ECON 101 FINAL EXAM QUESTIONS
WITH COMPLETE ANSWERS
In hha hhcompetitive hhmarket, hhexcess hhdemand hhfor hha hhgood hhexists hhwhenever....?
a. hhresources hhare hhscarce
b. hhthe hhcurrent hhprice hhis hhbelow hhthe hhequilibrium hhprice
c. hhthe hhcurrent hhprice hhis hhabove hhthe hhequilibrium hhprice
d. hhsellers hhare hhsubject hhto hhthe hhconstraints hhimposed hhby hhinput hhprices hhand
hhtechnology hhe. hhthe hhquantity hhsupplied hhat hhthe hhcurrent hhprice hhexceeds hhthe
hhquantity hhdemanded hh- hhAnswerb. hhthe hhcurrent hhprice hhis hhbelow hhthe
hhequilibrium hhprice
Which hhof hhthe hhfollowing hhis hhan hhexample hhof hha hhstock hhvariable?
a. hhThe hhamount hhof hhcereal hha hhperson hhbuys hheach hhweek
b. hhThe hhamount hhof hhcereal hha hhchild hhconsumes hheach hhmonth
c. hhThe hhamount hhof hhcereal hhproduced hheach hhday
d. hhThe hhamount hhof hhcereal hhin hha hhperson's hhpantry
e. hhNone hhof hhthese hhare hhstock hhvariables hh- hhAnswerd. hhThe hhamount hhof hhcereal
hhin hha hhperson's hhpantry
Economics hhis...?
a. hhexclusively hhthe hhstudy hhof hhbusiness hhfirms
b. hhapplicable hhonly hhwhen hhscarcity hhis hhnot hha hhproblem
c. hhexclusively hhthe hhstudy hhof hhthe hhmarkets hhfor hhstocks hhand hhbonds
d. hhfundamentally hhthe hhsame hhas hhsociology
e. hhthe hhstudy hhof hhchoice hhunder hhconditions hhof hhscarcity hh- hhAnswere. hhthe
hhstudy hhof hhchoice hhunder hhconditions hhof hhscarcity
Complementary hhgoods...
a. hhdo hhnot hhadhere hhto hhthe hhlaw hhof hhdemand
b. hhare hhusually hhused hhin hhconjunction hhwith hheach hhother hh
c. hhare hhusually hhused hhin hhplace hhof hhone hhanother
d. hhare hhgoods hhwhose hhdemand hhrises hhas hhincomes hhrise hhe. hhare hhgoods
hhwhose hhdemand hhfalls hhas hhwealth hhfalls hh- hhAnswerb. hhare hhusually hhused hhin
hhconjunction hhwith hheach hhother
,If hhGreg hhuses hha hhspecial hhglue hhto hhmake hhmodel hhplanes hhthat hhhe hhsells hhand
hhthe hhprice hhof hhhis hhmodel hhplanes hhincreases, hhthen hhone hhwould hhexpect hhthat
hhthe hhequilibrium hhprice hhof hhthe hhspecial hhglue hhwould hh_______ hhand hhthe
hhequilibrium hhquantity hhwould hh_________.
a. hhincrease; hhincrease
b. hhdecrease; hhdecrease
c. hhincrease; hhdecrease
d. hhdecrease; hhincrease
e. hhincrease; hhindeterminant hh- hhAnswera. hhincrease; hhincrease
Positive hheconomics hhdeals hhwith...
a. hhopinions hhthat hhaffirm hheconomists' hhtheories
b. hhstatements hhof hhfact
c. hhpractical hhways hhof hhimproving hhpeople's hhself-esteem hhby hhmaking hhmoney
d. hhstatements hhabout hhthe hhway hhthings hhought hhto hhbe
e. hhtheories hhabout hhimproving hhpeople's hhself-esteem hh- hhAnswerb. hhstatements hhof
hhfact
Microeconomics....
