ECO 2023 Final Exam || with 100% Error-free Solutions.

Scarcity correct answers - Unlimited wants exceed limited resources available to fulfill those wants Scarcity leads to choices - Choices result in tradeoffs Economics correct answers - The study of choices people make to attain their goals, give their scarce resources Three key economic ideas correct answers 1. People are rational 2. People respond to economic incentives 3. Optimal decisions are made at the margin Opportunity cost correct answers - Highest valued alternative that must be given up to engage in an activity. Ex: I could be playing video games instead of studying for this exam. Three fundamental questions every society must answer: correct answers - What goods and services to produce? - How to produce the goods and services? - Who will receive the goods and services? Centrally planned economies correct answers - Government decides how economics resources will be allocated Market economies correct answers - Households & firms interacting in markets allocate economic resources Mixed economies correct answers - Decisions made by buyers & sellers, government plays a role in allocating resources Positive economics correct answers "what is" Can be tested. Ex: Government-funded healthcare surges public expenditures Normative economics correct answers "what ought to be" Cannot be tested. Microeconomics correct answers Study of how individuals, households, and firms make choices and interact in markets. correct answers Macroeconomics correct answers