ECON 2100 Exam with precise detailed answers

ECON 2100 Exam with precise detailed answers ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




an economy in which decisions about production and consumption are made by individual
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producers - correct answer✔✔market economy ||\\//|| ||\\//|| ||\\//|| ||\\//||




The real cost of an item is its ______ ___: what you must give up in order to get it. - correct
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answer✔✔opportunity cost
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decisions to do more or less of an activity. - correct answer✔✔marginal decisions ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




An economy is ______ if it takes all opportunities to make some people better off without
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making other people worse off. - correct answer✔✔efficient ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




resources are _____ - correct answer✔✔scarce ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||




The _____ assumption means that all other relevant factors remain unchanged. - correct
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answer✔✔"other things equal" ||\\//|| ||\\//||




A country has a _______ in producing a good or service if the opportunity cost of producing
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the good is lower for that country than for another country. - correct answer✔✔comparative
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advantage
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A country has an _______ in an activity if the country can make more output per worker
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than another country. - correct answer✔✔absolute advantage
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a model that represents the transactions in an economy by flows around a circle. - correct
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answer✔✔circular-flow diagram ||\\//||

, is the branch of economic analysis that describes the way the economy actually works -
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correct answer✔✔Positive economics ||\\//|| ||\\//||




makes prescriptions about the way the economy should work. - correct answer✔✔Normative
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economics
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In a ______ market:
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1.There are many buyers and sellers. 2.Sellers offer the same good or service (homogenious)
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3.No individual's actions have a noticeable effect on the price at which the good or service is
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sold. 4.In other words: no one party can influence price. All sellers and buyers are price
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takers. - correct answer✔✔competitive ||\\//|| ||\\//|| ||\\//||




A ______ curve is the graphical representation of the demand schedule - correct
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answer✔✔demand



The higher the price for a good, other things equal, the smaller the quantities of that good
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are demanded - correct answer✔✔Law of Demand
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Two goods are ______ if a fall in the price of one of the goods makes consumers less willing
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to buy the other good. - correct answer✔✔substitutes
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Two goods are______ if a fall in the price of one good makes people more willing to buy the
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other good. - correct answer✔✔complements
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When a rise in income increases the demand for a good - correct answer✔✔Normal good
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When a rise in income decreases the demand for a good - correct answer✔✔Inferior good
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