ECN 221 EXAM 4 QUESTIONS & ANSWERS
All possible choices for the individual are shown by this - Answers :Budget Constraint
If burgers cost $2 each and hot dogs are 50 cents each, what is the opportunity cost of
1 burger - Answers :2 hot dogs
Product efficiency refers to - Answers :using resources to their fullest
The product possibilities frontier (PPF) - Answers :reflects output assuming the use of
society's resources
Factors that might shift demand - Answers :Income, Consumer taste, Population
The demand curve - Answers :Shows max price consumers are willing and able to pay
for each quantity
Consumer Surplus - Answers :Difference between equilibrium price and price
consumers are willing and able to pay
Inelastic demand - Answers :occurs when buyer demand us not sensitive to price
change
UNOS is an example of - Answers :a 'command' solution to an economic problem
Objectification - Answers :refers to putting a price on certain things and buying or selling
them might move them into a class of impersonal objects
Comparative advantage - Answers :when 1 producer can produce something at a lower
opportunity cost than another producer
Any two countries can benefit from trade even if 1 country can produce al goods
cheaper - Answers :true
Quotas - Answers :are numerical (quantity) restrictions on imports
Dumping refers to - Answers :selling a product at a price below (marginal) cost
"Utility" refers to - Answers :measure of the level of satisfaction or pleasure that people
receive from their choices
Marginal Utility - Answers :additional satisfactory produces by the addition of one more
unit
As Barry Schwartz describes, more choice - Answers :Leads to less happiness for some
individuals
All possible choices for the individual are shown by this - Answers :Budget Constraint
If burgers cost $2 each and hot dogs are 50 cents each, what is the opportunity cost of
1 burger - Answers :2 hot dogs
Product efficiency refers to - Answers :using resources to their fullest
The product possibilities frontier (PPF) - Answers :reflects output assuming the use of
society's resources
Factors that might shift demand - Answers :Income, Consumer taste, Population
The demand curve - Answers :Shows max price consumers are willing and able to pay
for each quantity
Consumer Surplus - Answers :Difference between equilibrium price and price
consumers are willing and able to pay
Inelastic demand - Answers :occurs when buyer demand us not sensitive to price
change
UNOS is an example of - Answers :a 'command' solution to an economic problem
Objectification - Answers :refers to putting a price on certain things and buying or selling
them might move them into a class of impersonal objects
Comparative advantage - Answers :when 1 producer can produce something at a lower
opportunity cost than another producer
Any two countries can benefit from trade even if 1 country can produce al goods
cheaper - Answers :true
Quotas - Answers :are numerical (quantity) restrictions on imports
Dumping refers to - Answers :selling a product at a price below (marginal) cost
"Utility" refers to - Answers :measure of the level of satisfaction or pleasure that people
receive from their choices
Marginal Utility - Answers :additional satisfactory produces by the addition of one more
unit
As Barry Schwartz describes, more choice - Answers :Leads to less happiness for some
individuals
