ECON 2102 - Exam 1 (UNCC Economics 2102 Microeconomics)
Questions With Complete Solutions
Basic Economic Questions - correct answers1. What is to be produced?
2. How is it to be produced?
3. For whom is it to be produced?
Constraints in answering basic economic questions - correct answers1. Quantity and
quality of productive resources
2. State of technology
Factors of production - correct answers-land
-labor
-capital (physical or productive)
-entrepreneurship
state of technology - correct answersthe state of knowledge concerning how we can
transfer inputs into outputs
theory - correct answersan explanation of how two or more phenomena are related
model - correct answersa graphical or mathematical presentation of a theory
fallacy of Causation - correct answersbecause one event follows another, this does not
imply that the first event caused the second
fallacy of composition - correct answerswhat is true for the part may not be true for the
whole
Production Possibility Frontier Assumptions - correct answers1. Society produces on
two goods (or types of goods)
2. Supply of resources and the state of technology are fixed
3. The same resources can be used in the production of either good
4. Resources are fully employed
opportunity or economic cost - correct answersthe value of the best opportunity
foregone in choosing one alternative over another (or others)
opportunity cost formula - correct answersexplicit (accounting cost) + implicit cost
economic profit - correct answerstotal revenue - economic cost
accounting profit - correct answerstotal revenue - explicit costs
total cost - correct answersthe cost of all units produced
marginal cost - correct answersthe cost of the additional unit of output
Questions With Complete Solutions
Basic Economic Questions - correct answers1. What is to be produced?
2. How is it to be produced?
3. For whom is it to be produced?
Constraints in answering basic economic questions - correct answers1. Quantity and
quality of productive resources
2. State of technology
Factors of production - correct answers-land
-labor
-capital (physical or productive)
-entrepreneurship
state of technology - correct answersthe state of knowledge concerning how we can
transfer inputs into outputs
theory - correct answersan explanation of how two or more phenomena are related
model - correct answersa graphical or mathematical presentation of a theory
fallacy of Causation - correct answersbecause one event follows another, this does not
imply that the first event caused the second
fallacy of composition - correct answerswhat is true for the part may not be true for the
whole
Production Possibility Frontier Assumptions - correct answers1. Society produces on
two goods (or types of goods)
2. Supply of resources and the state of technology are fixed
3. The same resources can be used in the production of either good
4. Resources are fully employed
opportunity or economic cost - correct answersthe value of the best opportunity
foregone in choosing one alternative over another (or others)
opportunity cost formula - correct answersexplicit (accounting cost) + implicit cost
economic profit - correct answerstotal revenue - economic cost
accounting profit - correct answerstotal revenue - explicit costs
total cost - correct answersthe cost of all units produced
marginal cost - correct answersthe cost of the additional unit of output
