Survey of Economics. Chapters 1-5 Exam Question & Answers 2025.docx

Survey of Economics. Chapters 1-5
Exam Question & Answers 2025
scarcity - CORRECT ANSWERS ✔✔the resources we use to produce
goods and services are limited


economics - CORRECT ANSWERS ✔✔the study of choices when
there is scarcity


factors of production - CORRECT ANSWERS ✔✔the resources used
to produce goods and services


natural resources - CORRECT ANSWERS ✔✔provided by nature


labor - CORRECT ANSWERS ✔✔human effort used to produce
goods and services


physical capital - CORRECT ANSWERS ✔✔the stock of equipment
machines, structures, and infrastructure used to produce goods and
services


human capital - CORRECT ANSWERS ✔✔the knowledge and skills
acquired by a worker through education and experience to produce
goods and services

, Survey of Economics. Chapters 1-5
Exam Question & Answers 2025
entrepreneurship - CORRECT ANSWERS ✔✔the effort used to
coordinate the factors of production, natural resources, labor, physical
capital and human capitol to produce and sell products


positive analysis - CORRECT ANSWERS ✔✔answers to the question
"what is?" or "what will be?"


normative analysis - CORRECT ANSWERS ✔✔answer the question
"what ought to be?"


economic model - CORRECT ANSWERS ✔✔simplified
representation of an economic environment, often employing a graph


variable - CORRECT ANSWERS ✔✔a measure of something that can
take on different values


ceteris paribus - CORRECT ANSWERS ✔✔all other variables are
fixed


marginal change - CORRECT ANSWERS ✔✔a small, one-unit
change in value