ECON 203 EXAM 1 TAMU QUESTIONS AND ANSWERS GRADED A+

ECON 203 EXAM 1 TAMU QUESTIONS AND ANSWERS GRADED A+ What are 3 gains from society when countries decide to specialize? -specialization and trade -more resources -Improvements in technology/productivity True or False: Every country have comparative advantage in something. True What are 2 gains when two countries engage in specialization and trade? -total production increases -new points reached on the PPF that were originally unattainable What are the 4 characteristics of competitive markets? -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. Quantity Demanded