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UMD ECON 200 EXAM 1 SOLVED CORRECTLY TO SCORE A+
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UMD ECON 200 EXAM 1 SOLVED CORRECTLY TO SCORE A+
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UMD ECON 200 EXAM 1 SOLVEDCORRECTLY TO SCORE A+
economics CORRECT ANSWERS study of how people, individually and collectively,
manage resources
microeconomics CORRECT ANSWERS study of how individuals and firms manage
resources
macroeconomics CORRECT ANSWERS study of the economy on a regional, national
or international scale
rational behavior CORRECT ANSWERS making choices to achieve goals in the most
effective way possible
scarcity CORRECT ANSWERS condition of wanting more than we can get with
available resources
opportunity cost CORRECT ANSWERS value of what you have to give up in order to
get something, the value of your next best alternative
marginal decision making CORRECT ANSWERS comparison of additional benefits of a
choice against the additional costs it would bring and without considering related
benefits costs of past choices
sunk cost CORRECT ANSWERS costs that have already been incurred and cannot be
recovered or refunded
incentive CORRECT ANSWERS something that causes people to behave in a certain
way by changing the trade-offs they face
efficiency CORRECT ANSWERS use of resources in the most productive way possible
to produce the goods and services that have the greatest total economic value to
society
correlation CORRECT ANSWERS consistently observed relationship between events
and variables
model CORRECT ANSWERS simplified representation of the important parts of a
complicated situation
circular flow model CORRECT ANSWERS simplified representation of how the
economy's transactions work together
, positive statement CORRECT ANSWERS factual claim about how the world actually
works
normative statement CORRECT ANSWERS claim about how the world should be
market economy CORRECT ANSWERS economy in which private individuals, rather
than a centralized planning authority, make the decisions
market CORRECT ANSWERS buyers and sellers who trade a particular good or
service
competitive market CORRECT ANSWERS market in which fully informed, price taking
buyers and sellers easily trade a standardized good or service
standardized good CORRECT ANSWERS good for which any 2 units share the same
features and are interchangeable
transaction costs CORRECT ANSWERS costs incurred by buyer and seller in agreeing
to and executing a sale of goods or services
price taker CORRECT ANSWERS buyer or seller who cannot affect the market price
quantity demanded CORRECT ANSWERS amount of a particular good that buyers will
purchase at a given price during a specified period
law of demanded CORRECT ANSWERS fundamental characteristic of demand states,
all else equal, quantity demand rises as price falls
demand schedule CORRECT ANSWERS table shows the quantities of a particular
good or service at various prices
demand curve CORRECT ANSWERS graph shows the quantities of a good or service
that consumers will demand at various prices
substitutes CORRECT ANSWERS goods that serve a similar enough purpose that a
consumer might purchase one in place of the other
complements CORRECT ANSWERS goods that are consumed together, so that
purchasing one will make consumers more likely to purchase others
normal goods CORRECT ANSWERS goods for which demand increases as income
increases
inferior goods CORRECT ANSWERS goods for which demand decreases as income
increases
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