ECN 211 Midterm 1 Exam Questions With
Correct Answers
market |failure |- |CORRECT |ANSWER✔✔-a |situation |in |which |a |market |left |on |its |own |fails |to |
allocate |resources |efficiently
economics |- |CORRECT |ANSWER✔✔-the |study |of |how |society |manages |its |scarce |resources
incentive |- |CORRECT |ANSWER✔✔-something |that |induces |a |person |to |act
productivity |- |CORRECT |ANSWER✔✔-the |quantity |of |goods |and |services |produce |from |each |
unit |of |labor |input
opportunity |cost |- |CORRECT |ANSWER✔✔-whatever |must |be |given |up |to |obtain |some |item
externality |- |CORRECT |ANSWER✔✔-the |impact |of |one |person's |actions |on |the |well-being |of |a |
bystander
Rational |People |- |CORRECT |ANSWER✔✔-those |who |systematically |and |purposefully |do |the |
best |they |can |to |achieve |their |objectives
Scarcity |- |CORRECT |ANSWER✔✔-the |limited |nature |of |society's |resources
market |economy |- |CORRECT |ANSWER✔✔-an |economy |that |allocates |resources |through |the |
decentralized |decisions |of |many |firms |and |households |as |they |interact |in |markets |for |goods |
and |services
, business |cycle |- |CORRECT |ANSWER✔✔-fluctuations |in |economic |activity, |such |as |employment |
and |production
marginal |change |- |CORRECT |ANSWER✔✔-a |small |incremental |adjustment |to |a |plan |of |action
efficiency |- |CORRECT |ANSWER✔✔-the |property |of |society |getting |the |most |it |can |from |its |
scarce |resources
market |power |- |CORRECT |ANSWER✔✔-the |ability |of |a |single |economic |actor |(or |small |group |
of |actors) |to |have |a |substantial |influence |on |market |press
Equality |- |CORRECT |ANSWER✔✔-the |property |of |distributing |economic |prosperity |uniformly |
among |the |members |of |society
property |rights |- |CORRECT |ANSWER✔✔-the |ability |of |an |individual |to |own |and |exercise |
control |over |scarce |resources
Your |professor's |favorite |food |- |CORRECT |ANSWER✔✔-Cookies
circular-flow |diagram |- |CORRECT |ANSWER✔✔-a |visual |model |of |the |economy |that |shows |how |
dollars |flow |through |markets |among |households |and |firms
production |possibilities |frontier |- |CORRECT |ANSWER✔✔-a |graph |that |shows |the |combinations |
of |output |that |the |economy |can |possibly |produce |given |the |available |factors |of |production |
and |the |available |production |technology
microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |households |and |firms |make |
decisions |and |how |they |interact |in |markets
Correct Answers
market |failure |- |CORRECT |ANSWER✔✔-a |situation |in |which |a |market |left |on |its |own |fails |to |
allocate |resources |efficiently
economics |- |CORRECT |ANSWER✔✔-the |study |of |how |society |manages |its |scarce |resources
incentive |- |CORRECT |ANSWER✔✔-something |that |induces |a |person |to |act
productivity |- |CORRECT |ANSWER✔✔-the |quantity |of |goods |and |services |produce |from |each |
unit |of |labor |input
opportunity |cost |- |CORRECT |ANSWER✔✔-whatever |must |be |given |up |to |obtain |some |item
externality |- |CORRECT |ANSWER✔✔-the |impact |of |one |person's |actions |on |the |well-being |of |a |
bystander
Rational |People |- |CORRECT |ANSWER✔✔-those |who |systematically |and |purposefully |do |the |
best |they |can |to |achieve |their |objectives
Scarcity |- |CORRECT |ANSWER✔✔-the |limited |nature |of |society's |resources
market |economy |- |CORRECT |ANSWER✔✔-an |economy |that |allocates |resources |through |the |
decentralized |decisions |of |many |firms |and |households |as |they |interact |in |markets |for |goods |
and |services
, business |cycle |- |CORRECT |ANSWER✔✔-fluctuations |in |economic |activity, |such |as |employment |
and |production
marginal |change |- |CORRECT |ANSWER✔✔-a |small |incremental |adjustment |to |a |plan |of |action
efficiency |- |CORRECT |ANSWER✔✔-the |property |of |society |getting |the |most |it |can |from |its |
scarce |resources
market |power |- |CORRECT |ANSWER✔✔-the |ability |of |a |single |economic |actor |(or |small |group |
of |actors) |to |have |a |substantial |influence |on |market |press
Equality |- |CORRECT |ANSWER✔✔-the |property |of |distributing |economic |prosperity |uniformly |
among |the |members |of |society
property |rights |- |CORRECT |ANSWER✔✔-the |ability |of |an |individual |to |own |and |exercise |
control |over |scarce |resources
Your |professor's |favorite |food |- |CORRECT |ANSWER✔✔-Cookies
circular-flow |diagram |- |CORRECT |ANSWER✔✔-a |visual |model |of |the |economy |that |shows |how |
dollars |flow |through |markets |among |households |and |firms
production |possibilities |frontier |- |CORRECT |ANSWER✔✔-a |graph |that |shows |the |combinations |
of |output |that |the |economy |can |possibly |produce |given |the |available |factors |of |production |
and |the |available |production |technology
microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |households |and |firms |make |
decisions |and |how |they |interact |in |markets
