ECON 101 UMICH EXAM 2 CALDWELL
EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2026
fixed cost - ANSWERS-cost that does not depend on the
quantity of output produced; expenditures on factors that
are fixed in the short run; does not change with the output
variable cost - ANSWERS-cost that does depend on the
quantity of output produced; increases with increased
output
comparative advantage - ANSWERS-when one producer can
produce a good at a lower opportunity cost than another
producer
-reason for specialization
, absolute advantage - ANSWERS-when one producer can
produce more of a good than another producer in a certain
period of time
Production Possibility Frontier - ANSWERS-represents the
possible combinations of goods that an economy can
produce in a certain period of time
specilaization - ANSWERS-requires sufficient ability to
produce according to demand (must lies on or within PPF)
transportation costs also must be low enough
must be possible to exchange products and large enough
market to consumer
firm - ANSWERS-an entity that converts inputs (land, labor,
capital) into outputs (sold goods and services)
production - ANSWERS-in order to maximize profits, the
firm must produce a given quantity as efficiently as possible;
getting most outputs from a set of inputs
EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY
GRADED A+ 2026
fixed cost - ANSWERS-cost that does not depend on the
quantity of output produced; expenditures on factors that
are fixed in the short run; does not change with the output
variable cost - ANSWERS-cost that does depend on the
quantity of output produced; increases with increased
output
comparative advantage - ANSWERS-when one producer can
produce a good at a lower opportunity cost than another
producer
-reason for specialization
, absolute advantage - ANSWERS-when one producer can
produce more of a good than another producer in a certain
period of time
Production Possibility Frontier - ANSWERS-represents the
possible combinations of goods that an economy can
produce in a certain period of time
specilaization - ANSWERS-requires sufficient ability to
produce according to demand (must lies on or within PPF)
transportation costs also must be low enough
must be possible to exchange products and large enough
market to consumer
firm - ANSWERS-an entity that converts inputs (land, labor,
capital) into outputs (sold goods and services)
production - ANSWERS-in order to maximize profits, the
firm must produce a given quantity as efficiently as possible;
getting most outputs from a set of inputs
