ECN 212 Final Exam Questions With
Quality Answers 2026-2027 Updated.
scarcity - Answer limited resources and unlimited wants
economics - Answer study of how society manages its scarce resources
efficiency - Answer the property of society getting the most from its scarce resources
equality - Answer the property of distributing economic prosperity uniformly among societies
members
opportunity cost - Answer whatever is given up to get something else
rational people - Answer systematically and purposefully doing the best you can to achieve
your objectives
marginal change - Answer an incremental adjustment to an existing plan
incentive - Answer something that induces a person to act
market economy - Answer an economic system where interaction of households and firms in
markets determines the allocation of resources
property rights - Answer the ability of an individual to own and exercise control over scarce
resources
invisible hand - Answer the principle that self-interested in market participants may
unknowingly maximize the welfare of society as a whole
market failure - Answer a situation in which the market fails to allocate resources efficiently
externality - Answer when one person's actions have an impact on a bystander
market power - Answer the ability of an individual to group or substantially influence market
prices
, monopoly - Answer the case in which there is only one seller in the market
productivity - Answer the amount of goods and services produced from each unit of labor
input
inflation - Answer an increase in the overall level of prices
business cycle - Answer fluctuations in economic activity
a competitive market that is unregulated and has no externalities achieves the same result as a
benevolent social planner, free market allocation is pareto efficient (total surplus is maximized
in free market - Answer First Welfare Theorem
Ei < 0 - Answer inferior good
Ei>0 - Answer normal good
Ed=1 - Answer unit elastic
0<Ei<1 - Answer necessity good
Ed >0 - Answer inelastic
Ed <0 - Answer elastic
it is feasible and there is no way to make someone better off without making someone worse
off - Answer pareto efficient
legal maximum on the price at which a good can be sold - Answer price ceiling
price ceiling that is set below the equilibrium price is a ______ and creates a _________ -
Answer binding price ceiling, shortage (excess demand)
price floor that is set above the equilibrium price is a ________ and creates a _________ -
Answer binding price floor, surplus (excess supply)
legal minimum on the price at which a good can be sold at - Answer price floor
Quality Answers 2026-2027 Updated.
scarcity - Answer limited resources and unlimited wants
economics - Answer study of how society manages its scarce resources
efficiency - Answer the property of society getting the most from its scarce resources
equality - Answer the property of distributing economic prosperity uniformly among societies
members
opportunity cost - Answer whatever is given up to get something else
rational people - Answer systematically and purposefully doing the best you can to achieve
your objectives
marginal change - Answer an incremental adjustment to an existing plan
incentive - Answer something that induces a person to act
market economy - Answer an economic system where interaction of households and firms in
markets determines the allocation of resources
property rights - Answer the ability of an individual to own and exercise control over scarce
resources
invisible hand - Answer the principle that self-interested in market participants may
unknowingly maximize the welfare of society as a whole
market failure - Answer a situation in which the market fails to allocate resources efficiently
externality - Answer when one person's actions have an impact on a bystander
market power - Answer the ability of an individual to group or substantially influence market
prices
, monopoly - Answer the case in which there is only one seller in the market
productivity - Answer the amount of goods and services produced from each unit of labor
input
inflation - Answer an increase in the overall level of prices
business cycle - Answer fluctuations in economic activity
a competitive market that is unregulated and has no externalities achieves the same result as a
benevolent social planner, free market allocation is pareto efficient (total surplus is maximized
in free market - Answer First Welfare Theorem
Ei < 0 - Answer inferior good
Ei>0 - Answer normal good
Ed=1 - Answer unit elastic
0<Ei<1 - Answer necessity good
Ed >0 - Answer inelastic
Ed <0 - Answer elastic
it is feasible and there is no way to make someone better off without making someone worse
off - Answer pareto efficient
legal maximum on the price at which a good can be sold - Answer price ceiling
price ceiling that is set below the equilibrium price is a ______ and creates a _________ -
Answer binding price ceiling, shortage (excess demand)
price floor that is set above the equilibrium price is a ________ and creates a _________ -
Answer binding price floor, surplus (excess supply)
legal minimum on the price at which a good can be sold at - Answer price floor
