ECN 211 ASU Final Exam With Questions and Correct Answers Graded A+.

ECN 211 ASU Final Exam With Questions and Correct Answers Graded A+. The Circular Flow Diagram - ANSWER Green arrows represent the flow of money and red represents to flow of goods/services Production possibilities Frontier/ Curve PPF: PPC - ANSWER The curve shows what is possible within an economy D- impossible A&B - feasible efficient C - feasible & inefficient PPF shifts out when... - ANSWER the economy can produce more of everything Opportunity Cost - ANSWER the cost of what you give up to get something else in terms of time, money, or other goods Absolute Advantage - ANSWER Who can make most of that good Comparative Advantage - ANSWER The lowest opportunity cost for that good What would allow Panama and Canada to trade? - ANSWER They want to trade within their opportunity cost Demand - ANSWER The amount consumers are willing and able to purchase ECN 211 ASU Final Exam With Questions and Correct Answers Graded A+. Supply - ANSWER The amount that producers are willing and able to produce Law of demand - ANSWER Demand always slopes down Law of supply - ANSWER Supply always slopes up Equilibrium - ANSWER Where the two curves meet Demand shifters - ANSWER - Price of substitute or complement - Consumer preference - population growth - Income and expectation of future income.