BRENT NORWOOD - Econ 1113 exam 1
questions with correct answers
if demand increases and supply increases what happens to equilibrium
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price and quantity? - CORRECT ANSWER✔✔-there will be an increase in
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the equilibrium output, but the effect on price cannot be determined.
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marginal cost - CORRECT ANSWER✔✔-the additional cost of producing
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one more unit of a good or service
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marginal benefit - CORRECT ANSWER✔✔-the additional benefit of
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consuming one more unit of a good or service
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when you should consume more/less/none - CORRECT ANSWER✔✔-
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when the marginal benefit outweighs the marginal cost, you should and
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most likely would consume the product
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consumer surplus - CORRECT ANSWER✔✔-difference between what a
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consumer is willing to pay for a good and what the consumer actually
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pays (triangular area above market price and below demand curve)
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, producer surplus - CORRECT ANSWER✔✔-difference between the
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actual price a producer receives and the minimum acceptable price
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(triangular area below market price and above supply curve)
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how to calculate ^ and find your utility - CORRECT ANSWER✔✔-AREA
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OF A TRIANGLE
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1/2(base x height) | |
what is the economizing problem all economies and people face? -
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CORRECT ANSWER✔✔-SCARCITY |
when an economist states you are acting rationally. what does that
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mean? - CORRECT ANSWER✔✔-acting on your own self-interest that
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maximizes your individual utility. | | |
what is the invisible hand? - CORRECT ANSWER✔✔-guiding force that
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makes us act on our own self-interest. (you do what you want to make
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your life better)
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what does the word "utility" mean in economics? - CORRECT
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ANSWER✔✔-the satisfaction a consumer gains from the consumption | | | | | | | |
of a good or service.
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1. define "opportunity cost"
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questions with correct answers
if demand increases and supply increases what happens to equilibrium
| | | | | | | | | |
price and quantity? - CORRECT ANSWER✔✔-there will be an increase in
| | | | | | | | | | |
the equilibrium output, but the effect on price cannot be determined.
| | | | | | | | | |
marginal cost - CORRECT ANSWER✔✔-the additional cost of producing
| | | | | | | | |
one more unit of a good or service
| | | | | | |
marginal benefit - CORRECT ANSWER✔✔-the additional benefit of
| | | | | | | |
consuming one more unit of a good or service
| | | | | | | |
when you should consume more/less/none - CORRECT ANSWER✔✔-
| | | | | | |
when the marginal benefit outweighs the marginal cost, you should and
| | | | | | | | | | |
most likely would consume the product
| | | | |
consumer surplus - CORRECT ANSWER✔✔-difference between what a
| | | | | | | |
consumer is willing to pay for a good and what the consumer actually
| | | | | | | | | | | | |
pays (triangular area above market price and below demand curve)
| | | | | | | | |
, producer surplus - CORRECT ANSWER✔✔-difference between the
| | | | | | |
actual price a producer receives and the minimum acceptable price
| | | | | | | | | |
(triangular area below market price and above supply curve)
| | | | | | | |
how to calculate ^ and find your utility - CORRECT ANSWER✔✔-AREA
| | | | | | | | | | |
OF A TRIANGLE
| |
1/2(base x height) | |
what is the economizing problem all economies and people face? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-SCARCITY |
when an economist states you are acting rationally. what does that
| | | | | | | | | | |
mean? - CORRECT ANSWER✔✔-acting on your own self-interest that
| | | | | | | | |
maximizes your individual utility. | | |
what is the invisible hand? - CORRECT ANSWER✔✔-guiding force that
| | | | | | | | | |
makes us act on our own self-interest. (you do what you want to make
| | | | | | | | | | | | | |
your life better)
| |
what does the word "utility" mean in economics? - CORRECT
| | | | | | | | | |
ANSWER✔✔-the satisfaction a consumer gains from the consumption | | | | | | | |
of a good or service.
| | | |
1. define "opportunity cost"
| | |
