ECON-B 251 EXAM 1 LATEST
When an economy produces more smartphones and fewer cars, it is
answering the _______ question - ANSWERS-What
If shen produces both paninis and burgers then when production is
efficient... - ANSWERS-Shen can produce more paninis only by
producing less burgers
The principle of decreasing marginal benefit implies the - ANSWERS-
Additional benefit from obtaining one or more of a good or service
decreases as more is consumed
An economy produces face masks. If the economy achieves allocative
efficiency, then.. - ANSWERS-It produces the quantity on the PPC that
is valued most highly
Keisha produces 40 s and 100c in a year
Doug produces 30 s and 90c in a year
Who has the absolute advantage in c
Who has the comparative advantage in c - ANSWERS-Keisha - absolute
Doug - comparative
END OF
PAGE
1
, ECON-B 251 EXAM 1 LATEST
Keisha produces 40 s and 100c in a year
Doug produces 30 s and 90c in a year
To maximize their total output of sandwiches and cups of coffee keisha
should specialize in what?
What should Doug specialize in? - ANSWERS-Comparative advantage
determines specialization
Keisha has the comparative advantage in s
Doug has the comparative advantage in c
This causes a movement up along the per worker production function -
ANSWERS-An increase in the amount of capital
A 0.5% change in the growth rate.. - ANSWERS-Has a significant effect
on long run output (real GDP) over time
Characteristics of markets - ANSWERS-Represents a voluntary
exchange between buyers and sellers
Markets determine the terms of exchange (price) of goods and services
END OF
PAGE
2
, ECON-B 251 EXAM 1 LATEST
If the price of coffee increases, holding all else constant then the
__________ coffee ________ - ANSWERS-Quality demanded of,
decreases
Coffee and tea are substitutes in consumption. If there is an increase in
the price of coffee, then the ______ tea _______ - ANSWERS-Demand,
increases
Income increases so quantity demanded increases - ANSWERS-Normal
goods
Along the supply curve price and ______ are ______ related -
ANSWERS-Quantity supplied, directly
Coffee beans are used to produce coffee, if the price of coffee beans
increases then the _______ coffee _____ - ANSWERS-Supply of,
decreases
economics - ANSWERS-the study of satisfying unlimited wants by
utilizing limited resources
END OF
PAGE
3
When an economy produces more smartphones and fewer cars, it is
answering the _______ question - ANSWERS-What
If shen produces both paninis and burgers then when production is
efficient... - ANSWERS-Shen can produce more paninis only by
producing less burgers
The principle of decreasing marginal benefit implies the - ANSWERS-
Additional benefit from obtaining one or more of a good or service
decreases as more is consumed
An economy produces face masks. If the economy achieves allocative
efficiency, then.. - ANSWERS-It produces the quantity on the PPC that
is valued most highly
Keisha produces 40 s and 100c in a year
Doug produces 30 s and 90c in a year
Who has the absolute advantage in c
Who has the comparative advantage in c - ANSWERS-Keisha - absolute
Doug - comparative
END OF
PAGE
1
, ECON-B 251 EXAM 1 LATEST
Keisha produces 40 s and 100c in a year
Doug produces 30 s and 90c in a year
To maximize their total output of sandwiches and cups of coffee keisha
should specialize in what?
What should Doug specialize in? - ANSWERS-Comparative advantage
determines specialization
Keisha has the comparative advantage in s
Doug has the comparative advantage in c
This causes a movement up along the per worker production function -
ANSWERS-An increase in the amount of capital
A 0.5% change in the growth rate.. - ANSWERS-Has a significant effect
on long run output (real GDP) over time
Characteristics of markets - ANSWERS-Represents a voluntary
exchange between buyers and sellers
Markets determine the terms of exchange (price) of goods and services
END OF
PAGE
2
, ECON-B 251 EXAM 1 LATEST
If the price of coffee increases, holding all else constant then the
__________ coffee ________ - ANSWERS-Quality demanded of,
decreases
Coffee and tea are substitutes in consumption. If there is an increase in
the price of coffee, then the ______ tea _______ - ANSWERS-Demand,
increases
Income increases so quantity demanded increases - ANSWERS-Normal
goods
Along the supply curve price and ______ are ______ related -
ANSWERS-Quantity supplied, directly
Coffee beans are used to produce coffee, if the price of coffee beans
increases then the _______ coffee _____ - ANSWERS-Supply of,
decreases
economics - ANSWERS-the study of satisfying unlimited wants by
utilizing limited resources
END OF
PAGE
3
