- Study guides, Class notes & Summaries

ECO 2023 Exam 2_Version 1_Answers

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8 pages

Written in 2022/2023

Grade A+

DOCSEXPERT001

ECO 2023 Problems & Applications (Ch 08), Miami Dade College, Miami 2023.

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13 pages

Written in 2023/2024

Grade A+

profAlex

The four types of economic goods - Answer Private Public Club Common Property Resources (Common Property) A good would be considered non-excludable in consumption if: - Answer Individuals who do not pay for the good can not be kept from enjoying its benefits What best represents a common property resource (Common property good)? - Answer An aquifer used by farmers and ranchers It is reasonable to expect that - Answer i. demand curves for a given good differ between consum...

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19 pages

Written in 2026/2027

Grade A+

TestSolver9

The economic way of thinking stresses that: a. greed is the primary motivation for human action. b. as the benefits of an option increase, people will be more likely to choose that option. c. an objective value can be attached to physical goods. d. as the cost of an option decreases, people will be less likely to choose that option. - Answer b Which of the following is most consistent with economizing behavior? a. If you derive the same satisfaction from eating pizza and e...

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63 pages

Written in 2026/2027

Grade A+

TestSolver9

Scarcity - Answer A situation in which unlimited wants exceed the limited resources available to fulfill those wants Eight Guideposts to Economic Thinking - Answer 1. The use of scarce resources is costly; trade-offs must always be made 2. Individuals choose purposefully; they try to get the most from their limited resources 3. Incentives matter: choice is influenced in a predictable way by changes in incentives 4. Individuals make decisions at the margin 5. Information is c...

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15 pages

Written in 2026/2027

Grade A+

TestSolver9

Scarcity - Answer Stuff is limited. Choice - Answer One alternative is selected over another. Opportunity Cost - Answer The value of the best thing given up. Positive economics - Answer The way the world is Normative economics - Answer The way the world ought to be Benefits of trade - Answer - Increased variety of goods - Increased competition - Technology transfer - More efficient large-scale production Production Possibility Curve - Answer A curve depi...

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5 pages

Written in 2026/2027

Grade A+

TestSolver9

Scarcity - Answer A situation where unlimited wants exceed limited resources available to fulfill those wants. - Scarcity leads to choices. - Choices result in trade-offs. Choices and Trade-Offs - Answer You can think about every choice as a tradeoff—an exchange—giving up one thing to get something else. Eight Guideposts to Economic Thinking - Answer 1. Trade-offs are a result of scarcity. - "There is no such thing as a free lunch." - Opportunity cost: The highes...

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14 pages

Written in 2026/2027

Grade A+

TestSolver9

The four types of economic goods discussed at the beginning of the semester included: - Answer public goods, club goods, private goods, and common goods (or common property resources) If a good is non-rival in consumption then: - Answer one individual's consumption of the good does not affect the amount available for others to consume Interstate 4 (I-4) and State Road 408 are two major highways that affect traffic flows in Orlando. Motorists are not required to pay a toll (user fe...

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16 pages

Written in 2026/2027

Grade A+

TestSolver9

What is Economics? - Answer Econ is study of how we make choices (act of selecting alternatives) under scarcity (concept that there is less of a good freely available from nature than people would like) Scarcity - Answer Necessitated rationing (allocating scarce good to those who want them) in a market economy, price is used to ration goods & Leads to competitive behavior Resources - Answer Input used to produce econ good 1. Human Resources (human capital) 2. Physical resources...

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22 pages

Written in 2026/2027

Grade A+

TestSolver9

economics - Answer study of how we make choices under scarcity choice - Answer the act of selecting among alternatives scarcity - Answer the concept that there is less of a good freely available from nature than people would like -not the same thing as poverty -necessitate rationing-price is used -leads to competitive behavior rationing - Answer allocating scarce goods to those who want them resources - Answer an input that is used to produce an economic good 1....

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18 pages

Written in 2026/2027

Grade A+

TestSolver9

3 big economic questions - Answer 1. What: what and how much is produced? 2. How: how are goods and services produced? 3. Who: who will get the goods and services? 3 approaches to answering 3 big questions - Answer 1.Tradition approach: do what we've always done. 2. Command approach: government planners answer the questions. 3. Market-based approach: let prices, property rights, and markets answer the questions. (works best because it aligns the self-interest with the social inte...

