ECO 2023 || with 100% Errorless Answers.

Microeconomics correct answers study of the individual firms, consumers, and markets within the economy Macroeconomics correct answers study of the aggregate (whole) economy Three Big Questions correct answers 1) What? 2) How? 3) For whom (owl question)? What? correct answers What goods and services will be produced and in what quantities? How? correct answers How will the goods and services be produced? For whom (owl question)? correct answers For whom will the goods and services be produced? Economy based on tradition correct answers Answers these questions by saying "this is how we did it last time, so that's how we'll do it this time." No economy is solely based on tradition because tradition does not account for changes. Tradition plays a bigger role in some economies than in others. Command economy correct answers Government planners determine the answers to the three questions. Then they create a plan to implement their answers. There have been command economies (former soviet union [FSU]). Now it's countries such as North Korea and Cuba. They seem to be very efficient in theory (using human intelligence to solve problems and plan economy). But these economies tend to be impoverished. Their main problem is that they really don't channel people's self-interest into advancing social interest. Economy based on prices, property rights, and markets correct answers Like the United States (a market economy) These economies channel people's self-interest in order to advance social interest. Property rights correct answers socially determined legal rights of ownership of property Markets correct answers any mechanism which allows buyers and sellers to transact their business. Scarcity correct answers our inability to get everything we want Scarcity is universal. Incentive correct answers a reward that encourages an action or a penalty that discourages one Economics correct answers the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile their choices Goods and services correct answers the objects that people value and produce to satisfy wants