ECN 211 Exam 1 EXAM 2024 WITH 100%
CORRECT ANSWERS
Economics - correct answer the study of how society manages its scarce resources Macroeconomics - correct answer the study of economy-wide phenomena (ex. the federal deficit, the rate of unemployment and policies to improve our standard of living) Microeconomics - correct answer the study of how households and firms make decisions and how they interact in markets Mixed Economies - correct answer a system with free markets, but with some government intervention (ex. U.S.) Scarcity - correct answer there is not enough of something to go around for everyone to have as much as they want of it at a zero price Resources - correct answer are scarce for economies and households Property Rights - correct answer the ability of an individual to own and exercise control over scarce resources Efficiency - correct answer society is getting the maximum benefits from its scarce resources or the size of the economic pie Equality - correct answer that benefits are distributed uniformly among society's members or how the pie is divided into individual slices Productivity - correct answer the amount of goods and services produced from each unit of labor input 1 / 2
Incentives - correct answer something that induces a person to act or change a behavior Cost - correct answer money, time, activities, etc. you give up Opportunity Cost - correct answer whatever you give up to get something else Marginal Benefit - correct answer the benefit/revenue of producing an item or of a choice Marginal Thinking - correct answer if the benefits of your choice outway the cost of it Marginal Cost - correct answer the cost of producing an item or of a choice Trade-offs - correct answer -"There ain't no such thing as a free lunch." -To get more of one thing we have to give up something else -Guns and butter (defense or social programs) Trade-off between equality and efficiency - correct answer taxes and welfare make us more equal but reduce incentives for hard work, lowering total output Trade-off between inflation and unemployment - correct answer an increase in the quantity of money stimulates spending, which raises both prices and production The increase in production requires more hiring, which reduces unemployment.an increase in inflation tends to reduce unemployment, causing a trade-off between inflation and unemployment.Market Power - correct answer when an individual or group has the power to substantially influence market prices Market Failure - correct answer when the market fails to allocate resources efficiently
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