ECON 211 Exam 1 (UNL) Questions With
Correct Answers
Economists |study.... |- |CORRECT |ANSWER✔✔-all |human |behavior
Economic |agent |- |CORRECT |ANSWER✔✔-an |individual |or |a |group |that |makes |choices
(examples: |consumer |eating |bacon |cheeseburger |or |tofu |burger, |parent |enrolling |child |in
|public |or |private |school)
scare |resources |- |CORRECT |ANSWER✔✔-things |that |people |want, |where |the |quantity |that
|people |want |exceeds |the |quantity |that |is |available
scarcity |- |CORRECT |ANSWER✔✔-exists |because |people |have |unlimited |wants |in |a |world |of
|limited |resources
economics |- |CORRECT |ANSWER✔✔-the |study |of |how |agents |choose |to |allocate |scarce
|resources |and |how |those |choices |affect |society
positive |economics |- |CORRECT |ANSWER✔✔-describes |what |people |actually |do
normative |economics |- |CORRECT |ANSWER✔✔-recommends |what |people |ought |to |do
microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |individuals, |households, |firms, |and
|governments |make |choices |and |how |those |choices |affect |prices, |the |allocation |of |resources
|and |the |well-being |of |other |agents
, macroeconomics |- |CORRECT |ANSWER✔✔-the |study |of |the |economy |as |a |whole
optimization |- |CORRECT |ANSWER✔✔-people |decide |what |to |do |by |consciously |or
|unconsciously |weighting |all |of |the |known |pros |and |cons |of |the |different |available |options |and
|trying |to |pick |the |best |feasible |option
equilibrium |- |CORRECT |ANSWER✔✔-a |situation |in |which |no |agent |would |benefit |personally |by
|changing |his |or |her |own |behavior
empiricism |- |CORRECT |ANSWER✔✔-analysis |that |uses |data |or |analysis |that |is |evidence-based
trade-offs |- |CORRECT |ANSWER✔✔-they |arise |when |some |benefits |must |be |given |up |in |order
|to |gain |others
budget |constraints |- |CORRECT |ANSWER✔✔-the |set |of |things |that |a |person |can |choose |to |do
|(or |buy) |without |breaking |her |budget
opportunity |costs |- |CORRECT |ANSWER✔✔-the |best |alternative |activity
cost |benefit |analysis |- |CORRECT |ANSWER✔✔-is |a |calculation |that |adds |up |costs |and |benefits
|using |a |common |unit |of |measurement, |like |dollars
market |- |CORRECT |ANSWER✔✔-a |group |of |economic |agents |who |are |trading |a |good |or
|service, |and |the |rules |and |arrangements |for |trading
market |price |- |CORRECT |ANSWER✔✔-if |all |sellers |and |all |buyers |face |the |same |price
Correct Answers
Economists |study.... |- |CORRECT |ANSWER✔✔-all |human |behavior
Economic |agent |- |CORRECT |ANSWER✔✔-an |individual |or |a |group |that |makes |choices
(examples: |consumer |eating |bacon |cheeseburger |or |tofu |burger, |parent |enrolling |child |in
|public |or |private |school)
scare |resources |- |CORRECT |ANSWER✔✔-things |that |people |want, |where |the |quantity |that
|people |want |exceeds |the |quantity |that |is |available
scarcity |- |CORRECT |ANSWER✔✔-exists |because |people |have |unlimited |wants |in |a |world |of
|limited |resources
economics |- |CORRECT |ANSWER✔✔-the |study |of |how |agents |choose |to |allocate |scarce
|resources |and |how |those |choices |affect |society
positive |economics |- |CORRECT |ANSWER✔✔-describes |what |people |actually |do
normative |economics |- |CORRECT |ANSWER✔✔-recommends |what |people |ought |to |do
microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |individuals, |households, |firms, |and
|governments |make |choices |and |how |those |choices |affect |prices, |the |allocation |of |resources
|and |the |well-being |of |other |agents
, macroeconomics |- |CORRECT |ANSWER✔✔-the |study |of |the |economy |as |a |whole
optimization |- |CORRECT |ANSWER✔✔-people |decide |what |to |do |by |consciously |or
|unconsciously |weighting |all |of |the |known |pros |and |cons |of |the |different |available |options |and
|trying |to |pick |the |best |feasible |option
equilibrium |- |CORRECT |ANSWER✔✔-a |situation |in |which |no |agent |would |benefit |personally |by
|changing |his |or |her |own |behavior
empiricism |- |CORRECT |ANSWER✔✔-analysis |that |uses |data |or |analysis |that |is |evidence-based
trade-offs |- |CORRECT |ANSWER✔✔-they |arise |when |some |benefits |must |be |given |up |in |order
|to |gain |others
budget |constraints |- |CORRECT |ANSWER✔✔-the |set |of |things |that |a |person |can |choose |to |do
|(or |buy) |without |breaking |her |budget
opportunity |costs |- |CORRECT |ANSWER✔✔-the |best |alternative |activity
cost |benefit |analysis |- |CORRECT |ANSWER✔✔-is |a |calculation |that |adds |up |costs |and |benefits
|using |a |common |unit |of |measurement, |like |dollars
market |- |CORRECT |ANSWER✔✔-a |group |of |economic |agents |who |are |trading |a |good |or
|service, |and |the |rules |and |arrangements |for |trading
market |price |- |CORRECT |ANSWER✔✔-if |all |sellers |and |all |buyers |face |the |same |price
