Econ-B 251 Schwendel Final Exam
Questions and All Correct Answers
2025-2026 Updated.
value judgements - Answer Normative statements are based upon
value judgements
facts
experiments
random guessing
College tuition is higher for out of state students than in state students. - Answer Which of the
following statements is "positive" in nature?
College tuition is too inexpensive.
College tuition is higher for out of state students than in state students.
College tuition should be free for all US citizens.
College tuition is too expensive.
$9,000 - Answer A farmer can produce 1 ton of Apples for $11,000, 2 tons of apples for
$20,000 and 3 tons of apples for $42,000. What is the marginal cost of the 2nd ton of apples?
$11,000
$20,000
$8,000
$22,000
$9,000
4/7 - Answer Assume a nation has constant opportunity costs. If the nation can produce at
most 400 dishwashers or 700 cars, what is the opportunity cost of producing a car in terms of
dishwashers?
4/7
7/4
700
,Country B - Answer The above table represents the maximum amount of 2 goods that 2
countries could produce. Assume constant opportunity costs and equal resources in the 2
countries, who has the absolute advantage in Good D?
Country A
Country B
There is not enough information to determine this relationship.
Neither country has an absolute advantage.
Country B has a comparative advantage in good D. - Answer The above table represents the
maximum amount of 2 goods that 2 countries could produce. Assume constant opportunity
costs and equal resources in the 2 countries. Using this information, which of the following
statements is true?
Country A has no advantage in any good.
Country A has an absolute advantage in Good C.
Country A has a comparative advantage in good C.
Country A has an absolute advantage in Good D.
Country A has a comparative advantage in good D.
Country A has a comparative advantage in good C. - Answer The above table represents the
maximum amount of 2 goods that 2 countries could produce. Assume constant opportunity
costs and equal resources in the 2 countries. Using this information, which of the following
statements is true?
Country B has no absolute advantage in any good.
Country B has no comparative advantage in any good.
Country B has a comparative advantage in good C.
Country B has a comparative advantage in good D.
Can produce the good for a lower opportunity cost. - Answer If a country has a comparative
advantage in the production of a good it means for certain that they:
Have an absolute advantage in the production of the good.
Can produce the good for a lower opportunity cost.
Can produce the good using fewer inputs than another country.
Prefer consuming that good.
, $480
$360
$320
Technological progress. - Answer Which of the following is most likely to encourage sustained
long run economic growth (ceteris paribus)?
Increased natural resources.
Increased number of workers.
Technological progress.
Increased amount of capital.
Diminishing returns to capital - Answer This table shows
Diminishing returns to capital
Increasing returns to capital
Constant returns to capital
Gains from trade
Demand will increase. - Answer Ceteris paribus, for an inferior good, if my income decreases:
Demand will increase.
Supply will decrease.
Demand will decrease.
Supply will increase.
Demand will increase. - Answer Assume peanut butter and jelly are compliments, if the price
of peanut butter decreases, for jelly:
Supply will decrease.
Demand will increase.
Supply will increase.
Demand will decrease.
Neither supply nor demand change. - Answer Ceteris Paribus, if the price of a good increases:
Questions and All Correct Answers
2025-2026 Updated.
value judgements - Answer Normative statements are based upon
value judgements
facts
experiments
random guessing
College tuition is higher for out of state students than in state students. - Answer Which of the
following statements is "positive" in nature?
College tuition is too inexpensive.
College tuition is higher for out of state students than in state students.
College tuition should be free for all US citizens.
College tuition is too expensive.
$9,000 - Answer A farmer can produce 1 ton of Apples for $11,000, 2 tons of apples for
$20,000 and 3 tons of apples for $42,000. What is the marginal cost of the 2nd ton of apples?
$11,000
$20,000
$8,000
$22,000
$9,000
4/7 - Answer Assume a nation has constant opportunity costs. If the nation can produce at
most 400 dishwashers or 700 cars, what is the opportunity cost of producing a car in terms of
dishwashers?
4/7
7/4
700
,Country B - Answer The above table represents the maximum amount of 2 goods that 2
countries could produce. Assume constant opportunity costs and equal resources in the 2
countries, who has the absolute advantage in Good D?
Country A
Country B
There is not enough information to determine this relationship.
Neither country has an absolute advantage.
Country B has a comparative advantage in good D. - Answer The above table represents the
maximum amount of 2 goods that 2 countries could produce. Assume constant opportunity
costs and equal resources in the 2 countries. Using this information, which of the following
statements is true?
Country A has no advantage in any good.
Country A has an absolute advantage in Good C.
Country A has a comparative advantage in good C.
Country A has an absolute advantage in Good D.
Country A has a comparative advantage in good D.
Country A has a comparative advantage in good C. - Answer The above table represents the
maximum amount of 2 goods that 2 countries could produce. Assume constant opportunity
costs and equal resources in the 2 countries. Using this information, which of the following
statements is true?
Country B has no absolute advantage in any good.
Country B has no comparative advantage in any good.
Country B has a comparative advantage in good C.
Country B has a comparative advantage in good D.
Can produce the good for a lower opportunity cost. - Answer If a country has a comparative
advantage in the production of a good it means for certain that they:
Have an absolute advantage in the production of the good.
Can produce the good for a lower opportunity cost.
Can produce the good using fewer inputs than another country.
Prefer consuming that good.
, $480
$360
$320
Technological progress. - Answer Which of the following is most likely to encourage sustained
long run economic growth (ceteris paribus)?
Increased natural resources.
Increased number of workers.
Technological progress.
Increased amount of capital.
Diminishing returns to capital - Answer This table shows
Diminishing returns to capital
Increasing returns to capital
Constant returns to capital
Gains from trade
Demand will increase. - Answer Ceteris paribus, for an inferior good, if my income decreases:
Demand will increase.
Supply will decrease.
Demand will decrease.
Supply will increase.
Demand will increase. - Answer Assume peanut butter and jelly are compliments, if the price
of peanut butter decreases, for jelly:
Supply will decrease.
Demand will increase.
Supply will increase.
Demand will decrease.
Neither supply nor demand change. - Answer Ceteris Paribus, if the price of a good increases:
