ECON 2105 Exam 1 Questions and Answers |
2026 Update | 100% Correct\\pass!!
absolute advantage - ANSWER-the ability of one producer to make more than another
producer with the same quantity of resources
black markets - ANSWER-illegal markets that arise when price controls are in place
capital goods - ANSWER-goods that help produce other valuable goods and services in
the future
ceteris paribus - ANSWER-the concept under which economists examine a change in
one variable while holding everything else constant
comparative advantage - ANSWER-the situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
competitive market - ANSWER-one in which there are so many buyers and sellers that
each has only a small impact on the market price and output
complements - ANSWER-two goods that are used together; when the price of a
complementary good rises, the demand for the related good goes down
consumer goods - ANSWER-goods produced for present consumption
consumer surplus - ANSWER-the difference between the willingness to pay for a good
and the price that is paid to get it
deadweight loss - ANSWER-the decrease in economic activity caused by market
distortions
demand curve - ANSWER-a graph of the relationship between the prices in the demand
schedule and the quantity demanded at those prices
demand schedule - ANSWER-a table that shows the relationship between the price of a
good and the quantity demanded
economic thinking - ANSWER-a purposeful evaluation of the available opportunities to
make the best decision possible
2026 Update | 100% Correct\\pass!!
absolute advantage - ANSWER-the ability of one producer to make more than another
producer with the same quantity of resources
black markets - ANSWER-illegal markets that arise when price controls are in place
capital goods - ANSWER-goods that help produce other valuable goods and services in
the future
ceteris paribus - ANSWER-the concept under which economists examine a change in
one variable while holding everything else constant
comparative advantage - ANSWER-the situation where an individual, business, or
country can produce at a lower opportunity cost than a competitor can
competitive market - ANSWER-one in which there are so many buyers and sellers that
each has only a small impact on the market price and output
complements - ANSWER-two goods that are used together; when the price of a
complementary good rises, the demand for the related good goes down
consumer goods - ANSWER-goods produced for present consumption
consumer surplus - ANSWER-the difference between the willingness to pay for a good
and the price that is paid to get it
deadweight loss - ANSWER-the decrease in economic activity caused by market
distortions
demand curve - ANSWER-a graph of the relationship between the prices in the demand
schedule and the quantity demanded at those prices
demand schedule - ANSWER-a table that shows the relationship between the price of a
good and the quantity demanded
economic thinking - ANSWER-a purposeful evaluation of the available opportunities to
make the best decision possible
