ECN 211 Quiz #1 Review Questions and
Answers 100% Correct
Scarcity - ANSWER The condition that arises because wants exceed the ability
of resources to satisfy them.
Economics - ANSWER The social science that studies the choices that
individuals, businesses, governments, and entire societies make as they cope with
scarcity, the incentives that influence those choices, and the arrangements that
coordinate them.
Microeconmics - ANSWER The study of the choices that individuals and
businesses make and the way these choices interact and are influenced by
governments.
Macroeconomics - ANSWER The study of the aggregate (or total) effects on the
national economy and the global economy of the choices that individuals,
businesses, and governments make.
3 fundamental economic questions - ANSWER What determined the quantities
of corn we grow, home we build, and health-care services we produce? How are
goods and services produced? For whom are goods and services produced?
Self-interest - ANSWER The choices that are best for the individual who makes
them.
Social interest - ANSWER The choices that are best for society as a whole.
, Decision making and the economic way of thinking - ANSWER Trade offs: An
exchange-giving up one thing to get something else.
Opportunity cost: The opportunity cost of something is the best thing you must
give up to get it.
Marginal analysis: A choice on the margin is a choice that is make by comparing all
the relevant alternatives systematically and incrementally.
Incentives: A reward or a penalty that encourages or discourages an action.
Opportunity cost - ANSWER the opportunity cost of something is the best
thing you must give up to get it.
Economic model - ANSWER A description of some feature of the economic
world that includes only those features assumed necessary to explain the
observed facts.
Normative statement - ANSWER disagreements that can't be settled by fact.
Positive statements - ANSWER disagreement that can be settled by facts.
Economics as Policy Tool - ANSWER The subjects provides a way of
approcaching problems in all aspects of out lives:
-Personal
-Business
-Government
Answers 100% Correct
Scarcity - ANSWER The condition that arises because wants exceed the ability
of resources to satisfy them.
Economics - ANSWER The social science that studies the choices that
individuals, businesses, governments, and entire societies make as they cope with
scarcity, the incentives that influence those choices, and the arrangements that
coordinate them.
Microeconmics - ANSWER The study of the choices that individuals and
businesses make and the way these choices interact and are influenced by
governments.
Macroeconomics - ANSWER The study of the aggregate (or total) effects on the
national economy and the global economy of the choices that individuals,
businesses, and governments make.
3 fundamental economic questions - ANSWER What determined the quantities
of corn we grow, home we build, and health-care services we produce? How are
goods and services produced? For whom are goods and services produced?
Self-interest - ANSWER The choices that are best for the individual who makes
them.
Social interest - ANSWER The choices that are best for society as a whole.
, Decision making and the economic way of thinking - ANSWER Trade offs: An
exchange-giving up one thing to get something else.
Opportunity cost: The opportunity cost of something is the best thing you must
give up to get it.
Marginal analysis: A choice on the margin is a choice that is make by comparing all
the relevant alternatives systematically and incrementally.
Incentives: A reward or a penalty that encourages or discourages an action.
Opportunity cost - ANSWER the opportunity cost of something is the best
thing you must give up to get it.
Economic model - ANSWER A description of some feature of the economic
world that includes only those features assumed necessary to explain the
observed facts.
Normative statement - ANSWER disagreements that can't be settled by fact.
Positive statements - ANSWER disagreement that can be settled by facts.
Economics as Policy Tool - ANSWER The subjects provides a way of
approcaching problems in all aspects of out lives:
-Personal
-Business
-Government
