ECN 211 EXAM 1 QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
One percentage point - Answers -One percentage point is different than 1 percent
Typical relation between the price of oil and household consumption on non energy
goods and services? - Answers -There is a negative relationship between the price of
oil and household spending on other goods and services. This means when the price of
oils rises, household spending on non-energy goods and services falls. Or, when the
prices of oils falls households spending rises.
Goods are scares if - Answers -The amount of people want to consume is more than is
available at a zero price
What would allow a point D that is 120 in "publicity provided goods" and 130 in "private
provided goods" to shift to C (140,140) - Answers -At point t D, the economy is already
utilizing its resources fully and efficiently and paying workers their efficiently beyond
maximum. The only way to advance beyond the ppc is to improve quantity and quality
resources or technological increase.
Consumers. Firms, Ownership of resources (income) - Answers -In a market system,
CONSUMERS determines what is produced, FIRMS determines how goods are
produced and OWNERSHIP OF RESOURCES determines for whom goods and
services are produced.
Supposed policy makers had decided to protect jobs in the US in the 1990s and
prohibited imports of textiles from aboard. What is the most likely result? - Answers -By
requiring all textiles be produced in US, the Us would lose out on gains from trade and
would consume fewer textile goods and other goods and services
What describes why textile products produced in the US cost more than products
produced in Asia? - Answers -The opportunity cost of producing textile products is
much higher in the US than it is in Asia. This means that the US does not have a
COMPARATIVE advantage in the production of textiles.
True statements - Answers -Gasoline and new SUVs are complements. An decrease in
the price of gasoline leads to an increase in demand for SUVs.
In 2014, the only major automaker to experience a decline in US sales was Volkswagen
Smaller cars and SUVs are substitutes in production. If the price of SUVs rises, then the
supply curve for smaller cars shifts left.
As consumers in the US have experienced an increase in income, they have switched
from purchasing bar soaps to liquid hand soaps and body washes. Since demand has
ACCURATE ANSWERS
One percentage point - Answers -One percentage point is different than 1 percent
Typical relation between the price of oil and household consumption on non energy
goods and services? - Answers -There is a negative relationship between the price of
oil and household spending on other goods and services. This means when the price of
oils rises, household spending on non-energy goods and services falls. Or, when the
prices of oils falls households spending rises.
Goods are scares if - Answers -The amount of people want to consume is more than is
available at a zero price
What would allow a point D that is 120 in "publicity provided goods" and 130 in "private
provided goods" to shift to C (140,140) - Answers -At point t D, the economy is already
utilizing its resources fully and efficiently and paying workers their efficiently beyond
maximum. The only way to advance beyond the ppc is to improve quantity and quality
resources or technological increase.
Consumers. Firms, Ownership of resources (income) - Answers -In a market system,
CONSUMERS determines what is produced, FIRMS determines how goods are
produced and OWNERSHIP OF RESOURCES determines for whom goods and
services are produced.
Supposed policy makers had decided to protect jobs in the US in the 1990s and
prohibited imports of textiles from aboard. What is the most likely result? - Answers -By
requiring all textiles be produced in US, the Us would lose out on gains from trade and
would consume fewer textile goods and other goods and services
What describes why textile products produced in the US cost more than products
produced in Asia? - Answers -The opportunity cost of producing textile products is
much higher in the US than it is in Asia. This means that the US does not have a
COMPARATIVE advantage in the production of textiles.
True statements - Answers -Gasoline and new SUVs are complements. An decrease in
the price of gasoline leads to an increase in demand for SUVs.
In 2014, the only major automaker to experience a decline in US sales was Volkswagen
Smaller cars and SUVs are substitutes in production. If the price of SUVs rises, then the
supply curve for smaller cars shifts left.
As consumers in the US have experienced an increase in income, they have switched
from purchasing bar soaps to liquid hand soaps and body washes. Since demand has
