ECON 211 Exam 1 (UNL) Study Guide with Complete Solutions

ECON 211 Exam 1 (UNL) Study Guide with Complete Solutions Economists study.... - Answer️️ -all human behavior Economic agent - Answer️️ -an individual or a group that makes choices (examples: consumer eating bacon cheeseburger or tofu burger, parent enrolling child in public or private school) scare resources - Answer️️ -things that people want, where the quantity that people want exceeds the quantity that is available scarcity - Answer️️ -exists because people have unlimited wants in a world of limited resources economics - Answer️️ -the study of how agents choose to allocate scarce resources and how those choices affect society positive economics - Answer️️ -describes what people actually do normative economics - Answer️️ -recommends what people ought to do microeconomics - Answer️️ -the study of how individuals, households, firms, and governments make choices and how those choices affect prices, the allocation of resources and the well-being of other agents macroeconomics - Answer️️ -the study of the economy as a whole ©SOPHIABENNETT@ Monday, August 26, 2024 6:09 AM 2 optimization - Answer️️ -people decide what to do by consciously or unconsciously weighting all of the known pros and cons of the different available options and trying to pick the best feasible option equilibrium - Answer️️ -a situation in which no agent would benefit personally by changing his or her own behavior empiricism - Answer️️ -analysis that uses data or analysis that is evidence-based trade-offs - Answer️️ -they arise when some benefits must be given up in order to gain others budget constraints - Answer️️ -the set of things that a person can choose to do (or buy) without breaking her budget opportunity costs - Answer️️ -the best alternative activity cost benefit analysis - Answer️️ -is a calculation that adds up costs and benefits using a common unit of measurement, like dollars market - Answer️️ -a group of economic agents who are trading a good or service, and the rules and arrangements for trading market price - Answer️️ -if all sellers and all buyers face the same price perfectly competitive market - Answer️️ -1. sellers all sell an identical good or service ©SOPHIABENNETT@ Monday, August 26, 2024 6:09 AM 3 2. any individual buyer or any individual seller isn't powerful enough on his or her own to affect the market price price-takers - Answer️️ -buyers and sellers accept the market price and can't bargain for a better price quantity demanded - Answer️️ -at a given price, the amount of the good or service that buyers are willing to purchase demand schedule - Answer️️ -the quantity demanded at different prices "holding all else equal" - Answer️️ -everything other than the price of gas is help constant or fixed, including income, rent and highway tolls demand curve - Answer️️ -plots the relationship between p