Econ 111: Final Exam Review
(2025/2026) questions n answers
If China has a comparative advantage over the U.S.in the production of furniture, then
A. The opportunity cost of producing furniture in the U.S. is lower than in China.
B. Only China will gain from trade in furniture between China and the U.S.
C. The opportunity cost of producing furniture in China is lower than in the U.S.
D. The U.S. will have a trade deficit with China. - correct answer ✔✔C. The opportunity cost of
producing furniture in China is lower than in the U.S.
Which of the following does NOT shift the demand curve for broccoli?
A. A decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of
spinach this year
B. A warning by the U.S. Surgeon General that broccoli causes schizophrenia
C. An increase in the price of spinach, a substitute for broccoli, because rodents gobbled up
much of this years spinach crop
D. An increase in the cost of fertilizer used to grow broccoli - correct answer ✔✔D. An increase
in the cost of fertilizer used to grow broccoli
Efficiency means that
A. Society is conserving resources in order to save them for the future
B. Society's goods and services are distributed equally among society's members
C. Society's goods and services are distributed fairly, though not necessarily equally, among
society's members
D. Society is getting the maximum benefits from its scarce resources. - correct answer ✔✔D.
Society is getting the maximum benefits from its scarce resources.
(2025/2026) questions n answers
If China has a comparative advantage over the U.S.in the production of furniture, then
A. The opportunity cost of producing furniture in the U.S. is lower than in China.
B. Only China will gain from trade in furniture between China and the U.S.
C. The opportunity cost of producing furniture in China is lower than in the U.S.
D. The U.S. will have a trade deficit with China. - correct answer ✔✔C. The opportunity cost of
producing furniture in China is lower than in the U.S.
Which of the following does NOT shift the demand curve for broccoli?
A. A decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of
spinach this year
B. A warning by the U.S. Surgeon General that broccoli causes schizophrenia
C. An increase in the price of spinach, a substitute for broccoli, because rodents gobbled up
much of this years spinach crop
D. An increase in the cost of fertilizer used to grow broccoli - correct answer ✔✔D. An increase
in the cost of fertilizer used to grow broccoli
Efficiency means that
A. Society is conserving resources in order to save them for the future
B. Society's goods and services are distributed equally among society's members
C. Society's goods and services are distributed fairly, though not necessarily equally, among
society's members
D. Society is getting the maximum benefits from its scarce resources. - correct answer ✔✔D.
Society is getting the maximum benefits from its scarce resources.
