Exam (elaborations)
Econ 201 Detailed Questions And Expert Answers
- Course
- ECO 201
- Institution
- Southern New Hampshire University
Econ 201 Detailed Questions And Expert Answers
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Econ 201 Detailed Questions And Expert AnswersScarcity - ANS the limited nature of society's resources
economics - ANS the study of how society manages its scarce resources
efficiency - ANS when society gets the most from its scarce resources
equality - ANS when prosperity is distributed uniformly among society's members
market - ANS group of buyers and sellers
model - ANS a simplified version of a large scale event that can be used to make
predictions
ceteris parabis - ANS all else equal
only one thing changes at a time
people are rational - ANS rational people are predictable, without this assumption
we cannot make predictions
PPF assumptions - ANS fixed technology, fixed level of resources, full employment
, consumer good (c) - ANS instant (pizza, t-shirt, etc)
capital good (k) - ANS can lead to future production (truck, robot, etc.)
opportunity cost - ANS whatever must be given up to obtain some item
calculating opportunity cost - ANS give up
________
gain
growth in PPF - ANS produce more capital goods, because those goods can be used
in the future
comparative advantage - ANS a country has comparative advantage when it can
produce a good at a lower opportunity cost than another
absolute advantage - ANS a country can overall produce more than another
trade - ANS for trade to work, countries should specialize in the product they are
best at and trade for the other
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