ECON 1100 EXAM 60 QUESTIONS & CORRECT
ANSWERS LATEST 2025
Buyers Gain Consumer Surplus When the market price is? - ANSWER-Less than
the highest price buyers are willing to pay.
A decrease in the supply of cars, ceteris paribus, leads to a ______ in the
equilibrium price of cars and a ______ in the consumer surplus to buyers of cars? -
ANSWER-Increase; Decrease
Which of the following is true regarding an effective (binding) price floor? -
ANSWER-A deadweight loss results from a price change
which of the following is true about a firm in the short run? - ANSWER-AFC =
ATC - AVC
If marginal product is above the average product? - ANSWER-Average product is
rising
If government wants to minimize the deadweight loss associated with a tax, it
should impose the tax in a market in which: - ANSWER-Demand and supply are
both inelastic
4 Basic Resources - ANSWER-land, labor, capital, entrepreneurship
Law of Supply - ANSWER-as price goes up supply goes up; as price goes down
supply goes down
, Law of Demand - ANSWER-as price goes down demand goes up; as price goes
up, demand goes down
Factors of Production - ANSWER-Land, Labor, Capital, and Entrepreneurial
ability
Opportunity Cost - ANSWER-Alternative that is given up when a choice is made
A market economy is characterized by? - ANSWER-Buyers and Sellers
Absolute Advantage - ANSWER-Producing more output than another country
Comparative Advantage - ANSWER-Producing an output at a lower cost than
another country
Trade Surplus - ANSWER-Exports exceed imports
Trade Deficit - ANSWER-Imports exceed exports
Normal Good - ANSWER-Increase in income leads to increase in demand; vice-
versa
Inferior Good - ANSWER-Demand decreases when income increases; vice versa
Events that shift supply - ANSWER--Cost of production
-Improved Technology
ANSWERS LATEST 2025
Buyers Gain Consumer Surplus When the market price is? - ANSWER-Less than
the highest price buyers are willing to pay.
A decrease in the supply of cars, ceteris paribus, leads to a ______ in the
equilibrium price of cars and a ______ in the consumer surplus to buyers of cars? -
ANSWER-Increase; Decrease
Which of the following is true regarding an effective (binding) price floor? -
ANSWER-A deadweight loss results from a price change
which of the following is true about a firm in the short run? - ANSWER-AFC =
ATC - AVC
If marginal product is above the average product? - ANSWER-Average product is
rising
If government wants to minimize the deadweight loss associated with a tax, it
should impose the tax in a market in which: - ANSWER-Demand and supply are
both inelastic
4 Basic Resources - ANSWER-land, labor, capital, entrepreneurship
Law of Supply - ANSWER-as price goes up supply goes up; as price goes down
supply goes down
, Law of Demand - ANSWER-as price goes down demand goes up; as price goes
up, demand goes down
Factors of Production - ANSWER-Land, Labor, Capital, and Entrepreneurial
ability
Opportunity Cost - ANSWER-Alternative that is given up when a choice is made
A market economy is characterized by? - ANSWER-Buyers and Sellers
Absolute Advantage - ANSWER-Producing more output than another country
Comparative Advantage - ANSWER-Producing an output at a lower cost than
another country
Trade Surplus - ANSWER-Exports exceed imports
Trade Deficit - ANSWER-Imports exceed exports
Normal Good - ANSWER-Increase in income leads to increase in demand; vice-
versa
Inferior Good - ANSWER-Demand decreases when income increases; vice versa
Events that shift supply - ANSWER--Cost of production
-Improved Technology
