Econ 231 Exam 1 with verified answers
| | | | | |
Scarcity |- |ANSWER-Lack |of |enough |resources |to |satisfy |all |desired |uses |of |those |resources
Factors |of |production |- |ANSWER-resource |inputs |used |to |produce |goods |and |services, |such |as |land,
|labor, |capital, |and |entrepreneurship
Economics |- |ANSWER-the |study |of |how |best |to |allocate |scarce |resources |among |competing |uses
Opportunity |Cost |- |ANSWER-the |most |desired |goods |or |services |that |are |forgone |to |obtain |something
|else
Macroeconomics |- |ANSWER-the |study |of |aggregate |economic |behavior |of |the |economy |as |a |whole/
|study |of |the |economy |in |motion
Ceteris |paribus |- |ANSWER-the |assumption |of |nothing |else |changing
Production |function |- |ANSWER-relationship |between |economic |resources |and |output |Q= |f |(land,
|labor, |capital, |entrepreneurship) |reveals |the |limit |to |the |level |of |output, |given |the |amount |of
|economic |resources
Unemployment |rate |- |ANSWER-unemployed/labor |force
Inflation |- |ANSWER-increase |in |the |average |price |level
Production |- |ANSWER-production |of |goods |and |services |determines |employment |and |income
Business |cycle |- |ANSWER-alternating |increases |and |decreases |in |output |over |time
, Trade |balance |- |ANSWER-relationship |between |exports |and |imports
Trade |surplus |- |ANSWER-exports>imports
Trade |deficit |- |ANSWER-exports<imports
Production |Possibilities |- |ANSWER-amount |of |production |that |may |occur |given |economic |resources
|and |technology
Labor |Productivity |- |ANSWER-measure |of |how |much |a |unit |of |labor |input |(LI) |may |produce |(output
|divided |by |LI)
Point |outside |PPC |- |ANSWER-unattainable |inside
Demand |- |ANSWER-consumer |willingness |and |ability |to |purchase |output
Law |of |demand: |- |ANSWER-As |price |increases, |quantity |demanded |decreases, |ceteris |paribus |(all |else
|equal)
Increase |in |quantity |demanded |- |ANSWER-caused |by |a |decrease |in |price
Decrease |in |price |causes |- |ANSWER-increase |in |quantity |demanded |(what |happens |to |what)
Decrease |in |quantity |demanded |- |ANSWER-caused |by |an |increase |in |price
Increase |in |price |- |ANSWER-causes |decrease |in |quantity |demanded
Shift |variables |- |ANSWER-tastes, |income, |related |goods, |expectations, |number |of |buyers
Tastes |decrease |for |a |product |- |ANSWER-leftward |shift |decrease |in |demand
| | | | | |
Scarcity |- |ANSWER-Lack |of |enough |resources |to |satisfy |all |desired |uses |of |those |resources
Factors |of |production |- |ANSWER-resource |inputs |used |to |produce |goods |and |services, |such |as |land,
|labor, |capital, |and |entrepreneurship
Economics |- |ANSWER-the |study |of |how |best |to |allocate |scarce |resources |among |competing |uses
Opportunity |Cost |- |ANSWER-the |most |desired |goods |or |services |that |are |forgone |to |obtain |something
|else
Macroeconomics |- |ANSWER-the |study |of |aggregate |economic |behavior |of |the |economy |as |a |whole/
|study |of |the |economy |in |motion
Ceteris |paribus |- |ANSWER-the |assumption |of |nothing |else |changing
Production |function |- |ANSWER-relationship |between |economic |resources |and |output |Q= |f |(land,
|labor, |capital, |entrepreneurship) |reveals |the |limit |to |the |level |of |output, |given |the |amount |of
|economic |resources
Unemployment |rate |- |ANSWER-unemployed/labor |force
Inflation |- |ANSWER-increase |in |the |average |price |level
Production |- |ANSWER-production |of |goods |and |services |determines |employment |and |income
Business |cycle |- |ANSWER-alternating |increases |and |decreases |in |output |over |time
, Trade |balance |- |ANSWER-relationship |between |exports |and |imports
Trade |surplus |- |ANSWER-exports>imports
Trade |deficit |- |ANSWER-exports<imports
Production |Possibilities |- |ANSWER-amount |of |production |that |may |occur |given |economic |resources
|and |technology
Labor |Productivity |- |ANSWER-measure |of |how |much |a |unit |of |labor |input |(LI) |may |produce |(output
|divided |by |LI)
Point |outside |PPC |- |ANSWER-unattainable |inside
Demand |- |ANSWER-consumer |willingness |and |ability |to |purchase |output
Law |of |demand: |- |ANSWER-As |price |increases, |quantity |demanded |decreases, |ceteris |paribus |(all |else
|equal)
Increase |in |quantity |demanded |- |ANSWER-caused |by |a |decrease |in |price
Decrease |in |price |causes |- |ANSWER-increase |in |quantity |demanded |(what |happens |to |what)
Decrease |in |quantity |demanded |- |ANSWER-caused |by |an |increase |in |price
Increase |in |price |- |ANSWER-causes |decrease |in |quantity |demanded
Shift |variables |- |ANSWER-tastes, |income, |related |goods, |expectations, |number |of |buyers
Tastes |decrease |for |a |product |- |ANSWER-leftward |shift |decrease |in |demand
