ECON 1113 EXAM 1 QUESTIONS WITH COMPLETE SOLUTIONS WITH CORRECT ANSWERS

ECON 1113 EXAM 1 QUESTIONS WITH
COMPLETE SOLUTIONS WITH CORRECT
ANSWERS


Economics - CORRECT ANSWER✔✔-the study of how people manage
| | | | | | | | |



resources


physical - CORRECT ANSWER✔✔-resources like money, labor, and
| | | | | | | |



workers


intangible - CORRECT ANSWER✔✔-resources like time
| | | | |




microeconomics - CORRECT ANSWER✔✔-small scale, focused on
| | | | | | |



individuals and firms | |




macroeconomics - CORRECT ANSWER✔✔-big scale, focused on | | | | | | |



regional, national, and international
| | |




assumptions - CORRECT ANSWER✔✔-economists make what about
| | | | | | |



people because they can't look at everyone
| | | | | |

, rational behavior - CORRECT ANSWER✔✔-people behave in a way that
| | | | | | | | | |



best achieves their goals
| | |




scarcity - CORRECT ANSWER✔✔-peoples wants are always greater than
| | | | | | | | |



their limited resources
| |




opportunity cost - CORRECT ANSWER✔✔-every decision weighs, costs,
| | | | | | | |



and benefits tradeoff, the value of the next best alternative
| | | | | | | | |




individual value - CORRECT ANSWER✔✔-opportunity cost is based on
| | | | | | | |




every action - CORRECT ANSWER✔✔-rational behavior implies that
| | | | | | | |



people compare costs and benefits for
| | | | |




marginal decision making - CORRECT ANSWER✔✔-every individual
| | | | | | |



actions cost vs benefits is weighed
| | | | |




incentives - CORRECT ANSWER✔✔-something that causes a change in
| | | | | | | | |



tradeoffs


positive incentive - CORRECT ANSWER✔✔-lowers opportunity cost of
| | | | | | | |



the decision, makes it more preferable
| | | | |