Econ 1001 Fall Midterm (Chap. 1) - Carleton University Study Guide Questions And Correct Answers

Efficiency {Ans: the property of society getting the most it can from its scarce resources}Inflation {Ans: an increase in the overall level of prices in the economy}Market Economy {Ans: an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services}Rational People {Ans: those who systematically and purposefully do the best they can to achieve their objectives}Market Power {Ans: the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices}Productivity {Ans: the quantity of goods and services produced from each hour of a worker's time}