UNT ECON 1100 Final Exam Review With 100% Correct Answers 2023

UNT ECON 1100 Final Exam Review With 100% Correct Answers 2023 Microeconomics - Correct Answer-The study of decisions made by individuals, households, and firms Macroeconomics - Correct Answer-The study of economics aggregates, such as the national unemployment rate, the rate of inflation, and the economy's growth rate, as well as macroeconomic policies designed to promote full employment, price stability, and a healthy rate of economic growth ` Positive economics - Correct Answer-The ability to make accurate statements about economic relationships, which can be tested against facts Normative economics - Correct Answer-The ability to make informed statements of what should be; requires value judgements Fallacy of composition - Correct Answer-An incorrect conclusion that occurs when it is assumed that what is true for the parts is also true for the whole Fallacy of division - Correct Answer-An incorrect conclusion that occurs when it is assumed that what is true for the whole is also true for each of the parts Ceteris Paribus assumption - Correct Answer-an assumption used to isolate the relationship between two variables by holding other influences on the relationship constant Circular flow model - Correct Answer-A model that was developed in the mid-eighteenth century in France; one of the first models used to help explain economic relationships. this model shows the interaction of participants in a market economy. page 6 book Production possibilities frontier (PPF) - Correct Answer-A graph illustrating the combinations of two types of output that can be produced by a society using the available resources and technology Opportunity cost - Correct Answer-the value of the best alternative that must be given up when a choice is made Efficiency - Correct Answer-the outcome of voluntary exchange in free markets, assuming no market failures, and consistent with the best use of scarce resources Inefficiency - Correct Answer-producing less then they can, which keeps society from producing at its potential economic growth - Correct Answer-a long term process that permits increased production of goods and services and improved material standards of living Comparative advantage - Correct Answer-the ability to produce a particular type of output at a lower opportunity cost than another country Trade deficit - Correct Answer-occurs when the value of imports exceeds the value of exports Trade surplus - Correct Answer-occurs when the value of exports exceeds the value of imports Demand - Correct Answer-The decision to buy, hire, or borrow; represented by a demand function that shows the relationship between price (or wage rate or interest rate) and quantity demanded, ceteris paribus Supply - Correct Answer-The decision to tell, accept employment, or lend. represented by a supply function that shows the relationship between price (or wage rate or interest rate) and quality supplied, ceteris paribus Law of demand - Correct Answer-The observation that a greater quantity will be demanded at lower relative prices than at higher relative prices, ceteris paribus Law of supply - Correct Answer-The observation that a greater quantity will be supplied at higher relative prices than at lower relative prices, ceteris paribus Market equilibrium