STUDY NOTES & REFERENCE GUIDE
DOC_RED · Comprehensive Practice
/ EXAM PREP Exam
Economics Comprehensive Practice Exam ·
80-Question Economics Comprehensive Practice Exam
Microeconomics & Macroeconomics
Supply & Demand, Market Structures, GDP, Money & Banking, Fiscal & Monetary
Policy
Questions: 36 unique Q&A pairs
Subject: Economics
Format: PDF · High-Yield Study Document
Year: Academic Series
VERIFIED | ORIGINAL CONTENT | GOLD SELLER SAFE | 2026·2027 ACADEMIC SERIES
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, STUDY NOTES & REFERENCE GUIDE
ECONOMICS Comprehensive Practice Exam
TABLE OF CONTENTS···
Section 1: Chapter 1: Supply, Demand & Market Equilibrium
Section 2: Chapter 2: Market Structures & Firm Theory
Section 3: Chapter 3: GDP, Economic Growth & Business Cycles
Section 4: Chapter 4: Money, Banking & Monetary Policy
Section 5: Chapter 5: Fiscal Policy, International Trade & Exchange
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, STUDY NOTES & REFERENCE GUIDE
ECONOMICS Comprehensive Practice Exam
PART I · PRACTICE QUESTIONS (36 Questions)
Chapter 1: Supply, Demand & Market Equilibrium
Q1.
If the price of coffee rises significantly, what is the most likely effect on demand for tea
(a substitute)?
A) Demand for tea decreases
B) Demand for tea increases · consumers switch to substitutes
C) No effect on tea demand
D) Supply of tea decreases
Q2.
A city sets maximum rent of $800/month in a market where equilibrium rent is $1,200. This is
an example of:
A) A price floor above equilibrium
B) A price ceiling below equilibrium · creates a housing shortage
C) A market equilibrium price
D) A subsidy for renters
Q3.
Which would cause the supply curve for wheat to shift rightward (increase in supply)?
A) A rise in the price of wheat
B) A technological improvement in harvesting equipment
C) An increase in consumer income
D) Higher wages for farm workers
Q4.
If demand for a good is perfectly inelastic, what happens to total revenue when price
increases?
A) Total revenue decreases
B) Total revenue increases proportionally · quantity demanded does not change
C) Total revenue stays the same
D) Total revenue decreases then increases
Q5.
The government imposes a tariff on imported steel. Most likely effect in the domestic steel
market?
A) Price falls, quantity rises
B) Domestic price rises, domestic production increases, imports decrease, consumer surplus falls
C) Price falls, imports increase
D) No effect · tariffs only affect foreign markets
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ECONOMICS Comprehensive Practice Exam
Q6.
A drought destroys 30% of this year's corn crop. In the corn market, this leads to:
A) Rightward shift in supply and lower prices
B) Leftward shift in supply, raising equilibrium price and reducing equilibrium quantity
C) Leftward shift in demand
D) No change in price if government regulates it
Q7.
A market has 5 firms each producing 20 units at $10/unit. A 6th firm enters. What is the
most likely immediate effect?
A) Market price rises to $12
B) Market supply increases, leading to lower equilibrium price and higher total quantity
C) Each existing firm increases output to 25 units
D) Demand shifts rightward
Q8.
If the government provides a $2 per unit subsidy to producers of solar panels, what happens?
A) Demand increases
B) Supply increases (rightward shift), equilibrium price falls, equilibrium quantity rises
C) Price rises due to increased demand
D) Supply decreases
Chapter 2: Market Structures & Firm Theory
Q1.
A monopolist faces P = 120 · 2Q and has MC = 20. What output maximizes profit?
A) Q = 30
B) Q = 25
C) Q = 40
D) Q = 50
Q2.
In the long run, a monopolistically competitive firm earns:
A) Economic profits due to product differentiation
B) Zero economic profit (normal profit) · free entry drives down profit to zero, but firm operates with
excess capacity
C) Losses due to competition
D) Accounting profits only
Q3.
The kinked demand curve model in oligopoly explains why:
A) Oligopolists always cooperate on price
B) Oligopoly prices tend to be sticky · rivals match price decreases but ignore price increases
C) Oligopoly markets are always efficient
D) Entry barriers are low in oligopoly
GRADED A+ VERIFIED | 2026/2027 ACADEMIC SERIES Page 4 of 1309
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DOC_RED · Comprehensive Practice
/ EXAM PREP Exam
Economics Comprehensive Practice Exam ·
80-Question Economics Comprehensive Practice Exam
Microeconomics & Macroeconomics
Supply & Demand, Market Structures, GDP, Money & Banking, Fiscal & Monetary
Policy
Questions: 36 unique Q&A pairs
Subject: Economics
Format: PDF · High-Yield Study Document
Year: Academic Series
VERIFIED | ORIGINAL CONTENT | GOLD SELLER SAFE | 2026·2027 ACADEMIC SERIES
All content is 100% original. Not affiliated with any publisher. Safe for all marketplace accounts.
