ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
greatest; little or no
The diamond/water paradox states that things with the_____ value in use frequently have ____ value in
exchange.
do not intentionally make decisions that make themselves worse off.
Economists assume people behave rationally, which means that people...
The inability of society to satisfy all human wants because of limited resources.
Scarcity refers to...
an example of normative analysis.
The Just Price Theory holds that there is a single price at which each good should be sold. This is...
If people value two goods equally, there is nothing to be gained by exchanging them.
Which of the following is a problem with the Exchange of Equivalents theory of prices?
Reflects the purchasing power of money.
The real value of money...
A normative statement
When a U.S. Senator tells a campaign crowd that "High inflation rates are a much more serious
economic problem than high unemployment rates," it is an example of...
Law of demand
The fact that when the price of a good goes up, people buy less of it is known as the
Additional gain from one more unit of an activity.
The marginal benefit is the...
Nominal
The face value of money or income is called its _____ value.
A good is involved and satisfaction is gained.
FOr every choice a person makes it can be assumed that...
What matters to people is the purchasing power of money or income.
The reason it is important to understand the difference between the "real" and "nominal" values of
money is...
VERSION, GRADED A+.
greatest; little or no
The diamond/water paradox states that things with the_____ value in use frequently have ____ value in
exchange.
do not intentionally make decisions that make themselves worse off.
Economists assume people behave rationally, which means that people...
The inability of society to satisfy all human wants because of limited resources.
Scarcity refers to...
an example of normative analysis.
The Just Price Theory holds that there is a single price at which each good should be sold. This is...
If people value two goods equally, there is nothing to be gained by exchanging them.
Which of the following is a problem with the Exchange of Equivalents theory of prices?
Reflects the purchasing power of money.
The real value of money...
A normative statement
When a U.S. Senator tells a campaign crowd that "High inflation rates are a much more serious
economic problem than high unemployment rates," it is an example of...
Law of demand
The fact that when the price of a good goes up, people buy less of it is known as the
Additional gain from one more unit of an activity.
The marginal benefit is the...
Nominal
The face value of money or income is called its _____ value.
A good is involved and satisfaction is gained.
FOr every choice a person makes it can be assumed that...
What matters to people is the purchasing power of money or income.
The reason it is important to understand the difference between the "real" and "nominal" values of
money is...
