Econ 101 Chapters 1-12 UPDATED ACTUAL Questions and CORRECT Answers
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Course
Econ 101
Institution
Econ 101
Econ 101 Chapters 1-12 UPDATED
ACTUAL Questions and CORRECT
Answers
Macroeconomics - CORRECT ANSWER- Looks at the economy as a whole on a large
scale, might look at unemployment, inflation and economic growth in our society.
Microeconomics - CORRECT ANSWER- Looks at the actions of individua...
Econ 101 Chapters 1-12 UPDATED
ACTUAL Questions and CORRECT
Answers
Macroeconomics - CORRECT ANSWER✔✔- Looks at the economy as a whole on a large
scale, might look at unemployment, inflation and economic growth in our society.
Microeconomics - CORRECT ANSWER✔✔- Looks at the actions of individual decision
makers on a small scale, might look at households.
Trade-offs - CORRECT ANSWER✔✔- There is a cost-benefit to everything.
Opportunity cost - CORRECT ANSWER✔✔- The true cost of something is its opportunity
cost: the opportunity of any item or event must be given up to take it.
Thinking on the margin - CORRECT ANSWER✔✔- Deciding 'how much or how many' is
best accomplished by examining the benefits and costs of choosing a little more or a little less
of a good.
Incentives - CORRECT ANSWER✔✔- Motivating factors which can be positive or negative.
Trade - CORRECT ANSWER✔✔- Can make everyone better off: favors an environment of
mutual benefit.
Markets - CORRECT ANSWER✔✔- Usually a good way to organize economic activity: a
collection of buyers and sellers which favors economic activity.
Government intervention - CORRECT ANSWER✔✔- Governments can help when markets
don't work by creating incentives through law, regulations, taxes.
Circular flow model diagram - CORRECT ANSWER✔✔- Pictures the economy as
consisting of two groups - households and businesses - that interact in two markets: the goods
and services market and the factors of production market.
, Factors of production - CORRECT ANSWER✔✔- Any resource used to produce a good or
service.
Capital - CORRECT ANSWER✔✔- Anything human-made that is used to produce a good or
service.
Labour - CORRECT ANSWER✔✔- Measure of work done by human beings.
Land - CORRECT ANSWER✔✔- Natural resources used in the creation of a good or service.
Households - CORRECT ANSWER✔✔- People that make up society, own the factors of
production (labour) and consume the goods and services that businesses produce.
Market for goods and services - CORRECT ANSWER✔✔- Households are buyers and
businesses are sellers.
Markets for factors of production - CORRECT ANSWER✔✔- Businesses are buyers and
households are sellers.
Production Possibilities Frontier (PPF) - CORRECT ANSWER✔✔- Economic model that
graphs the number of goods that an economy can possibly produce given available resources.
Exporting - CORRECT ANSWER✔✔- Country decides to sell goods and services it
produces domestically abroad.
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