UNLV ECON 102 EXAM 1 STUDY GUIDE QUESTIONS AND ANSWERS
What is Economics? - CORRECT ANSWER✅✅It is the study of the choices that individuals, businesses
governments, and the entire societies make as they cope with scarcity and the incentives that influence
and reconcile those choices.
4 Factors of Production - CORRECT ANSWER✅✅Land, Labor, Capital, Entrepreneurship
Opportunity Costs - CORRECT ANSWER✅✅It is the highest valued alternative that must be given up to
get it
MicroEconomics - CORRECT ANSWER✅✅Microeconomics is the study of the choices that individuals
and businesses may, the way these choices interact in markets, and the influence of governments.
Macroeconomics - CORRECT ANSWER✅✅the study of economic behavior and decision-making in a
nation's whole economy
Positive Economics - CORRECT ANSWER✅✅What is happening
Normative Economics - CORRECT ANSWER✅✅What should be happening
The slope of a Triangle - CORRECT ANSWER✅✅whether the supply or demand curve is + or -
Production Possibilities Frontier (PPF) - CORRECT ANSWER✅✅The boundary between those
combination of goods and services that can be produced and those that cannot.
Production Possibilities vs Opportunity cost - CORRECT ANSWER✅✅Production Possibilities Frontier
shows all the possible combination of two options available. Opportunity cost is the value of the next
best alternative use of scarce resources and is illustrated by the PPF curve.
Assumptions and Graphs - CORRECT ANSWER✅✅Graphing a relationship that invlolves more than two
variables, we must use Ceteris Paribus assumption
What is Economics? - CORRECT ANSWER✅✅It is the study of the choices that individuals, businesses
governments, and the entire societies make as they cope with scarcity and the incentives that influence
and reconcile those choices.
4 Factors of Production - CORRECT ANSWER✅✅Land, Labor, Capital, Entrepreneurship
Opportunity Costs - CORRECT ANSWER✅✅It is the highest valued alternative that must be given up to
get it
MicroEconomics - CORRECT ANSWER✅✅Microeconomics is the study of the choices that individuals
and businesses may, the way these choices interact in markets, and the influence of governments.
Macroeconomics - CORRECT ANSWER✅✅the study of economic behavior and decision-making in a
nation's whole economy
Positive Economics - CORRECT ANSWER✅✅What is happening
Normative Economics - CORRECT ANSWER✅✅What should be happening
The slope of a Triangle - CORRECT ANSWER✅✅whether the supply or demand curve is + or -
Production Possibilities Frontier (PPF) - CORRECT ANSWER✅✅The boundary between those
combination of goods and services that can be produced and those that cannot.
Production Possibilities vs Opportunity cost - CORRECT ANSWER✅✅Production Possibilities Frontier
shows all the possible combination of two options available. Opportunity cost is the value of the next
best alternative use of scarce resources and is illustrated by the PPF curve.
Assumptions and Graphs - CORRECT ANSWER✅✅Graphing a relationship that invlolves more than two
variables, we must use Ceteris Paribus assumption
