PSU - Econ 102 Final Exam
Question 1.
Economics
ANSWER
study of how people and societies use limited resources to satisfy unlimited wants; the management of scarcity and choice
Question 2.
Resources
ANSWER
1. Land: anything provided by nature
2. Labor: Mental and physical efforts of humans
3. Capitol: anything that is provided which in turn is used to produce other goods and services
Question 3.
Microeconomics
ANSWER
The study of decision making undertaken by individual economic agents (households, firms)
Question 4.
Macroeconomics
ANSWER
The study of the economy as a whole
Question 5.
3 main economic questions
ANSWER
What will we produce? how will we produce? who gets it?
Question 6.
How to answer 3 basic economic questions
ANSWER
1. Command Economy: control authority ex. Queen
2. Market Economy: buyers and sellers come together
3. Mixed Economy: has elements of both 1 and 2
Question 7.
Ceteris Paribus
ANSWER
"Other things being equal"
, Question 8.
post hoc ergos propter hoc
ANSWER
"before this therefore because of this"
Question 9.
Fallacy of composition
ANSWER
Arguing, without additional support, that what is true of the part is automatically true of the whole
Question 10.
Positive economics
ANSWER
The study of "what is" in economics.
Question 11.
Normative economics
ANSWER
makes prescriptions about the way the economy should work
Question 12.
Opportunity Cost
ANSWER
The value of the next best alternative that must be forgone as a result of a decision
Question 13.
Production Possibility Curve
ANSWER
representation of the possible ways an economy could use resources -downward sloping -bowed out
Question 14.
Law of Increasing marginal opportunity cost
ANSWER
as a produce produces more of a good, the marginal cost rises
Question 15.
Points inside the PPC
ANSWER
Points inside the curve are inefficient and indicate an economy is not utilizing all resources or resources are not used in the least-cost manner
Question 1.
Economics
ANSWER
study of how people and societies use limited resources to satisfy unlimited wants; the management of scarcity and choice
Question 2.
Resources
ANSWER
1. Land: anything provided by nature
2. Labor: Mental and physical efforts of humans
3. Capitol: anything that is provided which in turn is used to produce other goods and services
Question 3.
Microeconomics
ANSWER
The study of decision making undertaken by individual economic agents (households, firms)
Question 4.
Macroeconomics
ANSWER
The study of the economy as a whole
Question 5.
3 main economic questions
ANSWER
What will we produce? how will we produce? who gets it?
Question 6.
How to answer 3 basic economic questions
ANSWER
1. Command Economy: control authority ex. Queen
2. Market Economy: buyers and sellers come together
3. Mixed Economy: has elements of both 1 and 2
Question 7.
Ceteris Paribus
ANSWER
"Other things being equal"
, Question 8.
post hoc ergos propter hoc
ANSWER
"before this therefore because of this"
Question 9.
Fallacy of composition
ANSWER
Arguing, without additional support, that what is true of the part is automatically true of the whole
Question 10.
Positive economics
ANSWER
The study of "what is" in economics.
Question 11.
Normative economics
ANSWER
makes prescriptions about the way the economy should work
Question 12.
Opportunity Cost
ANSWER
The value of the next best alternative that must be forgone as a result of a decision
Question 13.
Production Possibility Curve
ANSWER
representation of the possible ways an economy could use resources -downward sloping -bowed out
Question 14.
Law of Increasing marginal opportunity cost
ANSWER
as a produce produces more of a good, the marginal cost rises
Question 15.
Points inside the PPC
ANSWER
Points inside the curve are inefficient and indicate an economy is not utilizing all resources or resources are not used in the least-cost manner
