ECO 301 Exam 1 quiz answers 100%
correct 2025/2026 latest update
Differences in productive environments - correct answer ✔✔give rise to comparative advantage, and
comparative advantage leads to gains from specialization and trade, and a medium of exchange emerges
to reduce trading costs
a PPF is: - correct answer ✔✔the set of all efficient combinations of production
The medium of exchange function of money improves an society's welfare by - correct answer
✔✔Lowering transactions cost and increasing the volume of trade
Suppose there are four ounces of gold in a $10 gold coin. Then, - correct answer ✔✔This coin will
disappear once the price of gold exceeds $2.50/oz
China was the first country to introduce paper currency. The paper served as a warehouse certificate so
that people did not have to carry heavy bags of copper coins. This occurred because copper coins lacked
which of the desirable traits of money? - correct answer ✔✔Portability
An interest rate is a(n) _________________ that is almost always quoted______________ . - correct
answer ✔✔rate of growth, as an annual rate
In the Wizard of Oz the scarecrow, the tinman, and the cowardly lion represent - correct answer ✔✔The
farmers, the working class, Williams Jennings Bryan
An increase in the expected rate of inflation will cause the demand for bonds to - correct answer
✔✔Decrease
I. the bond sells above par
correct 2025/2026 latest update
Differences in productive environments - correct answer ✔✔give rise to comparative advantage, and
comparative advantage leads to gains from specialization and trade, and a medium of exchange emerges
to reduce trading costs
a PPF is: - correct answer ✔✔the set of all efficient combinations of production
The medium of exchange function of money improves an society's welfare by - correct answer
✔✔Lowering transactions cost and increasing the volume of trade
Suppose there are four ounces of gold in a $10 gold coin. Then, - correct answer ✔✔This coin will
disappear once the price of gold exceeds $2.50/oz
China was the first country to introduce paper currency. The paper served as a warehouse certificate so
that people did not have to carry heavy bags of copper coins. This occurred because copper coins lacked
which of the desirable traits of money? - correct answer ✔✔Portability
An interest rate is a(n) _________________ that is almost always quoted______________ . - correct
answer ✔✔rate of growth, as an annual rate
In the Wizard of Oz the scarecrow, the tinman, and the cowardly lion represent - correct answer ✔✔The
farmers, the working class, Williams Jennings Bryan
An increase in the expected rate of inflation will cause the demand for bonds to - correct answer
✔✔Decrease
I. the bond sells above par
