Economics assumes that people... correct answers are rational, self-interested, and respond to incentives
Economics is the study of correct answers how individuals, firms, and society make decisions to allocate limited resources during competing wants
Microeconomics is the study of correct an...
EC 111 Exam 1 UA || A+ Graded Already.
Economics assumes that people... correct answers are rational, self-interested, and respond to
incentives
Economics is the study of correct answers how individuals, firms, and society make decisions to
allocate limited resources during competing wants
Microeconomics is the study of correct answers decision making by individuals, businesses, and
industries
Macroeconomics is the study of correct answers broader issues in the economy such as inflation,
unemployment, and national output
Who makes macroeconomic policies correct answers government entities such as the federal
reserve, congress, and the president
Lawyers are discussing how to keep unemployment from rising in the coming year. Is this a
micro issue or a macro issue? correct answers macro
Executives at GM are discussing whether raising prices will generate more profit. Is this a micro
issue or a macro issue? correct answers micro
What are economic models? correct answers simplified versions of reality used to analyze real-
world economic situations
What does 'ceteris paribus' imply? correct answers all other relevant factors are held constant
Efficiency correct answers how well resources are used and allocated
Equity correct answers the fairness of various issues and policies
positive analysis correct answers questions based on the understanding of information or facts
normative analysis correct answers questions based on opinions or societal beliefs, ie. what
should(n't) take place
scarcity correct answers economics focuses on the allocation of resources to satisfy unlimited
wants with finite resources
opportunity cost correct answers the value of whatever you gave up to make a decision
the benefits of specialization correct answers individuals tend to work in careers most suited to
them
benefits of competition correct answers private markets force businesses to be efficient
, who is adam smith? correct answers He was the author of "The Wealth of Nations" and is known
as the father of modern economics.
what is marginal cost? correct answers the cost of producing one more unit of a good
3 basic economic questions correct answers 1. What to produce?
2. How to produce?
3. For whom to produce?
factors of production correct answers land, labor, capital, entrepreneurship
production efficiency correct answers goods and services are produced at their lowest
opportunity cost
allocative efficiency correct answers the mix of goods and services produced are exactly what
society desires
production possibilities frontier correct answers a graph that shows the combinations of output
that the economy can possibly produce given the available factors of production and the
available production technology
points to the left of the ppf are... correct answers attainable but inefficient
points to the right of the ppf are... correct answers unattainable
in a traditional ppf, opportunity cost ___________ as more product is produced correct answers
increases
ppf shifts to the right as an economy grows because... correct answers 1. expanding resources
2. improving technologies
absolute advantage correct answers the ability to produce more of a given product using a given
amount of resources
comparative advantage correct answers a country has a lower opportunity cost of producing a
good than another country
what is a business cycyle correct answers alternating increases and decreases in a country's
economic activity
what are the four phases of a business cycle correct answers peak, recession, trough, recovery
(also referred to as expansion)
whho officially dates the u.s. business cycle correct answers NBER(National Bureau of
Economic Research)
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