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    Review final for economics 201

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    Please refer to the attachment.
    <br>1. D. the definition of scarcity.
    <br>2. B. This shows the market economy of most societies.
    <br>3. C. opportunity cost = the benefit that you have to sacrifice for recreation.
    <br>4. A. we only care about the marginal values in economics.
    <br>5. C. Externality! The cost is borne by others. The factory will make extra profit.
    <br>6. A. Government intervenes are always making matters worse. Higher cost for sawmill results in higher price and less relative income.
    <br>7. B. Factors flow into firm for production.
    <br>8. B. Just the definition of PPF.
    <br>9. B. This is the economically correct statement
    <br>10. B. "mono-" means one!
    <br>11. A. Price of substitute increases, demand for the substitute decreases. People tend to buy more good X, so the demand for x increases
    <br>12. D. Just the definition of inferior good, e.g. cheap patatoes.
    <br>13. A. demand curve is always downward sloping
    <br>14. C. this will not affect the consumer's choice.
    <br>15. A. the higher price, the greater profit, the more quantity the producer is willing to supply
    <br>16. D. both demand and supply curve will shift to right, and result in D situation.
    <br>17. B. Elasticity = (dQ/dP)*P/Q
    <br>18. A. the more substitutes, the higher elasticity.
    <br>19. A. The percentage decrease in quantity demanded is higher than percentage increase ...