EC111 Final Exam questions n
answers rated A+ 2025/2026
Types of Resources - correct answer ✔✔- Labor
- Capital (Equipment)
- Natural Resources
- Entrepreneurial Ability
Positive Economics - correct answer ✔✔- Assertion of fact
- Law
- What is
Normative Economics - correct answer ✔✔- Opinion
- Belief
- What should be
Law of Comparative Advantage - correct answer ✔✔If economies specialize and produce where
they have the lowest opportunity cost, both economies can be better off.
The Three Big Questions - correct answer ✔✔1.) What to produce? (How much?)
2.) How to produce?
3.) How to distribute?
Types of Economic Systems - correct answer ✔✔1.) Capitalism (market-based, laissez-faire)
2.) Command economy (communism)
, 3.) Mixed economy
Law of Demand - correct answer ✔✔An inverse relationship between price and quantity
demanded
What causes changes in demand? - correct answer ✔✔- consumer incomes
- changes in prices of other goods
- preference/taste
- expectations
- #/composition of consumers
Law of Supply - correct answer ✔✔A direct relationship between price and quantity supplied
What causes changes in supply? - correct answer ✔✔- cost of production/price of resources
- change in technology
- change in price of other products
- # of producers
- producer expectations
- government interventions
Elasticity - correct answer ✔✔Measure of responsiveness
Determinants of Elasticity of Quantity Demanded - correct answer ✔✔- addiction
- necessity vs. luxury
- availability of substitutes
- adjustment period
answers rated A+ 2025/2026
Types of Resources - correct answer ✔✔- Labor
- Capital (Equipment)
- Natural Resources
- Entrepreneurial Ability
Positive Economics - correct answer ✔✔- Assertion of fact
- Law
- What is
Normative Economics - correct answer ✔✔- Opinion
- Belief
- What should be
Law of Comparative Advantage - correct answer ✔✔If economies specialize and produce where
they have the lowest opportunity cost, both economies can be better off.
The Three Big Questions - correct answer ✔✔1.) What to produce? (How much?)
2.) How to produce?
3.) How to distribute?
Types of Economic Systems - correct answer ✔✔1.) Capitalism (market-based, laissez-faire)
2.) Command economy (communism)
, 3.) Mixed economy
Law of Demand - correct answer ✔✔An inverse relationship between price and quantity
demanded
What causes changes in demand? - correct answer ✔✔- consumer incomes
- changes in prices of other goods
- preference/taste
- expectations
- #/composition of consumers
Law of Supply - correct answer ✔✔A direct relationship between price and quantity supplied
What causes changes in supply? - correct answer ✔✔- cost of production/price of resources
- change in technology
- change in price of other products
- # of producers
- producer expectations
- government interventions
Elasticity - correct answer ✔✔Measure of responsiveness
Determinants of Elasticity of Quantity Demanded - correct answer ✔✔- addiction
- necessity vs. luxury
- availability of substitutes
- adjustment period
