ECON 100 FINAL QUESTIONS AND
CORRECT ANSWERS
An assumption of the PPFM is that for a given curve, the level of technology is fixed ✅✅CORRECT
ANSW-True
In one month moira can knit 2 sweaters or 4 scarves. In one month tori can knit 1 sweater or 3
scarves. ✅✅CORRECT ANSW-Together they could produce more output if Moira only knits
sweaters and Tori only knits scarves
The gains from specialization and trade are based on _________advantage ✅✅CORRECT ANSW-
comparative
If the US workers can produce everything in less time than Mexican workers it____ possible for the
US to gain from trade with US ✅✅CORRECT ANSW-is
If there is an improvement in the technology used to produce a good, then the supply curve for that
good will shift to the ______. ✅✅CORRECT ANSW-Right
A decrease in the price of blueberries will decrease the equilibrium price and _______ quantity in
the market for bb muffins. ✅✅CORRECT ANSW-increase
is the ability to produce a good using fewer inputs than another producer ✅✅CORRECT ANSW-
Absolute Advantage
Scarcity means there is less of a good or resource available than people wish to have
✅✅CORRECT ANSW-True
The number of Americans on food stamp assistance as of May 2014 was______ than it was in
December ✅✅CORRECT ANSW-LOWER
In the markets for goods and services in the circular- flow diagram, households and buyers and firms
are sellers. ✅✅CORRECT ANSW-True
, Points ______represent infeasible outcomes for this economy ✅✅CORRECT ANSW-A and D
A market in which there is only one seller is called a ✅✅CORRECT ANSW-Monopoly
The limited nature of society's resources is referred to as ✅✅CORRECT ANSW-Scarcity
The property of society getting the most it can from its scare resources is known as ✅✅CORRECT
ANSW-Efficiency
The study of how household and firms make decisions and how they interact in market is known as
✅✅CORRECT ANSW-Microeconomics
The________ ________ is whatever must be given up to obtain some item ✅✅CORRECT ANSW-
Opportunity Cost
A________is a group of buyers and sellers of a particular good or service. ✅✅CORRECT ANSW-
Market
A good for which, other things being equal, an increase in income leads to a decrease in demand is
called an ✅✅CORRECT ANSW-inferior good
A________ is a situation in which the quantity supplied is greater than the quantity demanded
✅✅CORRECT ANSW-Surplus
An___________ is something that induces a person to act ✅✅CORRECT ANSW-incentive
Price control are usually enacted when policymakers believe that the market price of a good or
service is unfair to buyers or sellers ✅✅CORRECT ANSW-True
A binding price floor causes supplied to be _______than quantity demanded ✅✅CORRECT ANSW-
More
A binding minimum wage may not help all workers, but ✅✅CORRECT ANSW-it can hurt some that
are unemployed
CORRECT ANSWERS
An assumption of the PPFM is that for a given curve, the level of technology is fixed ✅✅CORRECT
ANSW-True
In one month moira can knit 2 sweaters or 4 scarves. In one month tori can knit 1 sweater or 3
scarves. ✅✅CORRECT ANSW-Together they could produce more output if Moira only knits
sweaters and Tori only knits scarves
The gains from specialization and trade are based on _________advantage ✅✅CORRECT ANSW-
comparative
If the US workers can produce everything in less time than Mexican workers it____ possible for the
US to gain from trade with US ✅✅CORRECT ANSW-is
If there is an improvement in the technology used to produce a good, then the supply curve for that
good will shift to the ______. ✅✅CORRECT ANSW-Right
A decrease in the price of blueberries will decrease the equilibrium price and _______ quantity in
the market for bb muffins. ✅✅CORRECT ANSW-increase
is the ability to produce a good using fewer inputs than another producer ✅✅CORRECT ANSW-
Absolute Advantage
Scarcity means there is less of a good or resource available than people wish to have
✅✅CORRECT ANSW-True
The number of Americans on food stamp assistance as of May 2014 was______ than it was in
December ✅✅CORRECT ANSW-LOWER
In the markets for goods and services in the circular- flow diagram, households and buyers and firms
are sellers. ✅✅CORRECT ANSW-True
, Points ______represent infeasible outcomes for this economy ✅✅CORRECT ANSW-A and D
A market in which there is only one seller is called a ✅✅CORRECT ANSW-Monopoly
The limited nature of society's resources is referred to as ✅✅CORRECT ANSW-Scarcity
The property of society getting the most it can from its scare resources is known as ✅✅CORRECT
ANSW-Efficiency
The study of how household and firms make decisions and how they interact in market is known as
✅✅CORRECT ANSW-Microeconomics
The________ ________ is whatever must be given up to obtain some item ✅✅CORRECT ANSW-
Opportunity Cost
A________is a group of buyers and sellers of a particular good or service. ✅✅CORRECT ANSW-
Market
A good for which, other things being equal, an increase in income leads to a decrease in demand is
called an ✅✅CORRECT ANSW-inferior good
A________ is a situation in which the quantity supplied is greater than the quantity demanded
✅✅CORRECT ANSW-Surplus
An___________ is something that induces a person to act ✅✅CORRECT ANSW-incentive
Price control are usually enacted when policymakers believe that the market price of a good or
service is unfair to buyers or sellers ✅✅CORRECT ANSW-True
A binding price floor causes supplied to be _______than quantity demanded ✅✅CORRECT ANSW-
More
A binding minimum wage may not help all workers, but ✅✅CORRECT ANSW-it can hurt some that
are unemployed
