ECON 206 (WWU) || A+ Verified Already.
economics correct answers study of decision making
policy correct answers action taken by someone to influence behavior
price correct answers ratio at which two goods are exchanged in a market
scarcity correct answers limited nature of society's resources, given society's unlimited wants and
needs
microeconomics correct answers study of individual units that make up the economy
macroeconomics correct answers study of overall aspects and workings of the economy
incentives correct answers factors that motivate a person to act/exert effort
trade-offs correct answers to achieve one goal economic agents must give up something else
opportunity cost correct answers highest-valued alternative that must be sacrificed in order to get
something else
marginal thinking correct answers requires decision makers to evaluate whether the benefit of
one more unit of something is greater than its cost
trade correct answers voluntary exchange of goods and services between two or more parties
markets correct answers brings buyers and sellers together to exchange goods and services
, comparative advantage correct answers when a supplier can produce a good at a lower
opportunity cost than its competitor
positive statement correct answers can be tested and validated
normative statement correct answers cannot be tested or validated
ceteris paribus correct answers holding all else constant
Production Possibility Frontier (PPF) correct answers a model that illustrates the combinations of
outputs that a society can produce if all of its resources are being used efficiently
Law of Increasing Relative Cost correct answers opportunity cost of producing a good rises as a
society produces more of it
absolute advantage correct answers ability of one producer to make more than another producer
using the same resources
consumer goods correct answers products used for present consumption
capital goods correct answers goods that help produce other valuable goods and services in the
future
investment correct answers using resources to create or buy new capital
market economies correct answers economies where resources are allocated among households
and firms with little to no government intervention
economics correct answers study of decision making
policy correct answers action taken by someone to influence behavior
price correct answers ratio at which two goods are exchanged in a market
scarcity correct answers limited nature of society's resources, given society's unlimited wants and
needs
microeconomics correct answers study of individual units that make up the economy
macroeconomics correct answers study of overall aspects and workings of the economy
incentives correct answers factors that motivate a person to act/exert effort
trade-offs correct answers to achieve one goal economic agents must give up something else
opportunity cost correct answers highest-valued alternative that must be sacrificed in order to get
something else
marginal thinking correct answers requires decision makers to evaluate whether the benefit of
one more unit of something is greater than its cost
trade correct answers voluntary exchange of goods and services between two or more parties
markets correct answers brings buyers and sellers together to exchange goods and services
, comparative advantage correct answers when a supplier can produce a good at a lower
opportunity cost than its competitor
positive statement correct answers can be tested and validated
normative statement correct answers cannot be tested or validated
ceteris paribus correct answers holding all else constant
Production Possibility Frontier (PPF) correct answers a model that illustrates the combinations of
outputs that a society can produce if all of its resources are being used efficiently
Law of Increasing Relative Cost correct answers opportunity cost of producing a good rises as a
society produces more of it
absolute advantage correct answers ability of one producer to make more than another producer
using the same resources
consumer goods correct answers products used for present consumption
capital goods correct answers goods that help produce other valuable goods and services in the
future
investment correct answers using resources to create or buy new capital
market economies correct answers economies where resources are allocated among households
and firms with little to no government intervention
