ECON 110 1ST EXAM QUESTIONS WITH
CORRECT ANSWERS 2026/2027
Economics - CORRECT ANSWER -The study of the choices individual people and society make in
order to manage their scarce resources.
Microeconomics - CORRECT ANSWER -is the study
of how households and firms
make decisions and how they
interact in markets.
Scarcity - CORRECT ANSWER -the limited nature of society's resources
Principle #1: people face trade offs. Examples... - CORRECT ANSWER -All decisions involve
tradeoffs.
Example: Going to a party the night before your midterm leaves less time for studying.
Having more money to buy stuff requires working longer hours, which leaves less time for
leisure.
Effciency - CORRECT ANSWER -when society gets the most from its scarce resources
Equality - CORRECT ANSWER -when prosperity is distributed uniformly among society's
members
opportunity cost - CORRECT ANSWER -whatever must be given up to obtain it
CORRECT ANSWERS 2026/2027
Economics - CORRECT ANSWER -The study of the choices individual people and society make in
order to manage their scarce resources.
Microeconomics - CORRECT ANSWER -is the study
of how households and firms
make decisions and how they
interact in markets.
Scarcity - CORRECT ANSWER -the limited nature of society's resources
Principle #1: people face trade offs. Examples... - CORRECT ANSWER -All decisions involve
tradeoffs.
Example: Going to a party the night before your midterm leaves less time for studying.
Having more money to buy stuff requires working longer hours, which leaves less time for
leisure.
Effciency - CORRECT ANSWER -when society gets the most from its scarce resources
Equality - CORRECT ANSWER -when prosperity is distributed uniformly among society's
members
opportunity cost - CORRECT ANSWER -whatever must be given up to obtain it
