Ole Miss ECON 202 Midterm Hayes
Study online at https://quizlet.com/_76smtt
1. opportunity cost what you give up to obtain one item over the next best alternative
2. other things equal the assumption that factors other than those being considered do not
change
3. microeconomics the study of how households and firms make decision and how they
interact in markets
4. macroeconomics the study of economy-wide phenomena, including inflation, unemploy-
ment, and economic growth
5. utility in economics, this term is described as the pleasure, happiness, or satis-
faction received from a product // ability of a product to be used
6. demand curve a graph of the relationship between the price of a good and the quantity
demanded
7. lower price increases One reason that the quantity demanded of a good increases when its price
the real incomes of falls is that the ___________________.
buyers, enabling them
to buy more
8. pleasure or satisfac- For economists, the word "utility" means
tion
9. benefit exceeds its A person should consume more of something when its marginal
marginal cost ______________.
10. True T/F: The production possibilities curve shows various combinations of two
products that an economy can produce when achieving full employment.
11. True T/F: Choices entail marginal costs because resources are scarce.
12.
1/8
, Ole Miss ECON 202 Midterm Hayes
Study online at https://quizlet.com/_76smtt
scarcity and opportu- In deciding whether to study for an economics quiz or go to a concert, one
nity costs is confronted by the idea(s) of ___________.
13. budget line A line that shows the different combinations of two products a consumer
can purchase with a specific money income, given the products' prices
14. False T/F: The study of economics is not useful for consumers, because economic
analysis focuses only on businesses and the economy.
15. right An increase in immigration would shift the production possibilities curve
to the _______.
16. normative statements claims that attempt to prescribe how the world should be
17. other things equal The Latin term "ceteris paribus" means __________.
18. factors of production economic resources are also called ___________.
19. production possibili- illustrates scarcity
ties curve
20. to produce more of The negative slope of the production possibilities curve is a graphical way
one product, we must of indicating what?
do with less of another
21. produce more of both If an economy is operating inside its production possibili-
consumer goods and ties curve for consumer goods and capital goods, it can
capital goods by using __________________________________.
resources that are cur-
rently idle
22. competition independently acting buyers and sellers and freedom to enter or leave
markets
2/8
Study online at https://quizlet.com/_76smtt
1. opportunity cost what you give up to obtain one item over the next best alternative
2. other things equal the assumption that factors other than those being considered do not
change
3. microeconomics the study of how households and firms make decision and how they
interact in markets
4. macroeconomics the study of economy-wide phenomena, including inflation, unemploy-
ment, and economic growth
5. utility in economics, this term is described as the pleasure, happiness, or satis-
faction received from a product // ability of a product to be used
6. demand curve a graph of the relationship between the price of a good and the quantity
demanded
7. lower price increases One reason that the quantity demanded of a good increases when its price
the real incomes of falls is that the ___________________.
buyers, enabling them
to buy more
8. pleasure or satisfac- For economists, the word "utility" means
tion
9. benefit exceeds its A person should consume more of something when its marginal
marginal cost ______________.
10. True T/F: The production possibilities curve shows various combinations of two
products that an economy can produce when achieving full employment.
11. True T/F: Choices entail marginal costs because resources are scarce.
12.
1/8
, Ole Miss ECON 202 Midterm Hayes
Study online at https://quizlet.com/_76smtt
scarcity and opportu- In deciding whether to study for an economics quiz or go to a concert, one
nity costs is confronted by the idea(s) of ___________.
13. budget line A line that shows the different combinations of two products a consumer
can purchase with a specific money income, given the products' prices
14. False T/F: The study of economics is not useful for consumers, because economic
analysis focuses only on businesses and the economy.
15. right An increase in immigration would shift the production possibilities curve
to the _______.
16. normative statements claims that attempt to prescribe how the world should be
17. other things equal The Latin term "ceteris paribus" means __________.
18. factors of production economic resources are also called ___________.
19. production possibili- illustrates scarcity
ties curve
20. to produce more of The negative slope of the production possibilities curve is a graphical way
one product, we must of indicating what?
do with less of another
21. produce more of both If an economy is operating inside its production possibili-
consumer goods and ties curve for consumer goods and capital goods, it can
capital goods by using __________________________________.
resources that are cur-
rently idle
22. competition independently acting buyers and sellers and freedom to enter or leave
markets
2/8
