ECON 202 Midterm Study Guide
Study online at https://quizlet.com/_36bjdy
1. Do Incentives matter? Yes, as incentives change, the actions that
people will take also change.
2. Limited resources are also referred to as Scarce
_______ resources
3. _________ always exists and will always con- Scarcity
tinue to exist.
4. What is an economic model? A simplified version of some aspect of
economic life (reality used to analyze
real-world economic situations)
5. Economists assume people generally re- Economic incentives
spond to what?
6. The cost of giving up something to gain Opportunity
something else is referred to as a _______
cost
7. Limited resources and unlimited wants is Scarcity
also known as?
8. Which of the following does the production The economy produces only two goods.
possibilities model assume?
9. The points along and inside the production Attainable
possibility frontier are known as the _____
production points
10. A _______ production possibilities frontier Linear
creates constant opportunity costs/more
goods produced.
1/6
, ECON 202 Midterm Study Guide
Study online at https://quizlet.com/_36bjdy
11. Production possibilities frontier with a Increasing opportunity costs as more and
bowed-outward shape indicates what? more of one good is produced.
12. What does the slope of a production pos- The opportunity cost of changing which
sibilities frontier indicate in relationship to goods are produced.
unit production?
13. The outward shift of a nation's production Economic
possibilities frontier indicates there is _____
growth
14. When a price in chocolates increase, the De- Remains (stays the same); the quantity de-
mand of it ____________ manded of the product will decrease.
15. The law of demand implies, if the price of Remains (stays the same); the quantity de-
a item increases, the demand of that item manded of the product will decrease.
__________
16. What does the income effect of a price The impact of a change in the price of a
change indicates, as it relates to consumer good on a consumer's purchasing power.
behavior
17. A movement along the demand curve for A change in the quantity demanded of the
toothpaste would indicate? good.
18. If an increase in income leads to a decrease inferior
in the demand of a product, than that prod-
uct is an _____ Good
19. If the price for automobiles was to increase, decrease
the demand for gasoline would ________
20. In 2015, Ford motor company's sales were Expansion
rising due to an ___________
2/6
Study online at https://quizlet.com/_36bjdy
1. Do Incentives matter? Yes, as incentives change, the actions that
people will take also change.
2. Limited resources are also referred to as Scarce
_______ resources
3. _________ always exists and will always con- Scarcity
tinue to exist.
4. What is an economic model? A simplified version of some aspect of
economic life (reality used to analyze
real-world economic situations)
5. Economists assume people generally re- Economic incentives
spond to what?
6. The cost of giving up something to gain Opportunity
something else is referred to as a _______
cost
7. Limited resources and unlimited wants is Scarcity
also known as?
8. Which of the following does the production The economy produces only two goods.
possibilities model assume?
9. The points along and inside the production Attainable
possibility frontier are known as the _____
production points
10. A _______ production possibilities frontier Linear
creates constant opportunity costs/more
goods produced.
1/6
, ECON 202 Midterm Study Guide
Study online at https://quizlet.com/_36bjdy
11. Production possibilities frontier with a Increasing opportunity costs as more and
bowed-outward shape indicates what? more of one good is produced.
12. What does the slope of a production pos- The opportunity cost of changing which
sibilities frontier indicate in relationship to goods are produced.
unit production?
13. The outward shift of a nation's production Economic
possibilities frontier indicates there is _____
growth
14. When a price in chocolates increase, the De- Remains (stays the same); the quantity de-
mand of it ____________ manded of the product will decrease.
15. The law of demand implies, if the price of Remains (stays the same); the quantity de-
a item increases, the demand of that item manded of the product will decrease.
__________
16. What does the income effect of a price The impact of a change in the price of a
change indicates, as it relates to consumer good on a consumer's purchasing power.
behavior
17. A movement along the demand curve for A change in the quantity demanded of the
toothpaste would indicate? good.
18. If an increase in income leads to a decrease inferior
in the demand of a product, than that prod-
uct is an _____ Good
19. If the price for automobiles was to increase, decrease
the demand for gasoline would ________
20. In 2015, Ford motor company's sales were Expansion
rising due to an ___________
2/6
