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ECON 104Fall 2018REVIEW QUESTIONSFIRST EXAMThe following are some questions for review—they are not all inclusive, your notes and reading assignments up through Chapter 9, Unemployment, homework and quizzes are your best guide for what is on the exam. (The answers to these questionsare in your class notes. We will go over your questions/fill in the blanks on Monday, 9/24. Also, please look over the Practice Exam in the back of your packet. Ignore any questions in the practice exam on topics we have not covered in class. No new material will be covered on Monday, 9/24. Note: You will not be tested on Ch. 9, Inflation.If you have missed any classes, I suggest you get the notes 700(take a picture) from a classmate.Come to the review on Monday where you will have an opportunity to exchange class notes towards the end of class. Introduction and Chapter 1 (entire chapter): Packet pages 1 – 16.Definitions: Economics, macroeconomics microeconomicsRational Thinking- people taking into account all available information in achieving theirgoalsMargin or marginal- additional (small incremental adjustment)Marginal Benefit (MB)Marginal Cost (MC)Standard of Living- amount of goods and services we can buyFactors of Production- land, labor, capital, entrepreneurshipCapital Goods- physical goods and human goods such as training and worker’s skillsEntrepreneur- organizes and operates a business, takes on great riskPositive Economics- statement that can be verified and tested scientifically using real worlddata and economic modelsNormative Economics- statement that is based upon opinion and are scientifically untestableMixed Economy- economic system with both public and private enterprise1.What are the 3 key economic ideas about how people interact and make choices in the 3.1