BNAD 301 EXAM 2 FINAL EXAM 2026
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ Selfish behavior, according to economists, may be motivated by
the desire to improve or increase (mark all that apply):
Answer: (A) Power.
(B) Health.
(C) Wealth.
(D) Education.
(E) Social status.
◉ Which would have more impact on the equilibrium quantity, a
20% increase in supply (i.e., at any given price, quantity supplied
increases by 20%) or a 20% increase in demand?
Answer: A 20% increase in demand has more impact
◉ If there is a 20% increase in supply AND a 20% increase in
demand, then the equilibrium price:
Answer: Does not change.
, ◉ Changes in a downstream market affect ______ in the upstream
market; changes in an
upstream market affect ______ in the downstream market
Answer: Demand; supply
◉ Based on the class discussion, the market for Ramen may violate:
Answer: The rule that higher income increases demand.
◉ Which realistic example did use, in class, to introduce the idea of a
competitive market?
Answer: Turkish fish market
◉ In the market for iron, suppose that demand increases but the
equilibrium price does not change. What could create this situation?
Answer: Supply simultaneously increases
◉ Why do some economic policy debates seem to continue
indefinitely, with no clear resolution? (Mark the three best answers,
based on the class discussion.)
Answer: (B) The difficulty of conducting experiments makes it hard
to collect sufficient data.
(C) None of the alternative models are able to predict the data with
great accuracy.
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ Selfish behavior, according to economists, may be motivated by
the desire to improve or increase (mark all that apply):
Answer: (A) Power.
(B) Health.
(C) Wealth.
(D) Education.
(E) Social status.
◉ Which would have more impact on the equilibrium quantity, a
20% increase in supply (i.e., at any given price, quantity supplied
increases by 20%) or a 20% increase in demand?
Answer: A 20% increase in demand has more impact
◉ If there is a 20% increase in supply AND a 20% increase in
demand, then the equilibrium price:
Answer: Does not change.
, ◉ Changes in a downstream market affect ______ in the upstream
market; changes in an
upstream market affect ______ in the downstream market
Answer: Demand; supply
◉ Based on the class discussion, the market for Ramen may violate:
Answer: The rule that higher income increases demand.
◉ Which realistic example did use, in class, to introduce the idea of a
competitive market?
Answer: Turkish fish market
◉ In the market for iron, suppose that demand increases but the
equilibrium price does not change. What could create this situation?
Answer: Supply simultaneously increases
◉ Why do some economic policy debates seem to continue
indefinitely, with no clear resolution? (Mark the three best answers,
based on the class discussion.)
Answer: (B) The difficulty of conducting experiments makes it hard
to collect sufficient data.
(C) None of the alternative models are able to predict the data with
great accuracy.
