ECN 3400 UNIT 1 QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED A
Who suggested absolute cost differences determine the basis for trade?
Correct Answers Adam Smith
Who suggested that comparative cost differences determine the basis for
trade? Correct Answers David Ricardo
Absolute Advantage Correct Answers when a nation requires a lesser
amount of inputs that another to produce a product
Does increasing opportunity cost cause a country to specialize in it's
comparative advantage? Correct Answers Yes!
If a country is in a state of autarky, their consumption possibilities curve
Correct Answers is the same as their production possibilities frontier
Heckscher-Ohlin Theory Correct Answers nation will export the
commodity in the production of which a great deal of its relatively
abundant and cheap resource is used
in a 2-product, 2-country world, international trade can lead to increases
in Correct Answers output of both products and consumer welfare in
both countries
, Trading triangle concept is used to indicate a nation's: Correct Answers
Terms of trade, exports, imports
When a nation achieves autarky equilibrium: Correct Answers
production equals consumption
T or F: The demand is a relation indicating the quantity that will be
purchased at a given price over a given period of time all other
influences on the buyers being constant Correct Answers False -
because of "a given price"
T or F: Assuming the price is the same for all units purchased, the
demand is a relation indicating the maximum price buyers are willing to
pay any given quantity over a given period of time all other influences
on buyers being constant. Correct Answers True - "any period of time"
T or F: "The demand" is a relation indicating the quantity that will be
purchased at any given price over a given period of time all other
influences on the buyers being constant. Correct Answers True - "ANY
given price..."
Two variables of supply? Correct Answers Price of the item and
quantity of the item supplied
T or F: An increase in the price of product S will result in a decrease in
the demand for product S. Correct Answers false - it results in decrease
in quantity demanded!
100% CORRECT | ALREADY GRADED A
Who suggested absolute cost differences determine the basis for trade?
Correct Answers Adam Smith
Who suggested that comparative cost differences determine the basis for
trade? Correct Answers David Ricardo
Absolute Advantage Correct Answers when a nation requires a lesser
amount of inputs that another to produce a product
Does increasing opportunity cost cause a country to specialize in it's
comparative advantage? Correct Answers Yes!
If a country is in a state of autarky, their consumption possibilities curve
Correct Answers is the same as their production possibilities frontier
Heckscher-Ohlin Theory Correct Answers nation will export the
commodity in the production of which a great deal of its relatively
abundant and cheap resource is used
in a 2-product, 2-country world, international trade can lead to increases
in Correct Answers output of both products and consumer welfare in
both countries
, Trading triangle concept is used to indicate a nation's: Correct Answers
Terms of trade, exports, imports
When a nation achieves autarky equilibrium: Correct Answers
production equals consumption
T or F: The demand is a relation indicating the quantity that will be
purchased at a given price over a given period of time all other
influences on the buyers being constant Correct Answers False -
because of "a given price"
T or F: Assuming the price is the same for all units purchased, the
demand is a relation indicating the maximum price buyers are willing to
pay any given quantity over a given period of time all other influences
on buyers being constant. Correct Answers True - "any period of time"
T or F: "The demand" is a relation indicating the quantity that will be
purchased at any given price over a given period of time all other
influences on the buyers being constant. Correct Answers True - "ANY
given price..."
Two variables of supply? Correct Answers Price of the item and
quantity of the item supplied
T or F: An increase in the price of product S will result in a decrease in
the demand for product S. Correct Answers false - it results in decrease
in quantity demanded!
