ECO 2013 UCF Exam 1 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS
economics _______________________________________________________ is the study of how people manage resources
microeconomics ____________________________________________________ is the study of how individuals and firms manage resources
, macroeconomics _________________________________________________ is the study of the economy on a regional, national, or international
scale
rational behavior ____________________________________________________ is making choices to achieve goals in the most effective way
possible
What are the wants and constraints of those involved? What are the four questions economists ask when breaking down problems?
(scarcity) What are the trade offs? (opportunity costs) Include the type of question that it pertains to.
How will others respond? (incentives) Why isn't everyone
already doing it? (efficiency)
scarcity __________________________________________________________is the condition of wanting more than we can get with available
resources
true cost/opportunity cost The _____________ of something is not just the amount you have to pay for it but
also the opportunity you lose to do something else instead
opportunity cost___________________________________________________ is the value of what you have to give up in order to get something
marginal decision making __________________________________________________ is the idea that rational people compare the additional
benefits of a choice against the additional costs without considering related
benefits and costs of past choices
sunk costs ___________________________________________________________ are costs that have already been incurred and cannot be
recovered
Wants and constraints Which two variables should you know before you know the trade offs of
something?
the collective reaction to a changing trade off What is a central idea in economics?
incentive _____________________________________________________________ is something that causes people to behave in a certain way by
changing the trade offs they face
disincentive ________________________________________________________ makes people less likely to do something
how others will respond Asking ______________________ can help prevent bad decisions by predicting
the undesirable side effects of a change in prices or policies
collateral __________________________________________________________ is a possession pledged by a borrower to a lender
efficiency __________________________________________________________ is the use of resources in the most productive way possible to
produce the goods and services that have the greatest total economic value to
society
resource A ___________ is anything that can be used to make something of value
innovation, market failure, intervention, goals other than What are four things to consider if the economy isn't functioning normally and
profit you're wondering why something hasn't been done before?
economics _______________________________________________________ is the study of how people manage resources
microeconomics ____________________________________________________ is the study of how individuals and firms manage resources
, macroeconomics _________________________________________________ is the study of the economy on a regional, national, or international
scale
rational behavior ____________________________________________________ is making choices to achieve goals in the most effective way
possible
What are the wants and constraints of those involved? What are the four questions economists ask when breaking down problems?
(scarcity) What are the trade offs? (opportunity costs) Include the type of question that it pertains to.
How will others respond? (incentives) Why isn't everyone
already doing it? (efficiency)
scarcity __________________________________________________________is the condition of wanting more than we can get with available
resources
true cost/opportunity cost The _____________ of something is not just the amount you have to pay for it but
also the opportunity you lose to do something else instead
opportunity cost___________________________________________________ is the value of what you have to give up in order to get something
marginal decision making __________________________________________________ is the idea that rational people compare the additional
benefits of a choice against the additional costs without considering related
benefits and costs of past choices
sunk costs ___________________________________________________________ are costs that have already been incurred and cannot be
recovered
Wants and constraints Which two variables should you know before you know the trade offs of
something?
the collective reaction to a changing trade off What is a central idea in economics?
incentive _____________________________________________________________ is something that causes people to behave in a certain way by
changing the trade offs they face
disincentive ________________________________________________________ makes people less likely to do something
how others will respond Asking ______________________ can help prevent bad decisions by predicting
the undesirable side effects of a change in prices or policies
collateral __________________________________________________________ is a possession pledged by a borrower to a lender
efficiency __________________________________________________________ is the use of resources in the most productive way possible to
produce the goods and services that have the greatest total economic value to
society
resource A ___________ is anything that can be used to make something of value
innovation, market failure, intervention, goals other than What are four things to consider if the economy isn't functioning normally and
profit you're wondering why something hasn't been done before?