a. hhis hhpurely hhtheoretical hhand hhhas hhlittle hhvalue hhin hhexplaining hhreal-world
hhphenomena hhb. hhfocuses hhon hhwhat hhis hhhappening hhin hhthe hheconomy hhas hha
hhwhole
c. hhaddresses hhscarcity hhfrom hha hhglobal hhperspective
d. hhexamines hhhow hhindividuals, hhhouseholds, hhand hhfirms hhmake hheconomic
hhdecisions
e. hhanswers hhthe hhfundamental hheconomic hhquestions hhof hhhow, hhwhen, hhwhere,
hhand hhwhy hh- hhAnswerd. hhexamines hhhow hhindividuals, hhhouseholds, hhand hhfirms
hhmake hheconomic hhdecisions
The hhdemand hhcurve hhfor hhdolls hhshows hhthe hhquantity hhof hhdolls hhdemanded
a. hhat hheach hhlevel hhof hhincome
b. hhat hhthe hhequilibrium hhprice hhfor hhdolls
c. hhby hhU.S. hhconsumers
d. hhby hhsuppliers hhof hhthose hhdolls
e. hhat hheach hhpossible hhprice hhof hhdolls hh- hhAnswere. hhat hheach hhpossible hhprice hhof
hhdolls
According hhto hhthe hhlaw hhof hhdemand,
a. hhthere hhis hha hhpositive hhrelationship hhbetween hhquantity hhdemanded hhand hhprice
b. hhas hhthe hhprice hhrises, hhdemand hhwill hhshift hhto hhthe hhright
c. hhas hhthe hhprice hhrises, hhconsumers hhwill hhcontinue hhto hhpurchase hhthe hhsame
hhquantity hhof hhthe hhgood
d. hhas hhthe hhprice hhrises, hhdemand hhwill hhshift hhto hhthe hhleft
e. hhthere hhis hha hhnegative hhrelationship hhbetween hhquantity hhdemanded hhand hhprice
hh- hhAnswere. hhthere hhis hha hhnegative hhrelationship hhbetween hhquantity hhdemanded
hhand hhprice
, Even hhthough hhhouseholds hhmay hhhave hhunlimited hhwants, hhthey hhhave hhto
hhallocate hhtheir hhspending hhcarefully hhbecause hhthey
a. hhdo hhnot hhwant hhtheir hhcredit hhcard hhbills hhto hhbe hhtoo hhhigh
b. hhworry hhabout hhtheir hhtaxes
c. hhhave hhlimited hhintelligence
d. hhhave hhlimited hhincomes
e. hhbasically hhwant hhto hhbecome hhwealthy hh- hhAnswerd. hhhave hhlimited hhincomes
An hhentrepreneur hhis hhbest hhdescribed hhas
a. hhsomeone hhthat hhis hhhired hhto hhwork hhin hha hhfirm
b. hhsomeone hhwho hhcreates hhhuman hhcapital
c. hhsomeone hhwith hhthe hhability hhto hhcombine hhother hhresources hhin hha hhproductive
hhenterprise
d. hhanyone hhwho hhowns hhproductive hhenterprise
e. hhanyone hhwho hhproduces hhlong-lived hhphysical hhcapital hh- hhAnswerc. hhsomeone
hhwith hhthe hhability hhto hhcombine hhother hhresources hhin hha hhproductive hhenterprise
The hhoverall hhperformance hhof hhthe hheconomic hhsystem hhas hha hhwhole hhis hhthe
hhfocus hhof
a. hhinternational hhfinance
b. hhlabor hheconomics
c. hhmicroeconomics
d. hhmacroeconomics
e. hhpublic hheconomics hh- hhAnswerd. hhmacroeconomics
Microeconomics hhanalyzes hhindividual hhparts hhof hhthe hheconomy hhrather hhthan
hhbroad hheconomic hhaggregates.
a. hhTrue
b. hhFalse hh- hhAnswera. hhTrue
Suppose hhthat hhthe hhCouncil hhof hhEconomic hhAdvisers hhtells hhthe hhPresident hhthat
hh"the hhunemployment hhrate hhis hh4 hhpercent." hhThe hhPresident hhresponds, hh"That
hhrate hhis hhstill hhtoo hhhigh." hhThe hhPresident's hhstatement hhis
a. hha hhnormative hhstatement
b. hha hhpositive hhstatement
c. hhempirically hhverifiable hhby hhchecking hheconomic hhdata
d. hhan hhindisputable hhstatistical hhfact
e. hhan hhincorrect hhpositive hhstatement hh- hhAnswera. hha hhnormative hhstatement
Individuals hhface hhopportunity hhcosts hhbecause
a. hhthe hhminimum hhwage hhis hhtoo hhlow
b. hhtechnology hhis hhimproving hhtoo hhquickly
c. hhtime hhand hhfunds hhare hhscarce
d. hhgovernment hhcutbacks hhare hhwidespread, hhexcept hhpossibly hhamong hhsociety's
hhmost hhaffluent hhhouseholds
WITH COMPLETE ANSWERS
In hha hhcompetitive hhmarket, hhexcess hhdemand hhfor hha hhgood hhexists hhwhenever....?
