ASU ECN 211 Final Exam 2024 with 100% correct answers

The Circular Flow Diagram - correct answer Green arrows represent the flow of money and red represents to flow of goods/services Production possibilities Frontier/ Curve PPF: PPC - correct answer The curve shows what is possible within an economy D- impossible A&B - feasible efficient C - feasible & inefficient PPF shifts out when... - correct answer the economy can produce more of everything Opportunity Cost - correct answer the cost of what you give up to get something else in terms of time, money, or other goods Absolute Advantage - correct answer Who can make most of that good Comparative Advantage - correct answer The lowest opportunity cost for that good What would allow Panama and Canada to trade? - correct answer They want to trade within their opportunity cost Demand - correct answer The amount consumers are willing and able to purchase Supply - correct answer The amount that producers are willing and able to produce Law of demand - correct answer Demand always slopes down La