Econ 2150 Exam Questions with Verified 100%
Correct Answers
inferior goods - ✔✔As income increases, people buy less of these products
normal goods - ✔✔Also superior goods, as income increases, demand for these items
increases.
cross elasticity of demand - ✔✔The ratio of the percentage change in the quantity
demanded of a good to a percentage change in consumer income; measures the
responsiveness of consumer purchases to income changes.
formula that measures the degree of elasticity of demand - ✔✔Ed = percentage
change in quantity demanded of X /percentage change in price of X
differences in economic systems exist because of: - ✔✔who owns the factors of
production, what method is used to motivate, coordinate, direct economic activities
U.S. has ____ ____ economy - ✔✔mostly free
utility - ✔✔pleasure, happiness, or satisfaction
marginal analysis - ✔✔comparisons of marginal (additional) benefits and marginal
costs
scientific method - ✔✔economics relies on the ____ ____ to make principles
, Generalizations - ✔✔principles are based on ______ of human behavior
other-things-equal assumption - ✔✔all variables except those under immediate
consideration are held constant for a particular analysis (ceteris paribus)
graphical - ✔✔A principle of economics is often represented in a ____ expression
aggregate - ✔✔collection of specific economic units treated as if they were one unit
budget line - ✔✔a line that shows various combinations of two products a consumer
can purchase with a specific money income, given the products' prices
constant opportunity cost - ✔✔an opportunity cost that remains the same as
consumers shift purchases from one product to another along a straight line budget line
the budget line illustrates these concepts - ✔✔attainable/unattainable combinations,
trade-offs and opportunity costs, choice, income changes.
economic resources - ✔✔land, labor, capital, and entrepreneurial ability used in the
production of goods and services
investment - ✔✔spending that pays for capital resources
roles of entrepreneur - ✔✔takes initiative to combine resources, makes strategic
business decisions, innovates/commercializes, bears risk
Correct Answers
inferior goods - ✔✔As income increases, people buy less of these products
normal goods - ✔✔Also superior goods, as income increases, demand for these items
increases.
cross elasticity of demand - ✔✔The ratio of the percentage change in the quantity
demanded of a good to a percentage change in consumer income; measures the
responsiveness of consumer purchases to income changes.
formula that measures the degree of elasticity of demand - ✔✔Ed = percentage
change in quantity demanded of X /percentage change in price of X
differences in economic systems exist because of: - ✔✔who owns the factors of
production, what method is used to motivate, coordinate, direct economic activities
U.S. has ____ ____ economy - ✔✔mostly free
utility - ✔✔pleasure, happiness, or satisfaction
marginal analysis - ✔✔comparisons of marginal (additional) benefits and marginal
costs
scientific method - ✔✔economics relies on the ____ ____ to make principles
, Generalizations - ✔✔principles are based on ______ of human behavior
other-things-equal assumption - ✔✔all variables except those under immediate
consideration are held constant for a particular analysis (ceteris paribus)
graphical - ✔✔A principle of economics is often represented in a ____ expression
aggregate - ✔✔collection of specific economic units treated as if they were one unit
budget line - ✔✔a line that shows various combinations of two products a consumer
can purchase with a specific money income, given the products' prices
constant opportunity cost - ✔✔an opportunity cost that remains the same as
consumers shift purchases from one product to another along a straight line budget line
the budget line illustrates these concepts - ✔✔attainable/unattainable combinations,
trade-offs and opportunity costs, choice, income changes.
economic resources - ✔✔land, labor, capital, and entrepreneurial ability used in the
production of goods and services
investment - ✔✔spending that pays for capital resources
roles of entrepreneur - ✔✔takes initiative to combine resources, makes strategic
business decisions, innovates/commercializes, bears risk