a. hhresources hhare hhscarce
b. hhthe hhcurrent hhprice hhis hhbelow hhthe hhequilibrium hhprice
c. hhthe hhcurrent hhprice hhis hhabove hhthe hhequilibrium hhprice
d. hhsellers hhare hhsubject hhto hhthe hhconstraints hhimposed hhby hhinput hhprices hhand
hhtechnology hhe. hhthe hhquantity hhsupplied hhat hhthe hhcurrent hhprice hhexceeds hhthe
hhquantity hhdemanded hh- hhAnswerb. hhthe hhcurrent hhprice hhis hhbelow hhthe
hhequilibrium hhprice
Which hhof hhthe hhfollowing hhis hhan hhexample hhof hha hhstock hhvariable?
a. hhThe hhamount hhof hhcereal hha hhperson hhbuys hheach hhweek
b. hhThe hhamount hhof hhcereal hha hhchild hhconsumes hheach hhmonth
c. hhThe hhamount hhof hhcereal hhproduced hheach hhday
d. hhThe hhamount hhof hhcereal hhin hha hhperson's hhpantry
e. hhNone hhof hhthese hhare hhstock hhvariables hh- hhAnswerd. hhThe hhamount hhof hhcereal
hhin hha hhperson's hhpantry
Economics hhis...?
a. hhexclusively hhthe hhstudy hhof hhbusiness hhfirms
b. hhapplicable hhonly hhwhen hhscarcity hhis hhnot hha hhproblem
c. hhexclusively hhthe hhstudy hhof hhthe hhmarkets hhfor hhstocks hhand hhbonds
d. hhfundamentally hhthe hhsame hhas hhsociology
e. hhthe hhstudy hhof hhchoice hhunder hhconditions hhof hhscarcity hh- hhAnswere. hhthe
hhstudy hhof hhchoice hhunder hhconditions hhof hhscarcity
Complementary hhgoods...
a. hhdo hhnot hhadhere hhto hhthe hhlaw hhof hhdemand
b. hhare hhusually hhused hhin hhconjunction hhwith hheach hhother hh
c. hhare hhusually hhused hhin hhplace hhof hhone hhanother
d. hhare hhgoods hhwhose hhdemand hhrises hhas hhincomes hhrise hhe. hhare hhgoods
hhwhose hhdemand hhfalls hhas hhwealth hhfalls hh- hhAnswerb. hhare hhusually hhused hhin
hhconjunction hhwith hheach hhother
,If hhGreg hhuses hha hhspecial hhglue hhto hhmake hhmodel hhplanes hhthat hhhe hhsells hhand
hhthe hhprice hhof hhhis hhmodel hhplanes hhincreases, hhthen hhone hhwould hhexpect hhthat
hhthe hhequilibrium hhprice hhof hhthe hhspecial hhglue hhwould hh_______ hhand hhthe
hhequilibrium hhquantity hhwould hh_________.
a. hhincrease; hhincrease
b. hhdecrease; hhdecrease
c. hhincrease; hhdecrease
d. hhdecrease; hhincrease
e. hhincrease; hhindeterminant hh- hhAnswera. hhincrease; hhincrease
Positive hheconomics hhdeals hhwith...
a. hhopinions hhthat hhaffirm hheconomists' hhtheories
b. hhstatements hhof hhfact
c. hhpractical hhways hhof hhimproving hhpeople's hhself-esteem hhby hhmaking hhmoney
d. hhstatements hhabout hhthe hhway hhthings hhought hhto hhbe
e. hhtheories hhabout hhimproving hhpeople's hhself-esteem hh- hhAnswerb. hhstatements hhof
hhfact
Microeconomics....
