ECN 211 ASU Final Exam Marburger with verified
answers already passed
1. The Circular
Green arrows represent the flow of money and red represents to flow of
Flow Diagram
goods/services
2. Production
The curve shows what is possible within an
pos- sibilities
economy D- impossible
Frontier/ Curve
A&B - feasible
PPF: PPC
eflcient C - feasible &
ineflcient
3. PPF shifts the economy can produce more of everything
out when...
4. Opportunity Cost the cost of what you give up to get something else in terms of time,
money, or other goods
5. Absolute Who can make most of that good
Advan- tage
6. Comparative The lowest opportunity cost for that good
Ad- vantage
7. They want to trade within their opportunity cost
1/
14
, ECN 211 ASU Final Exam Marburger with verified
answers already passed
What would al-
low Panama
and Canada to
trade?
8. Demand The amount consumers are willing and able to purchase
9. Supply The amount that producers are willing and able to produce
10. Law of demand Demand always slopes down
11. Law of supply Supply always slopes up
12. Equilibrium Where the two curves meet
13. Demand shifters- Price of substitute or complement
-Consumer preference
-population growth
-Income and expectation of future income
14. Supply shifters - Price of input
-Technological advancement
-Number of producers
-Producer expectation
15. Solve for
Equilib- rium
Price and
16.
Quantity
2/
14
answers already passed
1. The Circular
Green arrows represent the flow of money and red represents to flow of
Flow Diagram
goods/services
2. Production
The curve shows what is possible within an
pos- sibilities
economy D- impossible
Frontier/ Curve
A&B - feasible
PPF: PPC
eflcient C - feasible &
ineflcient
3. PPF shifts the economy can produce more of everything
out when...
4. Opportunity Cost the cost of what you give up to get something else in terms of time,
money, or other goods
5. Absolute Who can make most of that good
Advan- tage
6. Comparative The lowest opportunity cost for that good
Ad- vantage
7. They want to trade within their opportunity cost
1/
14
, ECN 211 ASU Final Exam Marburger with verified
answers already passed
What would al-
low Panama
and Canada to
trade?
8. Demand The amount consumers are willing and able to purchase
9. Supply The amount that producers are willing and able to produce
10. Law of demand Demand always slopes down
11. Law of supply Supply always slopes up
12. Equilibrium Where the two curves meet
13. Demand shifters- Price of substitute or complement
-Consumer preference
-population growth
-Income and expectation of future income
14. Supply shifters - Price of input
-Technological advancement
-Number of producers
-Producer expectation
15. Solve for
Equilib- rium
Price and
16.
Quantity
2/
14
