UConn ECON 1202 Midterm Exam
Questions with Guaranteed Pass
Solutions 2025-2026.
scarcity - Answer - a situation in which unlimited wants exceed the limited resources available
to fulfill those wants
economics - Answer - the study of the choices people make to attain their goals, given their
scarce resources.
economic model - Answer - a simplified version of reality used to analyze real-world economic
situations
marginal analysis - Answer - analysis that involves comparing marginal benefits and marginal
costs
centrally planned economy - Answer - an economy in which the government decides how
economic resources will be allocated
market economy - Answer - an economy in which the decisions of households and firms
interacting in markets allocate economic resources
mixed economy - Answer - an economy in which most economic decisions result from the
interaction of buyers and sellers in markets but in which the government plays a significant role
in the allocation of resources
productive efficiency - Answer - a situation in which a good or service is produced at the
lowest possible cost
allocative efficiency - Answer - a state of the economy in which production is in accordance
with consumer preferences; in particular, every good or service is produced up to the point
where the last unit provides a marginal benefit to society equal to the marginal cost of
producing it
voluntary exchange - Answer - a situation that occurs in markets when both the buyer and the
, economic variable - Answer - something measurable that can have different values, such as
the incomes of doctors
postive analysis - Answer - analysis concerned with what is
normative analysis - Answer - analysis concerned with what ought to be
microeconomics - Answer - the study of how households and firms make choices, how they
interact in markets, and how the government attempts to influence their choices
macroeconomics - Answer - the study of the economy as a whole, including topics such as
inflation, unemployment, and economic growth
production possibilities frontier - Answer - a curve showing the maximum attainable
combinations of two products that may be produced with available resources and current
technology
opportunity cost - Answer - the highest-valued alternative that must be given up to engage in
an activity
economic growth - Answer - the ability of the economy to increase the production of goods
and services
trade - Answer - the act of buying and selling
absolute advantage - Answer - the ability of an individual, a firm, or a country to produce
more of a good or service than competitors, using the same amount of resources
comparative advantage - Answer - the ability of an individual, a firm, or a country to produce a
good or service at a lower opportunity cost than competitors
market - Answer - a group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade
Questions with Guaranteed Pass
Solutions 2025-2026.
scarcity - Answer - a situation in which unlimited wants exceed the limited resources available
to fulfill those wants
economics - Answer - the study of the choices people make to attain their goals, given their
scarce resources.
economic model - Answer - a simplified version of reality used to analyze real-world economic
situations
marginal analysis - Answer - analysis that involves comparing marginal benefits and marginal
costs
centrally planned economy - Answer - an economy in which the government decides how
economic resources will be allocated
market economy - Answer - an economy in which the decisions of households and firms
interacting in markets allocate economic resources
mixed economy - Answer - an economy in which most economic decisions result from the
interaction of buyers and sellers in markets but in which the government plays a significant role
in the allocation of resources
productive efficiency - Answer - a situation in which a good or service is produced at the
lowest possible cost
allocative efficiency - Answer - a state of the economy in which production is in accordance
with consumer preferences; in particular, every good or service is produced up to the point
where the last unit provides a marginal benefit to society equal to the marginal cost of
producing it
voluntary exchange - Answer - a situation that occurs in markets when both the buyer and the
, economic variable - Answer - something measurable that can have different values, such as
the incomes of doctors
postive analysis - Answer - analysis concerned with what is
normative analysis - Answer - analysis concerned with what ought to be
microeconomics - Answer - the study of how households and firms make choices, how they
interact in markets, and how the government attempts to influence their choices
macroeconomics - Answer - the study of the economy as a whole, including topics such as
inflation, unemployment, and economic growth
production possibilities frontier - Answer - a curve showing the maximum attainable
combinations of two products that may be produced with available resources and current
technology
opportunity cost - Answer - the highest-valued alternative that must be given up to engage in
an activity
economic growth - Answer - the ability of the economy to increase the production of goods
and services
trade - Answer - the act of buying and selling
absolute advantage - Answer - the ability of an individual, a firm, or a country to produce
more of a good or service than competitors, using the same amount of resources
comparative advantage - Answer - the ability of an individual, a firm, or a country to produce a
good or service at a lower opportunity cost than competitors
market - Answer - a group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade
