ECN 1500 Final Study Guide Questions with Correct Answers 100% Verified 2024/2025

ECN 1500 Final Study Guide Questions with Correct Answers 100% Verified 2024/2025 incentives - Correct Answer rewards and penalties that motivate behavior invisible hand - Correct Answer the unseen force that moves the free market economy, motivated by our wants and desires The Great Economic problem - Correct Answer Having unlimited needs and limited resources to fulfill those needs What is the great economic problem - Correct Answer How to arrange our resources to satisfy as many wants as possible opportunity cost - Correct Answer The cost of doing one thing vs the other Marginal - Correct Answer a singe unit of measure one more or one less Do incentives matter? and examples - Correct Answer YES!! incentives matter ex: Money, Fame, Power What are trade offs? - Correct Answer what is gained or lost in a given trade What does it mean to think on the margin? - Correct Answer Thinking about additional cost/benefits that help you make your next decision Absolute Advantage - Correct Answer Ability to produce the same good using fewer inputs that another producer Comparative Advantage - Correct Answer Producing goods at a lower opportunity cost compared to another producer