age 1 of 99
ECON 2020 EXAM 4 PREP 2025/2026 COMPLETE
QUESTIONS WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS <BRAND NEW VERSION>
Scarcity .......Answer.........refers to the limited nature of society's
resources given society's unlimited wants and needs
Economics .......Answer.........study of how people allocate their
limited resources to satisfy their nearly unlimited wants.
Microeconomics .......Answer.........study of the individual units that
make up the economy.
Macroeconomics .......Answer.........study of the overall aspects
and workings of an economy such as inflation, growth,
employment, interest rates, and the productivity of the economy
as a whole.
,age 2 of 99
Five foundations of economics .......Answer.........incentives, trade
offs, opportunity costs, marginal thinking, and the principle that
trade creates value.
Unconstrained vision .......Answer.........we have the resources
necessary to satisfy everybody
Constrained vision .......Answer.........we have unlimited desires but
limited resources
Incentives .......Answer.........factors that motivate you to act or to
exert effort.
Positive incentives .......Answer.........those that encourage action.
Negative incentives .......Answer.........encourage action.
Direct incentives .......Answer........."cut my grass and I'll pay you
$30" easy to recognize.
,age 3 of 99
Indirect incentives .......Answer.........harder to recognize. can
create an unintended consequence such as people staying on
welfare for longer than thought.
Opportunity cost .......Answer.........highest valued alternative that
must be sacrificed in order to get something else.
Economic thinking .......Answer.........purposeful evaluation of the
available opportunities to make the best decision possible. Think
at the margin
Marginal thinking .......Answer.........evaluate whether the benefit
of one more unit of something is greater than its cost.
Markets .......Answer.........bring buyers and sellers together to
exchange goods and services.
, age 4 of 99
Trade .......Answer.........voluntary exchange of goods and
services between two or more parties.
Comparative advantage .......Answer.........refers to the situation
where an individual, business, or country can produce at a lower
opporunity cost than a competitor can.
Positive statement .......Answer.........can be tested and validated.
"The unemployment rate is 7%" What economists are concerned
with,
Normative statement .......Answer.........cannot be tested or
validated. "what ought to be" "an unemployed worker should
recieve financial assistance to help make ends met" A matter of
opinion.
ECON 2020 EXAM 4 PREP 2025/2026 COMPLETE
QUESTIONS WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS <BRAND NEW VERSION>
Scarcity .......Answer.........refers to the limited nature of society's
resources given society's unlimited wants and needs
Economics .......Answer.........study of how people allocate their
limited resources to satisfy their nearly unlimited wants.
Microeconomics .......Answer.........study of the individual units that
make up the economy.
Macroeconomics .......Answer.........study of the overall aspects
and workings of an economy such as inflation, growth,
employment, interest rates, and the productivity of the economy
as a whole.
,age 2 of 99
Five foundations of economics .......Answer.........incentives, trade
offs, opportunity costs, marginal thinking, and the principle that
trade creates value.
Unconstrained vision .......Answer.........we have the resources
necessary to satisfy everybody
Constrained vision .......Answer.........we have unlimited desires but
limited resources
Incentives .......Answer.........factors that motivate you to act or to
exert effort.
Positive incentives .......Answer.........those that encourage action.
Negative incentives .......Answer.........encourage action.
Direct incentives .......Answer........."cut my grass and I'll pay you
$30" easy to recognize.
,age 3 of 99
Indirect incentives .......Answer.........harder to recognize. can
create an unintended consequence such as people staying on
welfare for longer than thought.
Opportunity cost .......Answer.........highest valued alternative that
must be sacrificed in order to get something else.
Economic thinking .......Answer.........purposeful evaluation of the
available opportunities to make the best decision possible. Think
at the margin
Marginal thinking .......Answer.........evaluate whether the benefit
of one more unit of something is greater than its cost.
Markets .......Answer.........bring buyers and sellers together to
exchange goods and services.
, age 4 of 99
Trade .......Answer.........voluntary exchange of goods and
services between two or more parties.
Comparative advantage .......Answer.........refers to the situation
where an individual, business, or country can produce at a lower
opporunity cost than a competitor can.
Positive statement .......Answer.........can be tested and validated.
"The unemployment rate is 7%" What economists are concerned
with,
Normative statement .......Answer.........cannot be tested or
validated. "what ought to be" "an unemployed worker should
recieve financial assistance to help make ends met" A matter of
opinion.
