Econ 101 Exam 1 Questions and Answers 100% Pass

Econ 101 Exam 1 Questions and

Answers 100% Pass


what is economics? - CORRECT ANSWER-study of how a society manages its

scarce resourses

resources - CORRECT ANSWER-input, factors of production

economy's resources - CORRECT ANSWER-1. labor

2. capital

3. natural resources

4. entrepreneurial ability

labor - CORRECT ANSWER-physical capital (machines, buildings, roads)

capital - CORRECT ANSWER-human capital (education, knowledge)

scarcity - CORRECT ANSWER-nobody can have everything they want

macroeconomics - CORRECT ANSWER-how to utilize these resources to better

the nation as a whole

the Decision Makers - CORRECT ANSWER-1. households

, 2. government

3. firms

4. rest of the world

households - CORRECT ANSWER-the consumers.they demand goods/services,

supply resources

firms & goverment - CORRECT ANSWER-demand resources, supply

goods/services

market - CORRECT ANSWER-any place where supply and demand come

together

Production Possibility Curve/Frontier - CORRECT ANSWER-graph showing

various combos of output that economy can produce given its resources & tech

opportunity cost - CORRECT ANSWER-what you give up to get a specific item

demand - CORRECT ANSWER-how much of a good customers are able/willing

to purchase at all possible prices

quantity of demand - CORRECT ANSWER-how much of a good customers are

able and willing to purchase at a particular price (point on demand curve)

law of demand - CORRECT ANSWER-Cetirus peribus: as prices go up, quantity

of demand goes down (holding everything else constant)




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