ECN 211 final asu questions with correct answers

The opportunity cost of an item is.... Correct Answer-what you give up to get that item Total output in an economy increases when each person specializes because Correct Answer-each person spends more time producing that product in which they have a comparative advantage in. The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good, Correct Answer-has the absolute advantage in producing that good The quantity demanded of a good is the amount that buyers are Correct Answer-willing and able to purchase the market demand curve Correct Answer-represents the sum of the quantities demanded by all the buyers are willing to pay for the quantity of that good The quantity supplied of a good is Correct Answer-the amount of a good that sellers are willing and able to sell which of the following events must cause equilibrium price to fall Correct Answer-demand increases supply increases GDP is defined as the Correct Answer-value of all final good and services produced w/in a country at a given period of time