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ECO 202 – Questions With Detailed Solutions (A+) $9.99   Add to cart

Exam (elaborations)

ECO 202 – Questions With Detailed Solutions (A+)

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ECO 202 – Questions With Detailed Solutions (A+)

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  • August 23, 2024
  • 6
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ECO 202
  • ECO 202
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Zendaya
ECO 202 – Questions With Detailed Solutions (A+)

Allocative efficiency refers to the attempt to
a. produce at the lowest possible cost.
b. sell at the lowest price.
c. producing what people want.
d. producing in order to receive the lowest profit. Right Ans - c. producing
what people want.

. In a Capitalistic economy the ________ resolves the coordination problems in
the economy.

a. consumers
b. government
c. producers
d. market mechanism Right Ans - d. market mechanism

3. According to the Law of Comparative Advantage, international trade takes
place

a. when mutually beneficial exchange is impossible
b. when it is beneficial to the more developed countries.
c. production costs are different.
d. when all resources are not allocated. Right Ans - c. production costs are
different.

4. "The richest 20% of the population should receive 20% of the total wealth
of the country." This is a positive economic statement.

a. True
b. False Right Ans - b. False

. _________ is related to the maximization of world output.

a. Cooperative production
b. Division of labor and specialization
c. Production according to comparative advantage and exchange

, d. All of the above Right Ans - d. All of the above

Deciding for what to produce is

a. expressed in the Law of Transtaafl.
b. related to limited wants.
c. related to concept of unlimited resources.
d. is related to allocative efficiency. Right Ans - d. is related to allocative
efficiency.

. A straight line PPC with a negative slope indicates

a. the Law of increasing -costs.
b. a constant trade-off between two totally different products.
c. two products using similar resources
d. the Law of Tanstaafl Right Ans - c. two products using similar resources

8. The economy's 'mental structure' refers to the

a. the norms and values of the people.
b. the level of education of the population
c. the level of economic maturity of consumers
d. none of the above Right Ans - a. the norms and values of the people.

9. Point A (on the PPC)

a. maximum cost point
b. point where production costs are different.
c. point where production costs are maximized
d. point where technology is assumed to be constant. Right Ans - d. point
where technology is assumed to be constant.

10. At point B: (inside the ppc)

a. all resources in the economy are not efficiently allocated.
b. technological progress is high.
c. there are major changes in the economy.
d. the economy could be experiencing full-employment. Right Ans - a. all
resources in the economy are not efficiently allocated.

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