ECN 211 EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉what happens when gov prints too much money? Answer: prices
rise
◉what is inflation? Answer: increase in overall level of prices in
economy
◉what are short run trade-offs Answer: between inflation and
unemployment and last up to 2 years
◉what does an increase in quantity of money do? Answer:
stimulates spending and raises prices
◉The process by which resources are transformed into useful forms
is called what? Answer: production
◉the concept of tradeoffs would become irrelevant if... Answer:
scarcity were eliminated
, ◉comparative advantage Answer: what ever had the lower
opportunity cost
◉comparative advantage theory Answer: countries should increase
the production of a product they have comparative advantage in
◉Absolute advantage Answer: who uses less resources to produce
something
◉Refer to Table. The opportunity cost of writing one TV commercial
for Krytal and Mark respectively is Answer: 1/4 of a poem, 1/3 of a
poem.
◉can you have comparative advantage in both things? Answer: no
◉If the demand for jelly decreases, and the price of grapes (used to
make jelly) rises what happens Answer: the equilibrium price of
jelly might rise or fall, the equilibrium quantity of jelly falls
◉what is ambiguity Answer: when you don't know what will
happen
◉Is economics science? Answer: yes, they use the scientific method
QUESTIONS AND CORRECT ANSWERS
◉what happens when gov prints too much money? Answer: prices
rise
◉what is inflation? Answer: increase in overall level of prices in
economy
◉what are short run trade-offs Answer: between inflation and
unemployment and last up to 2 years
◉what does an increase in quantity of money do? Answer:
stimulates spending and raises prices
◉The process by which resources are transformed into useful forms
is called what? Answer: production
◉the concept of tradeoffs would become irrelevant if... Answer:
scarcity were eliminated
, ◉comparative advantage Answer: what ever had the lower
opportunity cost
◉comparative advantage theory Answer: countries should increase
the production of a product they have comparative advantage in
◉Absolute advantage Answer: who uses less resources to produce
something
◉Refer to Table. The opportunity cost of writing one TV commercial
for Krytal and Mark respectively is Answer: 1/4 of a poem, 1/3 of a
poem.
◉can you have comparative advantage in both things? Answer: no
◉If the demand for jelly decreases, and the price of grapes (used to
make jelly) rises what happens Answer: the equilibrium price of
jelly might rise or fall, the equilibrium quantity of jelly falls
◉what is ambiguity Answer: when you don't know what will
happen
◉Is economics science? Answer: yes, they use the scientific method
