The highest valued alternative that must be given up to engage in an activity is the definition of
consumers and producers
Consider the following economic agents:
a. the government
b. consumers
c. producers
Who, in purely market economy, decides what goods and services will be produced with the
scarce resources available in that economy?
the economy as a whole
Macroeconomics is the study of
What factors determine the price of carrots?
Which of the following is a microeconomic question?
What determines the inflation rate?
Which of the following is a macroeconomic question?
how households and firms make choices
Microeconomics is the study of
$810
Calculate the area of the trapezoid X
$2.6 million
Calculate the area of the triangle A
42.9%
