Econ 201 - Exam 1 Questions and
Answers 100% Pass
Graphing Data - ✔✔-coordinates
*Scatter Diagram: one variable against another
Economics - ✔✔study of all allocation of scarce resources to satisfy competing ends
Scarcity - ✔✔unlimited wants vs limited resources
forces people to make decision and have opportunity cost
Economic model - ✔✔simplified description of an economy
Graph directions - ✔✔-same
-opposite
-max/min
-unrelated
Same direction - ✔✔positive/direct
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,straight line=linear
Opposite direction - ✔✔negative/inverse
max/min Direction - ✔✔many economic models
Unrelated variables - ✔✔change in one value, results in change of other
Slope of line - ✔✔relationship in the change of value of y divided by change in x
/_/=change in x or y
straight line: constant positive/negative
curved line: where it is calculated
-at point - same line
-across access -average slope
Ceteris Paribus - ✔✔all other relevant things stay the same
linear equation - ✔✔y = a + b(slope)x
Relationships of line - ✔✔negative: opposite direction
-b=negative
positive: same direction
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,Production possibilities Frontier (ppf) - ✔✔boundary between combines of goods and
services that can and cannot be produced
look at model economy
illustrates scarcity- points outside frontier are unattainable
can produce any point on or in ppf - attainable
Frontier - ✔✔max, input you can produce (full employment)
to increase you must increase tech/resources
-not free of charge
-2+ resources above
education is a tradeoff to stay on frontier
constant - ✔✔OC of obtaining one more x is 2y(forgone: y=2)
-relative price in terms of y= px/py
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
, straight
Concave - ✔✔increasing OC
bowed out
Convex - ✔✔decreasing OC
bowed in
Attainable - ✔✔no opportunity cost
inside frontier
PPF assumptions - ✔✔1)given endowment (resources)
2)two goods= x and y
3)full employment (no idea inputs)
4) given tech
Productive effeciency - ✔✔produce goods and services at the lowest possible cost
-on ppf
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 4
Answers 100% Pass
Graphing Data - ✔✔-coordinates
*Scatter Diagram: one variable against another
Economics - ✔✔study of all allocation of scarce resources to satisfy competing ends
Scarcity - ✔✔unlimited wants vs limited resources
forces people to make decision and have opportunity cost
Economic model - ✔✔simplified description of an economy
Graph directions - ✔✔-same
-opposite
-max/min
-unrelated
Same direction - ✔✔positive/direct
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,straight line=linear
Opposite direction - ✔✔negative/inverse
max/min Direction - ✔✔many economic models
Unrelated variables - ✔✔change in one value, results in change of other
Slope of line - ✔✔relationship in the change of value of y divided by change in x
/_/=change in x or y
straight line: constant positive/negative
curved line: where it is calculated
-at point - same line
-across access -average slope
Ceteris Paribus - ✔✔all other relevant things stay the same
linear equation - ✔✔y = a + b(slope)x
Relationships of line - ✔✔negative: opposite direction
-b=negative
positive: same direction
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
,Production possibilities Frontier (ppf) - ✔✔boundary between combines of goods and
services that can and cannot be produced
look at model economy
illustrates scarcity- points outside frontier are unattainable
can produce any point on or in ppf - attainable
Frontier - ✔✔max, input you can produce (full employment)
to increase you must increase tech/resources
-not free of charge
-2+ resources above
education is a tradeoff to stay on frontier
constant - ✔✔OC of obtaining one more x is 2y(forgone: y=2)
-relative price in terms of y= px/py
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
, straight
Concave - ✔✔increasing OC
bowed out
Convex - ✔✔decreasing OC
bowed in
Attainable - ✔✔no opportunity cost
inside frontier
PPF assumptions - ✔✔1)given endowment (resources)
2)two goods= x and y
3)full employment (no idea inputs)
4) given tech
Productive effeciency - ✔✔produce goods and services at the lowest possible cost
-on ppf
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 4
