PSU - Econ 102 Final Exam Questions With
Correct Answers
Economics - CORRECT ANSWER✔✔-study of how people and societies use limited
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resources to satisfy unlimited wants; the management of scarcity and choice
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Resources - CORRECT ANSWER✔✔-1. Land: anything provided by nature
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2. Labor: Mental and physical efforts of humans
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3. Capitol: anything that is provided which in turn is used to produce other goods
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and services|
Microeconomics - CORRECT ANSWER✔✔-The study of decision making | | | | | | | |
undertaken by individual economic agents (households, firms)
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Macroeconomics - CORRECT ANSWER✔✔-The study of the economy as a whole
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3 main economic questions - CORRECT ANSWER✔✔-What will we produce? how
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will we produce? who gets it?
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How to answer 3 basic economic questions - CORRECT ANSWER✔✔-1. Command
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Economy: control authority ex. Queen
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2. Market Economy: buyers and sellers come together
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3. Mixed Economy: has elements of both 1 and 2
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, Ceteris Paribus - CORRECT ANSWER✔✔-"Other things being equal"
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post hoc ergos propter hoc - CORRECT ANSWER✔✔-"before this therefore
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because of this"| |
Fallacy of composition - CORRECT ANSWER✔✔-Arguing, without additional
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support, that what is true of the part is automatically true of the whole
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Positive economics - CORRECT ANSWER✔✔-The study of "what is" in economics.
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Normative economics - CORRECT ANSWER✔✔-makes prescriptions about the
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way the economy should work
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Opportunity Cost - CORRECT ANSWER✔✔-The value of the next best alternative
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that must be forgone as a result of a decision
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Production Possibility Curve - CORRECT ANSWER✔✔-representation of the
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possible ways an economy could use resources
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-downward sloping |
-bowed out |
Law of Increasing marginal opportunity cost - CORRECT ANSWER✔✔-as a
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produce produces more of a good, the marginal cost rises
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Correct Answers
Economics - CORRECT ANSWER✔✔-study of how people and societies use limited
| | | | | | | | | |
resources to satisfy unlimited wants; the management of scarcity and choice
| | | | | | | | | | |
Resources - CORRECT ANSWER✔✔-1. Land: anything provided by nature
| | | | | | | |
2. Labor: Mental and physical efforts of humans
| | | | | | |
3. Capitol: anything that is provided which in turn is used to produce other goods
| | | | | | | | | | | | | | |
and services|
Microeconomics - CORRECT ANSWER✔✔-The study of decision making | | | | | | | |
undertaken by individual economic agents (households, firms)
| | | | | |
Macroeconomics - CORRECT ANSWER✔✔-The study of the economy as a whole
| | | | | | | | | |
3 main economic questions - CORRECT ANSWER✔✔-What will we produce? how
| | | | | | | | | | |
will we produce? who gets it?
| | | | |
How to answer 3 basic economic questions - CORRECT ANSWER✔✔-1. Command
| | | | | | | | | | |
Economy: control authority ex. Queen
| | | |
2. Market Economy: buyers and sellers come together
| | | | | | |
3. Mixed Economy: has elements of both 1 and 2
| | | | | | | | |
, Ceteris Paribus - CORRECT ANSWER✔✔-"Other things being equal"
| | | | | | |
post hoc ergos propter hoc - CORRECT ANSWER✔✔-"before this therefore
| | | | | | | | | |
because of this"| |
Fallacy of composition - CORRECT ANSWER✔✔-Arguing, without additional
| | | | | | | |
support, that what is true of the part is automatically true of the whole
| | | | | | | | | | | | |
Positive economics - CORRECT ANSWER✔✔-The study of "what is" in economics.
| | | | | | | | | |
Normative economics - CORRECT ANSWER✔✔-makes prescriptions about the
| | | | | | | |
way the economy should work
| | | |
Opportunity Cost - CORRECT ANSWER✔✔-The value of the next best alternative
| | | | | | | | | | |
that must be forgone as a result of a decision
| | | | | | | | |
Production Possibility Curve - CORRECT ANSWER✔✔-representation of the
| | | | | | | |
possible ways an economy could use resources
| | | | | |
-downward sloping |
-bowed out |
Law of Increasing marginal opportunity cost - CORRECT ANSWER✔✔-as a
| | | | | | | | | |
produce produces more of a good, the marginal cost rises
| | | | | | | | |
