Principles of Economics by N.
Gregory Mankiw Chapter 1-3 Exam
Question & Answers 2025
Efficiency - CORRECT ANSWERS ✔✔The property of society getting
the most you can from scarce resources
Scarcity - CORRECT ANSWERS ✔✔The limited nature of societies
resources
Economics - CORRECT ANSWERS ✔✔The study of how society
manages it scarce resources
Equality - CORRECT ANSWERS ✔✔The property of distributing
economic prosperity uniformly among the members of society
Opportunity cost - CORRECT ANSWERS ✔✔Whatever must be given
up to obtain some item
Rational people - CORRECT ANSWERS ✔✔People who
systematically and purposefully do the best they can to achieve their
objectives
Marginal change - CORRECT ANSWERS ✔✔A small incremental
adjustment to a plan of action
, Principles of Economics by N.
Gregory Mankiw Chapter 1-3 Exam
Question & Answers 2025
Incentive - CORRECT ANSWERS ✔✔Something that induces a
person to act
Market economy - CORRECT ANSWERS ✔✔An economy that
allocates resources through the decentralized decisions of many firms
and households as they interact in markets for goods and services
Property rights - CORRECT ANSWERS ✔✔The ability of an individual
to own an exercise control over scarce resources
Market failure - CORRECT ANSWERS ✔✔A situation in which a
market left on it's own failed to allocate resources efficiently
Externality - CORRECT ANSWERS ✔✔The impact of one person's
actions on the well-being of a by standard
Market power - CORRECT ANSWERS ✔✔The ability of a single
economic actor or small group of actors to have a substantial influence
on market prices
Productivity - CORRECT ANSWERS ✔✔The quantity of goods and
services produced from each unit of labor input
Gregory Mankiw Chapter 1-3 Exam
Question & Answers 2025
Efficiency - CORRECT ANSWERS ✔✔The property of society getting
the most you can from scarce resources
Scarcity - CORRECT ANSWERS ✔✔The limited nature of societies
resources
Economics - CORRECT ANSWERS ✔✔The study of how society
manages it scarce resources
Equality - CORRECT ANSWERS ✔✔The property of distributing
economic prosperity uniformly among the members of society
Opportunity cost - CORRECT ANSWERS ✔✔Whatever must be given
up to obtain some item
Rational people - CORRECT ANSWERS ✔✔People who
systematically and purposefully do the best they can to achieve their
objectives
Marginal change - CORRECT ANSWERS ✔✔A small incremental
adjustment to a plan of action
, Principles of Economics by N.
Gregory Mankiw Chapter 1-3 Exam
Question & Answers 2025
Incentive - CORRECT ANSWERS ✔✔Something that induces a
person to act
Market economy - CORRECT ANSWERS ✔✔An economy that
allocates resources through the decentralized decisions of many firms
and households as they interact in markets for goods and services
Property rights - CORRECT ANSWERS ✔✔The ability of an individual
to own an exercise control over scarce resources
Market failure - CORRECT ANSWERS ✔✔A situation in which a
market left on it's own failed to allocate resources efficiently
Externality - CORRECT ANSWERS ✔✔The impact of one person's
actions on the well-being of a by standard
Market power - CORRECT ANSWERS ✔✔The ability of a single
economic actor or small group of actors to have a substantial influence
on market prices
Productivity - CORRECT ANSWERS ✔✔The quantity of goods and
services produced from each unit of labor input
