ASU Econ 211 Final Exam Practice Questions and Answers
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Course
ECON 211
Institution
ECON 211
ASU Econ 211 Final Exam Practice
Questions and Answers
What does a production possibilities frontier display? - Answer️️ -
Possible combinations of output an economy can produce given available
factors of production and technology.
What is a normative statement? - Answer️️ -Policymaker...
ASU Econ 211 Final Exam Practice
Questions and Answers
What does a production possibilities frontier display? - Answer✔️✔️-
Possible combinations of output an economy can produce given available
factors of production and technology.
What is a normative statement? - Answer✔️✔️-Policymakers should increase
the minimum wage to improve standard of living.
The opportunity cost of helping a friend move is... - Answer✔️✔️-the next
best use of the time and energy spent helping your friend.
An entity has a comparative advantage if it can produce what? -
Answer✔️✔️-At a lower opportunity cost than another entity.
T/F: Suppose the United States has an absolute advantage in the
production of oil and wheat. This means that the U.S. would not gain from
trading these goods. - Answer✔️✔️-FALSE
The United States has a comparative advantage in the production of wheat
and an absolute advantage in the production of both apples and wheat
relative to Canada. If the U.S. and Canada specialize and trade, the U.S.
should produce what? - Answer✔️✔️-Wheat
The law of the demand states that if price rises, quantity demanded does
what? - Answer✔️✔️-Decreases
We would expect demand for cars to increase if... - Answer✔️✔️-The price of
gasoline falls.
As income increases, consumers purchase more cars. Cars what type of
good? - Answer✔️✔️-Normal goods
Supply curves show the relationship between price and quantity
demanded. Assuming the law of supply holds, supply curves are what? -
Answer✔️✔️-Upward sloping
Which causes a leftward shift in the supply curve for apples? - Answer✔️✔️-
An increase in the price of labor
An increase in the equilibrium price of coffee could be caused by -
Answer✔️✔️-A decrease in supply of coffee.
What is Consumer surplus? - Answer✔️✔️-The amount a buyer is willing to
pay for a good less the amount the buyer actually pays.
When is a market is efficient? - Answer✔️✔️-The sum of consumer and
producer surplus is maximized.
What is Producer surplus? - Answer✔️✔️-The difference between the price
producers collect and the minimum price required to bring goods to
market.
Rent control is an example of what? - Answer✔️✔️-A price ceiling
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