ECONOMICS TODAY 20TH EDITION BY ROGER
LE MILLER PRACTICE TEST 2026 FULL
SOLUTIONS REVIEW PACK
◉ scarcity.
Answer: The condition in which human wants are forever greater
than the available supply of time, goods, and resources.
◉ resources aka "factors of production".
Answer: The basic categories of inputs used to produce goods and
services. Economists divide resources into three categories: land,
labor, and capital.
◉ land.
Answer: Any natural resources provided by nature that is used to
produce a good or service.
◉ Labor.
Answer: The mental and physical capacity of workers to produce
goods and services.
◉ Entrepreneurship.
,Answer: The creative ability of individuals to seek profits by taking
risks and combining resources to produce innovative products.
◉ capital.
Answer: A human-made good used to produce other goods and
services.
◉ economics.
Answer: The study of how society chooses to allocate its scarce
resources to the production of goods and services to satisfy
unlimited wants.
◉ macroeconomics.
Answer: The branch of economics that studies decision making for
the economy as a whole.
◉ microeconomics.
Answer: The branch of economics that studies decision making by a
single individual, household, firm, industry, or level of government.
◉ model.
Answer: A simplified description of reality used to understand and
predict the relationship between variables.
,◉ ceteris paribus.
Answer: A Latin phase that means while certain variables change,
"all other things remain unchanged"
◉ positive economics.
Answer: An analysis limited to statements that are verifiable.
◉ normative economics.
Answer: An analysis based on value judgement.
◉ Chapter 1 Appendix.
Answer: Chapter 1 Appendix
◉ direct relationship.
Answer: A positive association between two variables. When one
variable increases, the other variable increases, and when one
variable decreases, the other variable decreases.
◉ inverse relationship.
Answer: A negative association between two variables. When one
variable increase, the other variable decreases, and when one
variable decreases, the other variable increases.
, ◉ slope.
Answer: The ratio of the change in the variable on the vertical axis
(the rise or fall) to the change in the variable on the horizontal axis
(the run).
◉ independent relationship.
Answer: A zero association between two variables. When one
variable changes, the other variable remains unchanged.
◉ Chapter 2.
Answer: Chapter 2
◉ opportunity cost.
Answer: The best alternative sacrificed for a chosen alternative.
◉ marginal analysis.
Answer: An examination of the effects of additions to or subtractions
from a current situation.
◉ production possibilities curve.
Answer: A curve that shows the maximum combinations of two
outputs an economy can produce in a given period of time with its
available resources and technology.
LE MILLER PRACTICE TEST 2026 FULL
SOLUTIONS REVIEW PACK
◉ scarcity.
Answer: The condition in which human wants are forever greater
than the available supply of time, goods, and resources.
◉ resources aka "factors of production".
Answer: The basic categories of inputs used to produce goods and
services. Economists divide resources into three categories: land,
labor, and capital.
◉ land.
Answer: Any natural resources provided by nature that is used to
produce a good or service.
◉ Labor.
Answer: The mental and physical capacity of workers to produce
goods and services.
◉ Entrepreneurship.
,Answer: The creative ability of individuals to seek profits by taking
risks and combining resources to produce innovative products.
◉ capital.
Answer: A human-made good used to produce other goods and
services.
◉ economics.
Answer: The study of how society chooses to allocate its scarce
resources to the production of goods and services to satisfy
unlimited wants.
◉ macroeconomics.
Answer: The branch of economics that studies decision making for
the economy as a whole.
◉ microeconomics.
Answer: The branch of economics that studies decision making by a
single individual, household, firm, industry, or level of government.
◉ model.
Answer: A simplified description of reality used to understand and
predict the relationship between variables.
,◉ ceteris paribus.
Answer: A Latin phase that means while certain variables change,
"all other things remain unchanged"
◉ positive economics.
Answer: An analysis limited to statements that are verifiable.
◉ normative economics.
Answer: An analysis based on value judgement.
◉ Chapter 1 Appendix.
Answer: Chapter 1 Appendix
◉ direct relationship.
Answer: A positive association between two variables. When one
variable increases, the other variable increases, and when one
variable decreases, the other variable decreases.
◉ inverse relationship.
Answer: A negative association between two variables. When one
variable increase, the other variable decreases, and when one
variable decreases, the other variable increases.
, ◉ slope.
Answer: The ratio of the change in the variable on the vertical axis
(the rise or fall) to the change in the variable on the horizontal axis
(the run).
◉ independent relationship.
Answer: A zero association between two variables. When one
variable changes, the other variable remains unchanged.
◉ Chapter 2.
Answer: Chapter 2
◉ opportunity cost.
Answer: The best alternative sacrificed for a chosen alternative.
◉ marginal analysis.
Answer: An examination of the effects of additions to or subtractions
from a current situation.
◉ production possibilities curve.
Answer: A curve that shows the maximum combinations of two
outputs an economy can produce in a given period of time with its
available resources and technology.
