ECON 202- OLE MISS FINAL EXAM,
MATTHEWS EXAM QUESTIONS &
VERIFIED ANSWERS PASSED 100%
Production Possibilities Frontier (PPF) - Correct Answer ✔✔ -A graph that shows
combinations of output that the economy can possibly produce
-Factors of Production
-Production Technology
-Economy can produce any combo on or inside the frontier
Efficient levels of production - Correct Answer ✔✔ -The economy is getting all it can
from the scarce resources available
-Points on PPF
Inefficient levels of production - Correct Answer ✔✔ Points inside PPF
Technological Advance (PPF) - Correct Answer ✔✔ -Outward shift on the PPF
-Economic growth
-Produce more of both goods
Absolute Advantage - Correct Answer ✔✔ -The ability to produce a good using fewer
inputs than another producer
-One person can have Absolute Advantage in both goods
Comparative Advantage - Correct Answer ✔✔ -The ability to produce a good at a lower
opportunity cost than another producer
-One person cannot have Comparative Advantage in both goods
Supply and Demand - Correct Answer ✔✔ Relationship between the amount of product
and the desire for the product
Demand - Correct Answer ✔✔ Relationship between price and the quantity demanded
of a certain good or service
Law of Demand - Correct Answer ✔✔ -When the price of a good rises, the demand falls
-When the price falls, demand rises
Demand Curve - Correct Answer ✔✔ -A Graph with the price on the Y-axis and the
quantity on the X-axis
Shifts in Demand Curve - Correct Answer ✔✔ -Increase in demand, curve shifts right
-Decrease in demand, curve shifts left
, Market Demand - Correct Answer ✔✔ The sum of all the individual demands for a
particular good or service
Market Demand Curve - Correct Answer ✔✔ The horizontal sum of all individual
demand curves
Variables that shift the demand curve - Correct Answer ✔✔ -Income
-Price of related goods
-Tastes
-Expectations
-# of buyers
Income Effect on Demand - Correct Answer ✔✔ -Normal Good: Increases in income,
increases demand
-Inferior Good: Increase in income, decreases demand
Supply - Correct Answer ✔✔ Relationship between price of a good and the quantity
supplied
Law of Supply - Correct Answer ✔✔ -When price increases, supply increases
-When price falls, supply falls
Market Supply - Correct Answer ✔✔ Sum of the supplies of all sellers for a good or
service
Supply Curve - Correct Answer ✔✔ A curve that shows the relationship between the
price of a product and the quantity of the product supplied
Shifts in Supply Curve - Correct Answer ✔✔ -Increase in supply, curve shifts right
-Decrease in supply, curve shifts left
Variables that shift supply curve - Correct Answer ✔✔ -Input prices
-Technology
-Expectations about future
-# of sellers
Market Equilibrium - Correct Answer ✔✔ -Situation in which quantity demanded =
quantity supplied
-Supply & Demand curves intersect
Surplus - Correct Answer ✔✔ -Supply is greater than Demand
-Excess supply
Shortage - Correct Answer ✔✔ -Demand is greater than Supply
-Excess Demand
MATTHEWS EXAM QUESTIONS &
VERIFIED ANSWERS PASSED 100%
Production Possibilities Frontier (PPF) - Correct Answer ✔✔ -A graph that shows
combinations of output that the economy can possibly produce
-Factors of Production
-Production Technology
-Economy can produce any combo on or inside the frontier
Efficient levels of production - Correct Answer ✔✔ -The economy is getting all it can
from the scarce resources available
-Points on PPF
Inefficient levels of production - Correct Answer ✔✔ Points inside PPF
Technological Advance (PPF) - Correct Answer ✔✔ -Outward shift on the PPF
-Economic growth
-Produce more of both goods
Absolute Advantage - Correct Answer ✔✔ -The ability to produce a good using fewer
inputs than another producer
-One person can have Absolute Advantage in both goods
Comparative Advantage - Correct Answer ✔✔ -The ability to produce a good at a lower
opportunity cost than another producer
-One person cannot have Comparative Advantage in both goods
Supply and Demand - Correct Answer ✔✔ Relationship between the amount of product
and the desire for the product
Demand - Correct Answer ✔✔ Relationship between price and the quantity demanded
of a certain good or service
Law of Demand - Correct Answer ✔✔ -When the price of a good rises, the demand falls
-When the price falls, demand rises
Demand Curve - Correct Answer ✔✔ -A Graph with the price on the Y-axis and the
quantity on the X-axis
Shifts in Demand Curve - Correct Answer ✔✔ -Increase in demand, curve shifts right
-Decrease in demand, curve shifts left
, Market Demand - Correct Answer ✔✔ The sum of all the individual demands for a
particular good or service
Market Demand Curve - Correct Answer ✔✔ The horizontal sum of all individual
demand curves
Variables that shift the demand curve - Correct Answer ✔✔ -Income
-Price of related goods
-Tastes
-Expectations
-# of buyers
Income Effect on Demand - Correct Answer ✔✔ -Normal Good: Increases in income,
increases demand
-Inferior Good: Increase in income, decreases demand
Supply - Correct Answer ✔✔ Relationship between price of a good and the quantity
supplied
Law of Supply - Correct Answer ✔✔ -When price increases, supply increases
-When price falls, supply falls
Market Supply - Correct Answer ✔✔ Sum of the supplies of all sellers for a good or
service
Supply Curve - Correct Answer ✔✔ A curve that shows the relationship between the
price of a product and the quantity of the product supplied
Shifts in Supply Curve - Correct Answer ✔✔ -Increase in supply, curve shifts right
-Decrease in supply, curve shifts left
Variables that shift supply curve - Correct Answer ✔✔ -Input prices
-Technology
-Expectations about future
-# of sellers
Market Equilibrium - Correct Answer ✔✔ -Situation in which quantity demanded =
quantity supplied
-Supply & Demand curves intersect
Surplus - Correct Answer ✔✔ -Supply is greater than Demand
-Excess supply
Shortage - Correct Answer ✔✔ -Demand is greater than Supply
-Excess Demand
