ECO 231 EXAM 1 Study Guide with verified
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answers
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Economics |primarily |deals |with |the |concept |of |__________. |- |✔✔💯scarcity
A |good |is |considered |scarce |in |a |society |when |everyone |in |that |society |can't |have |all |they |want. |-
|✔✔💯True
Economics |is |the |study |of |how |society |manages |its |____________ |____________. |- |✔✔💯scarce
|resources
List |the |four |factors |of |production. |- |✔✔💯land,labor,capital,entrepreneurship
Define |opportunity |cost. |- |✔✔💯what |you |give |up |in |order |to |gain |something |else
Define |marginal |change. |- |✔✔💯small,incremental |change
A |rational |decision |maker |takes |an |action |only |if |the |marginal |cost |is |greater |than |the |marginal
|benefit. |- |✔✔💯False
Give |an |example |of |a |marginal |change. |- |✔✔💯going |from |making |$7.25/hour |to |making |$9/hour
If |Shawn |can |produce |donuts |at |a |lower |opportunity |cost |than |Sue, |then |who |has |the |comparative
|advantage? |- |✔✔💯Shawn
The |country |that |has |the |_______ |advantage |in |a |product |should |export |that |product. |-
|✔✔💯comparative
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answers
|
Economics |primarily |deals |with |the |concept |of |__________. |- |✔✔💯scarcity
A |good |is |considered |scarce |in |a |society |when |everyone |in |that |society |can't |have |all |they |want. |-
|✔✔💯True
Economics |is |the |study |of |how |society |manages |its |____________ |____________. |- |✔✔💯scarce
|resources
List |the |four |factors |of |production. |- |✔✔💯land,labor,capital,entrepreneurship
Define |opportunity |cost. |- |✔✔💯what |you |give |up |in |order |to |gain |something |else
Define |marginal |change. |- |✔✔💯small,incremental |change
A |rational |decision |maker |takes |an |action |only |if |the |marginal |cost |is |greater |than |the |marginal
|benefit. |- |✔✔💯False
Give |an |example |of |a |marginal |change. |- |✔✔💯going |from |making |$7.25/hour |to |making |$9/hour
If |Shawn |can |produce |donuts |at |a |lower |opportunity |cost |than |Sue, |then |who |has |the |comparative
|advantage? |- |✔✔💯Shawn
The |country |that |has |the |_______ |advantage |in |a |product |should |export |that |product. |-
|✔✔💯comparative
