ECON 203 EXAM 1 TAMU questions with correct answers

What are 3 gains from society when countries decide to specialize? CORRECT ANSWER -specialization and trade -more resources -Improvements in technology/productivity True or False: Every country have comparative advantage in something. CORRECT ANSWER True What are 2 gains when two countries engage in specialization and trade? CORRECT ANSWER -total production increases -new points reached on the PPF that were originally unattainable What are the 4 characteristics of competitive markets? CORRECT ANSWER -buyers are price takers (cannot negotiate) -standardized goods -full information -No transaction costs (no added cost for participating in the market) The ___ is the amount of a particular good or service that buyers are willing and able to purchase at a given price. CORRECT ANSWER Quantity Demanded A ___ displays the quantities demanded at various prices. CORRECT ANSWER Demand Schedule