STUDYSAGE
ECON 2110 - Clemson: Exam
1 PRACTICE QUESTIONS
WITH 100% UPDATED
ANSWERS.
Absolute Advantage - correct answers✔️✔️The ability to produce a good using
fewer inputs than another producer.
Comparative Advantage - correct answers✔️✔️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 answers✔️✔️False.
True or False: It is impossible for a country to have a comparative advantage in
both goods. - correct answers✔️✔️True.
If you have the opportunity cost of one good, how can you find the opportunity
cost of the other? - correct answers✔️✔️The inverse of the first good.
Trade Off - correct answers✔️✔️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
answers✔️✔️Comparative Advantage.
SUCCESS
, STUDYSAGE
What makes everyone better off? - correct answers✔️✔️Trade
Production Possibility Frontier - correct answers✔️✔️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
Point E: Not Possible (unless technology gets better) - correct answers✔️✔️Points
A, B, and C are considered:
Point D is considered:
Point E is considered:
Opportunity Cost - correct answers✔️✔️What must be given up to obtain a
different item.
From the PPF, how can you find the opportunity cost of one good? - correct
answers✔️✔️The slope of the PPF
What two ways can shift the PPF outward? - correct answers✔️✔️1. Obtaining
additional resources.
2. Improvement in technology.
What can cause the PPF to be bow-shaped? - correct answers✔️✔W ️ hen the
opportunity cost of a good rises as more of the good is produced.
SUCCESS
ECON 2110 - Clemson: Exam
1 PRACTICE QUESTIONS
WITH 100% UPDATED
ANSWERS.
Absolute Advantage - correct answers✔️✔️The ability to produce a good using
fewer inputs than another producer.
Comparative Advantage - correct answers✔️✔️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 answers✔️✔️False.
True or False: It is impossible for a country to have a comparative advantage in
both goods. - correct answers✔️✔️True.
If you have the opportunity cost of one good, how can you find the opportunity
cost of the other? - correct answers✔️✔️The inverse of the first good.
Trade Off - correct answers✔️✔️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
answers✔️✔️Comparative Advantage.
SUCCESS
, STUDYSAGE
What makes everyone better off? - correct answers✔️✔️Trade
Production Possibility Frontier - correct answers✔️✔️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
Point E: Not Possible (unless technology gets better) - correct answers✔️✔️Points
A, B, and C are considered:
Point D is considered:
Point E is considered:
Opportunity Cost - correct answers✔️✔️What must be given up to obtain a
different item.
From the PPF, how can you find the opportunity cost of one good? - correct
answers✔️✔️The slope of the PPF
What two ways can shift the PPF outward? - correct answers✔️✔️1. Obtaining
additional resources.
2. Improvement in technology.
What can cause the PPF to be bow-shaped? - correct answers✔️✔W ️ hen the
opportunity cost of a good rises as more of the good is produced.
SUCCESS
