ECON 203 EXAM 1 TAMU UPDATED ACTUAL Questions and CORRECT Answers
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Course
ECON 203
Institution
ECON 203
ECON 203 EXAM 1 TAMU UPDATED
ACTUAL Questions and CORRECT
Answers
What are 3 gains from society when countries decide to specialize? - CORRECT ANSWER-
-specialization and trade
-more resources
-Improvements in technology/productivity
True or False: Every country have comparative advantage ...
ECON 203 EXAM 1 TAMU UPDATED
ACTUAL Questions and CORRECT
Answers
What are 3 gains from society when countries decide to specialize? - CORRECT ANSWER-
✔✔-specialization and trade
-more resources
-Improvements in technology/productivity
True or False: Every country have comparative advantage in something. - CORRECT
ANSWER- ✔✔True
What are 2 gains when two countries engage in specialization and trade? - CORRECT
ANSWER- ✔✔-total production increases
-new points reached on the PPF that were originally unattainable
What are the 4 characteristics of competitive markets? - CORRECT ANSWER- ✔✔-buyers
are price takers (cannot negotiate)
-standardized goods
-full information
-No transaction costs (no added cost for participating in the market)
The ___ is the amount of a particular good or service that buyers are willing and able to
purchase at a given price. - CORRECT ANSWER- ✔✔Quantity Demanded
A ___ displays the quantities demanded at various prices. - CORRECT ANSWER-
✔✔Demand Schedule
The ___ illustrates the relationship between the quantity demanded and the price of the good,
holding all of the other non-price determinants constant. - CORRECT ANSWER-
✔✔Demand Curve
, The ___ states that the lower the price, the higher the quantity demanded, all other things
equal. - CORRECT ANSWER- ✔✔law of demand
What are the 5 non-price determinants of demand? - CORRECT ANSWER- ✔✔-income
-taste
-price of related goods
-number of buyers
-expectation about future prices
The ___ is the amount of a particular good that producers are willing and able to sell at a
given price. - CORRECT ANSWER- ✔✔Quantity Supplied
A ___ displays the quantities supplied at various prices. - CORRECT ANSWER- ✔✔Supply
Schedule
The ___ illustrates the relationship between the quantity supplied and the price of the good,
holding all of the other non-price determinants constant. - CORRECT ANSWER- ✔✔Supply
Curve
What are the 5 non-price determinants of supply? - CORRECT ANSWER- ✔✔-number of
firms
-technology
-expectation of future prices
-price of substitutes in production
-Price of inputs
If the price of a related good is low, how will this affect the demand curve?
If the price of a substitute in production is low (price of a related good), how will this affect
the supply curve - CORRECT ANSWER- ✔✔DEMAND:
-decrease
-shift to the left
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