UMD ECON 200 Exam 1 With All Correct & 100%
Verified Answers| Latest Update |Already Graded A+
economics ✔Correct Answer--study of how people, individually and collectively, manage resources
microeconomics ✔Correct Answer--study of how individuals and firms manage resources
macroeconomics ✔Correct Answer--study of the economy on a regional, national or international
scale
rational behavior ✔Correct Answer--making choices to achieve goals in the most effective way
possible
scarcity ✔Correct Answer--condition of wanting more than we can get with available resources
opportunity cost ✔Correct Answer--value of what you have to give up in order to get something,
the value of your next best alternative
marginal decision making ✔Correct Answer--comparison of additional benefits of a choice against
the additional costs it would bring and without considering related benefits costs of past choices
sunk cost ✔Correct Answer--costs that have already been incurred and cannot be recovered or
refunded
incentive ✔Correct Answer--something that causes people to behave in a certain way by changing
the trade-offs they face
efficiency ✔Correct Answer--use of resources in the most productive way possible to produce the
goods and services that have the greatest total economic value to society
correlation ✔Correct Answer--consistently observed relationship between events and variables
model ✔Correct Answer--simplified representation of the important parts of a complicated
situation
circular flow model ✔Correct Answer--simplified representation of how the economy's
transactions work together
positive statement ✔Correct Answer--factual claim about how the world actually works
normative statement ✔Correct Answer--claim about how the world should be
market economy ✔Correct Answer--economy in which private individuals, rather than a centralized
planning authority, make the decisions
market ✔Correct Answer--buyers and sellers who trade a particular good or service
competitive market ✔Correct Answer--market in which fully informed, price taking buyers and
sellers easily trade a standardized good or service
, standardized good ✔Correct Answer--good for which any 2 units share the same features and are
interchangeable
transaction costs ✔Correct Answer--costs incurred by buyer and seller in agreeing to and executing
a sale of goods or services
price taker ✔Correct Answer--buyer or seller who cannot affect the market price
quantity demanded ✔Correct Answer--amount of a particular good that buyers will purchase at a
given price during a specified period
law of demanded ✔Correct Answer--fundamental characteristic of demand states, all else equal,
quantity demand rises as price falls
demand schedule ✔Correct Answer--table shows the quantities of a particular good or service at
various prices
demand curve ✔Correct Answer--graph shows the quantities of a good or service that consumers
will demand at various prices
substitutes ✔Correct Answer--goods that serve a similar enough purpose that a consumer might
purchase one in place of the other
complements ✔Correct Answer--goods that are consumed together, so that purchasing one will
make consumers more likely to purchase others
normal goods ✔Correct Answer--goods for which demand increases as income increases
inferior goods ✔Correct Answer--goods for which demand decreases as income increases
quantity supplied ✔Correct Answer--amount of a good or service that producers will offer for sale
at a given price during a specified period
law of supply ✔Correct Answer--fundamental characteristic of supply states, all else equal,
quantity supplied rises as prices rises
supply schedule ✔Correct Answer--table shows the quantities of a good or service producers will
supply at various prices
supply curve ✔Correct Answer--graph shows the quantities of a good or service that producers will
supply at various prices
equilibrium ✔Correct Answer--situation in a market when the quantity supplied equals the
quantity demanded, graphically where the demand curve interests the supply curve
equilibrium price ✔Correct Answer--price at which the quantity supplied equals the quantity
demanded
equilibrium quantity ✔Correct Answer--quantity that is supplied and demanded at the equilibrium
price
Verified Answers| Latest Update |Already Graded A+
economics ✔Correct Answer--study of how people, individually and collectively, manage resources
microeconomics ✔Correct Answer--study of how individuals and firms manage resources
macroeconomics ✔Correct Answer--study of the economy on a regional, national or international
scale
rational behavior ✔Correct Answer--making choices to achieve goals in the most effective way
possible
scarcity ✔Correct Answer--condition of wanting more than we can get with available resources
opportunity cost ✔Correct Answer--value of what you have to give up in order to get something,
the value of your next best alternative
marginal decision making ✔Correct Answer--comparison of additional benefits of a choice against
the additional costs it would bring and without considering related benefits costs of past choices
sunk cost ✔Correct Answer--costs that have already been incurred and cannot be recovered or
refunded
incentive ✔Correct Answer--something that causes people to behave in a certain way by changing
the trade-offs they face
efficiency ✔Correct Answer--use of resources in the most productive way possible to produce the
goods and services that have the greatest total economic value to society
correlation ✔Correct Answer--consistently observed relationship between events and variables
model ✔Correct Answer--simplified representation of the important parts of a complicated
situation
circular flow model ✔Correct Answer--simplified representation of how the economy's
transactions work together
positive statement ✔Correct Answer--factual claim about how the world actually works
normative statement ✔Correct Answer--claim about how the world should be
market economy ✔Correct Answer--economy in which private individuals, rather than a centralized
planning authority, make the decisions
market ✔Correct Answer--buyers and sellers who trade a particular good or service
competitive market ✔Correct Answer--market in which fully informed, price taking buyers and
sellers easily trade a standardized good or service
, standardized good ✔Correct Answer--good for which any 2 units share the same features and are
interchangeable
transaction costs ✔Correct Answer--costs incurred by buyer and seller in agreeing to and executing
a sale of goods or services
price taker ✔Correct Answer--buyer or seller who cannot affect the market price
quantity demanded ✔Correct Answer--amount of a particular good that buyers will purchase at a
given price during a specified period
law of demanded ✔Correct Answer--fundamental characteristic of demand states, all else equal,
quantity demand rises as price falls
demand schedule ✔Correct Answer--table shows the quantities of a particular good or service at
various prices
demand curve ✔Correct Answer--graph shows the quantities of a good or service that consumers
will demand at various prices
substitutes ✔Correct Answer--goods that serve a similar enough purpose that a consumer might
purchase one in place of the other
complements ✔Correct Answer--goods that are consumed together, so that purchasing one will
make consumers more likely to purchase others
normal goods ✔Correct Answer--goods for which demand increases as income increases
inferior goods ✔Correct Answer--goods for which demand decreases as income increases
quantity supplied ✔Correct Answer--amount of a good or service that producers will offer for sale
at a given price during a specified period
law of supply ✔Correct Answer--fundamental characteristic of supply states, all else equal,
quantity supplied rises as prices rises
supply schedule ✔Correct Answer--table shows the quantities of a good or service producers will
supply at various prices
supply curve ✔Correct Answer--graph shows the quantities of a good or service that producers will
supply at various prices
equilibrium ✔Correct Answer--situation in a market when the quantity supplied equals the
quantity demanded, graphically where the demand curve interests the supply curve
equilibrium price ✔Correct Answer--price at which the quantity supplied equals the quantity
demanded
equilibrium quantity ✔Correct Answer--quantity that is supplied and demanded at the equilibrium
price
