ECON 201 - Chapter 2 Questions
and Answers 100% Pass
Capital - ✔✔things that are produced and then used in the production of other goods
and services
factors of production - ✔✔the inputs into the process of production. another term for
resources
production - ✔✔the process that transforms scarce resources into useful goods and
services
inputs or resources - ✔✔anything provided by nature or previous generations that can
be used directly or indirectly to satisfy human wants
outputs - ✔✔goods and services of value to households
opportunity cost - ✔✔the best alternative that we give up, or forgo, when we make a
choice or decision
theory of comparative advantage - ✔✔Ricardo's theory that specialization and free
trade will benefit all trading parties, even those that may be "absolutely" more efficient
producers
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
and Answers 100% Pass
Capital - ✔✔things that are produced and then used in the production of other goods
and services
factors of production - ✔✔the inputs into the process of production. another term for
resources
production - ✔✔the process that transforms scarce resources into useful goods and
services
inputs or resources - ✔✔anything provided by nature or previous generations that can
be used directly or indirectly to satisfy human wants
outputs - ✔✔goods and services of value to households
opportunity cost - ✔✔the best alternative that we give up, or forgo, when we make a
choice or decision
theory of comparative advantage - ✔✔Ricardo's theory that specialization and free
trade will benefit all trading parties, even those that may be "absolutely" more efficient
producers
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