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13 pages

Written in 2026/2027

Grade A+

TestSolver9

a combination of goods on a given PPF is - Answer Both obtainable and Efficient For a normal good, if INCOME goes UP, what happens to supply? Demand? - Answer Demand shifts right and the supply remains unchanged For an inferior good, if INCOME goes UP, what happens to supply? Demand? - Answer Demand shifts left and the supply remains unchanged bananas and oranges are perfect substitutes. If the PRICE of bananas goes UP, what happens to the demand for oranges? the Supply curve? ...

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6 pages

Written in 2026/2027

Grade A+

TestSolver9

Which of the following can best be characterized as a subject of microeconomics? (Ch.1) - ANSWERSAn examination of how much of a particular good gets produced AnswerMaurice needs to purchase something that economists would label as "land" to help him produce cloth to sell to the fashion industry. Which of the following is an example of land? (Ch.1) - ANSWERSCotton to be woven into fabric AnswerWhich of the following scenarios most accurately reflects the concept of scarcity? (Ch.1)...

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4 pages

Written in 2024/2025

Grade A+

Bestgrades2

What is economics about? correct answers scarcity and the choices we have to make because our desire for goods and services is far greater than their availability scarcity correct answers occurs whenever there is less of a good/resource freely available than people would like choice correct answers the act of selecting among alternatives resources correct answers ingredients, or inputs, that people use to produce goods and services what are the three general categories of resources? ...

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8 pages

Written in 2023/2024

Grade A+

SirAnton

Economics correct answers the social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity and the incentives that influence and reconcile those choices Microeconomics correct answers the study of choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments Macroeconomics correct answers the study of the performance of the national economy and the global economy ...

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9 pages

Written in 2023/2024

Grade A+

SirAnton

3 big economic questions correct answers 1. What: what and how much is produced? 2. How: how are goods and services produced? 3. Who: who will get the goods and services? 3 approaches to answering 3 big questions correct answers 1.Tradition approach: do what we've always done. 2. Command approach: government planners answer the questions. 3. Market-based approach: let prices, property rights, and markets answer the questions. (works best because it aligns the self-interest with the socia...

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11 pages

Written in 2023/2024

Grade A+

SirAnton

economics correct answers study of how we make choices under scarcity choice correct answers the act of selecting among alternatives scarcity correct answers the concept that there is less of a good freely available from nature than people would like -not the same thing as poverty -necessitate rationing-price is used -leads to competitive behavior rationing correct answers allocating scarce goods to those who want them resources correct answers an input that is used to produce a...

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15 pages

Written in 2023/2024

Grade A+

SirAnton

Adam Smith believed that if people were free to pursue their own interests correct answers public interest would be served quite well Andre, a wheat farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, Andre should add fertilizer if it costs less than correct answers $20 per pund The expression, "There's no such thing as a free lunch,...

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10 pages

Written in 2023/2024

Grade A+

SirAnton

a combination of goods on a given PPF is correct answers Both obtainable and Efficient For a normal good, if INCOME goes UP, what happens to supply? Demand? correct answers Demand shifts right and the supply remains unchanged For an inferior good, if INCOME goes UP, what happens to supply? Demand? correct answers Demand shifts left and the supply remains unchanged bananas and oranges are perfect substitutes. If the PRICE of bananas goes UP, what happens to the demand for oranges? the Su...

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5 pages

Written in 2023/2024

Grade A+

SirAnton

Scarcity correct answers - Unlimited wants exceed limited resources available to fulfill those wants Scarcity leads to choices - Choices result in tradeoffs Economics correct answers - The study of choices people make to attain their goals, give their scarce resources Three key economic ideas correct answers 1. People are rational 2. People respond to economic incentives 3. Optimal decisions are made at the margin Opportunity cost correct answers - Highest valued alternative that m...

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19 pages

Written in 2023/2024

Grade A+

SirAnton

Robert withdrew $100,000 from an account that paid 10 percent annual interest and used the funds to purchase real estate. After one year he sold the property for $120,000. Robert's economic profit on this deal was: a) $120,000 b) $100,000 c) $20,000 d) $10,000 correct answers D, $10,000 In the long run: a)some inputs are fixed. b) the firm is constrained in regard to what production decisions it can make. c) all inputs are variable. d) some inputs are variable and some are fixed. cor...

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6 pages

Written in 2023/2024

Grade A+

SirAnton

Law of diminishing marginal utility correct answers The basic economic principle that as the consumption of a product increases, the marginal utility derived from consuming more of it (per unit of time) will eventually decline marginal utility correct answers the additional utility, or satisfaction, derived from consuming an additional unit of a good marginal benefit correct answers the maximum price a consumer will be willing to pay for an additional unit of a product. It is the dollar va...

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5 pages

Written in 2023/2024

Grade A+

SirAnton