ECON 160 EXAM #1 QUESTIONS
WITH 100% CORRECT ANSWERS;
VERIFIED; LATEST UPDATE 2026
absolute advantage - correct answer- the ability to
produce a good using fewer inputs than another producer
allocative efficiency - correct answer- sharing resources
to meet the preferences of society.
capital - correct answer- factory space and equipment
used in production
comparative advantage - correct answer- the ability to
produce a good at a lower opportunity cost than another
producer
consumer goods - correct answer- production for
immediate use for households
, cross-price elasticity of demand - correct answer- how
responsive the quantity demanded of good a is to a change in
the price of good b.
demand - correct answer- is the relationship between
the quantity demanded of a product and price of a product.
economic growth - correct answer- ppf shifts out as a
result of labor becoming more productive. increase in size of
labor force, investment in new capital goods.
economics - correct answer- the study of the allocation
of limited resources
Elasticity - correct answer- how responsive or sensitive
one variable is to another.
Equilibrium - correct answer- market clearing. no
pressure on price, market is stable.
examples of determinants of demand - correct answer-
Consumer income, prices of substitute and complementary
WITH 100% CORRECT ANSWERS;
VERIFIED; LATEST UPDATE 2026
absolute advantage - correct answer- the ability to
produce a good using fewer inputs than another producer
allocative efficiency - correct answer- sharing resources
to meet the preferences of society.
capital - correct answer- factory space and equipment
used in production
comparative advantage - correct answer- the ability to
produce a good at a lower opportunity cost than another
producer
consumer goods - correct answer- production for
immediate use for households
, cross-price elasticity of demand - correct answer- how
responsive the quantity demanded of good a is to a change in
the price of good b.
demand - correct answer- is the relationship between
the quantity demanded of a product and price of a product.
economic growth - correct answer- ppf shifts out as a
result of labor becoming more productive. increase in size of
labor force, investment in new capital goods.
economics - correct answer- the study of the allocation
of limited resources
Elasticity - correct answer- how responsive or sensitive
one variable is to another.
Equilibrium - correct answer- market clearing. no
pressure on price, market is stable.
examples of determinants of demand - correct answer-
Consumer income, prices of substitute and complementary
