Define economics correct answers *allocation of scarce resources
The study of economics is primarily concerned with: correct answers *choices that are made seeking the best use of resources
What is the economizing problem? correct answers *unlimited needs & wants
*scarce resources
What...
ECON Test 1 Questions & Answers(100% Guaranteed)
Define economics correct answers *allocation of scarce resources
The study of economics is primarily concerned with: correct answers *choices that are made seeking the
best use of resources
What is the economizing problem? correct answers *unlimited needs & wants
*scarce resources
What is purposeful behavior? correct answers *people behave in ways to INCREASE UTILITY
What does utility mean? correct answers *pleasure, satisfaction
How do rational people behave? correct answers *in ways to INCREASE UTILITY or satisfaction
What is the invisible hand? correct answers *self-interest underlies purposeful behavior
What is positive economics? correct answers *FACTS, price goes up for generators when a hurricane
comes
*deals w/what economy is ACTUALLY like
What is normative economics? correct answers *VALUE JUDGEMENT, price shouldn't go up during a
hurricane as that's wrong
*what OUGHT to be
What kind of economics is the state of VA practicing? correct answers *normative economics
, What is macroeconomics? correct answers *examines PERFORMANCE & BEHAVIOR of the economy
as a whole
*study of ENTIRE ECONOMY or aggregate
*focuses attention on:
-economic growth
-business cycle
-interest rates
-inflation
-behavior of gov't, household, and business sectors
What is microeconomics? correct answers *DETAILED, inside of businesses to make them behave in a
certain way
*concerned with DECISION MAKING by individual customers, business firms, and market
What is marginal benefit? correct answers *the desire to go to a movie, the benefit you get out of
something
What is marginal cost? correct answers *how much a movie is, the cost you have to pay to get to the
benefit
What is marginal analysis? correct answers *comparing marginal benefit to marginal cost
Marginal means what? correct answers next
You should go see a movie if:
a.) marginal costs exceed the marginal benefit
b.) marginal benefit exceed the marginal costs correct answers b.) marginal benefit exceed the marginal
costs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sh3rrymagdah. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.59. You're not tied to anything after your purchase.
