Exam (elaborations)
ASU Econ 211 Final Exam Questions and Answers 100% Correct |
- Course
- Institution
ASU Econ 211 Final Exam Questions and Answers 100% Correct |
[Show more]
Content preview
ASU Econ 211 Final Exam Questions andAnswers 100% Correct | 2024-2025
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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudySet. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now