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Econ 200 Exam 1 UNL Questions Soled Correctly!!!
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Econ 200 Exam 1 UNL Questions Soled Correctly!!!
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Econ 200 Exam 1 UNL Questions SoledCorrectly!!!
Microecnomics CORRECT ANSWERS the study of the economy at the small-scale
level, examning individuals and specific markets
Macroeconomics CORRECT ANSWERS the study of the economy at the large-scale
level, examining total output, price level, and aggregates measures
resource CORRECT ANSWERS any item that is used to produce goods and services
land CORRECT ANSWERS all natural resources used in production
labor CORRECT ANSWERS all physical and mental activity devoted to producing
goods and services
capital CORRECT ANSWERS the tools, machinery, infrastructure, and knowledge used
to produce goods and services
entrepreneurial ability CORRECT ANSWERS the talent or ability to combine land, labor,
and capital to produce goods or services
scarcity CORRECT ANSWERS inability of limited resources to satisfy unlimited wants
importance of scarcity in economics CORRECT ANSWERS scarcity of goods plays a
significant role in affecting competition in any price-based market. Because scarce
goods are typically subject to greater demand, they often command higher prices as
well
opportunity cost CORRECT ANSWERS the value of the opportunity that you gave up
when you chose an alternative
marginal benefit CORRECT ANSWERS maximum amount a consumer is willing to pay
for an additional good or service or the additional satisfaction that consumer receives
when the additional good or service is purchased
marginal cost CORRECT ANSWERS the change in cost that comes from making more
of something
marginal decision making CORRECT ANSWERS The process of making choices in
increments by evaluating the additional, or marginal, benefit against the additional, or
marginal, cost of an action.
, optimization CORRECT ANSWERS maximize overall benefit; marginal benefit > or
equal to marginal cost
prodution possibilities frontier (PPF) CORRECT ANSWERS a graph that shows the
possible combinations of two different goods/services that can be produced with fixed
resources
comparitive advantage CORRECT ANSWERS the ability to produce a good at a lower
opportunity cost than another producer
If in the time it takes you to iron one shirt, you could wash 10 dishes, but in the time it
takes your roommate to iron one shirt, she could wash 20 dishes, who has the
comparative advantage? CORRECT ANSWERS you because you only give up 10
dishes while she gives up 20
circular flow model CORRECT ANSWERS
market vs command system CORRECT ANSWERS Market economies utilize private
ownership of the means of production and voluntary exchanges/contracts. In a
command economy, governments own the factors of production such as land, capital,
and resources.
prices and quantities traded are determined by CORRECT ANSWERS the interaction of
buyers and seller in a market
as the price of a good increases, quantity demanded... CORRECT ANSWERS
decreases (law of demand)
demand curve CORRECT ANSWERS a graph of the relationship between the price of a
good and the quantity demanded
demand curves are downward sloping due to CORRECT ANSWERS income effect,
substitution effect, and diminishing marginal utility
income effect CORRECT ANSWERS the effect that a change in price of a good has on
the purchasing power of income
substitution effect CORRECT ANSWERS the effect that a change in the price of one
good has on the demand for another (price of coke goes up, demand for pepsi goes up)
diminishing marginal utility CORRECT ANSWERS commodities become less valuable
as more of them are acquired
a change in demand vs. a change in the quantity demanded. CORRECT ANSWERS A
change in demand means that the entire demand curve shifts either left or right. A
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