ECON 2110 - Clemson: Exam 1Questions And Answers

ECON 2110 - Clemson: Exam 1Questions
And Answers

^q-qCORRECTqqANSWER-asqPq^qQsq?

1.qObtainingqadditionalqresources.
2.qImprovementqinqtechnologyq-qCORRECTqqANSWER-
WhatqtwoqwaysqcanqshiftqtheqPPFqoutward?

3qStepsqtoqAnalyzingqChangesqinqEquilibriumq-qCORRECTqqANSWER-
1.qDetermineqifqeventsqareqshiftingqSqorqDqcurve,qorqboth.
2.qDecideqwhichqdirectionqcurvesqshifts.
3.qUseqSupply-
DemandqdiagramqtoqseeqhowqtheqshiftqchangesqequilibriumqofqPriceqandqQuantity

AbsoluteqAdvantageq-qCORRECTqqANSWER-
Theqabilityqtoqproduceqaqgoodqusingqfewerqinputsqthanqanotherqproducer.

ComparativeqAdvantageq-qCORRECTqqANSWER-
Inqorderqtoqhaveqaqhigherqoverallqproduction,qaqcountryqshouldqspecializeqinqtheqgoodqthatqit
qhasqa(n)q(absolute/comparative)qadvantageqin.




ComparativeqAdvantageq-qCORRECTqqANSWER-
Theqabilityqtoqproduceqaqgoodqatqaqlowerqopportunityqcostqthanqanotherqproducer.

CompetitiveqMarketq-qCORRECTqqANSWER-
Aqmarketqwithqmanyqbuyersqandqsellers,qeachqwithqaqnegligibleqeffectqonqprice.

Complementsq-qCORRECTqqANSWER-Goodsqthatqgoqtogether-

Twoqgoodsqareqconsideredqthisqifqaqriseqinqpriceqcausesqaqfallqinqdecreaseqinqdemandqforqth
eqother.

CreativeqDestructionq-qCORRECTqqANSWER-
throughqentrepreneurialqdiscoveryqandqinnovation,qnewqproductsqandqmethodsqofqproducti
onqareqcontinuouslyqreplacingqoldqone.

, DemandqScheduleq-qCORRECTqqANSWER-
Aqtableqthatqshowsqtheqrelationshipqbetweenqtheqpriceqofqaqgoodqandqtheqquantityqdemand
ed.

DemandqShiftersq-qCORRECTqqANSWER-NumberqofqBuyers
Taste
Income
Expectations
PriceqofqRelatedqGoods

Equilibriumq-qCORRECTqqANSWER-Whenqquantityqsuppliedqequalsqquantityqdemanded.

ExamplesqofqCapitalq-qCORRECTqqANSWER-Dock
Boatsq
Rod/Reels
LifeqJackets
Buoys
Office
Storage

ExamplesqofqEconomicqResourcesq-qCORRECTqqANSWER-Labor
Capital
NaturalqResources
EntrepreneurialqResources

ExamplesqofqHumanqResourcesq-qCORRECTqqANSWER-Labor
Entrepreneurialqability
q-organizational

q-innovation




ExamplesqofqNaturalqResourcesq-qCORRECTqqANSWER-Gas
Bait
Fish
Land
Water

Impossibleq-qCORRECTqqANSWER-
Itqisq(qpossible/impossibleq)qforqaqcountryqtoqhaveqaqcomparativeqadvantageqinqbothqgoods.

Interdependenceq-qCORRECTqqANSWER-
Theqideaqthatqeveryday,qweqrelyqonqmanyqpeopleqthatqweqwillqneverqmeetqtoqprovidequsqwit
hqtheqgoodsqandqservicesqweqenjoy.