AnswersGalliWCA 2221 CivicsEconomics 1st nine weeks 26-27Comparative and Absolute Advantage

Comparative and Absolute Advantage — Unit test Answers

0 verified answers
1
Free Preview

Which best describes what happens to the amount of a good or service that is supplied to consumers?

A
The amount of a good or service can change.
B
The amount of a good or service always remains the same.
C
The amount of a good cannot change.
D
The amount of a service cannot change.
2
Free Preview

In pure competition, producers compete exclusively on the basis of

A
selling identical items.
B
advertising heavily to promote their good.
C
producing the unique features of their good.
D
focusing on maintaining a positive image.
3

In economics, if a good is inelastic,

A
consumers have lost an interest in purchasing it.
B
producers have lost an interest in manufacturing it.
C
its supply or demand is too sensitive to price changes.
D
its supply or demand is not sensitive to price changes.
4

Which calculation helps determine which producer has the absolute advantage?

A
Resources used multiplied by amount produced
B
Amount produced divided by resources used
C
Amount produced minus resources used
D
Resources used divided by amount produced
5

South Avenue Publishing produces self-help books. The company’s profit is the

A
money the company earns after paying all of its production costs.
B
paper, binding, and other supplies the company purchases.
C
total amount the company receives from the sale of its books.
D
amount of money the company earns from selling a single book.
6

What is the best definition of marginal cost?

A
the possible income from producing an additional item
B
the price of producing one additional unit of a good
C
the additional income gained from selling an additional good
D
the financial gain from business activity minus expenses
7

Supply and demand coordinate to determine prices by working

A
together.
B
competitively.
C
with other factors.
D
separately.
8

Which statement best explains how elasticity and incentives work together?

A
An elastic good, such as a game, is more likely to respond to incentives.
B
An inelastic good, such as a game, is more likely to respond to incentives.
C
An elastic good, such as a game, is less likely to respond to incentives.
D
An inelastic good, such as a game, is less likely to respond to incentives.
9

The graph shows a point of equilibrium.What does "Q” represent on the graph?

Question illustration
A
the point where equilibrium is achieved
B
the quantity at the equilibrium point
C
the average cost of goods sold
D
the point where supply and demand drop
10

Which best summarizes how consumer demand changes?

A
Consumer demand changes over time based on few factors.
B
Consumer demand changes often based on many factors.
C
Consumer demand changes over time based on specific factors.
D
Consumer demand changes often based on few factors.
11

Price controls on goods can be set by

A
consumers.
B
economists.
C
governments.
D
producers.
12

[BLANK]

A
debts
B
profits
C
expenses
D
costs
13

Which factors must a producer consider when deciding what good to supply? Check all that apply.

A
the appeal of the good to family members
B
the elasticity of a good being supplied
C
competition within the market
D
the ability to produce the good efficiently
E
the ability to produce a good of low quality
14

[BLANK]

A
total revenue
B
marginal revenue
C
marginal cost
D
total units produced
15

The graph shows demand.In order to achieve equilibrium, what else must be included on the graph?

Question illustration
A
disequilibrium
B
supply curve
C
excess supply
D
excess demand
16

Which occurs during market equilibrium? Select two options.

A
Supply and demand meet at a specific price.
B
Supply is slightly greater than demand.
C
Supply and demand meet at a specific quantity.
D
Supply and demand meet at a demand point.
E
Supply and demand meet at a supply point.
17

Which describes a way in which consumers most likely benefit from producers’ absolute advantage?

A
Consumers’ opportunity costs decrease.
B
Prices decrease as a result of increased production efficiencies.
C
Producers always use savings to improve products.
D
Consumers can find a given product in more places.
18

Clark’s Cleaners is a housekeeping service. The company’s expenses include the

A
money the company earns after paying all of its production costs.
B
cleaning supplies and any equipment the company purchases.
C
total amount of money the company receives from its customers.
D
amount of money the company earns from an individual cleaning.
19

The law of supply demonstrates the behaviors of producers when they

A
change their company’s name.
B
decide to hire fewer workers.
C
supply goods to consumers.
D
launch a new marketing campaign.
20

Which best explains why the law of supply operates the way it does in a free enterprise economy?

A
Companies want to produce more goods than their rivals.
B
Companies want to reward loyal consumers with low prices.
C
Companies want to hire as many workers as possible.
D
Companies want to be as profitable as possible.

Did you find these answers helpful?

More from this Course

Assignment
30 verified answers

Case Study: Starting a Business

Assignment
25 verified answers

Case Study: Starting a Business

Assignment
18 verified answers

Comparative and Absolute Advantage