Eco 201 UKY exam 1 Questions and
Answers 100% Pass
Economics - ✔✔The study of choices that individuals make given the presence of
scarcity.
Scarcity - ✔✔Limited resources but unlimited wants.
Economy - ✔✔The institutional structure through which individuals in a society
coordinate their diverse wants.
Invisible Hand - ✔✔Scarcity creates economic pressure to ration scarce resources.
Market forces ration goods and services by changing the price level.
Command Economy - ✔✔An economy in which production, investment, prices, and
incomes are determined centrally by a government.
Externalities - ✔✔Impact of one person's actions on the well-being of another.
Market Failure - ✔✔A situation in which a market. left on its own, fails to allocate
resources efficiently.
Invisible Foot - ✔✔Political and legal forces in the market influencing market outcomes.
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, invisible Handshake - ✔✔Social and historical forces and cultural norms that influence
market outcomes.
Market Power - ✔✔The ability of a single economic actor to have a substantial impact
on market prices.
Productivity - ✔✔The quantity of goods and services produced from each unit of labor
input.
Positive Statement - ✔✔A statement that can be tested, proven or disproven.
Normative Statement - ✔✔A statement of opinion, cannot be proven or disproven.
Deterministic Relationship - ✔✔Independent variable completely determines value of
dependent variable.
Stochastic Relationship - ✔✔Other things besides the independent variable influence
the value of the dependent variable.
Factor Markets - ✔✔Buy and sell inputs used for production
Households - ✔✔Initial owners of factors of production and buy goods and services
Firms - ✔✔Buy factors of production from households, and produce goods and
services.
Reverse Casualty - ✔✔Higher incomes lead to better health or does better health lead to
high incomes?
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Answers 100% Pass
Economics - ✔✔The study of choices that individuals make given the presence of
scarcity.
Scarcity - ✔✔Limited resources but unlimited wants.
Economy - ✔✔The institutional structure through which individuals in a society
coordinate their diverse wants.
Invisible Hand - ✔✔Scarcity creates economic pressure to ration scarce resources.
Market forces ration goods and services by changing the price level.
Command Economy - ✔✔An economy in which production, investment, prices, and
incomes are determined centrally by a government.
Externalities - ✔✔Impact of one person's actions on the well-being of another.
Market Failure - ✔✔A situation in which a market. left on its own, fails to allocate
resources efficiently.
Invisible Foot - ✔✔Political and legal forces in the market influencing market outcomes.
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, invisible Handshake - ✔✔Social and historical forces and cultural norms that influence
market outcomes.
Market Power - ✔✔The ability of a single economic actor to have a substantial impact
on market prices.
Productivity - ✔✔The quantity of goods and services produced from each unit of labor
input.
Positive Statement - ✔✔A statement that can be tested, proven or disproven.
Normative Statement - ✔✔A statement of opinion, cannot be proven or disproven.
Deterministic Relationship - ✔✔Independent variable completely determines value of
dependent variable.
Stochastic Relationship - ✔✔Other things besides the independent variable influence
the value of the dependent variable.
Factor Markets - ✔✔Buy and sell inputs used for production
Households - ✔✔Initial owners of factors of production and buy goods and services
Firms - ✔✔Buy factors of production from households, and produce goods and
services.
Reverse Casualty - ✔✔Higher incomes lead to better health or does better health lead to
high incomes?
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