COURSESITY - Stuvia | Page 1 of 1309
, STUDY NOTES & REFERENCE GUIDE
ECONOMICS Comprehensive Practice Exam
TABLE OF CONTENTS···
Section 1: Chapter 1: Supply, Demand & Market Equilibrium
Section 2: Chapter 2: Market Structures & Firm Theory
Section 3: Chapter 3: GDP, Economic Growth & Business Cycles
Section 4: Chapter 4: Money, Banking & Monetary Policy
Section 5: Chapter 5: Fiscal Policy, International Trade & Exchange
GRADED A+ VERIFIED | 2026/2027 ACADEMIC SERIES Page 2 of 1309
COURSESITY - Stuvia | Page 2 of 1309
, STUDY NOTES & REFERENCE GUIDE
ECONOMICS Comprehensive Practice Exam
PART I · PRACTICE QUESTIONS (36 Questions)
Chapter 1: Supply, Demand & Market Equilibrium
Q1.
If the price of coffee rises significantly, what is the most likely effect on demand for tea
(a substitute)?
A) Demand for tea decreases
B) Demand for tea increases · consumers switch to substitutes
C) No effect on tea demand
D) Supply of tea decreases
Q2.
A city sets maximum rent of $800/month in a market where equilibrium rent is $1,200. This is
an example of:
A) A price floor above equilibrium
B) A price ceiling below equilibrium · creates a housing shortage
C) A market equilibrium price
D) A subsidy for renters
Q3.
Which would cause the supply curve for wheat to shift rightward (increase in supply)?
A) A rise in the price of wheat
B) A technological improvement in harvesting equipment
C) An increase in consumer income
D) Higher wages for farm workers
Q4.
If demand for a good is perfectly inelastic, what happens to total revenue when price
increases?
A) Total revenue decreases
B) Total revenue increases proportionally · quantity demanded does not change
C) Total revenue stays the same
D) Total revenue decreases then increases
Q5.
The government imposes a tariff on imported steel. Most likely effect in the domestic steel
market?
A) Price falls, quantity rises
B) Domestic price rises, domestic production increases, imports decrease, consumer surplus falls
C) Price falls, imports increase
D) No effect · tariffs only affect foreign markets
GRADED A+ VERIFIED | 2026/2027 ACADEMIC SERIES Page 3 of 1309
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, STUDY NOTES & REFERENCE GUIDE
ECONOMICS Comprehensive Practice Exam
Q6.
A drought destroys 30% of this year's corn crop. In the corn market, this leads to:
A) Rightward shift in supply and lower prices
B) Leftward shift in supply, raising equilibrium price and reducing equilibrium quantity
C) Leftward shift in demand
D) No change in price if government regulates it
Q7.
A market has 5 firms each producing 20 units at $10/unit. A 6th firm enters. What is the
most likely immediate effect?
A) Market price rises to $12
B) Market supply increases, leading to lower equilibrium price and higher total quantity
C) Each existing firm increases output to 25 units
D) Demand shifts rightward
Q8.
If the government provides a $2 per unit subsidy to producers of solar panels, what happens?
A) Demand increases
B) Supply increases (rightward shift), equilibrium price falls, equilibrium quantity rises
C) Price rises due to increased demand
D) Supply decreases
Chapter 2: Market Structures & Firm Theory
Q1.
A monopolist faces P = 120 · 2Q and has MC = 20. What output maximizes profit?
A) Q = 30
B) Q = 25
C) Q = 40
D) Q = 50
Q2.
In the long run, a monopolistically competitive firm earns:
A) Economic profits due to product differentiation
B) Zero economic profit (normal profit) · free entry drives down profit to zero, but firm operates with
excess capacity
C) Losses due to competition
D) Accounting profits only
Q3.
The kinked demand curve model in oligopoly explains why:
A) Oligopolists always cooperate on price
B) Oligopoly prices tend to be sticky · rivals match price decreases but ignore price increases
C) Oligopoly markets are always efficient
D) Entry barriers are low in oligopoly
GRADED A+ VERIFIED | 2026/2027 ACADEMIC SERIES Page 4 of 1309
COURSESITY - Stuvia | Page 4 of 1309
