ECON 2110 - Clemson Exam 1 questions with correct answers

ECON 2110 - Clemson Exam 1 questions
with correct answers
Absolute |Advantage |- |VERIFIED |ANSWER✔✔-The |ability |to |produce |a |good |using |fewer |inputs |than |
another |producer.



Comparative |Advantage |- |VERIFIED |ANSWER✔✔-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. |- |VERIFIED |
ANSWER✔✔-False.



True |or |False: |It |is |impossible |for |a |country |to |have |a |comparative |advantage |in |both |goods. |- |
VERIFIED |ANSWER✔✔-True.



If |you |have |the |opportunity |cost |of |one |good, |how |can |you |find |the |opportunity |cost |of |the |other? |- |
VERIFIED |ANSWER✔✔-The |inverse |of |the |first |good.



Trade |Off |- |VERIFIED |ANSWER✔✔-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. |- |VERIFIED |ANSWER✔✔-Comparative |Advantage.



What |makes |everyone |better |off? |- |VERIFIED |ANSWER✔✔-Trade



Production |Possibility |Frontier |- |VERIFIED |ANSWER✔✔-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