MIE 201 FINAL EXAM NCSU STUDY
GUIDE WITH ANSWERS
◉ normative anlaysis
Answer: judgement, opinions, subjective, cannot be tested
◉ free market
Answer: decisions of households interact in the market to allocate
resources
◉ mixed
Answer: most economic decisions result from market interactions
between buyers/sellers but government pays a big role in allocation
of resources
◉ scarcity
Answer: everything is limited in some way which creates choices
◉ resources
Answer: capital, labor, natural resources NOT MONEY
,◉ Marginal analysis
Answer: compare marginal benefit of adding one more and marginal
cost of adding one more
◉ technology
Answer: method by which inputs are combined to produce outputs
◉ comparative advantage
Answer: lower opportunity costs
◉ Opportunity costs
Answer: something/ what you want to know the opportunity costs
of
◉ absolute advantage
Answer: can produce more
◉ imports
Answer: good and services bought domestically, but produced in
other countries
◉ exports
Answer: good and services produced domestically, but sold in other
countries
, ◉ trade deficit
Answer: import more than export
◉ utility
Answer: satisfaction, can't be measured
◉ Total Utility
Answer: enjoyments or satisfaction people receive from consuming
goods and services
◉ marginal utility
Answer: added enjoyment or satisfaction people receive from
consuming one more unit of the good and service
◉ Law of diminishing marginal utility
Answer: consumers experience less and less additional satisfaction
as they consume more of a good service during a given period of
time
◉ price
Answer: aggregates everyone utility into one value
◉ demand
GUIDE WITH ANSWERS
◉ normative anlaysis
Answer: judgement, opinions, subjective, cannot be tested
◉ free market
Answer: decisions of households interact in the market to allocate
resources
◉ mixed
Answer: most economic decisions result from market interactions
between buyers/sellers but government pays a big role in allocation
of resources
◉ scarcity
Answer: everything is limited in some way which creates choices
◉ resources
Answer: capital, labor, natural resources NOT MONEY
,◉ Marginal analysis
Answer: compare marginal benefit of adding one more and marginal
cost of adding one more
◉ technology
Answer: method by which inputs are combined to produce outputs
◉ comparative advantage
Answer: lower opportunity costs
◉ Opportunity costs
Answer: something/ what you want to know the opportunity costs
of
◉ absolute advantage
Answer: can produce more
◉ imports
Answer: good and services bought domestically, but produced in
other countries
◉ exports
Answer: good and services produced domestically, but sold in other
countries
, ◉ trade deficit
Answer: import more than export
◉ utility
Answer: satisfaction, can't be measured
◉ Total Utility
Answer: enjoyments or satisfaction people receive from consuming
goods and services
◉ marginal utility
Answer: added enjoyment or satisfaction people receive from
consuming one more unit of the good and service
◉ Law of diminishing marginal utility
Answer: consumers experience less and less additional satisfaction
as they consume more of a good service during a given period of
time
◉ price
Answer: aggregates everyone utility into one value
◉ demand
