Econ 101 Exam 3 Iowa State University questions and answers rated A+

Econ 101 Exam 3 Iowa State
University questions and answers
rated A+

absolute advantage - correct answer ✔✔an individual or a business in a country has an absolute
advantage in the production of a good if it can produce that good using fewer resources



comparative advantage - correct answer ✔✔an individual or a business has a comparative
advantage over another in one good relative to another good if it opportunity cost is less



economies of scale - correct answer ✔✔when all inputs are doubled, output more than doubles



production possibilities frontier - correct answer ✔✔this plots the maximum output of goods
and services that a country can produce with its resources



quota - correct answer ✔✔a legal limit on the amount of a good or service that can be imported



tariff - correct answer ✔✔a tax on an imported good



specialization - correct answer ✔✔an individual, business, or country focusing on the
production of a limited number of goods and services in order to attain a higher level of
efficiency



average cost - correct answer ✔✔total cost divided by the total product



average product - correct answer ✔✔the total product divided by the number of units of a
particular input used