ECON 1100 Exam 1 With 100% Correct Answers 2023

ECON 1100 Exam 1 With 100% Correct Answers 2023 microeconomics - Correct Answer-studies the decisions of individuals, households, and firms. focuses on the interaction of buyers and sellers. macroeconomics - Correct Answer-studies economic aggregates, such as the national unemployment rate, rate of inflation, and the economy's growth rate. positive economics - Correct Answer-deals with statements that are TRUE normative economics - Correct Answer-deals with statements of WHAT SHOULD BE ceteris paribus assummption - Correct Answer-used to isolate the relationship between two variables by holding other influences on the relationship constant fallacy of false cause - Correct Answer-occurs when it is assumed that because ONE event follows ANOTHER, the first event must have CAUSED the SECOND fallacy of division - Correct Answer-occurs when it is incorrectly assumed that what is good for or true for the WHOLE is also good or true for the PARTS fallacy of composition - Correct Answer-occurs when it is incorrectly assumed that what is true for the PARTS is also true for the WHOLE scarcity - Correct Answer-exists because there are not enough resources to produce everything people WANT and NEED resources - Correct Answer-include all the inputs used to manufacture goods and provide services factors of production (resources) - Correct Answer-- land and other natural resources - labor services - capital (structures and equipment) - entrepreneurial ability opportunity cost - Correct Answer-defines as the value of the best alternative that must be given up when a choice is made economic system - Correct Answer-is comprised of the laws, traditions, institutions, and mechanisms, designed to answer basic economic questions economic questions - Correct Answer-of "what outputs to produce?" or "how to produce the outputs?" or "who gets to consume the outputs?" circular flow model - Correct Answer-designed to explain economic relationships - consists of two sectors= business and household - consists of two markets= product and resource household sectors with markets - Correct Answer-- consumers (households) DEMAND final goods and services like FOOD, CLOTHING, HOUSING, MEDICAL CARE, ENTERTAINMENT, which are exchanged in PRODUCT MARKETS - resource owners, households SUPPLY labor services and other factors of production, such as the drilling rights to land they own, to RESOURCE MARKETS trade surplus - Correct A