Economics correct answers the social science that studies how individuals, institutions and society make optimal choices under conditions of scarcity.
Scarcity correct answers limited resources
Opportunity Cost correct answers the lost or forgoing of the next best thing to recieve an addition...
ECON 100 Exam #1 || A+ GRADED
Economics correct answers the social science that studies how individuals, institituions and
society make optimal choices under conditions of scarcity.
Scarcity correct answers limited resources
Opportunity Cost correct answers the lost or forgoing of the next best thing to recieve an
additional unit of something
Utility correct answers the benefit an indicidual recieves from the consumption of a good or
service
Marginal Cost correct answers the cost of consumption of one additoinal unit
Marginal Benefit correct answers the benefit of hte consumption of one additional unit
Positive Economics correct answers describes the economy as it actually is, avoiding value
judgments and attempting to establish scientific statements about economic behavior
Normative Economics correct answers involves value judgments about what the economy
should be like and the desirability of the policy options available
Budget Line correct answers the combinations of goods/services that a consumer can
purchase given current prices with his/her income
Capital Goods correct answers goods purchased by firms that aid in future produciton of
other goods
PPF Curve correct answers a curve that depicts the maximum output of an economy,
devoting its production to two goods under fixed resources and technology
Law of Increasing Opportunity Cost correct answers as produciton of a good increases so
does cost associated with the production of that good
Command System correct answers an economic system where production and use of
resources is centrally planned
Market System correct answers an economic system where production and use of resources is
dependent on the market
The Invisible Hand correct answers a theory by Adam Smith that says markets guided by self
interest and competition can lead to an efficient allocation of resources
Laissez-faire correct answers economic concept promoting a self-regulating economy
Market correct answers a mechanism that allows for bers and sellers to meet and exchange
goods and services
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