Econ 103 Exam 1 QUESTIONS AND ANSWERS| GRADED A
Economics Correct Answer: The study of peoples choices; how agents choose to allocate scarce resources and how those choices affect society
First Principle of Economics Correct Answer: People try to optimize; they try to choose the best availabl...
Econ 103 Exam 1 QUESTIONS AND
ANSWERS| GRADED A
Economics Correct Answer: The study of peoples choices; how agents choose to
allocate scarce resources and how those choices affect society
First Principle of Economics Correct Answer: People try to optimize; they try to
choose the best available option
Second Principle of Economics Correct Answer: Economic systems tend to be in
equilibrium, a situation in which nobody would benefit by changing his or her
behavior
Third Principle of Economics Correct Answer: Empiricism-analysis that uses data.
Economicsts use data to test theories and to determine what is causing thhings to
happen in the world
Scarcity Correct Answer: the situation of having unlimited wants in a world of
limited resources
Scarce resources Correct Answer: are things that people want, where the quantity
that people want exceeds the quantity that is available
Positive economics Correct Answer: analysis that generates objective descriptions
or predictions about the world that can be verified with data
Normative economics Correct Answer: analysis that prescribes what an individual
or society ought to do
Microeconomics Correct Answer: The study of how individuals, households,
firms, and governments, make choices, and how those choices affect prices, the
allocation of resources, and the well being of other agents
Macroeconomics Correct Answer: The study of the economy as a whole.
Optimization Correct Answer: Trying to choose the best feasible option, given the
available information
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