Econ 301 Final Exam 2025 Questions
and Answers
Microecnomics - --CORRECT ANSWER--The branch of economics that studies
the specific choices made by consumers and producers.
Theories and Models - --CORRECT ANSWER--Explanations of how things work
that help us understand and predict how and why economic entities behave as they
do.
empirical - --CORRECT ANSWER--Using data analysis and experiments to
explore phenomena.
supply - --CORRECT ANSWER--The combined amount of a good that all
producers in a market are willing to sell.
demand - --CORRECT ANSWER--The combined amount of a good that all
consumers are willing to buy.
commodities - --CORRECT ANSWER--Products traded in markets in which
consumers view different varieties of the good as essentially interchangeable.
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,substitute - --CORRECT ANSWER--A good that can be used in place of another
good.
complement - --CORRECT ANSWER--A good that is purchased and used in
combination with another good.
demand curve - --CORRECT ANSWER--The relationship between the quantity of
a good that consumers demand and the good's price, holding all other factors
constant.
inverse demand curve - --CORRECT ANSWER--A demand curve written in the
form of price as a function of quantity demanded.
demand choke price - --CORRECT ANSWER--The price at which quantity
demanded is reduced to zero.
change in quantity demanded - --CORRECT ANSWER--A movement along the
demand curve that occurs as a result of a change in the good's price.
consumer surplus - --CORRECT ANSWER--The difference between the amount
consumers would be willing to pay for a good or service and the amount they
actually have to pay.
producer surplus - --CORRECT ANSWER--The difference between the price at
which producers are willing to sell their good or service and the price they actually
receive.
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, supply choke price - --CORRECT ANSWER--The price at which quantity
supplied equals zero.
price ceiling - --CORRECT ANSWER--A price regulation that sets the highest
price that can be paid legally for a good or service.
transfer - --CORRECT ANSWER--Surplus that moves from producer to
consumer, or vice versa, as a result of a price regulation.
deadweight loss (DWL) - --CORRECT ANSWER--the reduction in total surplus
that occurs as a result of a market inefficiency.
nonbinding price ceiling - --CORRECT ANSWER--A price ceiling set at a level
above equilibrium price.
price floor (or price support) - --CORRECT ANSWER--A price regulation that
sets the lowest price that can be paid legally for a good or service.
nonbinding price floor - --CORRECT ANSWER--A price floor set at a level
below equilibrium price.
quota - --CORRECT ANSWER--A regulation that sets the quantity of a good or
service provided.
crowding out - --CORRECT ANSWER--A reduction in private economic activity
created by greater government presence in a market.
tax incidence - --CORRECT ANSWER--Who actually pays a tax
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and Answers
Microecnomics - --CORRECT ANSWER--The branch of economics that studies
the specific choices made by consumers and producers.
Theories and Models - --CORRECT ANSWER--Explanations of how things work
that help us understand and predict how and why economic entities behave as they
do.
empirical - --CORRECT ANSWER--Using data analysis and experiments to
explore phenomena.
supply - --CORRECT ANSWER--The combined amount of a good that all
producers in a market are willing to sell.
demand - --CORRECT ANSWER--The combined amount of a good that all
consumers are willing to buy.
commodities - --CORRECT ANSWER--Products traded in markets in which
consumers view different varieties of the good as essentially interchangeable.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,substitute - --CORRECT ANSWER--A good that can be used in place of another
good.
complement - --CORRECT ANSWER--A good that is purchased and used in
combination with another good.
demand curve - --CORRECT ANSWER--The relationship between the quantity of
a good that consumers demand and the good's price, holding all other factors
constant.
inverse demand curve - --CORRECT ANSWER--A demand curve written in the
form of price as a function of quantity demanded.
demand choke price - --CORRECT ANSWER--The price at which quantity
demanded is reduced to zero.
change in quantity demanded - --CORRECT ANSWER--A movement along the
demand curve that occurs as a result of a change in the good's price.
consumer surplus - --CORRECT ANSWER--The difference between the amount
consumers would be willing to pay for a good or service and the amount they
actually have to pay.
producer surplus - --CORRECT ANSWER--The difference between the price at
which producers are willing to sell their good or service and the price they actually
receive.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, supply choke price - --CORRECT ANSWER--The price at which quantity
supplied equals zero.
price ceiling - --CORRECT ANSWER--A price regulation that sets the highest
price that can be paid legally for a good or service.
transfer - --CORRECT ANSWER--Surplus that moves from producer to
consumer, or vice versa, as a result of a price regulation.
deadweight loss (DWL) - --CORRECT ANSWER--the reduction in total surplus
that occurs as a result of a market inefficiency.
nonbinding price ceiling - --CORRECT ANSWER--A price ceiling set at a level
above equilibrium price.
price floor (or price support) - --CORRECT ANSWER--A price regulation that
sets the lowest price that can be paid legally for a good or service.
nonbinding price floor - --CORRECT ANSWER--A price floor set at a level
below equilibrium price.
quota - --CORRECT ANSWER--A regulation that sets the quantity of a good or
service provided.
crowding out - --CORRECT ANSWER--A reduction in private economic activity
created by greater government presence in a market.
tax incidence - --CORRECT ANSWER--Who actually pays a tax
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
