ECN211 EXAM 1 ACTUAL
QUESTIONS AND COMPLETE
SOLUTIONS LATEST UPDATE
2026/2027
GRADED A+ .
, 1. Ten Principes✔✔ CORRECT ANSWER Principle 1- People face
tradeotts Principle 2- The cost of something what you give up getting it Principle 3-
Rational people think at the margin
Principle 4- People respond to incentives Principle 5- Trade can make
everyone better ott
Principle 6- Markets are usually a good way to organize economic Principle 7- Government can sometimes
improve market outcomes
Principle 8- A country's standard of living depends on its ability to produce goods and services Principle 9- Prices rise when government prints too much
money
Principle 10- Society faces a short-run trade ott between inflation and unemployment
2. First 4 principles have to do with what?✔✔ CORRECT ANSWER How people make descisions
3. What do the last 4 principles have to do with?✔✔ CORRECT ANSWER Productivity are the ultimate source of living
4. Scarcity✔✔ CORRECT ANSWER The limited nature of society's resources
5. Economics✔✔ CORRECT ANSWER The study of how society manages its scarce resources
6. The economist plays 2 roles✔✔ CORRECT ANSWER Scientist✔✔ CORRECT ANSWER
Trying to explain the world Policy Advisers✔✔ CORRECT ANSWER Trying to improve the world
7. Circular-flow diagram is what?✔✔ CORRECT ANSWER A visual model of the economy, slows how dollars and goods and services flow
through markets among households and firms
8. Factors of production are defined as? and what are some examples?✔✔ CORRECT ANSWER the resources the
economy uses to produce goods and services including
1. Labor
2. Land
3. Capital (buildings and machines used in production)
QUESTIONS AND COMPLETE
SOLUTIONS LATEST UPDATE
2026/2027
GRADED A+ .
, 1. Ten Principes✔✔ CORRECT ANSWER Principle 1- People face
tradeotts Principle 2- The cost of something what you give up getting it Principle 3-
Rational people think at the margin
Principle 4- People respond to incentives Principle 5- Trade can make
everyone better ott
Principle 6- Markets are usually a good way to organize economic Principle 7- Government can sometimes
improve market outcomes
Principle 8- A country's standard of living depends on its ability to produce goods and services Principle 9- Prices rise when government prints too much
money
Principle 10- Society faces a short-run trade ott between inflation and unemployment
2. First 4 principles have to do with what?✔✔ CORRECT ANSWER How people make descisions
3. What do the last 4 principles have to do with?✔✔ CORRECT ANSWER Productivity are the ultimate source of living
4. Scarcity✔✔ CORRECT ANSWER The limited nature of society's resources
5. Economics✔✔ CORRECT ANSWER The study of how society manages its scarce resources
6. The economist plays 2 roles✔✔ CORRECT ANSWER Scientist✔✔ CORRECT ANSWER
Trying to explain the world Policy Advisers✔✔ CORRECT ANSWER Trying to improve the world
7. Circular-flow diagram is what?✔✔ CORRECT ANSWER A visual model of the economy, slows how dollars and goods and services flow
through markets among households and firms
8. Factors of production are defined as? and what are some examples?✔✔ CORRECT ANSWER the resources the
economy uses to produce goods and services including
1. Labor
2. Land
3. Capital (buildings and machines used in production)
