ECO 202 - Microeconomics Exam Questions with Correct Answers Latest Update 2025-2026
Economy - Answers Economic value of all activities within the society.
2 types of economics - Answers microeconomics and macroeconomics
Microeconomics - Answers About businesses and individuals in a particular society and working
together to produce goods and services.
Macroeconomics - Answers Includes not only businesses and individuals involvement but also
government involvement in producing goods and services globally.
5 resources needed to produce goods and services - Answers Natural, Human, Capital,
Entrepreneurship, and Knowledge
Two types of Economic Systems - Answers Free Market (Capitalism) , and Planned (Socialism,
and Communism)
Communism (planned) - Answers Uses all resources
Socialism (planned) - Answers "a little give and take", give a little to get a little.
What defines a rich country vs, a poor country? - Answers - Gross Domestic Product, and how
the country determines how to their resources are used.
-Economic Freedom/ Ownership- gives countries incentives to work and improve their private
properties ( if you own something take care of it).
Gross Domestic Product - Answers puts a dollar amount on all economic activities within
country.
Per Capita - Answers Take the "GDP" of the country and divide it by the population
Private property rights - Answers - do whatever you want with what you own so long as you don't
harm others.
- gives you the incentive to increase the value of what you own
Secure Private Property - Answers others cannot take or damage what you own without
compensation.
What can you do with private property? - Answers Create wealth
Eminent Domain Law - Answers if the state needs a piece of your property for public use, they
can take it so long as it benefits the region.
Does the Legal System protect our private property rights? - Answers yes
Economy - Answers Economic value of all activities within the society.
2 types of economics - Answers microeconomics and macroeconomics
Microeconomics - Answers About businesses and individuals in a particular society and working
together to produce goods and services.
Macroeconomics - Answers Includes not only businesses and individuals involvement but also
government involvement in producing goods and services globally.
5 resources needed to produce goods and services - Answers Natural, Human, Capital,
Entrepreneurship, and Knowledge
Two types of Economic Systems - Answers Free Market (Capitalism) , and Planned (Socialism,
and Communism)
Communism (planned) - Answers Uses all resources
Socialism (planned) - Answers "a little give and take", give a little to get a little.
What defines a rich country vs, a poor country? - Answers - Gross Domestic Product, and how
the country determines how to their resources are used.
-Economic Freedom/ Ownership- gives countries incentives to work and improve their private
properties ( if you own something take care of it).
Gross Domestic Product - Answers puts a dollar amount on all economic activities within
country.
Per Capita - Answers Take the "GDP" of the country and divide it by the population
Private property rights - Answers - do whatever you want with what you own so long as you don't
harm others.
- gives you the incentive to increase the value of what you own
Secure Private Property - Answers others cannot take or damage what you own without
compensation.
What can you do with private property? - Answers Create wealth
Eminent Domain Law - Answers if the state needs a piece of your property for public use, they
can take it so long as it benefits the region.
Does the Legal System protect our private property rights? - Answers yes
