ECON 2110 - Clemson: Exam 1
What can cause the PPF to be bow-shaped? - Correct Answer-When the opportunity
cost of a good rises as more of the good is produced.
Microeconomics - Correct Answer-The study of how households and firms make
decisions and how they interact in markets.
Macroeconomics - Correct Answer-The study of economy-wide phenomena, including
inflation, unemployment, and economic growth.
Interdependence - Correct Answer-The idea that everyday, we rely on many people that
we will never meet to provide us with the goods and services we enjoy.
Market - Correct Answer-Group of buyers and sellers of a particular product.
Competitive Market - Correct Answer-A market with many buyers and sellers, each with
a negligible effect on price.
If you have the opportunity cost of one good, how can you find the opportunity cost of
the other? - Correct Answer-The inverse of the first good.
Trade Off - Correct Answer-The idea of having to sacrificing something for something
else because of limits.
In order to have a higher overall production, a country should specialize in the good that
it has a(n) (absolute/comparative) advantage in. - Correct Answer-Comparative
Advantage.
What makes everyone better off? - Correct Answer-Trade
Production Possibility Frontier - Correct Answer-A graph that shows the combination of
two goods the economy can possibly produce given the available technology.
Point A, B, and C: Possible and Efficient
Point D: Possible but Inefficient
Point E: Not Possible (unless technology gets better) - Correct Answer-Points A, B, and
C are considered:
Point D is considered:
Point E is considered:
What can cause the PPF to be bow-shaped? - Correct Answer-When the opportunity
cost of a good rises as more of the good is produced.
Microeconomics - Correct Answer-The study of how households and firms make
decisions and how they interact in markets.
Macroeconomics - Correct Answer-The study of economy-wide phenomena, including
inflation, unemployment, and economic growth.
Interdependence - Correct Answer-The idea that everyday, we rely on many people that
we will never meet to provide us with the goods and services we enjoy.
Market - Correct Answer-Group of buyers and sellers of a particular product.
Competitive Market - Correct Answer-A market with many buyers and sellers, each with
a negligible effect on price.
If you have the opportunity cost of one good, how can you find the opportunity cost of
the other? - Correct Answer-The inverse of the first good.
Trade Off - Correct Answer-The idea of having to sacrificing something for something
else because of limits.
In order to have a higher overall production, a country should specialize in the good that
it has a(n) (absolute/comparative) advantage in. - Correct Answer-Comparative
Advantage.
What makes everyone better off? - Correct Answer-Trade
Production Possibility Frontier - Correct Answer-A graph that shows the combination of
two goods the economy can possibly produce given the available technology.
Point A, B, and C: Possible and Efficient
Point D: Possible but Inefficient
Point E: Not Possible (unless technology gets better) - Correct Answer-Points A, B, and
C are considered:
Point D is considered:
Point E is considered:
