ECN 212 Exam 1- Ramirez De La Vina
Exam 2026 Questions and Answers
Graded A+
What is economics? - Correct answer-the study of how people make decisions with
limited resources
Microeconomics - Correct answer-the study of how households and firms make
decisions and how they interact in markets
Macroeconomics - Correct answer-the study of the economy as a whole, including
topics such as inflation, unemployment, and economic growth
Marginal Benefit - Correct answer-the additional or extra benefit associated with
an action
Marginal Cost - Correct answer-the cost of producing one more unit of a good
Trade Offs - Correct answer-Alternatives that must be given up when one is chosen
rather than another
, Opportunity Cost - Correct answer-Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another (total cost
included)
Trade can make everyone better off - Correct answer-Trade allows each person to
specialize in the activities he or she does best. By trading with others, people can
buy a greater variety of goods or services.
Incentives - Correct answer-a positive or negative environmental stimulus that
motivates behavior
Self-Interest - Correct answer-That which each firm, property owner, worker, and
consumer believes is best for itself and seeks to obtain.
Social Interest - Correct answer-The theory that regulation achieves an efficient
allocation of resources.
Production Possibilities Curve (PPC) - Correct answer-A curve representing all
possible combinations of maximum outputs that could be produced, assuming a
fixed amount of productive resources of a given quality.
Law of Increasing Opportunity Cost (see graph and table) - Correct answer-to
produce more of one good, a successively larger amount of the other good must be
sacrificed
Exam 2026 Questions and Answers
Graded A+
What is economics? - Correct answer-the study of how people make decisions with
limited resources
Microeconomics - Correct answer-the study of how households and firms make
decisions and how they interact in markets
Macroeconomics - Correct answer-the study of the economy as a whole, including
topics such as inflation, unemployment, and economic growth
Marginal Benefit - Correct answer-the additional or extra benefit associated with
an action
Marginal Cost - Correct answer-the cost of producing one more unit of a good
Trade Offs - Correct answer-Alternatives that must be given up when one is chosen
rather than another
, Opportunity Cost - Correct answer-Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another (total cost
included)
Trade can make everyone better off - Correct answer-Trade allows each person to
specialize in the activities he or she does best. By trading with others, people can
buy a greater variety of goods or services.
Incentives - Correct answer-a positive or negative environmental stimulus that
motivates behavior
Self-Interest - Correct answer-That which each firm, property owner, worker, and
consumer believes is best for itself and seeks to obtain.
Social Interest - Correct answer-The theory that regulation achieves an efficient
allocation of resources.
Production Possibilities Curve (PPC) - Correct answer-A curve representing all
possible combinations of maximum outputs that could be produced, assuming a
fixed amount of productive resources of a given quality.
Law of Increasing Opportunity Cost (see graph and table) - Correct answer-to
produce more of one good, a successively larger amount of the other good must be
sacrificed
