1
Ole Miss ECON 202 Midterm Hayes
Questions and Correct Answers
opportunity cost Answer: what you give up to obtain
one item over the next best alternative
other things equal Answer: the assumption that
factors other than those being considered do not
change
microeconomics Answer: the study of how households
and firms make decision and how they interact in
markets
macroeconomics Answer: the study of economy-wide
phenomena, including inflation, unemployment, and
economic growth
utility Answer: in economics, this term is described as
the pleasure, happiness, or satisfaction received from a
product // ability of a product to be used
demand curve Answer: a graph of the relationship
between the price of a good and the quantity
demanded
Pretest - Stuvia US
, 2
lower price increases the real incomes of buyers,
enabling them to buy more Answer: One reason that
the quantity demanded of a good increases when its
price falls is that the ___________________.
pleasure or satisfaction Answer: For economists, the
word "utility" means
benefit exceeds its marginal cost Answer: A person
should consume more of something when its marginal
______________.
True Answer: T/F: The production possibilities curve
shows various combinations of two products that an
economy can produce when achieving full employment.
True Answer: T/F: Choices entail marginal costs
because resources are scarce.
scarcity and opportunity costs Answer: In deciding
whether to study for an economics quiz or go to a
concert, one is confronted by the idea(s) of
___________.
Pretest - Stuvia US
Ole Miss ECON 202 Midterm Hayes
Questions and Correct Answers
opportunity cost Answer: what you give up to obtain
one item over the next best alternative
other things equal Answer: the assumption that
factors other than those being considered do not
change
microeconomics Answer: the study of how households
and firms make decision and how they interact in
markets
macroeconomics Answer: the study of economy-wide
phenomena, including inflation, unemployment, and
economic growth
utility Answer: in economics, this term is described as
the pleasure, happiness, or satisfaction received from a
product // ability of a product to be used
demand curve Answer: a graph of the relationship
between the price of a good and the quantity
demanded
Pretest - Stuvia US
, 2
lower price increases the real incomes of buyers,
enabling them to buy more Answer: One reason that
the quantity demanded of a good increases when its
price falls is that the ___________________.
pleasure or satisfaction Answer: For economists, the
word "utility" means
benefit exceeds its marginal cost Answer: A person
should consume more of something when its marginal
______________.
True Answer: T/F: The production possibilities curve
shows various combinations of two products that an
economy can produce when achieving full employment.
True Answer: T/F: Choices entail marginal costs
because resources are scarce.
scarcity and opportunity costs Answer: In deciding
whether to study for an economics quiz or go to a
concert, one is confronted by the idea(s) of
___________.
Pretest - Stuvia US
