Econ 231 Exam 1 || very Flawless.
Scarcity correct answers Lack of enough resources to satisfy all desired uses of those resources
Factors of production correct answers resource inputs used to produce goods and services, such
as land, labor, capital, and entrepreneurship
Economics correct answers the study of how best to allocate scarce resources among competing
uses
Opportunity Cost correct answers the most desired goods or services that are forgone to obtain
something else
Macroeconomics correct answers the study of aggregate economic behavior of the economy as a
whole/ study of the economy in motion
Ceteris paribus correct answers the assumption of nothing else changing
Production function correct answers relationship between economic resources and output Q= f
(land, labor, capital, entrepreneurship) reveals the limit to the level of output, given the amount
of economic resources
Unemployment rate correct answers unemployed/labor force
Inflation correct answers increase in the average price level
Production correct answers production of goods and services determines employment and
income
Business cycle correct answers alternating increases and decreases in output over time
Trade balance correct answers relationship between exports and imports
Trade surplus correct answers exports>imports
Trade deficit correct answers exports<imports
Production Possibilities correct answers amount of production that may occur given economic
resources and technology
Labor Productivity correct answers measure of how much a unit of labor input (LI) may produce
(output divided by LI)
Point outside PPC correct answers unattainable inside
Demand correct answers consumer willingness and ability to purchase output
Scarcity correct answers Lack of enough resources to satisfy all desired uses of those resources
Factors of production correct answers resource inputs used to produce goods and services, such
as land, labor, capital, and entrepreneurship
Economics correct answers the study of how best to allocate scarce resources among competing
uses
Opportunity Cost correct answers the most desired goods or services that are forgone to obtain
something else
Macroeconomics correct answers the study of aggregate economic behavior of the economy as a
whole/ study of the economy in motion
Ceteris paribus correct answers the assumption of nothing else changing
Production function correct answers relationship between economic resources and output Q= f
(land, labor, capital, entrepreneurship) reveals the limit to the level of output, given the amount
of economic resources
Unemployment rate correct answers unemployed/labor force
Inflation correct answers increase in the average price level
Production correct answers production of goods and services determines employment and
income
Business cycle correct answers alternating increases and decreases in output over time
Trade balance correct answers relationship between exports and imports
Trade surplus correct answers exports>imports
Trade deficit correct answers exports<imports
Production Possibilities correct answers amount of production that may occur given economic
resources and technology
Labor Productivity correct answers measure of how much a unit of labor input (LI) may produce
(output divided by LI)
Point outside PPC correct answers unattainable inside
Demand correct answers consumer willingness and ability to purchase output
