University of Iowa
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ECON 101- ECON Principles of Microeconomics Exam 1 study guide new Solution University of Iowa 
 
 
 
scarcity - --a situation in which unlimited wants exceed the limited resources available to fulfill those wants 
 
shortage - --a situation in which the quantity demanded is greater than the quantity supplied 
 
microeconomics - --the study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices 
 
macroeconomics - --the...
ECON 101/ ECON Principles of Microeconomics Exam 1 study guide new Solution University of Iowa 
 
 
 
 
 
Microeconomics - >>>>the study of how 
households and firms 
make decisions and how 
they interact in markets 
 
Macroeconomics - >>>>the study of economywide 
phenomena, including 
inflation, unemployment, 
and economic growth 
 
Scarcity - >>>>the limited nature of society's 
resources
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