econ 100 ( macroeconomics) csulb question n answers graded A+

econ 100 ( macroeconomics) • Scarcity - correct answer Have a limited number of resources ( 3 main: land, labor, capital) • Economics - correct answer - study of how society manages in scarce resources • Opportunity cost- - correct answer what you give up to get something, next best choice, highest valued foregone alternative • Production Possibilities Frontier (PPF) - - correct answer a graph that shows the combinations of two goods the economy can produce w/ its given resources and the available technology Efficiency, Inefficiency, Not feasible outcomes - ( on ppf) - correct answer check notes image* o Economic growth - correct answer - a shift outward on the ppf that moves from adding resources (land, labor, capital) or technology that makes it possible to produce more of ne good, the other, or both. ( a line on ppf doesn't shift if resources don't change, only their point) ( time spent making capital is time not being used for consumption good) • Absolute advantage - - correct answer When you can produce more of a good • Comparative advantage- - correct answer when you can produce a good at a lower opportunity cost - who gives up less? You or your neighbor? * theory of comparative advantage* explains gain from trade ( spend more time make a good your have a comparative advantage doing) demand - correct answer The relationship between price of good and quantity that buyers are willing and able to purchase.