ECN 221 EXAM 1 QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED A
Economics Correct Answers the science of how individuals make
choices under scarcity
Science Correct Answers developing and testing objective theories
Individuals Correct Answers a person or group of people
Choice Correct Answers the act of selecting among alternatives
Scarcity Correct Answers the concept that there is less of something
freely available from nature than people would like.
ex. Time, money, cars, etc
Rationing Correct Answers allocating scarce goods to those who want
them.
Resources Correct Answers An input used to produce an economic
good.
1. Human resources (Human capital)
2. Physical resources (Physical capital)
3. Natural resources
, Capital Correct Answers human-made resources used to produce other
goods and services
Opportunity Cost Correct Answers the highest valued alternative that
must be sacrificed when choosing an option
Incentives Matter Correct Answers choice is influenced in a predictable
way by changing incentives.
This economic principle influences all people
• Students
• Politicians
• Altruists
• Criminals
Utility Correct Answers the subjective benefit or satisfaction a person
expects from a choice or course of action
Marginal Correct Answers describes the effect of a change in the current
situation
Law of Diminishing Marginal Utility Correct Answers As consumption
increases, the marginal utility derived from additional consumption will
eventually decline
*Don't confuse total value with marginal value!*
100% CORRECT | ALREADY GRADED A
Economics Correct Answers the science of how individuals make
choices under scarcity
Science Correct Answers developing and testing objective theories
Individuals Correct Answers a person or group of people
Choice Correct Answers the act of selecting among alternatives
Scarcity Correct Answers the concept that there is less of something
freely available from nature than people would like.
ex. Time, money, cars, etc
Rationing Correct Answers allocating scarce goods to those who want
them.
Resources Correct Answers An input used to produce an economic
good.
1. Human resources (Human capital)
2. Physical resources (Physical capital)
3. Natural resources
, Capital Correct Answers human-made resources used to produce other
goods and services
Opportunity Cost Correct Answers the highest valued alternative that
must be sacrificed when choosing an option
Incentives Matter Correct Answers choice is influenced in a predictable
way by changing incentives.
This economic principle influences all people
• Students
• Politicians
• Altruists
• Criminals
Utility Correct Answers the subjective benefit or satisfaction a person
expects from a choice or course of action
Marginal Correct Answers describes the effect of a change in the current
situation
Law of Diminishing Marginal Utility Correct Answers As consumption
increases, the marginal utility derived from additional consumption will
eventually decline
*Don't confuse total value with marginal value!*
