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KSU ECON 1000 EXAM 1 QUESTIONS & ANSWERS 2024/2025 $7.99
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KSU ECON 1000 EXAM 1 QUESTIONS & ANSWERS 2024/2025

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KSU ECON 1000 EXAM 1 QUESTIONS & ANSWERS 2024/2025 The analysis of aggregate decision-making and outcomes for society as a whole is known as: - ANSWERSMacroeconomics Identify the positive economic statement(s) below. - ANSWERSIf you raise the price of gas, people will buy less gas. *Pred...

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  • November 28, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • KSU ECON 1000
  • KSU ECON 1000
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KSU ECON 1000 EXAM 1 QUESTIONS &
ANSWERS 2024/2025

The analysis of aggregate decision-making and outcomes for society as a whole is known as: -
ANSWERSMacroeconomics



Identify the positive economic statement(s) below. - ANSWERSIf you raise the price of gas, people will
buy less gas.



*Prediction is the hallmark of positive economics.*



In order to make predictions, economists generally assume that individuals are: - ANSWERSRational and
self-interested.



The condition that human wants exceed the amount available from finite resources is known as: -
ANSWERSScarcity.



When individuals engage in voluntary trade, it means: - ANSWERSEach person values what he/she is
receiving more than what he/she is giving up.



AND



They are happier.



Money is useful for exchange because it is: - ANSWERSA medium of exchange.

A convenient unit of account.

A store of value.

simple transactions

, The law of demand states: - ANSWERSThere is a negative relationship between the price of a product
and the quantity consumers are willing

to buy.



What happens to the price and quantity of sandwiches when the price of bread increases? -
ANSWERSIncreased price, decreased quantity



What happens to the price and quantity of an inferior good when incomes rise? - ANSWERSDecreased
price, decreased quantity



What happens to the price and quantity of kale when the seller is subsidized for producing it? -
ANSWERSDecreased price, increased quantity



a postive statement: - ANSWERScan eventually be proven "right" or "wrong" by gathering enough data
and evidence.



normative statement: - ANSWERSa statement that aims to assess the desirability of how the world is or
functions, perhaps with suggestions of things that could be done to improve matters.



Microeconomics - ANSWERShe study of how individual decision maker behave and interact with each
other, often with a focus on how households and firms behave and interact

with each other in markets.



What assumptions do economists assume to be generally true about human beings and the world? -
ANSWERSpeople are self-interested



people are rational



we assume people make decision at the margin



resources are scarce

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