ECN 211 Midterm #1 exam 2024 with 100% correct answers market failure - correct answer a situation in which a market left on its own fails to allocate resources efficiently economics - correct answer the study of how society manages its scarce resources incentive - correct answer something that induces a person to act productivity - correct answer the quantity of goods and services produce from each unit of labor input opportunity cost - correct answer whatever must be given up to obtain some item externality - correct answer the impact of one person's actions on the well-being of a bystander Rational People - correct answer those who systematically and purposefully do the best they can to achieve their objectives Scarcity - correct answer the limited nature of society's resources market economy - correct answer an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services business cycle - correct answer fluctuations in economic activity, such as employment and production marginal change - correct answer a small incremental adjustment to a plan of action 1 / 2
efficiency - correct answer the property of society getting the most it can from its scarce resources market power - correct answer the ability of a single economic actor (or small group of actors) to have a substantial influence on market press Equality - correct answer the property of distributing economic prosperity uniformly among the members of society property rights - correct answer the ability of an individual to own and exercise control over scarce resources Your professor's favorite food - correct answer Cookies circular-flow diagram - correct answer a visual model of the economy that shows how dollars flow through markets among households and firms production possibilities frontier - correct answer a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology microeconomics - correct answer the study of how households and firms make decisions and how they interact in markets macroeconomics - correct answer the study of economy-wide phenomena, including inflation, unemployment, and economic growth positive statements - correct answer claims that attempt to describe the worlds as it is normative statements - correct answer claims that attempt to prescribe how the world should be absolute advantage - correct answer the ability to produce a good using fewer inputs than another producer
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