TEST BANK FOR PRINCIPLES OF
MICROECONOMICS – EXAM 1 VERIFIED
QUESTIONS & ANSWERS
Microeconomics - CORRECT ANSWER ✅✅✅the study of how
households and firms
make decisions and how
they interact in markets
Macroeconomics - CORRECT ANSWER ✅✅✅the study of economywide
phenomena, including
inflation, unemployment,
and economic growth
Scarcity - CORRECT ANSWER ✅✅✅the limited nature of society's
resources
Opportunity Cost - CORRECT ANSWER ✅✅✅whatever must be
given up to obtain some item
Consumer Surplus - CORRECT ANSWER ✅✅✅the amount a buyer is
willing to pay for a good
minus the amount the
buyer actually pays for it
, Producer Surplus - CORRECT ANSWER ✅✅✅the amount a seller is
paid for a good minus the
seller's cost of providing it
Direct Relationship - CORRECT ANSWER ✅✅✅Two variables move in the
same direction. It one increases the other increases. If one decreases the other
decreases.
Inverse Relationship - CORRECT ANSWER ✅✅✅Two variables move in
opposite directions. If one increases the other decreases; and if one decreases
the other increases.
Independent Relationship (Zero Relationship) - CORRECT ANSWER
✅✅✅No relationship at all.
Price Ceiling - CORRECT ANSWER ✅✅✅a legal maximum on the
price at which a good can be sold
Price Floor - CORRECT ANSWER ✅✅✅a legal minimum on the
price at which a good can be sold
Positive Economics - CORRECT ANSWER ✅✅✅The scientific aspect of
economics that determines "what is?"
Normative Economics - CORRECT ANSWER ✅✅✅The portion of economics
that attempts to address "what should be?"
MICROECONOMICS – EXAM 1 VERIFIED
QUESTIONS & ANSWERS
Microeconomics - CORRECT ANSWER ✅✅✅the study of how
households and firms
make decisions and how
they interact in markets
Macroeconomics - CORRECT ANSWER ✅✅✅the study of economywide
phenomena, including
inflation, unemployment,
and economic growth
Scarcity - CORRECT ANSWER ✅✅✅the limited nature of society's
resources
Opportunity Cost - CORRECT ANSWER ✅✅✅whatever must be
given up to obtain some item
Consumer Surplus - CORRECT ANSWER ✅✅✅the amount a buyer is
willing to pay for a good
minus the amount the
buyer actually pays for it
, Producer Surplus - CORRECT ANSWER ✅✅✅the amount a seller is
paid for a good minus the
seller's cost of providing it
Direct Relationship - CORRECT ANSWER ✅✅✅Two variables move in the
same direction. It one increases the other increases. If one decreases the other
decreases.
Inverse Relationship - CORRECT ANSWER ✅✅✅Two variables move in
opposite directions. If one increases the other decreases; and if one decreases
the other increases.
Independent Relationship (Zero Relationship) - CORRECT ANSWER
✅✅✅No relationship at all.
Price Ceiling - CORRECT ANSWER ✅✅✅a legal maximum on the
price at which a good can be sold
Price Floor - CORRECT ANSWER ✅✅✅a legal minimum on the
price at which a good can be sold
Positive Economics - CORRECT ANSWER ✅✅✅The scientific aspect of
economics that determines "what is?"
Normative Economics - CORRECT ANSWER ✅✅✅The portion of economics
that attempts to address "what should be?"
