ECN 211 final exam
In the circular-flow diagram, which of the
following items flows from firms to house-
holds through the markets for goods and
services?
goods and services
goods and services
dollars paid to land, labor, and capital
dollars spent on goods and services
wages, rent, and profit
In the circular-flow diagram, which of the
following is not a factor of production?
labor
money
land
capital
money
Suppose that the country of Xenophobia
chose to isolate itself from the rest of
the world. Its ruler proclaimed that Xeno-
phobia should become self-sufficient, so
it would not engage in foreign trade.
From an economic perspective, this idea
would
not make sense as long as Xenophobia
had a comparative advantage in some
make sense if Xenophobia had an ab-
good.
solute advantage in all goods.
make sense if Xenophobia had no ab-
solute advantages in any good.
not make sense as long as Xenophobia
had a comparative advantage in some
, ECN 211 final exam
good.
not make sense as long as Xenophobia
had an absolute advantage in at least
half the goods that could be traded.
For two individuals who engage in the
same two productive activities, it is im-
possible for one of the two individuals to
have a comparative advantage in both
activities.
have a comparative advantage in both
have an absolute advantage in both ac- activities.
tivities.
be more productive per unit of time in
both activities.
gain from trade with each other.
Which of the following would lead to a
leftward shift in the demand curve for
iPads (a normal good)?
New information is available that sug-
gests iPads will be cheaper in the future.
An increase in household income New information is available that sug-
gests iPads will be cheaper in the future.
An increase in the price of laptop com-
puters
A decrease in in the price of the applica-
tions that run on iPads
An increase in the price of iPads
After an increase in income, the equilibri-
um price of tablet computers _____ and
equilibrium quantity of tablet computers
In the circular-flow diagram, which of the
following items flows from firms to house-
holds through the markets for goods and
services?
goods and services
goods and services
dollars paid to land, labor, and capital
dollars spent on goods and services
wages, rent, and profit
In the circular-flow diagram, which of the
following is not a factor of production?
labor
money
land
capital
money
Suppose that the country of Xenophobia
chose to isolate itself from the rest of
the world. Its ruler proclaimed that Xeno-
phobia should become self-sufficient, so
it would not engage in foreign trade.
From an economic perspective, this idea
would
not make sense as long as Xenophobia
had a comparative advantage in some
make sense if Xenophobia had an ab-
good.
solute advantage in all goods.
make sense if Xenophobia had no ab-
solute advantages in any good.
not make sense as long as Xenophobia
had a comparative advantage in some
, ECN 211 final exam
good.
not make sense as long as Xenophobia
had an absolute advantage in at least
half the goods that could be traded.
For two individuals who engage in the
same two productive activities, it is im-
possible for one of the two individuals to
have a comparative advantage in both
activities.
have a comparative advantage in both
have an absolute advantage in both ac- activities.
tivities.
be more productive per unit of time in
both activities.
gain from trade with each other.
Which of the following would lead to a
leftward shift in the demand curve for
iPads (a normal good)?
New information is available that sug-
gests iPads will be cheaper in the future.
An increase in household income New information is available that sug-
gests iPads will be cheaper in the future.
An increase in the price of laptop com-
puters
A decrease in in the price of the applica-
tions that run on iPads
An increase in the price of iPads
After an increase in income, the equilibri-
um price of tablet computers _____ and
equilibrium quantity of tablet computers
