ECN 211 FINAL EXAM ASU LATEST 2024-2025 COMPLETE 100 ACTUAL

ECN 211 FINAL EXAM ASU LATEST 2024-2025 COMPLETE 100 ACTUAL

EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH

RATIONALES|AGRADE

1.The Circular Flow Diagram Green arrows represent the flow of money and red repre- sents to flow of goods/services 2.Production pos- sibilities Fron-

tier/ Curve PPF:

PPC The curve shows what is possible within an economy D- impossible A&B - feasible efficient C - feasible & inefficient 3.PPF shifts out when...the economy can produce more of everything 4.Opportunity Costthe cost of what you give up to get something else in terms of time, money, or other goods 5.Absolute Advan- tage Who can make most of that good 6.Comparative Ad- vantage The lowest opportunity cost for that good 7.What would al- low Panama and Canada to trade?They want to trade within their opportunity cost 8.Demand The amount consumers are willing and able to purchase

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ECN 211 FINAL EXAM ASU LATEST 2024-2025 COMPLETE 100 EXAM

QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES

9.Supply The amount that producers are willing and able to produce 10.Law of demand Demand always slopes down 11.Law of supply Supply always slopes up 12.Equilibrium Where the two curves meet 13.Demand shifters- Price of substitute or complement

• Consumer preference
• population growth
• Income and expectation of future income

14.Supply shifters- Price of input

• Technological advancement
• Number of producers
• Producer expectation

15.Solve for Equi- librium Price and Quantity Make both sides equal to each other Ex. Q = 100 - 6P & Q = 28 + 3P

100 - 6P = 28 + 3P

72 - 9P

P = 8

28 + 3(8)

28 + 24

52 = Q

16.Economic Growth is measured...Growth is measured in many ways, usually GDP (the market value of all final goods and services produced in a nation's borders) Productivity (output/labor hours) 17.What causes pro- ductivity?

• Human Capital
• Natural Resources
• Physical Capital
• Technological Knowledge

18.Human Capital Knowledge and skills of workers (education, training) 19.Natural Re- sources Anything that comes from nature (timber, oil, coal)

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