ECON 2100 Exam 1 Questions With Correct
Answers
Economics |- |CORRECT |ANSWER✔✔-the |social |science |that |studies |the |choices |that |individuals,
|businesses, |governments, |& |entire |societies |make |as |they |cope |with |scarcity |& |the |incentives |
that |influence |those |choices
Economics |(2) |- |CORRECT |ANSWER✔✔-the |choices |we |make |given |the |scarcity |we |face |and |
the |incentives |that |guide |thos |choices
6 |Key |Ideas |that |define |the |Economic |way |of |thinking: |- |CORRECT |ANSWER✔✔-1. |a |choice |is |a
|tradeoff
2. |people |make |rational |choices |by |comparing |benefits |& |costs
3. |Benefits |is |what |you |gain |from |something |
4. |Cost |is |what |you |must |give |up |to |get |something |
5. |most |choices |are |"how-much" |choices |made |at |the |margin
6. |Choices |respond |to |incentives
Big |Econ |Question |1 |- |CORRECT |ANSWER✔✔-Do |choices |made |in |the |pursuit |of |self-interest |
also |promote |the |social |interest?
(Yes, |but |it |probably |was |not |meant |to |be |that |way)
Big |Econ |Question |2 |- |CORRECT |ANSWER✔✔-Markets |are |usually |a |good |way |to |organize |econ
|activity, |but |economists |know |there |are |times |when |markets |can |fail.
,Externalities |- |CORRECT |ANSWER✔✔-positive |or |negative |consequences |(benefits |or |costs) |of |
economic |activities
Public |Goods |- |CORRECT |ANSWER✔✔-Goods |that |are |neither |excludable |nor |rival |in |
consumption
Tragedy |of |the |Commons |- |CORRECT |ANSWER✔✔-the |tendency |of |a |shared, |limited |resource |
to |become |depleted |or |spoiling |because |people |act |from |self-interest |for |short-term |gain
Econ |and |the |Environment |- |CORRECT |ANSWER✔✔-explains |what |we |observe |in |reality, |
including |environmental |problems |
Recognize |the |link |between |economic |activity |and |the |environment |using |models
Circular |Flow |Model |- |CORRECT |ANSWER✔✔-shows |the |real |& |monetary |flows |of |econ |
activity |through |the |output |and |factor |markets
-forms |the |basis |for |modeling |the |relationship |between |econ |activity |& |the |environment |
Does |not |explicitly |show |the |linkage |btwn |econ |activity |& |the |environment
Circular |Flow |Model |Diagram |- |CORRECT |ANSWER✔✔-
Materials |Balance |Model |- |CORRECT |ANSWER✔✔-Places |the |circular |flow |within |a |larger |
schematic |to |show |links |btwn |econ |activity |and |the |natural |environment |via |2 |sets |of |flows
Natural |Resource |Economics |- |CORRECT |ANSWER✔✔-MBM |#1
flow |of |resources |from |the |environment |to |the |economy
, Environmental |Economics |- |CORRECT |ANSWER✔✔-MBM |#2
Flow |of |residuals |from |the |economy |to |the |environment
Residuals |- |CORRECT |ANSWER✔✔-pollution |remianing |in |the |environment |after |some |process |
has |occured
Residual |Delay |- |CORRECT |ANSWER✔✔-can |be |delayed, |but |not |prevented |through |recovery, |
recycling, |and |reuse |
(shown |as |inner |flows |in |the |model)
first |law |of |thermodynamics |- |CORRECT |ANSWER✔✔-Matter |& |Energy |cannot |be |created |or |
destroyed
second |law |of |thermodynamics |- |CORRECT |ANSWER✔✔-Nature's |capacity |to |convert |matter |
and |energy |is |not |without |bound |
when |energy |is |changed |from |one |form |to |another, |some |useful |energy |may |become |unusable
MBM |Considers: |- |CORRECT |ANSWER✔✔-pop |growth |
income |growth |
increased |recycling |
tech |change
Causes |of |Environmental |Damage |- |CORRECT |ANSWER✔✔-natural |pollutants |
Answers
Economics |- |CORRECT |ANSWER✔✔-the |social |science |that |studies |the |choices |that |individuals,
|businesses, |governments, |& |entire |societies |make |as |they |cope |with |scarcity |& |the |incentives |
that |influence |those |choices
Economics |(2) |- |CORRECT |ANSWER✔✔-the |choices |we |make |given |the |scarcity |we |face |and |
the |incentives |that |guide |thos |choices
6 |Key |Ideas |that |define |the |Economic |way |of |thinking: |- |CORRECT |ANSWER✔✔-1. |a |choice |is |a
|tradeoff
2. |people |make |rational |choices |by |comparing |benefits |& |costs
3. |Benefits |is |what |you |gain |from |something |
4. |Cost |is |what |you |must |give |up |to |get |something |
5. |most |choices |are |"how-much" |choices |made |at |the |margin
6. |Choices |respond |to |incentives
Big |Econ |Question |1 |- |CORRECT |ANSWER✔✔-Do |choices |made |in |the |pursuit |of |self-interest |
also |promote |the |social |interest?