a. hhis hhpurely hhtheoretical hhand hhhas hhlittle hhvalue hhin hhexplaining hhreal-world
hhphenomena hhb. hhfocuses hhon hhwhat hhis hhhappening hhin hhthe hheconomy hhas hha
hhwhole
c. hhaddresses hhscarcity hhfrom hha hhglobal hhperspective
d. hhexamines hhhow hhindividuals, hhhouseholds, hhand hhfirms hhmake hheconomic
hhdecisions
e. hhanswers hhthe hhfundamental hheconomic hhquestions hhof hhhow, hhwhen, hhwhere,
hhand hhwhy hh- hhAnswerd. hhexamines hhhow hhindividuals, hhhouseholds, hhand hhfirms
hhmake hheconomic hhdecisions
The hhdemand hhcurve hhfor hhdolls hhshows hhthe hhquantity hhof hhdolls hhdemanded
a. hhat hheach hhlevel hhof hhincome
b. hhat hhthe hhequilibrium hhprice hhfor hhdolls
c. hhby hhU.S. hhconsumers
d. hhby hhsuppliers hhof hhthose hhdolls
e. hhat hheach hhpossible hhprice hhof hhdolls hh- hhAnswere. hhat hheach hhpossible hhprice hhof
hhdolls
According hhto hhthe hhlaw hhof hhdemand,
a. hhthere hhis hha hhpositive hhrelationship hhbetween hhquantity hhdemanded hhand hhprice
b. hhas hhthe hhprice hhrises, hhdemand hhwill hhshift hhto hhthe hhright
c. hhas hhthe hhprice hhrises, hhconsumers hhwill hhcontinue hhto hhpurchase hhthe hhsame
hhquantity hhof hhthe hhgood
d. hhas hhthe hhprice hhrises, hhdemand hhwill hhshift hhto hhthe hhleft
e. hhthere hhis hha hhnegative hhrelationship hhbetween hhquantity hhdemanded hhand hhprice
hh- hhAnswere. hhthere hhis hha hhnegative hhrelationship hhbetween hhquantity hhdemanded
hhand hhprice
, Even hhthough hhhouseholds hhmay hhhave hhunlimited hhwants, hhthey hhhave hhto
hhallocate hhtheir hhspending hhcarefully hhbecause hhthey
a. hhdo hhnot hhwant hhtheir hhcredit hhcard hhbills hhto hhbe hhtoo hhhigh
b. hhworry hhabout hhtheir hhtaxes
c. hhhave hhlimited hhintelligence
d. hhhave hhlimited hhincomes
e. hhbasically hhwant hhto hhbecome hhwealthy hh- hhAnswerd. hhhave hhlimited hhincomes
An hhentrepreneur hhis hhbest hhdescribed hhas
a. hhsomeone hhthat hhis hhhired hhto hhwork hhin hha hhfirm
b. hhsomeone hhwho hhcreates hhhuman hhcapital
c. hhsomeone hhwith hhthe hhability hhto hhcombine hhother hhresources hhin hha hhproductive
hhenterprise
d. hhanyone hhwho hhowns hhproductive hhenterprise
e. hhanyone hhwho hhproduces hhlong-lived hhphysical hhcapital hh- hhAnswerc. hhsomeone
hhwith hhthe hhability hhto hhcombine hhother hhresources hhin hha hhproductive hhenterprise
The hhoverall hhperformance hhof hhthe hheconomic hhsystem hhas hha hhwhole hhis hhthe
hhfocus hhof
a. hhinternational hhfinance
b. hhlabor hheconomics
c. hhmicroeconomics
d. hhmacroeconomics
e. hhpublic hheconomics hh- hhAnswerd. hhmacroeconomics
Microeconomics hhanalyzes hhindividual hhparts hhof hhthe hheconomy hhrather hhthan
hhbroad hheconomic hhaggregates.
a. hhTrue
b. hhFalse hh- hhAnswera. hhTrue
Suppose hhthat hhthe hhCouncil hhof hhEconomic hhAdvisers hhtells hhthe hhPresident hhthat
hh"the hhunemployment hhrate hhis hh4 hhpercent." hhThe hhPresident hhresponds, hh"That
hhrate hhis hhstill hhtoo hhhigh." hhThe hhPresident's hhstatement hhis
a. hha hhnormative hhstatement
b. hha hhpositive hhstatement
c. hhempirically hhverifiable hhby hhchecking hheconomic hhdata
d. hhan hhindisputable hhstatistical hhfact
e. hhan hhincorrect hhpositive hhstatement hh- hhAnswera. hha hhnormative hhstatement
Individuals hhface hhopportunity hhcosts hhbecause
a. hhthe hhminimum hhwage hhis hhtoo hhlow
b. hhtechnology hhis hhimproving hhtoo hhquickly
c. hhtime hhand hhfunds hhare hhscarce
d. hhgovernment hhcutbacks hhare hhwidespread, hhexcept hhpossibly hhamong hhsociety's
hhmost hhaffluent hhhouseholds
