ECN 211 Final Exam Questions
and Answers 100% Pass
scarcity - CORRECT ANSWER-the limited nature of society's resources
Opportunity cost - CORRECT ANSWER-Whatever must be given up to obtain
some item
principles of specialization and exchange - CORRECT ANSWER-trade can
benefit everyone in society because it allows people to specialize in activities in
which they have comparative advantage
Absolute advantage - CORRECT ANSWER-The ability to produce a good using
fewer inputs than another producer
Comparative advantage - CORRECT ANSWER-The ability to produce a good at a
lower opportunity cost than another producer
Law of demand - CORRECT ANSWER-the claim that, other things being equal,
the quantity demanded of a good falls when the price of the good rises
Law of supply - CORRECT ANSWER-the claim that other things being equal, the
quantity supplied of a good rises when the price of the good rises
, Market equilibrium - CORRECT ANSWER-A situation in which the market price
has reached the level at which quantity supplied equals quantity demanded
Factors that shift the demand curve - CORRECT ANSWER-Income, wealth,
prices of related goods, population, expected price, taste
Factors that shift the supply curve - CORRECT ANSWER-input prices, price of
alternatives, technology, number of firms, expectations, changes in weather, or
other natural events
GDP - CORRECT ANSWER-the market value of all final goods and services
purchased within a country in a given period of time
real vs nominal GDP - CORRECT ANSWER-real is valued at constant prices
while nominal is valued at current prices
unemployment - CORRECT ANSWER-those who were not employed, were
available for work, and had tried to find employment during the previous four
weeks
discouraged workers - CORRECT ANSWER-individuals who would like to work
but have given up looking for a job
consumer price index (CPI) - CORRECT ANSWER-an index of the cost, through
time of a market basket of good purchased by a typical household
Calculating the inflation rate - CORRECT ANSWER-amount in today's dollars =
amount in year t dollars * price level today/price level in year t
and Answers 100% Pass
scarcity - CORRECT ANSWER-the limited nature of society's resources
Opportunity cost - CORRECT ANSWER-Whatever must be given up to obtain
some item
principles of specialization and exchange - CORRECT ANSWER-trade can
benefit everyone in society because it allows people to specialize in activities in
which they have comparative advantage
Absolute advantage - CORRECT ANSWER-The ability to produce a good using
fewer inputs than another producer
Comparative advantage - CORRECT ANSWER-The ability to produce a good at a
lower opportunity cost than another producer
Law of demand - CORRECT ANSWER-the claim that, other things being equal,
the quantity demanded of a good falls when the price of the good rises
Law of supply - CORRECT ANSWER-the claim that other things being equal, the
quantity supplied of a good rises when the price of the good rises
, Market equilibrium - CORRECT ANSWER-A situation in which the market price
has reached the level at which quantity supplied equals quantity demanded
Factors that shift the demand curve - CORRECT ANSWER-Income, wealth,
prices of related goods, population, expected price, taste
Factors that shift the supply curve - CORRECT ANSWER-input prices, price of
alternatives, technology, number of firms, expectations, changes in weather, or
other natural events
GDP - CORRECT ANSWER-the market value of all final goods and services
purchased within a country in a given period of time
real vs nominal GDP - CORRECT ANSWER-real is valued at constant prices
while nominal is valued at current prices
unemployment - CORRECT ANSWER-those who were not employed, were
available for work, and had tried to find employment during the previous four
weeks
discouraged workers - CORRECT ANSWER-individuals who would like to work
but have given up looking for a job
consumer price index (CPI) - CORRECT ANSWER-an index of the cost, through
time of a market basket of good purchased by a typical household
Calculating the inflation rate - CORRECT ANSWER-amount in today's dollars =
amount in year t dollars * price level today/price level in year t