(Yes, |but |it |probably |was |not |meant |to |be |that |way)
Big |Econ |Question |2 |- |CORRECT |ANSWER✔✔-Markets |are |usually |a |good |way |to |organize |econ
|activity, |but |economists |know |there |are |times |when |markets |can |fail.
,Externalities |- |CORRECT |ANSWER✔✔-positive |or |negative |consequences |(benefits |or |costs) |of |
economic |activities
Public |Goods |- |CORRECT |ANSWER✔✔-Goods |that |are |neither |excludable |nor |rival |in |
consumption
Tragedy |of |the |Commons |- |CORRECT |ANSWER✔✔-the |tendency |of |a |shared, |limited |resource |
to |become |depleted |or |spoiling |because |people |act |from |self-interest |for |short-term |gain
Econ |and |the |Environment |- |CORRECT |ANSWER✔✔-explains |what |we |observe |in |reality, |
including |environmental |problems |
Recognize |the |link |between |economic |activity |and |the |environment |using |models
Circular |Flow |Model |- |CORRECT |ANSWER✔✔-shows |the |real |& |monetary |flows |of |econ |
activity |through |the |output |and |factor |markets
-forms |the |basis |for |modeling |the |relationship |between |econ |activity |& |the |environment |
Does |not |explicitly |show |the |linkage |btwn |econ |activity |& |the |environment
Circular |Flow |Model |Diagram |- |CORRECT |ANSWER✔✔-
Materials |Balance |Model |- |CORRECT |ANSWER✔✔-Places |the |circular |flow |within |a |larger |
schematic |to |show |links |btwn |econ |activity |and |the |natural |environment |via |2 |sets |of |flows
Natural |Resource |Economics |- |CORRECT |ANSWER✔✔-MBM |#1
flow |of |resources |from |the |environment |to |the |economy
, Environmental |Economics |- |CORRECT |ANSWER✔✔-MBM |#2
Flow |of |residuals |from |the |economy |to |the |environment
Residuals |- |CORRECT |ANSWER✔✔-pollution |remianing |in |the |environment |after |some |process |
has |occured
Residual |Delay |- |CORRECT |ANSWER✔✔-can |be |delayed, |but |not |prevented |through |recovery, |
recycling, |and |reuse |
(shown |as |inner |flows |in |the |model)
first |law |of |thermodynamics |- |CORRECT |ANSWER✔✔-Matter |& |Energy |cannot |be |created |or |
destroyed
second |law |of |thermodynamics |- |CORRECT |ANSWER✔✔-Nature's |capacity |to |convert |matter |
and |energy |is |not |without |bound |
when |energy |is |changed |from |one |form |to |another, |some |useful |energy |may |become |unusable
MBM |Considers: |- |CORRECT |ANSWER✔✔-pop |growth |
income |growth |
increased |recycling |
tech |change
Causes |of |Environmental |Damage |- |CORRECT |ANSWER✔✔-natural |pollutants |
