What is economics? correct answers Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices.
Microeconomics correct answers Microeconomics...
ECON - Chapter 1(Correct answers)
What is economics? correct answers Economics is the social science that studies the choices that
individuals, businesses, governments, and entire societies make as they cope with scarcity and the
incentives that influence and reconcile those choices.
Microeconomics correct answers Microeconomics is the study of choices that individuals and businesses
make, the way those choices interact in markets, and the influence of governments.
Macroeconomics correct answers Macroeconomics is the study of the performance of the national
economy and the global economy.
Factors of Production correct answers Land, Labor, Capital, and Entrepreneuship
What does each FOP earn? correct answers 1. Land earns rent.
2. Labor earns wages.
3. Capital earns interest.
4. Entrepreneurship earns profit.
Efficiency correct answers Resource use is efficient if it is not possible to make someone better off
without making someone worse off.
6 Key Ideas in Economic Thinking correct answers 1. A choice is a tradeoff.
2. People make rational choices, comparing costs and benefits.
3. Benefit is what you gain from something.
4. Cost is what you must give up to get something.
5. Most choices are "how much" choices; they are made at the margin.
6. Choices respond to incentives.
economic model correct answers An economic model is a description of some aspect of the economic
world that includes only the factors that are needed for the purpose at hand.
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