JMU econ 201 Exam 1 Questions with Complete Solutions (Latest 2025) Which of the following involve a trade off? - Correct Answers ✅all of these
- buying a new car
- going to college
- watching a football game Saturday afternoon
- taking a nap
Trade-offs are required because wants are unlimited and resources are - Correct Answers ✅scarce Economics is the study of how - Correct Answers ✅society manages its scarce resources Which of the following is NOT a factor of production - Correct Answers ✅money Points on the production possibilities frontier are - Correct Answers ✅effcient Which of the following will NOT shift a country's production possibilities frontier outward? - Correct Answers ✅a reduction in unemployment Economic growth is depicted by - Correct Answers ✅shift in PPF outward 1 / 3
JMU econ 201 Exam 1 Questions with Complete Solutions (Latest 2025) Which of the following issues is related to microeconomics - Correct Answers ✅impact of OIL prices on auto production Which of the following statements is NORMATIVE - Correct Answers ✅The state SHOULD...Positive statements are - Correct Answers ✅Statements of description that can be tested absolute advantage - Correct Answers ✅ability to produce with less in resources comparative advantage - Correct Answers ✅ability to produce at lower opportunity cost If a nation has an absolute advantage in the production of a good - Correct Answers ✅it can produce that good using less resources than its trading partner if a nation has a comparative advantage in the production of a good - Correct Answers ✅it can produce that good at a lower opportunity cost than its trading partner 2 / 3
JMU econ 201 Exam 1 Questions with Complete Solutions (Latest 2025) What is true about trade - Correct Answers ✅trade can benefit everyone in society because it allows people to specialize in their comparative advantage According to the principle of comparative advantage - Correct Answers ✅countries should specialize in the production of goods for which they have lower opportunity cost of production than their trading partners true or false A self-sufficient country at best can consume on its PPF - Correct Answers ✅true If an increase in the price of blue jeans leads to an increase in demand for tennis shoes, then blue jeans and tennis shoes are - Correct Answers ✅substitutes Normal goods - Correct Answers ✅demand goes up when income does inferior goods - Correct Answers ✅demand goes down when income goes up complements - Correct Answers ✅when price of a good goes down demand for all its complements goes up
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