Econ 201; Chapters 1-5 Exam
Questions and Answers 100% Pass
Outputs - ✔✔Goods and services of value to households.
Ceteris Paribus - ✔✔All-else-equal; A device used to analyze the relationship between
variable while the values of the other variables are held unchanged.
Economics - ✔✔The study how individuals and societies choose to use scarce resources
that nature and previous generations have provided.
Efficiency - ✔✔In economics, allocative efficiency. An efficient economy is one that
produces what people want at least possible cost.
Equity - ✔✔Fairness
Macroeconomics - ✔✔Deals with the economy as a whole (examines behavior of
aggregates: income, employment, output, etc, on a national scale).
Microeconomics - ✔✔Examines the functioning of individual industries (ex: firms,
households...)
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, Normative Economics - ✔✔policy economics; An approach to economics that analyzes
outcomes of economic behavior, evaluates them as good or bad, and may prescribe
courses of action.
Positive Economics - ✔✔An approach to economics that seeks to understand behavior
and the operation of systems without making judgments. It describes what exists and
how it works.
Post Hoc, Ergo Propter Hoc - ✔✔Common error in causation
Absolute Advantage - ✔✔A producer has an absolute advantage over another in the
production of a good or service if he or she can produce that product with fewer
resources (a lower absolute cost per unit).
Capital - ✔✔Those goods produced by the economic system that are used as inputs to
produce other goods and services in the future.
Comparative Advantage - ✔✔A producer has a comparative advantage over another in
production of a good or service if he can produce that product at a lower opportunity
cost.
Consumer Goods - ✔✔Goods produced for present consumption.
Inputs - ✔✔Anything provided by nature or previous generations that can be used
directly or indirectly to satisfy human wants.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
Outputs - ✔✔Goods and services of value to households.
Ceteris Paribus - ✔✔All-else-equal; A device used to analyze the relationship between
variable while the values of the other variables are held unchanged.
Economics - ✔✔The study how individuals and societies choose to use scarce resources
that nature and previous generations have provided.
Efficiency - ✔✔In economics, allocative efficiency. An efficient economy is one that
produces what people want at least possible cost.
Equity - ✔✔Fairness
Macroeconomics - ✔✔Deals with the economy as a whole (examines behavior of
aggregates: income, employment, output, etc, on a national scale).
Microeconomics - ✔✔Examines the functioning of individual industries (ex: firms,
households...)
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, Normative Economics - ✔✔policy economics; An approach to economics that analyzes
outcomes of economic behavior, evaluates them as good or bad, and may prescribe
courses of action.
Positive Economics - ✔✔An approach to economics that seeks to understand behavior
and the operation of systems without making judgments. It describes what exists and
how it works.
Post Hoc, Ergo Propter Hoc - ✔✔Common error in causation
Absolute Advantage - ✔✔A producer has an absolute advantage over another in the
production of a good or service if he or she can produce that product with fewer
resources (a lower absolute cost per unit).
Capital - ✔✔Those goods produced by the economic system that are used as inputs to
produce other goods and services in the future.
Comparative Advantage - ✔✔A producer has a comparative advantage over another in
production of a good or service if he can produce that product at a lower opportunity
cost.
Consumer Goods - ✔✔Goods produced for present consumption.
Inputs - ✔✔Anything provided by nature or previous generations that can be used
directly or indirectly to satisfy human wants.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
