ECON 203 EXAM 1 TAMU UPDATED ACTUAL Questions and CORRECT Answers
1 view 0 purchase
Course
ECON 203
Institution
ECON 203
ECON 203 EXAM 1 TAMU UPDATED
ACTUAL Questions and CORRECT
Answers
What are 3 gains from society when countries decide to specialize? - CORRECT ANSWER-
-specialization and trade
-more resources
-Improvements in technology/productivity
True or False: Every country have comparative advantage ...
ECON 203 EXAM 1 TAMU UPDATED
ACTUAL Questions and CORRECT
Answers
What are 3 gains from society when countries decide to specialize? - CORRECT ANSWER-
✔✔-specialization and trade
-more resources
-Improvements in technology/productivity
True or False: Every country have comparative advantage in something. - CORRECT
ANSWER- ✔✔True
What are 2 gains when two countries engage in specialization and trade? - CORRECT
ANSWER- ✔✔-total production increases
-new points reached on the PPF that were originally unattainable
What are the 4 characteristics of competitive markets? - CORRECT ANSWER- ✔✔-buyers
are price takers (cannot negotiate)
-standardized goods
-full information
-No transaction costs (no added cost for participating in the market)
The ___ is the amount of a particular good or service that buyers are willing and able to
purchase at a given price. - CORRECT ANSWER- ✔✔Quantity Demanded
A ___ displays the quantities demanded at various prices. - CORRECT ANSWER-
✔✔Demand Schedule
The ___ illustrates the relationship between the quantity demanded and the price of the good,
holding all of the other non-price determinants constant. - CORRECT ANSWER-
✔✔Demand Curve
, The ___ states that the lower the price, the higher the quantity demanded, all other things
equal. - CORRECT ANSWER- ✔✔law of demand
What are the 5 non-price determinants of demand? - CORRECT ANSWER- ✔✔-income
-taste
-price of related goods
-number of buyers
-expectation about future prices
The ___ is the amount of a particular good that producers are willing and able to sell at a
given price. - CORRECT ANSWER- ✔✔Quantity Supplied
A ___ displays the quantities supplied at various prices. - CORRECT ANSWER- ✔✔Supply
Schedule
The ___ illustrates the relationship between the quantity supplied and the price of the good,
holding all of the other non-price determinants constant. - CORRECT ANSWER- ✔✔Supply
Curve
What are the 5 non-price determinants of supply? - CORRECT ANSWER- ✔✔-number of
firms
-technology
-expectation of future prices
-price of substitutes in production
-Price of inputs
If the price of a related good is low, how will this affect the demand curve?
If the price of a substitute in production is low (price of a related good), how will this affect
the supply curve - CORRECT ANSWER- ✔✔DEMAND:
-decrease
-shift to the left
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 MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
