ECN 211 Exam 1 2026 Questions and
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
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, 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
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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
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
