Midterm Econ 1500 Study Guide Questions
With Correct Answers
Macroeconomics - CORRECT ANSWER✔✔-The study of the economy as a whole
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Microeconomics - CORRECT ANSWER✔✔-the study of the economic behavior and
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decision making of small units, such as individuals, families, and businesses
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Economics - CORRECT ANSWER✔✔-the study of how individuals and society
| | | | | | | | | |
choose to use scarce resources to produce goods and services to help meet the
| | | | | | | | | | | | | |
wants and needs of society
| | | |
Equilibrium - CORRECT ANSWER✔✔-a state in which opposing forces or
| | | | | | | | | |
influences are balanced. | |
this is found when the quantity that is demanded is the same as the quantity
| | | | | | | | | | | | | | |
supplied
Scarcity - CORRECT ANSWER✔✔-Limited quantities of resources to meet
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unlimited wants |
Economic Resources - CORRECT ANSWER✔✔-all natural, human, and
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manufactured resources that go into the production of goods and services
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, Human Capital - CORRECT ANSWER✔✔-the knowledge and skills that workers
| | | | | | | | | |
acquire through education, training, and experience
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Capital - CORRECT ANSWER✔✔-Machines that a producer owns.
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Adam Smith, The Wealth of Nations - CORRECT ANSWER✔✔-Promoted laissez-
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faire, free-market economy, and supply-and-demand economics.
| | | | |
James Watt - CORRECT ANSWER✔✔-Scottish engineer and inventor whose
| | | | | | | | |
improvements in the steam engine led to its wide use in industry (1736-1819).
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invisible hand principle - CORRECT ANSWER✔✔-market prices coordinate the
| | | | | | | | |
actions of self-interested individuals and direct them toward activities that
| | | | | | | | | |
promote the general welfare. | | |
Stable Equilibrium - CORRECT ANSWER✔✔-A. If you are there, you will stay there
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B. If you are not there, you will go there
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market failure - CORRECT ANSWER✔✔-a situation in which the free market,
| | | | | | | | | | |
operating on its own, does not distribute resources efficiently.
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Market failure occurs when: - CORRECT ANSWER✔✔-individual actions have side
| | | | | | | | | |
effects that are not properly taken into account. Monopoly, inflation, etc.
| | | | | | | | | |
Inflation - CORRECT ANSWER✔✔-A continuous rise in the price of goods and
| | | | | | | | | | | |
services
With Correct Answers
Macroeconomics - CORRECT ANSWER✔✔-The study of the economy as a whole
| | | | | | | | | |
Microeconomics - CORRECT ANSWER✔✔-the study of the economic behavior and
| | | | | | | | |
decision making of small units, such as individuals, families, and businesses
| | | | | | | | | | |
Economics - CORRECT ANSWER✔✔-the study of how individuals and society
| | | | | | | | | |
choose to use scarce resources to produce goods and services to help meet the
| | | | | | | | | | | | | |
wants and needs of society
| | | |
Equilibrium - CORRECT ANSWER✔✔-a state in which opposing forces or
| | | | | | | | | |
influences are balanced. | |
this is found when the quantity that is demanded is the same as the quantity
| | | | | | | | | | | | | | |
supplied
Scarcity - CORRECT ANSWER✔✔-Limited quantities of resources to meet
| | | | | | | | |
unlimited wants |
Economic Resources - CORRECT ANSWER✔✔-all natural, human, and
| | | | | | | |
manufactured resources that go into the production of goods and services
| | | | | | | | | |
, Human Capital - CORRECT ANSWER✔✔-the knowledge and skills that workers
| | | | | | | | | |
acquire through education, training, and experience
| | | | |
Capital - CORRECT ANSWER✔✔-Machines that a producer owns.
| | | | | | |
Adam Smith, The Wealth of Nations - CORRECT ANSWER✔✔-Promoted laissez-
| | | | | | | | |
faire, free-market economy, and supply-and-demand economics.
| | | | |
James Watt - CORRECT ANSWER✔✔-Scottish engineer and inventor whose
| | | | | | | | |
improvements in the steam engine led to its wide use in industry (1736-1819).
| | | | | | | | | | | |
invisible hand principle - CORRECT ANSWER✔✔-market prices coordinate the
| | | | | | | | |
actions of self-interested individuals and direct them toward activities that
| | | | | | | | | |
promote the general welfare. | | |
Stable Equilibrium - CORRECT ANSWER✔✔-A. If you are there, you will stay there
| | | | | | | | | | | |
B. If you are not there, you will go there
| | | | | | | | |
market failure - CORRECT ANSWER✔✔-a situation in which the free market,
| | | | | | | | | | |
operating on its own, does not distribute resources efficiently.
| | | | | | | |
Market failure occurs when: - CORRECT ANSWER✔✔-individual actions have side
| | | | | | | | | |
effects that are not properly taken into account. Monopoly, inflation, etc.
| | | | | | | | | |
Inflation - CORRECT ANSWER✔✔-A continuous rise in the price of goods and
| | | | | | | | | | | |
services
