ECON 2100 EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
an |economy |in |which |decisions |about |production |and |consumption |are |made |by |individual |
producers |- |CORRECT |ANSWER✔✔-market |economy
The |real |cost |of |an |item |is |its |______ |___: |what |you |must |give |up |in |order |to |get |it. |- |
CORRECT |ANSWER✔✔-opportunity |cost
decisions |to |do |more |or |less |of |an |activity. |- |CORRECT |ANSWER✔✔-marginal |decisions
An |economy |is |______ |if |it |takes |all |opportunities |to |make |some |people |better |off |without |
making |other |people |worse |off. |- |CORRECT |ANSWER✔✔-efficient
resources |are |_____ |- |CORRECT |ANSWER✔✔-scarce
The |_____ |assumption |means |that |all |other |relevant |factors |remain |unchanged. |- |CORRECT |
ANSWER✔✔-"other |things |equal"
A |country |has |a |_______ |in |producing |a |good |or |service |if |the |opportunity |cost |of |producing |
the |good |is |lower |for |that |country |than |for |another |country. |- |CORRECT |ANSWER✔✔-
comparative |advantage
A |country |has |an |_______ |in |an |activity |if |the |country |can |make |more |output |per |worker |than
|another |country. |- |CORRECT |ANSWER✔✔-absolute |advantage
, a |model |that |represents |the |transactions |in |an |economy |by |flows |around |a |circle. |- |CORRECT |
ANSWER✔✔-circular-flow |diagram
is |the |branch |of |economic |analysis |that |describes |the |way |the |economy |actually |works |- |
CORRECT |ANSWER✔✔-Positive |economics
makes |prescriptions |about |the |way |the |economy |should |work. |- |CORRECT |ANSWER✔✔-
Normative |economics
In |a |______ |market:
1.There |are |many |buyers |and |sellers. |2.Sellers |offer |the |same |good |or |service |(homogenious) |
3.No |individual's |actions |have |a |noticeable |effect |on |the |price |at |which |the |good |or |service |is |
sold. |4.In |other |words: |no |one |party |can |influence |price. |All |sellers |and |buyers |are |price |
takers. |- |CORRECT |ANSWER✔✔-competitive
A |______ |curve |is |the |graphical |representation |of |the |demand |schedule |- |CORRECT |
ANSWER✔✔-demand
The |higher |the |price |for |a |good, |other |things |equal, |the |smaller |the |quantities |of |that |good |
are |demanded |- |CORRECT |ANSWER✔✔-Law |of |Demand
Two |goods |are |______ |if |a |fall |in |the |price |of |one |of |the |goods |makes |consumers |less |willing |
to |buy |the |other |good. |- |CORRECT |ANSWER✔✔-substitutes
Two |goods |are______ |if |a |fall |in |the |price |of |one |good |makes |people |more |willing |to |buy |the |
other |good. |- |CORRECT |ANSWER✔✔-complements
When |a |rise |in |income |increases |the |demand |for |a |good |- |CORRECT |ANSWER✔✔-Normal |
good
COMPLETE SOLUTIONS
an |economy |in |which |decisions |about |production |and |consumption |are |made |by |individual |
producers |- |CORRECT |ANSWER✔✔-market |economy
The |real |cost |of |an |item |is |its |______ |___: |what |you |must |give |up |in |order |to |get |it. |- |
CORRECT |ANSWER✔✔-opportunity |cost
decisions |to |do |more |or |less |of |an |activity. |- |CORRECT |ANSWER✔✔-marginal |decisions
An |economy |is |______ |if |it |takes |all |opportunities |to |make |some |people |better |off |without |
making |other |people |worse |off. |- |CORRECT |ANSWER✔✔-efficient
resources |are |_____ |- |CORRECT |ANSWER✔✔-scarce
The |_____ |assumption |means |that |all |other |relevant |factors |remain |unchanged. |- |CORRECT |
ANSWER✔✔-"other |things |equal"
A |country |has |a |_______ |in |producing |a |good |or |service |if |the |opportunity |cost |of |producing |
the |good |is |lower |for |that |country |than |for |another |country. |- |CORRECT |ANSWER✔✔-
comparative |advantage
A |country |has |an |_______ |in |an |activity |if |the |country |can |make |more |output |per |worker |than
|another |country. |- |CORRECT |ANSWER✔✔-absolute |advantage
, a |model |that |represents |the |transactions |in |an |economy |by |flows |around |a |circle. |- |CORRECT |
ANSWER✔✔-circular-flow |diagram
is |the |branch |of |economic |analysis |that |describes |the |way |the |economy |actually |works |- |
CORRECT |ANSWER✔✔-Positive |economics
makes |prescriptions |about |the |way |the |economy |should |work. |- |CORRECT |ANSWER✔✔-
Normative |economics
In |a |______ |market:
1.There |are |many |buyers |and |sellers. |2.Sellers |offer |the |same |good |or |service |(homogenious) |
3.No |individual's |actions |have |a |noticeable |effect |on |the |price |at |which |the |good |or |service |is |
sold. |4.In |other |words: |no |one |party |can |influence |price. |All |sellers |and |buyers |are |price |
takers. |- |CORRECT |ANSWER✔✔-competitive
A |______ |curve |is |the |graphical |representation |of |the |demand |schedule |- |CORRECT |
ANSWER✔✔-demand
The |higher |the |price |for |a |good, |other |things |equal, |the |smaller |the |quantities |of |that |good |
are |demanded |- |CORRECT |ANSWER✔✔-Law |of |Demand
Two |goods |are |______ |if |a |fall |in |the |price |of |one |of |the |goods |makes |consumers |less |willing |
to |buy |the |other |good. |- |CORRECT |ANSWER✔✔-substitutes
Two |goods |are______ |if |a |fall |in |the |price |of |one |good |makes |people |more |willing |to |buy |the |
other |good. |- |CORRECT |ANSWER✔✔-complements
When |a |rise |in |income |increases |the |demand |for |a |good |- |CORRECT |ANSWER✔✔-Normal |
good
