Econ 206 quiz 1 wwu questions well
answered to passed
Absolute advantage - correct answer ✔✔ability to produce a good using fewer inputs than
other producers
opportunity cost - correct answer ✔✔whatever must be given up to obtain some items
comparative advantage - correct answer ✔✔the ability to produce a good at a lower cost than
another producer
the price of trade - correct answer ✔✔For both parties to gain from trade, the price at which
they trade must lie between the two opportunity costs
market outcome is most efficient when - correct answer ✔✔sum of profits made by all
individuals in the market are as large as possible
efficiency = - correct answer ✔✔total profits earned/total possible profits
revenue= - correct answer ✔✔Price x Quantity
revenue and cost.. - correct answer ✔✔rise with quantity
fixed costs - correct answer ✔✔input costs that are fixed and do not vary with production
ex)equipment rent
answered to passed
Absolute advantage - correct answer ✔✔ability to produce a good using fewer inputs than
other producers
opportunity cost - correct answer ✔✔whatever must be given up to obtain some items
comparative advantage - correct answer ✔✔the ability to produce a good at a lower cost than
another producer
the price of trade - correct answer ✔✔For both parties to gain from trade, the price at which
they trade must lie between the two opportunity costs
market outcome is most efficient when - correct answer ✔✔sum of profits made by all
individuals in the market are as large as possible
efficiency = - correct answer ✔✔total profits earned/total possible profits
revenue= - correct answer ✔✔Price x Quantity
revenue and cost.. - correct answer ✔✔rise with quantity
fixed costs - correct answer ✔✔input costs that are fixed and do not vary with production
ex)equipment rent
