AREC 202 Midterm – Kroll UPDATED LQuestions and CORRECT Answers
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Course
AREC 202
Institution
AREC 202
AREC 202 Midterm – Kroll UPDATED
LQuestions and CORRECT Answers
Opportunity Costs - CORRECT ANSWER- What you must give up in order to get a
product or service.
Economics is the study of? - CORRECT ANSWER- Choice
What is the difference between micro and macro economics? - CORRECT ANSWER-
...
AREC 202 Midterm – Kroll UPDATED
LQuestions and CORRECT Answers
Opportunity Costs - CORRECT ANSWER✔✔- What you must give up in order to get a
product or service.
Economics is the study of? - CORRECT ANSWER✔✔- Choice
What is the difference between micro and macro economics? - CORRECT ANSWER✔✔-
Micro: the study of individual choice
Macro: the study of the national economy
What are sunk costs? - CORRECT ANSWER✔✔- Costs that have occurred in the past and
cannot be recovered.
What are marginal costs? - CORRECT ANSWER✔✔- the additional cost of conducting one
more unit of the activity
What does the term "marginal" mean? - CORRECT ANSWER✔✔- how much?
When each person gets his or her fair share? - CORRECT ANSWER✔✔- Equity
What is the Production possibility frontier? (PPF) - CORRECT ANSWER✔✔- The
maximum quantity of one good that can be produced for any given production of the other.
what cost requires the outlay of actual money? - CORRECT ANSWER✔✔- Explicit cost
what cost is measured by the value of the benefits forgone? - CORRECT ANSWER✔✔-
Implicit cost
Whats the difference between economic profit and accounting profit? - CORRECT
ANSWER✔✔- Accounting: Revenue minus explicit costs
, Economic: Revenue minus the opportunity cost
Can the PPF be upward sloping? - CORRECT ANSWER✔✔- No it cannot
Feasible: C,A
Efficient: A
Not Feasible: B - CORRECT ANSWER✔✔- Which point on the PPF are Efficient/ not
Feasible/Not Feasible ?
In a world with just two goods and two countries, can a country have an absolute advantage
for both goods? - CORRECT ANSWER✔✔- yes, a country can have the absolute advantage.
In a world with just two goods and two countries, can a country have a comparative
advantage for both goods? - CORRECT ANSWER✔✔- No, only one country can have the
comparative advantage in a good
Price ceilings - CORRECT ANSWER✔✔- Acrodin to chapter 5, of what is "rent control" an
example of?
Supply has gone up (the supply curves has shifted to the left) - CORRECT ANSWER✔✔-
According to a New York Times article, the number of car producers in China has gone up
dramatically over the last decade. At the same time, Chinese consumers' incomes have
risen,and cars are a normal good in china.
What has happened to supply in the Chinese market for cars?
Demand has gone up (the demand curve has shifted to the left) - CORRECT ANSWER✔✔-
According to a New York Times article, the number of car producers in China has gone up
dramatically over the last decade. At the same time, Chinese consumers' incomes have
risen,and cars are a normal good in china.
What has happened to demand in the Chinese market for cars?
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