Econ Quiz 1

Question 1

Micro

Answer 1

individual agents in in individual market

Question 2

Macro

Answer 2

economy as a whole

Question 3

Marginal analysis

Answer 3

most decision are make on the margin, do until marginal benefits=marginal cost

Question 4

OC

Answer 4

-(what one is losing)- what you give up to obtain something

Question 5

Equilibrium

Answer 5

• when all opportunities have been exploited to make one better off

Question 6

Normative

Answer 6

opinions or beliefs which are based upon subjective value judgment (common value conflict)

Question 7

Positive

Answer 7

objective statements which can be either proved or disproved (facts)

Question 8

Efficiency

Answer 8

achieving a particular goal with the least amount of resources

Question 9

Equity-

Answer 9

fairness (parking lot)

Question 10

Resources

Answer 10

anything which is directly used in the production of goods and services ex. Land, labor, and capital

Question 11

Wealth

Answer 11

standard of living, derives form production of goods and services, specialization of trade, mutually beneficial exchanges

Question 12

Command economy

Answer 12

China, gov

Question 13

Market Economy

Answer 13

Usa consumers

Question 14

Centris Paribus

Answer 14

all other things equal

Question 15

Production possibility frontier

Answer 15

method of visualizing all possible combination of output which can be produced with a fixed amount of resources

Question 16

Economic growth

Answer 16

increasing ability to produce goods and services

Question 17

Productive efficiency

Answer 17

resources are being used to maximize production capabilities

Question 18

Allocate efficiency

Answer 18

• resources are being devoted to the socially optimal mix of output

Question 19

Capital goods

Answer 19

products used to produce goods

Question 20

Consumer goods

Answer 20

product intended for consumption/enjoyment

Question 21

Absolute Advantage

Answer 21

a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of resources

Question 22

Comparative Advantage

Answer 22

• based off of OC, the person who has the lower OC of producing that good, least good

Question 23

Free trade

Answer 23

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