ECON 113 EXAM QUESTIONS WITH
CORRECT ANSWERS
absolute advantage - CORRECT ANSWER✔✔-The ability of a country,
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individual, company or region to produce a good or service at a lower
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cost per unit than the cost at which any other entity produces that good
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|or service.
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Aggregate Demand - CORRECT ANSWER✔✔-the relationship between
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the quantity of real GDP demanded and the price level
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bond market - CORRECT ANSWER✔✔-the market in which bonds issued
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by firms and governments are traded
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capital - CORRECT ANSWER✔✔-the tools, equipment, machinery,
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buildings and factories that businesses use to produce of goods and
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services
capital deepening - CORRECT ANSWER✔✔-a situation where the capital
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per worker is increasing in the economy
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,causation - CORRECT ANSWER✔✔-"A belief that events occur in
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predictable ways and that one leads to another. The relation between
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an event (the cause) and the second event (the effect) where the
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second event is understood as a consequence of the first."
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Change in demand - CORRECT ANSWER✔✔-A change in buyers' plans
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that occurs when some influence on those plans other than the price of
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the good changes. It is illustrated by a shift of the demand curve.
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Change in supply - CORRECT ANSWER✔✔-A change in the sellers plan
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that occurs when some influence on those plans other than the price of
| | | | | | | | | | | | |
the goods changes. it is illustrated by a shift of the supply curve.
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comparative advantage - CORRECT ANSWER✔✔-The ability of a country,
| | | | | | | |
region, firm or indnividual to produce a good or service at a lower
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opportunity cost than another country can. | | | | |
Consumer Price Index (CPI) - CORRECT ANSWER✔✔-An index that
| | | | | | | | |
measures the average of the price paid by urban consumers for a fixed
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basket of consumers for a fixed basket
| | | | | |
Consumer Price Index (CPI) - CORRECT ANSWER✔✔-An index that
| | | | | | | | |
measures the average of the price paid by urban consumers for a fixed
| | | | | | | | | | | | |
basket of consumers
| |
, Consumption Possibilities Frontier (CCPF) - CORRECT ANSWER✔✔-"A | | | | | | |
graph of the maximum quantities of goods (usually two) that an
| | | | | | | | | | |
economy can consume in a specified situation."
| | | | | |
Cost-Benefit Principle - CORRECT ANSWER✔✔-An action should be
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taken if, and only if the marginal (extra) benefits from taking the action
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are at least as great as the marginal (extra) costs.
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cross-price elasticity of demand - CORRECT ANSWER✔✔-"A measure of
| | | | | | | | |
the responsiveness of the demand for a good to a change in the price of
| | | | | | | | | | | | | | |
a substitute (i.e. pizza & burger) or complement (i.e. pizza & soft drinks),
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other things remaining the same."
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deadweight loss - CORRECT ANSWER✔✔-the loss of economic efficiency
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in terms of utility for consumers/producers such that the optimal or
| | | | | | | | | | | |
allocative efficiency is not achieved. | | | |
deflation - CORRECT ANSWER✔✔-A persistently falling prise level
| | | | | | |
demand - CORRECT ANSWER✔✔-The entire relationship between the
| | | | | | | |
price if the good and the quantity demanded of it when all other
| | | | | | | | | | | | |
influences on buyers plans remain the same. | | | | | |
CORRECT ANSWERS
absolute advantage - CORRECT ANSWER✔✔-The ability of a country,
| | | | | | | | |
individual, company or region to produce a good or service at a lower
| | | | | | | | | | | | |
cost per unit than the cost at which any other entity produces that good
| | | | | | | | | | | | |
|or service.
|
Aggregate Demand - CORRECT ANSWER✔✔-the relationship between
| | | | | | |
the quantity of real GDP demanded and the price level
| | | | | | | | |
bond market - CORRECT ANSWER✔✔-the market in which bonds issued
| | | | | | | | |
by firms and governments are traded
| | | | | |
capital - CORRECT ANSWER✔✔-the tools, equipment, machinery,
| | | | | | |
buildings and factories that businesses use to produce of goods and
| | | | | | | | | | |
services
capital deepening - CORRECT ANSWER✔✔-a situation where the capital
| | | | | | | | |
per worker is increasing in the economy
| | | | | |
,causation - CORRECT ANSWER✔✔-"A belief that events occur in
| | | | | | | | |
predictable ways and that one leads to another. The relation between
| | | | | | | | | | |
an event (the cause) and the second event (the effect) where the
| | | | | | | | | | | |
second event is understood as a consequence of the first."
| | | | | | | | |
Change in demand - CORRECT ANSWER✔✔-A change in buyers' plans
| | | | | | | | | |
that occurs when some influence on those plans other than the price of
| | | | | | | | | | | | |
the good changes. It is illustrated by a shift of the demand curve.
| | | | | | | | | | | |
Change in supply - CORRECT ANSWER✔✔-A change in the sellers plan
| | | | | | | | | | |
that occurs when some influence on those plans other than the price of
| | | | | | | | | | | | |
the goods changes. it is illustrated by a shift of the supply curve.
| | | | | | | | | | | |
comparative advantage - CORRECT ANSWER✔✔-The ability of a country,
| | | | | | | |
region, firm or indnividual to produce a good or service at a lower
| | | | | | | | | | | | | |
opportunity cost than another country can. | | | | |
Consumer Price Index (CPI) - CORRECT ANSWER✔✔-An index that
| | | | | | | | |
measures the average of the price paid by urban consumers for a fixed
| | | | | | | | | | | | |
basket of consumers for a fixed basket
| | | | | |
Consumer Price Index (CPI) - CORRECT ANSWER✔✔-An index that
| | | | | | | | |
measures the average of the price paid by urban consumers for a fixed
| | | | | | | | | | | | |
basket of consumers
| |
, Consumption Possibilities Frontier (CCPF) - CORRECT ANSWER✔✔-"A | | | | | | |
graph of the maximum quantities of goods (usually two) that an
| | | | | | | | | | |
economy can consume in a specified situation."
| | | | | |
Cost-Benefit Principle - CORRECT ANSWER✔✔-An action should be
| | | | | | | |
taken if, and only if the marginal (extra) benefits from taking the action
| | | | | | | | | | | | |
are at least as great as the marginal (extra) costs.
| | | | | | | | |
cross-price elasticity of demand - CORRECT ANSWER✔✔-"A measure of
| | | | | | | | |
the responsiveness of the demand for a good to a change in the price of
| | | | | | | | | | | | | | |
a substitute (i.e. pizza & burger) or complement (i.e. pizza & soft drinks),
| | | | | | | | | | | |
other things remaining the same."
| | | | |
deadweight loss - CORRECT ANSWER✔✔-the loss of economic efficiency
| | | | | | | |
in terms of utility for consumers/producers such that the optimal or
| | | | | | | | | | | |
allocative efficiency is not achieved. | | | |
deflation - CORRECT ANSWER✔✔-A persistently falling prise level
| | | | | | |
demand - CORRECT ANSWER✔✔-The entire relationship between the
| | | | | | | |
price if the good and the quantity demanded of it when all other
| | | | | | | | | | | | |
influences on buyers plans remain the same. | | | | | |
