ECO 182 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
What is economics?
It's the study of how people make choices under the condition of scarcity and the
implications of these choices on society.
What is mircoeconomics?
The study of the individual choices or group behaviors in a specific market and the
implications of their choices.
What is the Scarcity Principle (No-Free-Lunch Principle)
Price to pay and a cost to all the choices we make.
Resources are limited (time, money etc) thus we have to choose what we use our
resources on
What is scarcity?
Resources used to produce and consume goods and services are limited and finite
Cost-Benefit Principle
An individual (or a firm or a society) should take an action if, and only if, the extra
benefits from taking the action are at least as great as the extra costs.
SOLUTIONS VERIFIED
What is economics?
It's the study of how people make choices under the condition of scarcity and the
implications of these choices on society.
What is mircoeconomics?
The study of the individual choices or group behaviors in a specific market and the
implications of their choices.
What is the Scarcity Principle (No-Free-Lunch Principle)
Price to pay and a cost to all the choices we make.
Resources are limited (time, money etc) thus we have to choose what we use our
resources on
What is scarcity?
Resources used to produce and consume goods and services are limited and finite
Cost-Benefit Principle
An individual (or a firm or a society) should take an action if, and only if, the extra
benefits from taking the action are at least as great as the extra costs.
