Ecn 211 Exam 1 Updated Actual Questions And Correct Answers

ECN 211 EXAM 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question 1.
Economics

ANSWER
the study of how society manages its scarce resources



Question 2.
Macroeconomics

ANSWER
the study of economy-wide phenomena (ex. the federal deficit, the rate of unemployment and
policies to improve our standard of living)



Question 3.
Microeconomics

ANSWER
the study of how households and firms make decisions and how they interact in markets



Question 4.
Mixed Economies

ANSWER
a system with free markets, but with some government intervention (ex. U.S.)



Question 5.
Scarcity

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






, Question 6.
Resources

ANSWER
are scarce for economies and households



Question 7.
Property Rights

ANSWER
the ability of an individual to own and exercise control over scarce resources



Question 8.
Efficiency

ANSWER
society is getting the maximum benefits from its scarce resources or the size of the economic
pie



Question 9.
Equality

ANSWER
that benefits are distributed uniformly among society's members or how the pie is divided into
individual slices



Question 10.
Productivity

ANSWER
the amount of goods and services produced from each unit of labor input



Question 11.
Incentives

ANSWER
something that induces a person to act or change a behavior