Microeconomics Chapters 1-4 Exam
Question & Answers 2025
scarcity - CORRECT ANSWERS ✔✔the limited nature of society's
resources
economics - CORRECT ANSWERS ✔✔the study of how society
manages it's scarce resources
4 ways people make decisions - CORRECT ANSWERS ✔✔1)people
face tradeoffs
2)the cost of something is what you give up to get it
3)rational people think at the Margin
4)People Respond to Incentives
3 ways people interact - CORRECT ANSWERS ✔✔5)Trade can make
everyone better off
6)Markets are usually a good way to organize economic activity
7)Governments can sometimes improve market outcomes
efficiency - CORRECT ANSWERS ✔✔when society gets most from
scarce resources
equality - CORRECT ANSWERS ✔✔when prosperity is distributed
uniformly among society's members
, Microeconomics Chapters 1-4 Exam
Question & Answers 2025
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 do to achieve their objectives
marginal changes - CORRECT ANSWERS ✔✔small incremental
adjustments to a plan of action
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 and exercise control over scarce resources
market failure - CORRECT ANSWERS ✔✔a situation in which a
market left on its own fails to allocate resources efficiently
Question & Answers 2025
scarcity - CORRECT ANSWERS ✔✔the limited nature of society's
resources
economics - CORRECT ANSWERS ✔✔the study of how society
manages it's scarce resources
4 ways people make decisions - CORRECT ANSWERS ✔✔1)people
face tradeoffs
2)the cost of something is what you give up to get it
3)rational people think at the Margin
4)People Respond to Incentives
3 ways people interact - CORRECT ANSWERS ✔✔5)Trade can make
everyone better off
6)Markets are usually a good way to organize economic activity
7)Governments can sometimes improve market outcomes
efficiency - CORRECT ANSWERS ✔✔when society gets most from
scarce resources
equality - CORRECT ANSWERS ✔✔when prosperity is distributed
uniformly among society's members
, Microeconomics Chapters 1-4 Exam
Question & Answers 2025
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 do to achieve their objectives
marginal changes - CORRECT ANSWERS ✔✔small incremental
adjustments to a plan of action
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 and exercise control over scarce resources
market failure - CORRECT ANSWERS ✔✔a situation in which a
market left on its own fails to allocate resources efficiently
