PRINCIPLES OF MICROECONOMICS FINAL
EXAM ACTUAL PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ T or F? Inflation is a good example of a microeconomic topic.
Answer: True
◉ What is the opportunity cost of living in a house you already own?
a. zero, because you already own it
b that mostly depends on current mortgage rates.
c the rent you receive if you rented the house out to someone..
Answer: c
◉ Economics is best defined as the study of _____.. Answer: human
action
◉ Suppose that you read in the newspaper that the price of
motorcycles has decreased while the quantity has increased. What is
the most likely explanation?
a demand has increased
b demand has decreased
c supply has increased
, d supply has decreased. Answer: c
◉ Suppose that the price of tea ^ from $0.50/cup to $0.60/cup, and
consumption of tea drops 10%. Is there evidence of a shift in the
demand curve?. Answer: No, this could be a movement along a
stable demand curve.
◉ which of these is a good reason for studying microeconomics?
a making more informed business decisions
b making better decisions w your own choices
c being more informed about policy issues
d all of the above. Answer: d
◉ Which of the following is an economic explanation for trade?
a exporting helps the economy
b The World Trade Organization requires it
c specializing according to comparative advantage and trading
d trade helps eliminate jobs. Answer: c
◉ Venezuela adopts the view that some goods are a necessity, so
that price should not be allowed to rise. If they adopt policies that
keep prices below equilibrium, what is the likely result?
a frustrated sellers
EXAM ACTUAL PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ T or F? Inflation is a good example of a microeconomic topic.
Answer: True
◉ What is the opportunity cost of living in a house you already own?
a. zero, because you already own it
b that mostly depends on current mortgage rates.
c the rent you receive if you rented the house out to someone..
Answer: c
◉ Economics is best defined as the study of _____.. Answer: human
action
◉ Suppose that you read in the newspaper that the price of
motorcycles has decreased while the quantity has increased. What is
the most likely explanation?
a demand has increased
b demand has decreased
c supply has increased
, d supply has decreased. Answer: c
◉ Suppose that the price of tea ^ from $0.50/cup to $0.60/cup, and
consumption of tea drops 10%. Is there evidence of a shift in the
demand curve?. Answer: No, this could be a movement along a
stable demand curve.
◉ which of these is a good reason for studying microeconomics?
a making more informed business decisions
b making better decisions w your own choices
c being more informed about policy issues
d all of the above. Answer: d
◉ Which of the following is an economic explanation for trade?
a exporting helps the economy
b The World Trade Organization requires it
c specializing according to comparative advantage and trading
d trade helps eliminate jobs. Answer: c
◉ Venezuela adopts the view that some goods are a necessity, so
that price should not be allowed to rise. If they adopt policies that
keep prices below equilibrium, what is the likely result?
a frustrated sellers
