ECON 211 Exam 1 (UNL) Complete Guide Newest Version 2024/2025
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Course
ECON 211
Institution
ECON 211
Economists study.... - ANSWER all human behavior
Economic agent - ANSWER an individual or a group that makes choices
(examples: consumer eating bacon cheeseburger or tofu burger, parent enrolling child in public or private school)
scare resources - ANSWER things that people want, where...
ECON 211 Exam 1 (UNL) Complete
Guide Newest Version 2024/2025
Economists study.... - ANSWER all human behavior
Economic agent - ANSWER an individual or a group that makes choices
(examples: consumer eating bacon cheeseburger or tofu burger, parent enrolling child
in public or private school)
scare resources - ANSWER things that people want, where the quantity that people
want exceeds the quantity that is available
scarcity - ANSWER exists because people have unlimited wants in a world of limited
resources
economics - ANSWER the study of how agents choose to allocate scarce resources
and how those choices affect society
positive economics - ANSWER describes what people actually do
normative economics - ANSWER recommends what people ought to do
microeconomics - ANSWER the study of how individuals, households, firms, and
governments make choices and how those choices affect prices, the allocation of
resources and the well-being of other agents
macroeconomics - ANSWER the study of the economy as a whole
optimization - ANSWER people decide what to do by consciously or unconsciously
weighting all of the known pros and cons of the different available options and trying to
pick the best feasible option
equilibrium - ANSWER a situation in which no agent would benefit personally by
changing his or her own behavior
empiricism - ANSWER analysis that uses data or analysis that is evidence-based
trade-offs - ANSWER they arise when some benefits must be given up in order to gain
others
budget constraints - ANSWER the set of things that a person can choose to do (or
buy) without breaking her budget
opportunity costs - ANSWER the best alternative activity
, cost benefit analysis - ANSWER is a calculation that adds up costs and benefits using
a common unit of measurement, like dollars
market - ANSWER a group of economic agents who are trading a good or service, and
the rules and arrangements for trading
market price - ANSWER if all sellers and all buyers face the same price
perfectly competitive market - ANSWER 1. sellers all sell an identical good or service
2. any individual buyer or any individual seller isn't powerful enough on his or her own to
affect the market price
price-takers - ANSWER buyers and sellers accept the market price and can't bargain
for a better price
quantity demanded - ANSWER at a given price, the amount of the good or service that
buyers are willing to purchase
demand schedule - ANSWER the quantity demanded at different prices
"holding all else equal" - ANSWER everything other than the price of gas is help
constant or fixed, including income, rent and highway tolls
demand curve - ANSWER plots the relationship between prices and quantity
demanded
Law of Demand - ANSWER the quantity demanded rises when the price falls (holding
all else equal)
willingness to pay - ANSWER the highest price that a buyer is willing to pay for an
extra unit of a good
diminishing marginal benefit - ANSWER as you consume more of a good, your
willingness to pay for an additional unit declines
market demand curve - ANSWER the demand of all buyers in a market
the demand curve shifts only when.... - ANSWER the quantity demand changes at a
given price
normal good - ANSWER an increase in income causes the demand curve to shift to
the right (holding the good's price fixed)
inferior good - ANSWER rising income shirt the demand curve for a good to the left
(holding the good's price fixed)
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