Econ 202- Final Exam Questions with Complete Correct Answers | Grade A+

A normal good is a good for which Ans: demand increases when income increases. Which of the following is NOT one of the factors that influences the supply of a product? Ans: income Which of the following is a microeconomic topic? Ans: the reasons why Kathy buys less orange juice When supply decreases and demand does not change, the equilibrium quantity Ans: decreases and the price rises If two variables are positively related Ans: they move in the same direction over time When the demand for a good decreases, its equilibrium price ___ and equilibrium quantity___. Ans: falls; decreases Goods that have a negative or inverse relationship between changes in income and changes in the demand for a product are called: Ans: inferior goods A price ___ makes it illegal to pay a lower price that the specified level. One example is Ans: floor; the minimum wage A change in which of the following shifts the demand curve? Ans: the tastes and preferences of consumers A change in the price of a good Ans: does not shift the good's demand curve but does cause a movement along it. The study of the decisions of individual units in the economy is known as Ans: microeconomic