Test 1 Review .edu



Test 1 Review

Chapter 1

Scarcity. What is it?(list answer)

Efficiency vs. Effectives(list answer)

Factors of Production

Positive vs. Normative Statement

Chapter 2

Opportunity Cost

Law of Rising Opportunity Cost

PPF

Comparative Advantage and Absolute Advantage

Chapter 16

Specialization- Why trade?

Sources of Comparative Advantage

Chapter 3

Factors that shift the Demand Curve

Factors that shift the Supply Curve

Shifts vs Movements in Supply Curve

Explain what a Production Possibility Frontier graph shows.

One Hour Burgers Fries

McDonald’s 4 16

Burger King 5 15

Who has the absolute advantage for making burgers, fries?

Who has the comparative advantage for each output?

If the two companies are open 7 days a week, draw a PPF for each?

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