ECO 111 midterm questions well
answered graded A+ 2025/2026
unlimited wants
limited economic resources - correct answer ✔✔what two facts provide the basics foundation
for the field of economics?
land or natural resources
labor or human resources
capital
entrepreneurship - correct answer ✔✔what are the four economic resources?
minerals, forest (trees), oil deposit, water resources - correct answer ✔✔what are examples of
land or natural resources? i.e. gifts of nature
unskilled human efforts - correct answer ✔✔what is an example of labor or human resources?
money - correct answer ✔✔what is NOT an example of capital
tools, machinery, buildings, transportation, construction, human capital (knowledge and skills) -
correct answer ✔✔what are examples of capital?
ability to manage economic resources - correct answer ✔✔what is an example of
entrepreneurship?
, economics - correct answer ✔✔study of how to allocate our limited resources among unlimited
wants
economic problems - correct answer ✔✔all of the following are examples of what?
-unemployment, inflation, budget deficit, trade deficit, unfair income distribution, monopoly,
stock market, national debt
solutions to economic problems - correct answer ✔✔all of the following are examples of what?
-full employment, stable prices, balanced budget, balanced trade, fair, competition
economic policies - correct answer ✔✔what is in between economic problems and solutions?
primary purpose of economics - correct answer ✔✔the following is what?
-to formulate some policies in order to cope with the economic problems
microeconomics - correct answer ✔✔the study of an individual unit in the economy, such as
behavior of an individual market (oil market, computer market)
macroeconomics - correct answer ✔✔the study of economy as a whole
method of economics - correct answer ✔✔economics asks and attempts to answer two kinds of
questions: positive and normative
positive statements - correct answer ✔✔deals with facts (without value judgement)
ex. unemployment rate= 7.8%
normative statements - correct answer ✔✔involves value judgements; statements about what
ought to be
answered graded A+ 2025/2026
unlimited wants
limited economic resources - correct answer ✔✔what two facts provide the basics foundation
for the field of economics?
land or natural resources
labor or human resources
capital
entrepreneurship - correct answer ✔✔what are the four economic resources?
minerals, forest (trees), oil deposit, water resources - correct answer ✔✔what are examples of
land or natural resources? i.e. gifts of nature
unskilled human efforts - correct answer ✔✔what is an example of labor or human resources?
money - correct answer ✔✔what is NOT an example of capital
tools, machinery, buildings, transportation, construction, human capital (knowledge and skills) -
correct answer ✔✔what are examples of capital?
ability to manage economic resources - correct answer ✔✔what is an example of
entrepreneurship?
, economics - correct answer ✔✔study of how to allocate our limited resources among unlimited
wants
economic problems - correct answer ✔✔all of the following are examples of what?
-unemployment, inflation, budget deficit, trade deficit, unfair income distribution, monopoly,
stock market, national debt
solutions to economic problems - correct answer ✔✔all of the following are examples of what?
-full employment, stable prices, balanced budget, balanced trade, fair, competition
economic policies - correct answer ✔✔what is in between economic problems and solutions?
primary purpose of economics - correct answer ✔✔the following is what?
-to formulate some policies in order to cope with the economic problems
microeconomics - correct answer ✔✔the study of an individual unit in the economy, such as
behavior of an individual market (oil market, computer market)
macroeconomics - correct answer ✔✔the study of economy as a whole
method of economics - correct answer ✔✔economics asks and attempts to answer two kinds of
questions: positive and normative
positive statements - correct answer ✔✔deals with facts (without value judgement)
ex. unemployment rate= 7.8%
normative statements - correct answer ✔✔involves value judgements; statements about what
ought to be
