UVA ECON 2010 Final Exam Questions
with Accurate Answers Graded A+
2025\2026 Version.
economic decision rule - Answer if the marginal benefits of doing something exceed the
marginal costs, do it. If the marginal costs of doing something exceed the marginal benefits,
don't do it.
economic force - Answer the necessary reaction to scarcity
economic model - Answer a framework that places the generalized insights of a theory in a
more specific contextual setting
economic policy - Answer an action (or inaction) taken by government to influence economic
actions
economic principle - Answer a commonly held economic insight stated as a law or general
assumption
economics - Answer the study of how human beings coordinate their wants and desires, given
the decision-making mechanisms, social customs, and political realities of the society
efficiency - Answer achieving a goal as cheaply as possible; using as few inputs as possible
experimental economics - Answer a branch of economics that studies the economy through
controlled laboratory experiments
impartial spectator tool - Answer placing oneself in the position of a third-person examiner
and judge of a situation rather than as a participant
implicit costs - Answer costs associated with a decision that often are not included in normal
accounting costs
invisible hand - Answer the price mechanism; the rise and fall of prices that guide our actions
,macroeconomics - Answer the study of the economy as a whole
marginal benefit - Answer additional benefit above the benefits already derived
marginal cost - Answer additional cost over and above the costs already incurred
market force - Answer an economic force that is given relatively free rein by society to work
through the market
microeconomics - Answer the study of individual choice, and how that choice is influence by
economic forces
normative economics - Answer the study of what the goals of the economy should be
opportunity cost - Answer the benefit you might have gained from choosing the next-best
alternative
political forces - Answer legal directives that direct individuals' actions
positive economics - Answer the study of what is and how the economy works
precepts - Answer policy rules that conclude that a particular course of action is preferable
scarcity - Answer the goods available are too few to satisfy individuals' desires
social forces - Answer forces that guide individual actions even though those actions may not
be in an individuals' selfish interest
sunk cost - Answer cost that has already been incurred and cannot be recovered
theorems - Answer propositions that are logically true based on the assumptions in a model
, globalization - Answer the increasing integration of economies, cultures, and institutions
across the world
inefficiency - Answer getting less output from inputs that, if devoted to some other activity,
would produce more output
laissez-faire - Answer an economic policy of leaving the coordination of individuals' actions to
the market
law of one price - Answer the wages of workers in one country will not differ significantly from
the wages of (equal) workers in another institutionally similar country
production possibility curve (PPC) - Answer a curve measuring the maximum combination of
outputs that can be obtained from a given number of inputs
productive efficiency - Answer achieving as much output as possible from a given amount of
inputs or resources
demand - Answer a schedule of quantities of a good what will be bought per unit of time at
various prices, other things constant
demand curve - Answer the graphic representation of the relationship between price and
quantity demanded
equilibrium - Answer a concept in which opposing dynamic forces cancel each other out
equilibrium price - Answer the price toward which the invisible hand drives the market
equilibrium quantity - Answer the amount bought and sold at the equilibrium price
excess demand - Answer situation when quantity demanded is greater than quantity supplied
excess supply - Answer situation when quantity supplied is greater than quantity demanded
with Accurate Answers Graded A+
2025\2026 Version.
economic decision rule - Answer if the marginal benefits of doing something exceed the
marginal costs, do it. If the marginal costs of doing something exceed the marginal benefits,
don't do it.
economic force - Answer the necessary reaction to scarcity
economic model - Answer a framework that places the generalized insights of a theory in a
more specific contextual setting
economic policy - Answer an action (or inaction) taken by government to influence economic
actions
economic principle - Answer a commonly held economic insight stated as a law or general
assumption
economics - Answer the study of how human beings coordinate their wants and desires, given
the decision-making mechanisms, social customs, and political realities of the society
efficiency - Answer achieving a goal as cheaply as possible; using as few inputs as possible
experimental economics - Answer a branch of economics that studies the economy through
controlled laboratory experiments
impartial spectator tool - Answer placing oneself in the position of a third-person examiner
and judge of a situation rather than as a participant
implicit costs - Answer costs associated with a decision that often are not included in normal
accounting costs
invisible hand - Answer the price mechanism; the rise and fall of prices that guide our actions
,macroeconomics - Answer the study of the economy as a whole
marginal benefit - Answer additional benefit above the benefits already derived
marginal cost - Answer additional cost over and above the costs already incurred
market force - Answer an economic force that is given relatively free rein by society to work
through the market
microeconomics - Answer the study of individual choice, and how that choice is influence by
economic forces
normative economics - Answer the study of what the goals of the economy should be
opportunity cost - Answer the benefit you might have gained from choosing the next-best
alternative
political forces - Answer legal directives that direct individuals' actions
positive economics - Answer the study of what is and how the economy works
precepts - Answer policy rules that conclude that a particular course of action is preferable
scarcity - Answer the goods available are too few to satisfy individuals' desires
social forces - Answer forces that guide individual actions even though those actions may not
be in an individuals' selfish interest
sunk cost - Answer cost that has already been incurred and cannot be recovered
theorems - Answer propositions that are logically true based on the assumptions in a model
, globalization - Answer the increasing integration of economies, cultures, and institutions
across the world
inefficiency - Answer getting less output from inputs that, if devoted to some other activity,
would produce more output
laissez-faire - Answer an economic policy of leaving the coordination of individuals' actions to
the market
law of one price - Answer the wages of workers in one country will not differ significantly from
the wages of (equal) workers in another institutionally similar country
production possibility curve (PPC) - Answer a curve measuring the maximum combination of
outputs that can be obtained from a given number of inputs
productive efficiency - Answer achieving as much output as possible from a given amount of
inputs or resources
demand - Answer a schedule of quantities of a good what will be bought per unit of time at
various prices, other things constant
demand curve - Answer the graphic representation of the relationship between price and
quantity demanded
equilibrium - Answer a concept in which opposing dynamic forces cancel each other out
equilibrium price - Answer the price toward which the invisible hand drives the market
equilibrium quantity - Answer the amount bought and sold at the equilibrium price
excess demand - Answer situation when quantity demanded is greater than quantity supplied
excess supply - Answer situation when quantity supplied is greater than quantity demanded
