ECON 2002.01 Study Guide - Final Guide: Tuition Payments, Price Floor, Absolute Advantage

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turquoisegnu128

28 Sep 2018

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Ohio State University

Department

Economics

Course

ECON 2002.01

Professor

All

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ECON 2002.01 Full Course Notes

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Please bubble in the answer on your scantron. There are 40 questions: irene needs 1 hour to make 1 chair, and need 4 hour to make 1 table. Answer: c: if demand increases while supply decreases, then the equilibrium price, always increases, always decreases, may increase, decrease, or stay the same, never changes. Answer: a: which of the following is a price floor, rent controls, minimum wage rates, a freeze on upward-moving gasoline prices, college tuition caps. Answer: b: suppose the price of cheese rises. If government sets the maximum legal price of gasoline at per gallon, then the limit acts as: a price floor, a price ceiling, an equilibrium price, a just price. Answer: b: refer to the above figure. Answer: d: the prices of certain goods, such as ice and gasoline, often increase after a natural disaster such as a hurricane.

Related Questions

1. The law of comparative advantage says that:

A. whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good.

B. whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good

C. the individual with the lowest opportunity cost of producing a particular good should produce it

D. comparative advantage exists only when one person has an absolute advantage in the production of two goods

2. A country has an absolute advantage in the production of a good if that country:

A. can produce good using fewer resources than another country would require

B. has the lowest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

C. has the greatest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

D. has the lowest opportunity cost of producing the good and can produce it with the fewest resources

3. A production possibilities frontier can shift outward for all of the following reasons except:

A. a larger workforce

B. a decrease in the size of the labor force

C. an increase in the skills of the labor force

D. an improvement in technology

byzantiumshark504

Fact 3.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. 12. Refer to Fact 3.2. Which one of the following statements is true? A) Brenda has an absolute advantage over Agnes. B) Agnes has a comparative advantage in the production of Y. C) Brenda has a comparative advantage in the production of X. D) Brenda will not gain from trade. E) Agnes will not gain from trade.

Fact 2.4.2 Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. 6) Refer to Fact 2.4.2. Which one of the following statements is true? A) Brenda has an absolute advantage over Agnes in the production of both goods. B) Brenda will not gain from trade. C) Agnes has a comparative advantage in the production of Y. D) Brenda has a comparative advantage in the production of X. E) Agnes will not gain from trade.

ECON 2002.01 Study Guide - Final Guide: Tuition Payments, Price Floor, Absolute Advantage

ECON 2002.01 Full Course Notes

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