ECON 202 TEST 1 MATTHEWS QUESTIONS &
DETAILED CORRECT ANSWERS 100%
1. Economics is the study of
Scarcity
choice under conditions of
2. Microeconomics Examines how individuals, households, firms
make deci-sions
3. Which of the following is a positive positive When per capita income falls, fewer
meals are
statement consumed at restaurants Point
4. At which point is it outside graph
impossible for the economy
to produce
Point highest on one axis, lowest on the other
5. 6. If most people in society
have more of one good than
the other, which point most
likely represents the optimal
mix of output Value of the best alternative to that activity
6. 7. The opportunity cost of
The production possibilities frontier will be concave
any ac-tivity can be measure
by the (bowed outward)
7. When all resources used in
pro-duction are notBob has absolute advantage in celebrity jokes (can pro-
perfectly substi-tutable
8. *Who has the absolute advan-
tage? (ability to produce more with duce 12 C, while producing 11 P)
the same or more resources)
9. 10. **Who has the comparative advantage?
1/
7
, ECON 202 TEST 1 MATTHEWS QUESTIONS &
DETAILED CORRECT ANSWERS 100%
(ability to produce with less Tom has comparative advantage in political jokes per
opportunity cost; LOOK FOR day, Bob has comparative advantage in celebrity
SMALLER FRACTION UNDER jokes per day
EACH COLUMN)
2/
7
DETAILED CORRECT ANSWERS 100%
1. Economics is the study of
Scarcity
choice under conditions of
2. Microeconomics Examines how individuals, households, firms
make deci-sions
3. Which of the following is a positive positive When per capita income falls, fewer
meals are
statement consumed at restaurants Point
4. At which point is it outside graph
impossible for the economy
to produce
Point highest on one axis, lowest on the other
5. 6. If most people in society
have more of one good than
the other, which point most
likely represents the optimal
mix of output Value of the best alternative to that activity
6. 7. The opportunity cost of
The production possibilities frontier will be concave
any ac-tivity can be measure
by the (bowed outward)
7. When all resources used in
pro-duction are notBob has absolute advantage in celebrity jokes (can pro-
perfectly substi-tutable
8. *Who has the absolute advan-
tage? (ability to produce more with duce 12 C, while producing 11 P)
the same or more resources)
9. 10. **Who has the comparative advantage?
1/
7
, ECON 202 TEST 1 MATTHEWS QUESTIONS &
DETAILED CORRECT ANSWERS 100%
(ability to produce with less Tom has comparative advantage in political jokes per
opportunity cost; LOOK FOR day, Bob has comparative advantage in celebrity
SMALLER FRACTION UNDER jokes per day
EACH COLUMN)
2/
7
