Intro to Microeconomics Exam 2025
With 100% Correct Answers
Microeconomics - CORRECT ANSWER✔✔Individual, Businesses and the role of Government in
decision making
Opportunity Cost - CORRECT ANSWER✔✔the most desirable alternative given up as the result
of a decision; moving along PPF line
- Increase opportunity cost = steeper line
Marginal Analysis - CORRECT ANSWER✔✔Comparing Benefits and Costs
Optimization - CORRECT ANSWER✔✔making the best feasible choice possible with given
information
Equilibrium - CORRECT ANSWER✔✔when everyone is optimizing; no
one would be better off with a different choice
Empiricism - CORRECT ANSWER✔✔using data to figure out answers to interesting questions
Utility - CORRECT ANSWER✔✔what makes you happy, that you're willing to spend money on
(extra shit)
Scarcity - CORRECT ANSWER✔✔every time you make a decision, you are giving up something
else (money for goods)
Profit - CORRECT ANSWER✔✔gain for business
, Rational Self Interest and Incentives - CORRECT ANSWER✔✔You have criteria when deciding,
can be assumed, best decision to make you happiest as possible
Model - CORRECT ANSWER✔✔a simplified representation of a real situation that is used to
better understand real-life situations.
Production Possibilities Frontier (PPF) - CORRECT ANSWER✔✔is a diagram that shows the
combinations of two goods that are possible for a society to produce using all available
resources:
Land, Labor, Economic Capital , Entrepreneur
Money - CORRECT ANSWER✔✔a medium of exchange
Land - CORRECT ANSWER✔✔- need a physical place to build, also resources like oil, trees, etc.
- Compensated by: Rent
Labor - CORRECT ANSWER✔✔- someone has to produce it (go to work)
- Compensated by: Wages
Economic Capital - CORRECT ANSWER✔✔- is a product or good that is used to produce other
goods. (software, machines, trucks)
- Compensated by: Interest
Entrepreneur - CORRECT ANSWER✔✔- The individual(s) that collect the other portions and
organize how this will lead to a produce. They are the risk takers because they cannot guarantee
that people will buy it, which will lead to no profit
- Compensated by: Profits
With 100% Correct Answers
Microeconomics - CORRECT ANSWER✔✔Individual, Businesses and the role of Government in
decision making
Opportunity Cost - CORRECT ANSWER✔✔the most desirable alternative given up as the result
of a decision; moving along PPF line
- Increase opportunity cost = steeper line
Marginal Analysis - CORRECT ANSWER✔✔Comparing Benefits and Costs
Optimization - CORRECT ANSWER✔✔making the best feasible choice possible with given
information
Equilibrium - CORRECT ANSWER✔✔when everyone is optimizing; no
one would be better off with a different choice
Empiricism - CORRECT ANSWER✔✔using data to figure out answers to interesting questions
Utility - CORRECT ANSWER✔✔what makes you happy, that you're willing to spend money on
(extra shit)
Scarcity - CORRECT ANSWER✔✔every time you make a decision, you are giving up something
else (money for goods)
Profit - CORRECT ANSWER✔✔gain for business
, Rational Self Interest and Incentives - CORRECT ANSWER✔✔You have criteria when deciding,
can be assumed, best decision to make you happiest as possible
Model - CORRECT ANSWER✔✔a simplified representation of a real situation that is used to
better understand real-life situations.
Production Possibilities Frontier (PPF) - CORRECT ANSWER✔✔is a diagram that shows the
combinations of two goods that are possible for a society to produce using all available
resources:
Land, Labor, Economic Capital , Entrepreneur
Money - CORRECT ANSWER✔✔a medium of exchange
Land - CORRECT ANSWER✔✔- need a physical place to build, also resources like oil, trees, etc.
- Compensated by: Rent
Labor - CORRECT ANSWER✔✔- someone has to produce it (go to work)
- Compensated by: Wages
Economic Capital - CORRECT ANSWER✔✔- is a product or good that is used to produce other
goods. (software, machines, trucks)
- Compensated by: Interest
Entrepreneur - CORRECT ANSWER✔✔- The individual(s) that collect the other portions and
organize how this will lead to a produce. They are the risk takers because they cannot guarantee
that people will buy it, which will lead to no profit
- Compensated by: Profits
