Econ 205 Exam 1: Chapters 1 -3 Questions and Answers Grade A+ 2023

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The concept of guns vs. butter represents the classic societal trade-off between spending on - -military goods vs. consumer goods. -If the Federal Reserve announces it will be decreasing the money ... supply through its monetary policy tools, it tells us the Federal Reserve is - -concerned about inflation. -The main reason households and societies must make many decisions is because - -resources are scarce. -A record company went out of business because too many of its customers downloaded its music illegally from the internet rather than purchasing the digital copy from the record company. This instance serves as an example of: - -inadequate enforcement of property rights. -Economics is the study of the choices people make in attempting to manage their scarce resources. - -true -The term "productivity" - -refers to the quantity of goods and services each unit of labor can produce. -An incentive is anything that is designed to change behavior. - -true -A fundamental concept in economics is the idea of - -scarcity. [Show More]

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