ECN 211 Exam 1 Questions With Correct
Answers
Economics |- |CORRECT |ANSWER✔✔-the |study |of |how |society |manages |its |scarce |resources
Macroeconomics |- |CORRECT |ANSWER✔✔-the |study |of |economy-wide |phenomena |(ex. |the |
federal |deficit, |the |rate |of |unemployment |and |policies |to |improve |our |standard |of |living)
Microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |households |and |firms |make |
decisions |and |how |they |interact |in |markets
Mixed |Economies |- |CORRECT |ANSWER✔✔-a |system |with |free |markets, |but |with |some |
government |intervention |(ex. |U.S.)
Scarcity |- |CORRECT |ANSWER✔✔-there |is |not |enough |of |something |to |go |around |for |everyone |
to |have |as |much |as |they |want |of |it |at |a |zero |price
Resources |- |CORRECT |ANSWER✔✔-are |scarce |for |economies |and |households
Property |Rights |- |CORRECT |ANSWER✔✔-the |ability |of |an |individual |to |own |and |exercise |
control |over |scarce |resources
Efficiency |- |CORRECT |ANSWER✔✔-society |is |getting |the |maximum |benefits |from |its |scarce |
resources |or |the |size |of |the |economic |pie
Equality |- |CORRECT |ANSWER✔✔-that |benefits |are |distributed |uniformly |among |society's |
members |or |how |the |pie |is |divided |into |individual |slices
, Productivity |- |CORRECT |ANSWER✔✔-the |amount |of |goods |and |services |produced |from |each |
unit |of |labor |input
Incentives |- |CORRECT |ANSWER✔✔-something |that |induces |a |person |to |act |or |change |a |
behavior
Cost |- |CORRECT |ANSWER✔✔-money, |time, |activities, |etc. |you |give |up
Opportunity |Cost |- |CORRECT |ANSWER✔✔-whatever |you |give |up |to |get |something |else
Marginal |Benefit |- |CORRECT |ANSWER✔✔-the |benefit/revenue |of |producing |an |item |or |of |a |
choice
Marginal |Thinking |- |CORRECT |ANSWER✔✔-if |the |benefits |of |your |choice |outway |the |cost |of |it
Marginal |Cost |- |CORRECT |ANSWER✔✔-the |cost |of |producing |an |item |or |of |a |choice
Trade-offs |- |CORRECT |ANSWER✔✔--"There |ain't |no |such |thing |as |a |free |lunch."
-To |get |more |of |one |thing |we |have |to |give |up |something |else
-Guns |and |butter |(defense |or |social |programs)
Trade-off |between |equality |and |efficiency |- |CORRECT |ANSWER✔✔-taxes |and |welfare |make |us |
more |equal |but |reduce |incentives |for |hard |work, |lowering |total |output
Trade-off |between |inflation |and |unemployment |- |CORRECT |ANSWER✔✔-an |increase |in |the |
quantity |of |money |stimulates |spending, |which |raises |both |prices |and |production
The |increase |in |production |requires |more |hiring, |which |reduces |unemployment.
Answers
Economics |- |CORRECT |ANSWER✔✔-the |study |of |how |society |manages |its |scarce |resources
Macroeconomics |- |CORRECT |ANSWER✔✔-the |study |of |economy-wide |phenomena |(ex. |the |
federal |deficit, |the |rate |of |unemployment |and |policies |to |improve |our |standard |of |living)
Microeconomics |- |CORRECT |ANSWER✔✔-the |study |of |how |households |and |firms |make |
decisions |and |how |they |interact |in |markets
Mixed |Economies |- |CORRECT |ANSWER✔✔-a |system |with |free |markets, |but |with |some |
government |intervention |(ex. |U.S.)
Scarcity |- |CORRECT |ANSWER✔✔-there |is |not |enough |of |something |to |go |around |for |everyone |
to |have |as |much |as |they |want |of |it |at |a |zero |price
Resources |- |CORRECT |ANSWER✔✔-are |scarce |for |economies |and |households
Property |Rights |- |CORRECT |ANSWER✔✔-the |ability |of |an |individual |to |own |and |exercise |
control |over |scarce |resources
Efficiency |- |CORRECT |ANSWER✔✔-society |is |getting |the |maximum |benefits |from |its |scarce |
resources |or |the |size |of |the |economic |pie
Equality |- |CORRECT |ANSWER✔✔-that |benefits |are |distributed |uniformly |among |society's |
members |or |how |the |pie |is |divided |into |individual |slices
, Productivity |- |CORRECT |ANSWER✔✔-the |amount |of |goods |and |services |produced |from |each |
unit |of |labor |input
Incentives |- |CORRECT |ANSWER✔✔-something |that |induces |a |person |to |act |or |change |a |
behavior
Cost |- |CORRECT |ANSWER✔✔-money, |time, |activities, |etc. |you |give |up
Opportunity |Cost |- |CORRECT |ANSWER✔✔-whatever |you |give |up |to |get |something |else
Marginal |Benefit |- |CORRECT |ANSWER✔✔-the |benefit/revenue |of |producing |an |item |or |of |a |
choice
Marginal |Thinking |- |CORRECT |ANSWER✔✔-if |the |benefits |of |your |choice |outway |the |cost |of |it
Marginal |Cost |- |CORRECT |ANSWER✔✔-the |cost |of |producing |an |item |or |of |a |choice
Trade-offs |- |CORRECT |ANSWER✔✔--"There |ain't |no |such |thing |as |a |free |lunch."
-To |get |more |of |one |thing |we |have |to |give |up |something |else
-Guns |and |butter |(defense |or |social |programs)
Trade-off |between |equality |and |efficiency |- |CORRECT |ANSWER✔✔-taxes |and |welfare |make |us |
more |equal |but |reduce |incentives |for |hard |work, |lowering |total |output
Trade-off |between |inflation |and |unemployment |- |CORRECT |ANSWER✔✔-an |increase |in |the |
quantity |of |money |stimulates |spending, |which |raises |both |prices |and |production
The |increase |in |production |requires |more |hiring, |which |reduces |unemployment.
