Exam (elaborations)
Econ 101 Midterm 1 Correct Answers Latest Update
- Course
- ECN 101
- Institution
- Arizona State University
Econ 101 Midterm 1 Correct Answers Latest Update
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Solution 2024/2025Pepper
Econ 101 Midterm 1 Correct Answers Latest
Update
scarcity ANS✔✔ the situation in which unlimited wants exceed the limited
resources available to fulfill those wants.
economics ANS✔✔ the study of choices people make to attain their goals,
given their scarce resources.
economic models ANS✔✔ simplified versions of reality used to analyze real-
world economic situations.
market ANS✔✔ a group of buyers and sellers of a good or service and the
institution or arrangement by which they come together to trade.
marginal analysis ANS✔✔ analysis that involved comparing marginal
benefits and marginal costs.
trade-off ANS✔✔ the idea that because of scarcity, producing more of one
good or service means producing less of another good or service.
centrally planned economy ANS✔✔ an economy in which the government
decides how economic resources will be allocated.
market economy ANS✔✔ an economy in which the decisions of households
and firms interacting in markets allocate economic resources.
, Solution 2024/2025
Pepper
mixed economy ANS✔✔ an economy in which most economic decisions
result from the interaction of buyers and sellers in markets, but in which the
government plays a significant role in the allocation of resources.
productive efficiency ANS✔✔ the situation in which a good part or service is
produced at the lowest possible cost.
allocative efficiency ANS✔✔ a state of the economy in which production
reflects consumer preferences in particular, every good or service is
produced up to the point where the last unit provides a marginal benefit to
consumers equal to the marginal cost of producing it.
voluntary exchange ANS✔✔ the situation that occurs in markets when both
the buyer and seller of a product are made better off by the transaction.
equity ANS✔✔ the fair distribution of economic benefits.
economic variable ANS✔✔ something measurable that can have different
values, such as the wages of software programmers.
positive analysis ANS✔✔ analysis concerned with what is.
normative analysis ANS✔✔ analysis concerned with what ought to be.
microeconomics ANS✔✔ the study of how households and firms make
choices, how they interact in markets, and how the government attempts to
influence their choices.
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