ASU ECON 211 Final ACTUAL Exam with accurate questions and verified answers covering
principles of macroeconomics, fiscal policy, monetary systems, and economic indicators.
What does a production possibilities frontier display? - (answer)Possible combinations of output an
economy can produce given available factors of production and technology.
What is a normative statement? - (answer)Policymakers should increase the minimum wage to improve
standard of living.
The opportunity cost of helping a friend move is... - (answer)the next best use of the time and energy
spent helping your friend.
An entity has a comparative advantage if it can produce what? - (answer)At a lower opportunity cost
than another entity.
T/F: Suppose the United States has an absolute advantage in the production of oil and wheat. This
means that the U.S. would not gain from trading these goods. - (answer)FALSE
The United States has a comparative advantage in the production of wheat and an absolute advantage
in the production of both apples and wheat relative to Canada. If the U.S. and Canada specialize and
trade, the U.S. should produce what? - (answer)Wheat
The law of the demand states that if price rises, quantity demanded does what? - (answer)Decreases
We would expect demand for cars to increase if... - (answer)The price of gasoline falls.
As income increases, consumers purchase more cars. Cars what type of good? - (answer)Normal goods
Supply curves show the relationship between price and quantity demanded. Assuming the law of supply
holds, supply curves are what? - (answer)Upward sloping
Which causes a leftward shift in the supply curve for apples? - (answer)An increase in the price of labor
, ASU ECON 211 Final ACTUAL Exam with accurate questions and verified answers covering
principles of macroeconomics, fiscal policy, monetary systems, and economic indicators.
An increase in the equilibrium price of coffee could be caused by - (answer)A decrease in supply of
coffee.
What is Consumer surplus? - (answer)The amount a buyer is willing to pay for a good less the amount
the buyer actually pays.
When is a market is efficient? - (answer)The sum of consumer and producer surplus is maximized.
What is Producer surplus? - (answer)The difference between the price producers collect and the
minimum price required to bring goods to market.
Rent control is an example of what? - (answer)A price ceiling
A price ceiling on a coffee would likely cause what? - (answer)A shortage of coffee
What is minimum wage an example of? - (answer)A price floor
In the labor market, suppliers of labor are - (answer)Households
T/F: A payroll tax on a firm will raise more revenue than an income tax of the same amount on
households. - (answer)FALSE
T/F: If the government decides to impose a $1 tax on coffee, it makes no difference if the government
collect the tax from producers or consumers. - (answer)TRUE
T/F: The revenue collected by the government from a tax is not considered part of total surplus. -
(answer)FALSE
principles of macroeconomics, fiscal policy, monetary systems, and economic indicators.
What does a production possibilities frontier display? - (answer)Possible combinations of output an
economy can produce given available factors of production and technology.
What is a normative statement? - (answer)Policymakers should increase the minimum wage to improve
standard of living.
The opportunity cost of helping a friend move is... - (answer)the next best use of the time and energy
spent helping your friend.
An entity has a comparative advantage if it can produce what? - (answer)At a lower opportunity cost
than another entity.
T/F: Suppose the United States has an absolute advantage in the production of oil and wheat. This
means that the U.S. would not gain from trading these goods. - (answer)FALSE
The United States has a comparative advantage in the production of wheat and an absolute advantage
in the production of both apples and wheat relative to Canada. If the U.S. and Canada specialize and
trade, the U.S. should produce what? - (answer)Wheat
The law of the demand states that if price rises, quantity demanded does what? - (answer)Decreases
We would expect demand for cars to increase if... - (answer)The price of gasoline falls.
As income increases, consumers purchase more cars. Cars what type of good? - (answer)Normal goods
Supply curves show the relationship between price and quantity demanded. Assuming the law of supply
holds, supply curves are what? - (answer)Upward sloping
Which causes a leftward shift in the supply curve for apples? - (answer)An increase in the price of labor
, ASU ECON 211 Final ACTUAL Exam with accurate questions and verified answers covering
principles of macroeconomics, fiscal policy, monetary systems, and economic indicators.
An increase in the equilibrium price of coffee could be caused by - (answer)A decrease in supply of
coffee.
What is Consumer surplus? - (answer)The amount a buyer is willing to pay for a good less the amount
the buyer actually pays.
When is a market is efficient? - (answer)The sum of consumer and producer surplus is maximized.
What is Producer surplus? - (answer)The difference between the price producers collect and the
minimum price required to bring goods to market.
Rent control is an example of what? - (answer)A price ceiling
A price ceiling on a coffee would likely cause what? - (answer)A shortage of coffee
What is minimum wage an example of? - (answer)A price floor
In the labor market, suppliers of labor are - (answer)Households
T/F: A payroll tax on a firm will raise more revenue than an income tax of the same amount on
households. - (answer)FALSE
T/F: If the government decides to impose a $1 tax on coffee, it makes no difference if the government
collect the tax from producers or consumers. - (answer)TRUE
T/F: The revenue collected by the government from a tax is not considered part of total surplus. -
(answer)FALSE
