ECN 001A FQ 24 (2025/2026)
Abstract
This document provides a complete collection of questions and correct answers
covering the full ECN 001A curriculum for Fall Quarter 2024. It includes foundational
concepts in microeconomics and macroeconomics, market structures, elasticity,
welfare economics, externalities, labor markets, game theory, and income inequality.
The material functions as a thorough study guide, ideal for exam preparation, chapter
review, and course mastery.
Prof Morris
For more info:
,Question 1
What is economics?
Correct Answer
the study of how individuals and societies satisfy their unlimited wants with limited resources
Question 2
What are the 5 foundations of economics?
Correct Answer
Incentives, Trade-Offs, Opportunity Costs, Marginal Thinking, Trade(is good)
Question 3
What is scarcity?
Correct Answer
the inherently limited nature of resources
Question 4
What is Microeconomics?
Correct Answer
Individual Units(households, businesses, towns, people) that make up the economy
Question 5
What is Macroeconomics?
Correct Answer
Study of overall aspects and workings of economy
Question 6
What is an Incentive?
Correct Answer
A factor that motivates someone to act or exert effort
Question 7
What are the types of incentives?
Correct Answer
Positive, Negative
Question 8
What are Trade-Offs?
Correct Answer
The act of giving up something to do something else
Question 9
What is an Opportunity Cost?
Correct Answer
the most desirable alternative given up as the result of a decision
For more info:
, Question 10
What is marginal thinking?
Correct Answer
Making decisions incrementally; evaluating weight of benefits compared to costs
Question 11
Why is trade good?
Correct Answer
People will participate in it; It is incredibly common
Question 12
What does the Circular Flow Diagram tell us?
Correct Answer
It shows how goods, services, and resources flow through households and markets
Question 13
What are the steps
Correct Answer
1. Observe Phenomenon 2. Develop Hypothesis 3. Construct Model 4. Robustness Check
Question 14
What are positive statements?
Correct Answer
Statements of fact that can be checked
Question 15
What are normative statements?
Correct Answer
Statements of what "should" be, value judgement made
Question 16
What is an economic model?
Correct Answer
a simplified version of reality used to analyze the complex real-world
Question 17
What is ceterius paribus?
Correct Answer
"All things held equal"; We can hold variables constant
Question 18
What are the two types of variables?
Correct Answer
For more info:
Abstract
This document provides a complete collection of questions and correct answers
covering the full ECN 001A curriculum for Fall Quarter 2024. It includes foundational
concepts in microeconomics and macroeconomics, market structures, elasticity,
welfare economics, externalities, labor markets, game theory, and income inequality.
The material functions as a thorough study guide, ideal for exam preparation, chapter
review, and course mastery.
Prof Morris
For more info:
,Question 1
What is economics?
Correct Answer
the study of how individuals and societies satisfy their unlimited wants with limited resources
Question 2
What are the 5 foundations of economics?
Correct Answer
Incentives, Trade-Offs, Opportunity Costs, Marginal Thinking, Trade(is good)
Question 3
What is scarcity?
Correct Answer
the inherently limited nature of resources
Question 4
What is Microeconomics?
Correct Answer
Individual Units(households, businesses, towns, people) that make up the economy
Question 5
What is Macroeconomics?
Correct Answer
Study of overall aspects and workings of economy
Question 6
What is an Incentive?
Correct Answer
A factor that motivates someone to act or exert effort
Question 7
What are the types of incentives?
Correct Answer
Positive, Negative
Question 8
What are Trade-Offs?
Correct Answer
The act of giving up something to do something else
Question 9
What is an Opportunity Cost?
Correct Answer
the most desirable alternative given up as the result of a decision
For more info:
, Question 10
What is marginal thinking?
Correct Answer
Making decisions incrementally; evaluating weight of benefits compared to costs
Question 11
Why is trade good?
Correct Answer
People will participate in it; It is incredibly common
Question 12
What does the Circular Flow Diagram tell us?
Correct Answer
It shows how goods, services, and resources flow through households and markets
Question 13
What are the steps
Correct Answer
1. Observe Phenomenon 2. Develop Hypothesis 3. Construct Model 4. Robustness Check
Question 14
What are positive statements?
Correct Answer
Statements of fact that can be checked
Question 15
What are normative statements?
Correct Answer
Statements of what "should" be, value judgement made
Question 16
What is an economic model?
Correct Answer
a simplified version of reality used to analyze the complex real-world
Question 17
What is ceterius paribus?
Correct Answer
"All things held equal"; We can hold variables constant
Question 18
What are the two types of variables?
Correct Answer
For more info:
