MACRO FINAL EXAM ORU RUSSELL | COMPREHENSIVE
MACROECONOMICS STUDY GUIDE, PRACTICE QUESTIONS & ANSWERS
2026/2027
rationing device - correct answer ✔✔A means for deciding who gets what portion of the available
resources and goods
Good - correct answer ✔✔Anything from which individuals receive utility or satisfaction
Bad - correct answer ✔✔Anything from which individuals receive disutility or dissatisfaction
Utility - correct answer ✔✔The satisfaction one receives from a good• Bad: Anything from which
individuals receive disutility or dissatisfaction
Disutility - correct answer ✔✔The dissatisfaction one receives from a bad
Land - correct answer ✔✔All natural resources, such as minerals, forests, water, and unimprovedland
Labor - correct answer ✔✔The work brought about by the physical and mental talents that people
contribute.
Entrepreneurship - correct answer ✔✔Produced goods, such as factories, machinery, tools, computers,
andbuildings, that can be used as inputs for further production
Scarcity - correct answer ✔✔The condition in which our wants are greater than the limited resources
available to satisfy those wants
Economics - correct answer ✔✔The science of scarcity; the science of how individuals and societies deal
with the fact that wants are greater than the limited resources available to satisfy those wants.
Scarcity effects - correct answer ✔✔- Choice
- Rationing Devices
- Competition
Production Possibilities Frontier (PPF) - correct answer ✔✔The possible combinations of two goods that
can be produced during a certain span of time under the conditions of a given state of technology and
fully employed resources
Producing more of one good means producing less of the other.
Straight-Line PPF = - correct answer ✔✔Constant opportunity costs
Bowed-Outward PPF = - correct answer ✔✔Increasing opportunity costs
MACROECONOMICS STUDY GUIDE, PRACTICE QUESTIONS & ANSWERS
2026/2027
rationing device - correct answer ✔✔A means for deciding who gets what portion of the available
resources and goods
Good - correct answer ✔✔Anything from which individuals receive utility or satisfaction
Bad - correct answer ✔✔Anything from which individuals receive disutility or dissatisfaction
Utility - correct answer ✔✔The satisfaction one receives from a good• Bad: Anything from which
individuals receive disutility or dissatisfaction
Disutility - correct answer ✔✔The dissatisfaction one receives from a bad
Land - correct answer ✔✔All natural resources, such as minerals, forests, water, and unimprovedland
Labor - correct answer ✔✔The work brought about by the physical and mental talents that people
contribute.
Entrepreneurship - correct answer ✔✔Produced goods, such as factories, machinery, tools, computers,
andbuildings, that can be used as inputs for further production
Scarcity - correct answer ✔✔The condition in which our wants are greater than the limited resources
available to satisfy those wants
Economics - correct answer ✔✔The science of scarcity; the science of how individuals and societies deal
with the fact that wants are greater than the limited resources available to satisfy those wants.
Scarcity effects - correct answer ✔✔- Choice
- Rationing Devices
- Competition
Production Possibilities Frontier (PPF) - correct answer ✔✔The possible combinations of two goods that
can be produced during a certain span of time under the conditions of a given state of technology and
fully employed resources
Producing more of one good means producing less of the other.
Straight-Line PPF = - correct answer ✔✔Constant opportunity costs
Bowed-Outward PPF = - correct answer ✔✔Increasing opportunity costs
