ECN 306 Exam 1 questions with verified
answers already passed
Adam Smith - correct answer ✔✔ Who wrote "Wealth of Nations"?
households - correct answer ✔✔ Who does Adam Smith compare nations to in his
book?
Labor Productivity - correct answer ✔✔ The number of units of output that a
worker can produce in one labor hour
fewer, more - correct answer ✔✔ Mercantilists push for ____ imports and ______
exports
Absolute advantage - correct answer ✔✔ When labor productivity is higher than
the rest of the world or other country.
Opportunity Cost - correct answer ✔✔ The ____________ of producing more of a
product in a country is the amount of production of the other product that is
given up
Relative Price - correct answer ✔✔ The ratio of one product price to another
product price
, Autarky - correct answer ✔✔ No trade between countries.
Consumer Surplus - correct answer ✔✔ Difference between willingness to pay
and actual price.
Producer Surplus - correct answer ✔✔ Difference between amount paid, and cost
Willingness to pay - correct answer ✔✔ Max amount a buyer will pay for a good.
Producer Surplus - correct answer ✔✔ The area above the supply curve & under
the price
Total Surplus - correct answer ✔✔ Consumer surplus + Producer surplus
Deadweight loss - correct answer ✔✔ Loss of total surplus
Arbitrage - correct answer ✔✔ Buying something in one market, and reselling the
same thing in another market to profit from a price difference.
True - correct answer ✔✔ With no trade, differences in the price of a product
between national markets creates an arbitrage opportunity that can lead to
international trade.
True/False
answers already passed
Adam Smith - correct answer ✔✔ Who wrote "Wealth of Nations"?
households - correct answer ✔✔ Who does Adam Smith compare nations to in his
book?
Labor Productivity - correct answer ✔✔ The number of units of output that a
worker can produce in one labor hour
fewer, more - correct answer ✔✔ Mercantilists push for ____ imports and ______
exports
Absolute advantage - correct answer ✔✔ When labor productivity is higher than
the rest of the world or other country.
Opportunity Cost - correct answer ✔✔ The ____________ of producing more of a
product in a country is the amount of production of the other product that is
given up
Relative Price - correct answer ✔✔ The ratio of one product price to another
product price
, Autarky - correct answer ✔✔ No trade between countries.
Consumer Surplus - correct answer ✔✔ Difference between willingness to pay
and actual price.
Producer Surplus - correct answer ✔✔ Difference between amount paid, and cost
Willingness to pay - correct answer ✔✔ Max amount a buyer will pay for a good.
Producer Surplus - correct answer ✔✔ The area above the supply curve & under
the price
Total Surplus - correct answer ✔✔ Consumer surplus + Producer surplus
Deadweight loss - correct answer ✔✔ Loss of total surplus
Arbitrage - correct answer ✔✔ Buying something in one market, and reselling the
same thing in another market to profit from a price difference.
True - correct answer ✔✔ With no trade, differences in the price of a product
between national markets creates an arbitrage opportunity that can lead to
international trade.
True/False
