ECO 232 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE

ECO 232 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE the word economy comes from the Greek word for - Answers one who manages the household Economics deals primarily with the concept of - Answers scarcity A good is considered scarce in a society when - Answers everyone in that society cannot have all they want of the good Economist use the word equality to describe a situation in which - Answers the benefits of society's resources are distributed fairly among society's members Economic is the study of - Answers hoe a society manages its scarce resources What you give up to obtain an item is called your - Answers opportunity cost People make decisions at the margin by - Answers comparing costs and benefits A rational decision maker takes an action only if - Answers marginal benefit is greater than the marginal cost According to the table, the Rancher has a comparative advantage in - Answers Meat According to the table, the farmer and rancher both could benefit by the Farmer specializing in - Answers potatoes If Shawn can produce more donuts in one day than Sue can produce in one day, then - Answers Shawn has the comparative advantage Comparative advantage is based on - Answers trade among nations the country that has a comparative advantage in a product should do what to that product - Answers export it imports - Answers goods produced abroad and sold domestically exports - Answers goods produced domestically and sold abroad One result of a drought in the midwest could be an increase in - Answers cost of wheat products Buyers determine _________ and sellers determine ________ - Answers demand supply For each good produced in a market economy, demand and supply determine - Answers both price and quantity a competitive market is one in which - Answers the firm has little ability to influence market prices Each of the following are determinants of demand EXCEPT - Answers technology If a good is normal, then an increase in income will result in - Answers an increase in the demand for the good Two goods are substitutes if a decrease in the price of one good - Answers reduces the quantity demanded of the other good an example of complementary goods would be - Answers hamburgers and fries according to the table shown, the price of the good is $1.00, the quantity demanded in this market would be - Answers 31 (the sum of everything in the $1 column) According to the table shown, if the price increases from $1.00 to $1.50 - Answers 24, decreases in 7 units in general, elasticity is - Answers a measure of how much buyers and sellers respond to changes in market conditions the price elasticity of demand measures how responsive - Answers buyers are to a change in price If a good is a necessity, demand for the good would tend to be - Answers inelastic