ECN 211 TEST BANK QUESTIONS WITH
VERIFIED ANSWERS FULL REVIEW
●● what do economists stdy?
Answer: how people make decisions about buying,selling, saving, and
investing
●● what is economics?
Answer: the study of how society manages scarce resources
- how people interact in markets where prices are determined and
quantities exchanged
●● 3 ways the principles are split
Answer: - how people make decisions
- how people interact
- how the economy works as a whole
●● How do people make decisions?
Answer: weighing trade-offs
●● what are trade-offs?
, Answer: to get more of something you like, you have to give up
something else you like
ex, guns and butter
●● what is cost?
Answer: what you give up to get something
●● what is a marginal change and who uses it?
Answer: an incremental change to an existing plan
- rational people use to make descisions
●● what are incentives?
Answer: induces someone to act
●● is trade a competition?
Answer: no, everyone can benefit
●● how is the economy organized?
Answer: market economy
●● what is a market economy?
Answer: decisions made by millions of firms/households
VERIFIED ANSWERS FULL REVIEW
●● what do economists stdy?
Answer: how people make decisions about buying,selling, saving, and
investing
●● what is economics?
Answer: the study of how society manages scarce resources
- how people interact in markets where prices are determined and
quantities exchanged
●● 3 ways the principles are split
Answer: - how people make decisions
- how people interact
- how the economy works as a whole
●● How do people make decisions?
Answer: weighing trade-offs
●● what are trade-offs?
, Answer: to get more of something you like, you have to give up
something else you like
ex, guns and butter
●● what is cost?
Answer: what you give up to get something
●● what is a marginal change and who uses it?
Answer: an incremental change to an existing plan
- rational people use to make descisions
●● what are incentives?
Answer: induces someone to act
●● is trade a competition?
Answer: no, everyone can benefit
●● how is the economy organized?
Answer: market economy
●● what is a market economy?
Answer: decisions made by millions of firms/households
