economics correct answers social science concerned with making optimal choices under conditions of scarcity
-economics wants exceed productive capacity
economic perspective correct answers features of WHAT:
-scarcity and choice
-purposeful behavior
-marginal analysis
scarcity and choice c...
ECON 212 Exam 1 (Ch. 1, 2, 3, 4) QUESTIONS WITH
VERIFIED ANSWERS 100% CORRECT
economics correct answers social science concerned with making optimal choices under
conditions of scarcity
-economics wants exceed productive capacity
economic perspective correct answers features of WHAT:
-scarcity and choice
-purposeful behavior
-marginal analysis
scarcity and choice correct answers feature of econ. POV:
-resources= scarce,
-choices must be made
-opportunity cost (There's no free lunch)
purposeful behavior correct answers this feature of Econ POV. relies on
-rational self-interest
-individuals and utility
-firms and profit
-desired outcomes
marginal analysis correct answers feature of Econ POV considerations:
-marginal benefit/cost
-marginal= "extra"
-comparison between marginal benefit and cost
hypothesis, hypothesis, accept, reject, test correct answers steps of scientific method:
1. observe,
2. formulate a WHAT,
3. test the WHAT,
4. WHAT, WHAT, or modify the hypothesis,
5. continue to WHAT the hypothesis
Microeconomics correct answers study of individual units that make up the economy
Macroeconomics correct answers the study of the economy as a whole or the aggregate
individual's economic problem correct answers four parts of WHAT:
-limited income,
-unlimited wants,
-budget line,
-change in income
, budget line correct answers part of the economic problem:
-attainable and unattainable options
-trade-offs and opportunity costs
-make the best choice possible
beyond correct answers are unattainable options (individual's economic problem) beyond or
inside of the budget line?
inside correct answers are attainable options (individual's economic problem) beyond or
inside of the budget line?
society's economic problem correct answers two features of WHAT:
-scarce resources
-entrepreneurial ability
entrepreneurial ability correct answers examples of WHAT:
-takes initiative, makes decisions, innovates, takes risk
production possibilities model correct answers model that illustrates production choices
production possibilities model correct answers assumptions under what model:
-full employment, fixed resources, fixed technology, two goods
concave correct answers the law of increasing opportunity costs makes the production
possibilities curve WHAT SHAPE
law of increasing opportunity cost correct answers as production of a good increases, the
opportunity cost of producing an additional unit rises
unemployment, employment correct answers WHAT limits how much can be produced, and
moving toward full WHAT will increase output
inside correct answers production will be at a point (inside/outside) the PPC
economic growth correct answers WHAT comes from:
-more resources
-improved resource quality
-tech advances
economic systems correct answers set of institutional arrangements
-coordinating mechanism
-differences in systems
economic systems correct answers differences in WHAT exist by:
-who owns factors of production
-what method is used to motivate, coordinate, and direct econ. activity
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