ECON 211 Exam #1 Questions with
Correct Answers
Economics |- |CORRECT |ANSWER✔✔-social |science |concerned |with |using |scarce |resources |to
|obtain |the
maximum |satisfaction |of |the |unlimited |material |wants |of |society
3 |features |of |economics |- |CORRECT |ANSWER✔✔-#1 |Scarcity |and |Choice
#2 |Purposeful |Behavior
|
#3 |Marginal |benefits |& |costs
|
Scarcity |is |the |conflict |between |- |CORRECT |ANSWER✔✔-relatively |unlimited |wants |vs |relatively
|limited |resources
Scarcity |- |CORRECT |ANSWER✔✔-restricts |options |and |demands |choices |(forces |people |to
|make |a |choice)
Opportunity |cost |- |CORRECT |ANSWER✔✔-to |obtain |more |of |one |thing, |society |forgoes |the
|opportunity |of |getting |the |next |best |thing |(cost |is |the |value |of |the |next |best |alternative |that
|was |not |chosen)
Utility |- |CORRECT |ANSWER✔✔-the |pleasure, |happiness, |or |satisfaction |obtained |from
|consuming |a |good |or |service
Purposeful |behavior |- |CORRECT |ANSWER✔✔-people |make |designs |with |some |desired
|outcome |in |mind
,Marginal |analysis |- |CORRECT |ANSWER✔✔-comparisons |of |marginal |benefits |and |marginal
|costs, |usually |for |decision |making
Marginal |- |CORRECT |ANSWER✔✔-extra, |additional, |change |in
Economic |principle |- |CORRECT |ANSWER✔✔-statement |about |economic |behavior |or |the
|economy |that |enables |prediction |of |the |probable |effects |of |certain |actions
Purposeful |simplifications |- |CORRECT |ANSWER✔✔-theories, |principles |and |models
Generalizations |- |CORRECT |ANSWER✔✔-economic |principles |are |_____ |relating |to |economic
|behavior |or |the |economy |itself
Other-things-equal |assumptions |- |CORRECT |ANSWER✔✔-the |assumption |that |factors |other
|than |those |being |considered |do |not |change
Graphical |expression |- |CORRECT |ANSWER✔✔-the |way |economist |express |many |findings
Microeconomics |- |CORRECT |ANSWER✔✔-decision |making |by |individual |customers, |workers,
|household |and |business |firms
Macroeconomics |- |CORRECT |ANSWER✔✔-examine |the |performance |and |behavior |of |the
|economy |as |a |whole
Rational |self-interest |- |CORRECT |ANSWER✔✔--Allocate |resources |to |maximize |satisfaction |or
|utility
-Weigh |the |benefits |and |costs
, Scientific |Method |- |CORRECT |ANSWER✔✔--Observe |facts |& |behavior |
-Form |a |hypothesis
-Test |a |hypothesis
-Develop |an |economic |theory |based |on |favorable |results
Economic |Theory |- |CORRECT |ANSWER✔✔-Generalizations |about |how |people |behave |or
|economy |works
Aggregate |- |CORRECT |ANSWER✔✔-collection |of |a |specific |economic |units |treated |as |they
|were |one
Economic |Policy |- |CORRECT |ANSWER✔✔--Course |of |action |based |on |economic |theories
-Policies |to |help |achieve |economic |goal(s).
Macroeconomic |Goals |- |CORRECT |ANSWER✔✔--Economic |growth |
-Full |employment |
-Control |inflation
Positive |Economics |- |CORRECT |ANSWER✔✔--Use |the |scientific |method |to
explain |what |is |or |why |it |is |
-Study |cause |and |effect
Normative |Economics |- |CORRECT |ANSWER✔✔--Is |an |opinion |or |value |judgment
of |what |should |or |ought |to |be |
-Supports |an |economic |policy
Correct Answers
Economics |- |CORRECT |ANSWER✔✔-social |science |concerned |with |using |scarce |resources |to
|obtain |the
maximum |satisfaction |of |the |unlimited |material |wants |of |society
3 |features |of |economics |- |CORRECT |ANSWER✔✔-#1 |Scarcity |and |Choice
#2 |Purposeful |Behavior
|
#3 |Marginal |benefits |& |costs
|
Scarcity |is |the |conflict |between |- |CORRECT |ANSWER✔✔-relatively |unlimited |wants |vs |relatively
|limited |resources
Scarcity |- |CORRECT |ANSWER✔✔-restricts |options |and |demands |choices |(forces |people |to
|make |a |choice)
Opportunity |cost |- |CORRECT |ANSWER✔✔-to |obtain |more |of |one |thing, |society |forgoes |the
|opportunity |of |getting |the |next |best |thing |(cost |is |the |value |of |the |next |best |alternative |that
|was |not |chosen)
Utility |- |CORRECT |ANSWER✔✔-the |pleasure, |happiness, |or |satisfaction |obtained |from
|consuming |a |good |or |service
Purposeful |behavior |- |CORRECT |ANSWER✔✔-people |make |designs |with |some |desired
|outcome |in |mind
,Marginal |analysis |- |CORRECT |ANSWER✔✔-comparisons |of |marginal |benefits |and |marginal
|costs, |usually |for |decision |making
Marginal |- |CORRECT |ANSWER✔✔-extra, |additional, |change |in
Economic |principle |- |CORRECT |ANSWER✔✔-statement |about |economic |behavior |or |the
|economy |that |enables |prediction |of |the |probable |effects |of |certain |actions
Purposeful |simplifications |- |CORRECT |ANSWER✔✔-theories, |principles |and |models
Generalizations |- |CORRECT |ANSWER✔✔-economic |principles |are |_____ |relating |to |economic
|behavior |or |the |economy |itself
Other-things-equal |assumptions |- |CORRECT |ANSWER✔✔-the |assumption |that |factors |other
|than |those |being |considered |do |not |change
Graphical |expression |- |CORRECT |ANSWER✔✔-the |way |economist |express |many |findings
Microeconomics |- |CORRECT |ANSWER✔✔-decision |making |by |individual |customers, |workers,
|household |and |business |firms
Macroeconomics |- |CORRECT |ANSWER✔✔-examine |the |performance |and |behavior |of |the
|economy |as |a |whole
Rational |self-interest |- |CORRECT |ANSWER✔✔--Allocate |resources |to |maximize |satisfaction |or
|utility
-Weigh |the |benefits |and |costs
, Scientific |Method |- |CORRECT |ANSWER✔✔--Observe |facts |& |behavior |
-Form |a |hypothesis
-Test |a |hypothesis
-Develop |an |economic |theory |based |on |favorable |results
Economic |Theory |- |CORRECT |ANSWER✔✔-Generalizations |about |how |people |behave |or
|economy |works
Aggregate |- |CORRECT |ANSWER✔✔-collection |of |a |specific |economic |units |treated |as |they
|were |one
Economic |Policy |- |CORRECT |ANSWER✔✔--Course |of |action |based |on |economic |theories
-Policies |to |help |achieve |economic |goal(s).
Macroeconomic |Goals |- |CORRECT |ANSWER✔✔--Economic |growth |
-Full |employment |
-Control |inflation
Positive |Economics |- |CORRECT |ANSWER✔✔--Use |the |scientific |method |to
explain |what |is |or |why |it |is |
-Study |cause |and |effect
Normative |Economics |- |CORRECT |ANSWER✔✔--Is |an |opinion |or |value |judgment
of |what |should |or |ought |to |be |
-Supports |an |economic |policy
