PSU Econ 102 Exam 1 Latest Update -

PSU Econ 102 Exam 1 Latest Update - Actual Exam from Credible Sources with 115 Questions and 100% Verified Correct Answers Guaranteed A+ Verified by Professor

Absolute Advantage - CORRECT ANSWER: Ability of a country to produce more of a

good than competitors, using the same amount of resources

Ceteris Paribus - CORRECT ANSWER: "Holding all else constant"

(assuming all other variables do not change)

Club Good - CORRECT ANSWER: Excludable & Non-Rival

Ex: Cable TV, Direct TV

Coase Theorem - CORRECT ANSWER: If there are no barriers to negotiations, and if property rights are fully specified (well-defined), interested parties will bargain to correct any externalities

Common-Resource Good - CORRECT ANSWER: Non-Excludable & Rival

Ex: Fishing, Hunting, Free LOOP service

Comparative Advantage - CORRECT ANSWER: Ability of a county to produce a good at a lower opportunity cost than competitors

Complements - CORRECT ANSWER: Used together

Consumer Surplus - CORRECT ANSWER: Difference between the willingness to pay

for a good and the actual price paid to get it

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Deadweight Loss - CORRECT ANSWER: Resulting loss of total surplus due to market

failure

Downward Sloping Demand - CORRECT ANSWER: Substitution Effect - relatively more

expensive compared to other products Income Effect - takes up larger share of income

Economic Model - CORRECT ANSWER: Simplification of a complex portion of the

economy (Underlying assumptions)

Economic Variable - CORRECT ANSWER: Something measurable that can take on

different values

Ex: the price of an orange or income of a teacher

-Endogenous (within model) or Exogenous (outside model)

Economics - CORRECT ANSWER: Study of the choices people make to attain their

goals, given their scarce resources

Excise Tax - CORRECT ANSWER: Tax levied on a particular good or service

Ex: Alcohol, Gasoline, Cigarettes

Excludable - CORRECT ANSWER: Consumer must purchase to use

External Benefits - CORRECT ANSWER: Benefits of a market activity received by

people who are not participants

External Costs - CORRECT ANSWER: Costs of a market activity paid by people who

are not participants

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