ECON 2110 - CLEMSON EXAM 1 EXAM QUIZZES WITH ACTUAL ANSWERS .

ECON 2110 - CLEMSON EXAM 1 EXAM
QUIZZES WITH ACTUAL ANSWERS .


Absolute Advantage - Correct Answer -The ability to produce a good using fewer inputs than
another producer.


Comparative Advantage - Correct Answer -The ability to produce a good at a lower
opportunity cost than another producer.


True or False: It is impossible for a country to have an absolute advantage in both goods. -
Correct Answer -False.


True or False: It is impossible for a country to have a comparative advantage in both goods. -
Correct Answer -True.


If you have the opportunity cost of one good, how can you find the opportunity cost of the
other? - Correct Answer -The inverse of the first good.


Trade Off - Correct Answer -The idea of having to sacrificing something for something else
because of limits.


In order to have a higher overall production, a country should specialize in the good that it
has a(n) (absolute/comparative) advantage in. - Correct Answer -Comparative Advantage.


What makes everyone better off? - Correct Answer -Trade


Production Possibility Frontier - Correct Answer -A graph that shows the combination of two
goods the economy can possibly produce given the available technology.


Point A, B, and C: Possible and Efficient
Point D: Possible but Inefficient

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