Define economics correct answers *allocation of scarce resources
The study of economics is primarily concerned with: correct answers *choices that are made seeking the best use of resources
What is the economizing problem? correct answers *unlimited needs & wants
*scarce resources
What...
ECON Test 1 Questions & Answers(100% Guaranteed)
Define economics correct answers *allocation of scarce resources
The study of economics is primarily concerned with: correct answers *choices that are made seeking the
best use of resources
What is the economizing problem? correct answers *unlimited needs & wants
*scarce resources
What is purposeful behavior? correct answers *people behave in ways to INCREASE UTILITY
What does utility mean? correct answers *pleasure, satisfaction
How do rational people behave? correct answers *in ways to INCREASE UTILITY or satisfaction
What is the invisible hand? correct answers *self-interest underlies purposeful behavior
What is positive economics? correct answers *FACTS, price goes up for generators when a hurricane
comes
*deals w/what economy is ACTUALLY like
What is normative economics? correct answers *VALUE JUDGEMENT, price shouldn't go up during a
hurricane as that's wrong
*what OUGHT to be
What kind of economics is the state of VA practicing? correct answers *normative economics
, What is macroeconomics? correct answers *examines PERFORMANCE & BEHAVIOR of the economy
as a whole
*study of ENTIRE ECONOMY or aggregate
*focuses attention on:
-economic growth
-business cycle
-interest rates
-inflation
-behavior of gov't, household, and business sectors
What is microeconomics? correct answers *DETAILED, inside of businesses to make them behave in a
certain way
*concerned with DECISION MAKING by individual customers, business firms, and market
What is marginal benefit? correct answers *the desire to go to a movie, the benefit you get out of
something
What is marginal cost? correct answers *how much a movie is, the cost you have to pay to get to the
benefit
What is marginal analysis? correct answers *comparing marginal benefit to marginal cost
Marginal means what? correct answers next
You should go see a movie if:
a.) marginal costs exceed the marginal benefit
b.) marginal benefit exceed the marginal costs correct answers b.) marginal benefit exceed the marginal
costs
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