TAMU ECON 202 EXAM 1| QUESTIONS
AND 100% CORRECT ANSWERS
VERIFIED BY EXPERT| 2025 NEW
UPDATE.
Scarcity - ANS unlimited wants but limited resources
Three Questions of Economics - ANS
1. What to produce?
2. How to produce it?
3. Who gets it?
Systems (institutions) - ANS the arrangement we use to deal with scarcity
Economics studies... - ANS how economies and social institutions address the problems of the
three economic questions.
Scarcity is... - ANS the fundamental economic problem
Scare in supply - ANS cannot at one time meet the demand of humans
Choice - ANS When someone selects between the many unlimited wants which one wants to
satisfy at any given moment
Economist view scarce as - ANS everything people want, strive for, or can't achieve effortlessly
Rules and regulations were created that they - ANS govern different aspects of how the
economy operates
Barter - ANS One-on-one trade (you have something that I want and i have something you
want), permits specialization
Comparative Advantage - ANS "some people are better at certain tasks"
your advantage in producing a good
Trading allows... - ANS both parties to consume more
Trade improves... - ANS performance
The three basic economic systems
– ANS
-traditional
-market
, -command
Traditional Economy
- ANS
1. What?
-same as previous generations
2. How?
-same way as previous generations
3. Who?
-people around you (barter system)
(culture, customs, beliefs)
Command Economy
- ANS
1. Whatever the government tells you
2. however the government tells you
3. give to whoever government tells you to give it to (party members first)
(North Korea)
Market Economy
- ANS
1. whatever people will buy
2. as cheap as possible but where people will still buy
3. whoever wants it
Mixed Economy - ANS limited government involvement while also applying free market
concepts
Market trade... - ANS significantly expands the scope of both trade and specialization
Markets are very powerful at - ANS allocating resources
Adam Smith says - ANS "failure" is efficient in an economy and that the government should
step out & sell freely
What year did Adam Smith write "Wealth of Nations"? - ANS 1776
The key to efficiency is that... - ANS people are investing their own money
Buyers who are willing to pay more than the price of a good... - ANS receive the good in
equilibrium
If the government left self-interested traders to compete with one another than... - ANS
markets are guided to positive outcomes by an "invisible hand"
AND 100% CORRECT ANSWERS
VERIFIED BY EXPERT| 2025 NEW
UPDATE.
Scarcity - ANS unlimited wants but limited resources
Three Questions of Economics - ANS
1. What to produce?
2. How to produce it?
3. Who gets it?
Systems (institutions) - ANS the arrangement we use to deal with scarcity
Economics studies... - ANS how economies and social institutions address the problems of the
three economic questions.
Scarcity is... - ANS the fundamental economic problem
Scare in supply - ANS cannot at one time meet the demand of humans
Choice - ANS When someone selects between the many unlimited wants which one wants to
satisfy at any given moment
Economist view scarce as - ANS everything people want, strive for, or can't achieve effortlessly
Rules and regulations were created that they - ANS govern different aspects of how the
economy operates
Barter - ANS One-on-one trade (you have something that I want and i have something you
want), permits specialization
Comparative Advantage - ANS "some people are better at certain tasks"
your advantage in producing a good
Trading allows... - ANS both parties to consume more
Trade improves... - ANS performance
The three basic economic systems
– ANS
-traditional
-market
, -command
Traditional Economy
- ANS
1. What?
-same as previous generations
2. How?
-same way as previous generations
3. Who?
-people around you (barter system)
(culture, customs, beliefs)
Command Economy
- ANS
1. Whatever the government tells you
2. however the government tells you
3. give to whoever government tells you to give it to (party members first)
(North Korea)
Market Economy
- ANS
1. whatever people will buy
2. as cheap as possible but where people will still buy
3. whoever wants it
Mixed Economy - ANS limited government involvement while also applying free market
concepts
Market trade... - ANS significantly expands the scope of both trade and specialization
Markets are very powerful at - ANS allocating resources
Adam Smith says - ANS "failure" is efficient in an economy and that the government should
step out & sell freely
What year did Adam Smith write "Wealth of Nations"? - ANS 1776
The key to efficiency is that... - ANS people are investing their own money
Buyers who are willing to pay more than the price of a good... - ANS receive the good in
equilibrium
If the government left self-interested traders to compete with one another than... - ANS
markets are guided to positive outcomes by an "invisible hand"
