ECO 304K: Test 1 Questions & Correct
and Verified Answers.Latest
update2025/2026 Graded A+, Exams of
Nursing
Scarcity - CORRECT ANSWERS refers to the inherently limited nature of society's resources,
given society's unlimited wants and needs
Economics - CORRECT ANSWERS study of how individuals and societies allocate their limited
resources to satisfy their unlimited wants
Microeconomics - CORRECT ANSWERS study of the individual units that make up the economy
Macroeconomics - CORRECT ANSWERS study of the overall aspects and workings of an
economy
Incentives - CORRECT ANSWERS factors that motivate a person to act or exert effort
Opportunity Cost - CORRECT ANSWERS highest-valued alternative that must be sacrificed to
get something else
Economic Thinking - CORRECT ANSWERS a purposeful evaluation of the available opportunities
to make the best decision possible
Marginal Thinking - CORRECT ANSWERS evaluation of whether the benefit of one more unit of
something is greater than its cost
, Markets - CORRECT ANSWERS systems that bring buyers and sellers together to exchange
goods and services
Circular Flow Diagram - CORRECT ANSWERS a diagram that shows how goods, services, and
resources flow through the economy
Trade - CORRECT ANSWERS voluntary exchange of goods and services between two or more
parties; creates value
Comparative Advantage - CORRECT ANSWERS situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
Five Foundations - CORRECT ANSWERS 1. incentives
2. trade-offs
3. opportunity cost
4. marginal thinking
5. trade creates value
Unintended Consequence - CORRECT ANSWERS an unplanned result (usually negative and
unwanted) of an incentive
Innovation - CORRECT ANSWERS engine of economic growth
Market - CORRECT ANSWERS a venue where multiple sellers and multiple buyers meet to
exchange goods or services.
Direct Incentives - CORRECT ANSWERS designed to induce changes in behavior.
and Verified Answers.Latest
update2025/2026 Graded A+, Exams of
Nursing
Scarcity - CORRECT ANSWERS refers to the inherently limited nature of society's resources,
given society's unlimited wants and needs
Economics - CORRECT ANSWERS study of how individuals and societies allocate their limited
resources to satisfy their unlimited wants
Microeconomics - CORRECT ANSWERS study of the individual units that make up the economy
Macroeconomics - CORRECT ANSWERS study of the overall aspects and workings of an
economy
Incentives - CORRECT ANSWERS factors that motivate a person to act or exert effort
Opportunity Cost - CORRECT ANSWERS highest-valued alternative that must be sacrificed to
get something else
Economic Thinking - CORRECT ANSWERS a purposeful evaluation of the available opportunities
to make the best decision possible
Marginal Thinking - CORRECT ANSWERS evaluation of whether the benefit of one more unit of
something is greater than its cost
, Markets - CORRECT ANSWERS systems that bring buyers and sellers together to exchange
goods and services
Circular Flow Diagram - CORRECT ANSWERS a diagram that shows how goods, services, and
resources flow through the economy
Trade - CORRECT ANSWERS voluntary exchange of goods and services between two or more
parties; creates value
Comparative Advantage - CORRECT ANSWERS situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
Five Foundations - CORRECT ANSWERS 1. incentives
2. trade-offs
3. opportunity cost
4. marginal thinking
5. trade creates value
Unintended Consequence - CORRECT ANSWERS an unplanned result (usually negative and
unwanted) of an incentive
Innovation - CORRECT ANSWERS engine of economic growth
Market - CORRECT ANSWERS a venue where multiple sellers and multiple buyers meet to
exchange goods or services.
Direct Incentives - CORRECT ANSWERS designed to induce changes in behavior.
