Econ 104 PSU exam 1 review || with A+ Guaranteed Solutions.

What is Macroeconomics correct answers The study of the economy as a whole including topics such as inflation unemployment and economic growth What is the current unemployment rate correct answers 4.1% What are the 3 economic ideas about how people make choices in the market correct answers 1 people are rational 2 people respond to economic incentives 3 optimal decisions are made at the margins What does people are rational mean correct answers people take into account all available information when making a decision What does people respond to economic incentives mean correct answers people try to optimize there pay in every way they can example the bus driver will sit in traffic What is true about marginal cost and benefit correct answers if MBMC people will allow others to pay less until MB=MC What is the economic problem every society has to solve correct answers Scarce resources and unlimited wants What does margin mean correct answers additional or a small adjustment to something What does unlimited wants have to do with correct answers improving our standard of living What is standard of living correct answers the amount of goods and services we can buy What do we need to produce more goods and services correct answers resources which are scarce 4 factors of production correct answers land capital labor entrepreneurship What 3 things does socity decide to do correct answers What to produce how to produce for whom to produce