ECO 111 final Exam questions n
answers rated A+ passed
Economics - correct answer ✔✔the study of how society manages its scarce resources
Microeconomics - correct answer ✔✔the study of the economic behavior and decision making
of small units, such as individuals, families, and businesses
Macroeconomics - correct answer ✔✔the study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Scarcity - correct answer ✔✔A situation in which unlimited wants exceed the limited resources
available to fulfill those wants
factors of production - correct answer ✔✔land, labor, capital, natural resoruces,
entrepreneurial skills
Three Fundamental Economic Questions - correct answer ✔✔1. What to produce?
2. How to produce?
3. For whom to produce?
Three economic systems - correct answer ✔✔centrally planned/socialistic economy
free market/capitalistic economy
mixed economy
, centrally planned economy - correct answer ✔✔an economy in which the government decides
how economic resources will be allocated
free market - correct answer ✔✔An economic system in which prices and wages are
determined by unrestricted competition between businesses, without government regulation or
fear of monopolies.
mixed economy - correct answer ✔✔An economy in which private enterprise exists in
combination with a considerable amount of government regulation and promotion.
PPF (Production Possibilities Frontier) - correct answer ✔✔a curve that shows the maximum
quantity of one good that can be produced for each possible quantity of another good produced
Slope of PPF - correct answer ✔✔tells you the opportunity cost of one good in terms of the
other
Indicated by the opportunity cost of production
Factors that can cause shift in PPF - correct answer ✔✔technological process, economic growth
Demand - correct answer ✔✔the desire to own something and the ability to pay for it
demand and supply model - correct answer ✔✔to facilitate an analysis of market conditions
and any observed change in price
based on assumption of eprfect competition
answers rated A+ passed
Economics - correct answer ✔✔the study of how society manages its scarce resources
Microeconomics - correct answer ✔✔the study of the economic behavior and decision making
of small units, such as individuals, families, and businesses
Macroeconomics - correct answer ✔✔the study of economy-wide phenomena, including
inflation, unemployment, and economic growth
Scarcity - correct answer ✔✔A situation in which unlimited wants exceed the limited resources
available to fulfill those wants
factors of production - correct answer ✔✔land, labor, capital, natural resoruces,
entrepreneurial skills
Three Fundamental Economic Questions - correct answer ✔✔1. What to produce?
2. How to produce?
3. For whom to produce?
Three economic systems - correct answer ✔✔centrally planned/socialistic economy
free market/capitalistic economy
mixed economy
, centrally planned economy - correct answer ✔✔an economy in which the government decides
how economic resources will be allocated
free market - correct answer ✔✔An economic system in which prices and wages are
determined by unrestricted competition between businesses, without government regulation or
fear of monopolies.
mixed economy - correct answer ✔✔An economy in which private enterprise exists in
combination with a considerable amount of government regulation and promotion.
PPF (Production Possibilities Frontier) - correct answer ✔✔a curve that shows the maximum
quantity of one good that can be produced for each possible quantity of another good produced
Slope of PPF - correct answer ✔✔tells you the opportunity cost of one good in terms of the
other
Indicated by the opportunity cost of production
Factors that can cause shift in PPF - correct answer ✔✔technological process, economic growth
Demand - correct answer ✔✔the desire to own something and the ability to pay for it
demand and supply model - correct answer ✔✔to facilitate an analysis of market conditions
and any observed change in price
based on assumption of eprfect competition
