100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Econ 231 Exam 1 || with 100% Verified Solutions. $12.49   Add to cart

Exam (elaborations)

Econ 231 Exam 1 || with 100% Verified Solutions.

 7 views  0 purchase
  • Course
  • Econ 231
  • Institution
  • Econ 231

Trade creates value because: a. people get what they want. b. raw materials are transformed into finished products. c. people exchange things they do not want for things they do. d. idle resources are put to use. correct answers C The reason Martha Stewart does not iron h...

[Show more]

Preview 3 out of 16  pages

  • August 16, 2024
  • 16
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Econ 231
  • Econ 231
avatar-seller
FullyFocus
Econ 231 Exam 1 || with 100% Verified Solutions.
Trade creates value because:

a.
people get what they want.

b.
raw materials are transformed into finished products.

c.
people exchange things they do not want for things they do.

d.
idle resources are put to use. correct answers C

The reason Martha Stewart does not iron her own clothes is that:

a.
she has never learned how to iron.

b.
she has a comparative advantage in ironing.

c.
she does not have an absolute advantage in ironing.

d.
her opportunity cost of ironing exceeds the person's wages providing the ironing service. correct
answers D

The real cost of producing a good is:

a.
the dollar cost of inputs used to make the item.

b.
the opportunity cost of producing the good.

c.
the resources that were used to make the good.

d.
the dollar amount it costs to sell the good. correct answers B

,In his prime, Michael Jordan played both professional basketball and professional baseball.
Compared with most people, Jordan would have an absolute advantage in:

a.
playing both basketball and baseball, since he was better at both than the average person.

b.
playing basketball only because he was relatively better at basketball.

c.
playing baseball only, since he ultimately gave up baseball to concentrate on basketball.

d.
neither basketball or baseball, since he cannot hold the relative advantage in both sports. correct
answers A

If the goal of education were solely to support economic growth, the ideal graduate would be a:

a.
jack-of-all-trades but master of none (where a "jack" is a serviceable tradesperson).

b.
jack-of-one-trade and master of one.

c.
jack-of-no-trades and master of none.

d.
jack-of-some-trades but master of none. correct answers B

Roses grown in Kenya travel to Amsterdam and ultimately to your local flower shop because:

a.
the World Rose Commission coordinates the different elements of the rose industry.

b.
markets coordinate the specialization and trade necessary for the flower industry to function.

c.
of the trade agreement between the governments of Kenya and Amsterdam.

d.
customers are willing to pay more for roses that pass through Amsterdam. correct answers B

Adam Smith advocated the benefits of:

a.

, protectionism.

b.
trade tariffs over trade quotas.

c.
international trade.

d.
absolute advantage correct answers C

The most important tools in economics, according to the textbook, are supply, demand, and the:

a.
idea of equilibrium.

b.
opportunity to barter.

c.
quantity of sales.

d.
level of prices correct answers A

If, for any given amount of a good or service, willingness to pay increases, then:

a.
supply has increased.

b.
supply has decreased.

c.
demand has increased.

d.
demand has decreased. correct answers C

If the demand curve for a normal good shifts downward and to the left:

a.
willingness to pay has increased.

b.
the population has increased.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82871 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart