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ECN 211 Exam 1: 100% Verified: Guaranteed A+ Score Solution

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Production Possibilities Frontier (PPF) (Ans- a graph showing the alternate outputs an economy can produce using its available technology and factors of production (scarce resources) Law of Increasing ... Opportunity Cost (Ans- as you produce more of a good, the opportunity cost will increases resulting in a bowed PPF curve Shift the PPF Curve (Ans- -Change in quantity or quality of resources -Change in technology Points inside the PPF Curve (Ans- are inefficient or show unemployment because the output does not equal the maximum possible ouput that could be made from the resources available Points outside the PPF Curve (Ans- are unattainable because the output exceeds the maximum possible output that could be made from the resources availableAbsolute Advantage (Ans- the producer that can produce the most outputs or uses the least amount of inputs/resources (more efficient) Comparative Advantage (Ans- -The ability to produce a good at a lower opportunity cost than another producer -Producer should produce the item for which he or she has a comparative advantage -Cannot have this advantage for two goods Law of Demand (Ansa price increase causes the quantity demanded to decrease and a decrease in the price of a good increases the quantity demanded Market Demand (Ansthe sum of the quantities demanded for each individual buyer at each priceMarket Demand Curve (Ans- -The horizontal sum of the individual demand curves -Shows the total quantity demanded of a good at each price Demand Schedule (Ansa table that shows the relationship between the price of a good and the quantity demanded Demand Curve (Ans- -A graph with the price on the vertical axis and the quantity demanded on the horizontal axis -Is downward sloping due to the law of demand Quantity Demanded (Ansthe amount of a good that buyers are willing and able to purchase [Show More]

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