ECON 211-Exam 1 (Ch.1-3) Questions
With Correct Answers
Economics |- |CORRECT |ANSWER✔✔-The |study |of |how |people |seek |to |satisfy |their |needs |and |
wants |by |making |choices
Opportunity |Cost |- |CORRECT |ANSWER✔✔-The |most |desirable |alternative |given |up |as |the |
result |of |a |decision
Rational |Behavior |- |CORRECT |ANSWER✔✔-Making |choices |to |achieve |goals |in |the |most |
effective |way |possible
Marginal |Analysis |- |CORRECT |ANSWER✔✔-Analysis |that |involves |comparing |marginal |benefits |
and |marginal |costs
MB>MC |- |CORRECT |ANSWER✔✔-The |excess |of |marginal |benefit |over |marginal |cost |represents
|a |net |benefit |for |society
Theoretical |Economics |- |CORRECT |ANSWER✔✔-Economists |use |the |scientific |method |to |make |
generalizations |and |abstractions |to |develop |theories
Policy |Economics |- |CORRECT |ANSWER✔✔-The |formulation |of |courses |of |action |to |bring |about |
desired |economic |outcomes |or |to |prevent |undesired |occurrences
Ceteris |Paribus |Assumption |- |CORRECT |ANSWER✔✔-The |assumption |that |nothing |changes |
except |the |factor |or |factors |being |studied
Economic |Goals |- |CORRECT |ANSWER✔✔-efficiency, |freedom, |security, |equity, |growth
, Complementary |Economic |Goals |- |CORRECT |ANSWER✔✔-Reaching |one |goal |makes |another |
goal |easier |to |achieve
Conflicting |Economic |Goals |- |CORRECT |ANSWER✔✔-Reaching |one |goal |makes |another |goal |
more |difficult |to |achieve
Macro |vs. |Micro |- |CORRECT |ANSWER✔✔-large |vs |small
Economizing |Problem |- |CORRECT |ANSWER✔✔-The |need |to |make |choices |because |economic |
wants |exceed |economic |means
4 |Economic |Resources |- |CORRECT |ANSWER✔✔-Land, |labor, |capital, |and |entrepreneurial |ability
Payments |Associated |with |4 |Economic |Resources |- |CORRECT |ANSWER✔✔-Land- |rent |and |
interest
Labor- |wages |and |salaries
Capital- |rent |and |interest
Entrepreneurial |Ability- |profit
Full |Employment |- |CORRECT |ANSWER✔✔-The |level |of |employment |reached |when |there |is |no |
cyclical |unemployment
Full |Production |- |CORRECT |ANSWER✔✔-All |employed |resources |must |be |used |so |that |they |
provide |the |maximum |possible |satisfaction |of |our |economic |wants
Allocative |Efficiency |- |CORRECT |ANSWER✔✔-When |the |mix |of |goods |being |produced |
represents |the |mix |that |society |most |desires
With Correct Answers
Economics |- |CORRECT |ANSWER✔✔-The |study |of |how |people |seek |to |satisfy |their |needs |and |
wants |by |making |choices
Opportunity |Cost |- |CORRECT |ANSWER✔✔-The |most |desirable |alternative |given |up |as |the |
result |of |a |decision
Rational |Behavior |- |CORRECT |ANSWER✔✔-Making |choices |to |achieve |goals |in |the |most |
effective |way |possible
Marginal |Analysis |- |CORRECT |ANSWER✔✔-Analysis |that |involves |comparing |marginal |benefits |
and |marginal |costs
MB>MC |- |CORRECT |ANSWER✔✔-The |excess |of |marginal |benefit |over |marginal |cost |represents
|a |net |benefit |for |society
Theoretical |Economics |- |CORRECT |ANSWER✔✔-Economists |use |the |scientific |method |to |make |
generalizations |and |abstractions |to |develop |theories
Policy |Economics |- |CORRECT |ANSWER✔✔-The |formulation |of |courses |of |action |to |bring |about |
desired |economic |outcomes |or |to |prevent |undesired |occurrences
Ceteris |Paribus |Assumption |- |CORRECT |ANSWER✔✔-The |assumption |that |nothing |changes |
except |the |factor |or |factors |being |studied
Economic |Goals |- |CORRECT |ANSWER✔✔-efficiency, |freedom, |security, |equity, |growth
, Complementary |Economic |Goals |- |CORRECT |ANSWER✔✔-Reaching |one |goal |makes |another |
goal |easier |to |achieve
Conflicting |Economic |Goals |- |CORRECT |ANSWER✔✔-Reaching |one |goal |makes |another |goal |
more |difficult |to |achieve
Macro |vs. |Micro |- |CORRECT |ANSWER✔✔-large |vs |small
Economizing |Problem |- |CORRECT |ANSWER✔✔-The |need |to |make |choices |because |economic |
wants |exceed |economic |means
4 |Economic |Resources |- |CORRECT |ANSWER✔✔-Land, |labor, |capital, |and |entrepreneurial |ability
Payments |Associated |with |4 |Economic |Resources |- |CORRECT |ANSWER✔✔-Land- |rent |and |
interest
Labor- |wages |and |salaries
Capital- |rent |and |interest
Entrepreneurial |Ability- |profit
Full |Employment |- |CORRECT |ANSWER✔✔-The |level |of |employment |reached |when |there |is |no |
cyclical |unemployment
Full |Production |- |CORRECT |ANSWER✔✔-All |employed |resources |must |be |used |so |that |they |
provide |the |maximum |possible |satisfaction |of |our |economic |wants
Allocative |Efficiency |- |CORRECT |ANSWER✔✔-When |the |mix |of |goods |being |produced |
represents |the |mix |that |society |most |desires
