ECN 211 FINAL ASU TEST BANK
2026 COMPREHENSIVE QUESTIONS
AND ACCURATE SOLUTIONS
VERIFIED
◉ frictional unemployment. Answer: short spells of unemployment
when workers are in between jobs
◉ structural unemployment. Answer: unemployment that results from
the mismatch in skills, locations, or other important characteristics
between job seekers and the available jobs
◉ natural rate of unemployment. Answer: the unemployment rate that
arises from the effects of frictional and structural unemployment
◉ macroeconomics. Answer: The study of the economy as a whole
◉ microeconomics. Answer: the study of the individual units that make
up the economy
◉ absolute advantage. Answer: the ability to produce more of a good
than another producer
◉ comparative advantage. Answer: the ability to produce a good at a
lower opportunity cost than another producer
, ◉ opportunity cost. Answer: what has to be given up to do something
else
◉ circular flow model. Answer: a diagram that shows the circular
movement of money, resources, and goods and services among
households and producers in an economy
◉ tariffs. Answer: Taxes on imported goods
◉ Smoot-Harvey act. Answer: Tariff in 1930, lead to massive tariff
retaliation (made the depression worse)
◉ nominal GDP. Answer: current prices x current quantity
◉ real GDP. Answer: base year prices x current quantity
◉ CPI. Answer: (current price x base quantities/base prices x base
quantities) x 100
◉ inflation. Answer: increase in prices
◉ recession. Answer: period of reduced economic activity
2026 COMPREHENSIVE QUESTIONS
AND ACCURATE SOLUTIONS
VERIFIED
◉ frictional unemployment. Answer: short spells of unemployment
when workers are in between jobs
◉ structural unemployment. Answer: unemployment that results from
the mismatch in skills, locations, or other important characteristics
between job seekers and the available jobs
◉ natural rate of unemployment. Answer: the unemployment rate that
arises from the effects of frictional and structural unemployment
◉ macroeconomics. Answer: The study of the economy as a whole
◉ microeconomics. Answer: the study of the individual units that make
up the economy
◉ absolute advantage. Answer: the ability to produce more of a good
than another producer
◉ comparative advantage. Answer: the ability to produce a good at a
lower opportunity cost than another producer
, ◉ opportunity cost. Answer: what has to be given up to do something
else
◉ circular flow model. Answer: a diagram that shows the circular
movement of money, resources, and goods and services among
households and producers in an economy
◉ tariffs. Answer: Taxes on imported goods
◉ Smoot-Harvey act. Answer: Tariff in 1930, lead to massive tariff
retaliation (made the depression worse)
◉ nominal GDP. Answer: current prices x current quantity
◉ real GDP. Answer: base year prices x current quantity
◉ CPI. Answer: (current price x base quantities/base prices x base
quantities) x 100
◉ inflation. Answer: increase in prices
◉ recession. Answer: period of reduced economic activity
