Intro to Economics Final Exam with
correct answers 100% 2026
Which of the following best denotes the reason for the existence of substantial black markets?
Select one:
a. a market-oriented economy
b. government laws and rules
c. the microeconomy
d. a command economy - Correct Answers d. a command economy
_____________ a term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines.
Select one:
a. Division of labor
b. Specialization
c. Skill
d. Economies of scale - Correct Answers d. Economies of scale
In which of the following countries will the national government have the greatest influence
with respect to the nation's economy?
Select one:
a. Chile
b. Cuba
c. China
d. Canada - Correct Answers b. Cuba
Most choices involve _________________, which involves comparing the benefits and costs of
choosing a little more or a little less of a good.
,Select one:
a. marginal analysis
b. consumption
c. utility
d. the budget constraint - Correct Answers a. marginal analysis
The model that economists use for illustrating the process of individual choice in a situation of
scarcity is the _________________, sometimes also called the opportunity set, a diagram which
shows what choices are possible.
Select one:
a. budget constraint
b. consumption set
c. income cap
d. original budget - Correct Answers a. budget constraint
Which of the following would most likely shift the production possibilities curve inward?
Select one:
a. an increase in the number of hours factories are in use
b. a decrease in the average number of hours worked per week as the labor force chooses to
enjoy more leisure time
c. an increase in the production of capital goods
d. technological progress - Correct Answers b. a decrease in the average number of hours
worked per week as the labor force chooses to enjoy more leisure time
|a-b
| c\ e
|__f_______d_____
,Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of
production depicted is:
Select one:
a. Point D
b. Point B
c. All points on the production possibilities frontier are equally efficient.
d. Point C - Correct Answers c. All points on the production possibilities frontier are equally
efficient.
_________________ refers to the total number of units that are purchased at that price.
Select one:
a. quantity demanded
b. quantity
c. supply
d. market quantity - Correct Answers a. quantity demanded
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can
conclude that:
Select one:
a. Goods X and Y are substitute goods.
b. the price of Good Y will increase.
c. Goods X and Y are complement goods.
d. Goods X and Y are normal goods. - Correct Answers c. Goods X and Y are complement goods.
When __________________, a firm will supply a higher quantity at any given price for its
output, and the supply curve will shift to the right.
Select one:
, a. there is a population increase
b. prices rise
c. equilibrium is achieved
d. costs of production fall - Correct Answers d. costs of production fall
|///
| e/ /a /
|_/__/___/_________
Refer to Figure 3-3. A change from Point A to Point E represents a:
Select one:
a. decrease in supply.
b. decrease in quantity supplied.
c. increase in supply.
d. increase in quantity supplied. - Correct Answers a. decrease in supply.
According to the law of supply:
Select one:
a. there is an inverse relationship between price and the quantity supplied.
b. there is an inverse relationship between price and quantity demanded.
c. there is a direct relationship between price and quantity demanded.
d. there is a direct relationship between price and the quantity supplied. - Correct Answers d.
there is a direct relationship between price and the quantity supplied.
Which of the following are most likely classified by economists as consumer durable goods?
Select one:
a. stocks, bonds
correct answers 100% 2026
Which of the following best denotes the reason for the existence of substantial black markets?
Select one:
a. a market-oriented economy
b. government laws and rules
c. the microeconomy
d. a command economy - Correct Answers d. a command economy
_____________ a term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines.
Select one:
a. Division of labor
b. Specialization
c. Skill
d. Economies of scale - Correct Answers d. Economies of scale
In which of the following countries will the national government have the greatest influence
with respect to the nation's economy?
Select one:
a. Chile
b. Cuba
c. China
d. Canada - Correct Answers b. Cuba
Most choices involve _________________, which involves comparing the benefits and costs of
choosing a little more or a little less of a good.
,Select one:
a. marginal analysis
b. consumption
c. utility
d. the budget constraint - Correct Answers a. marginal analysis
The model that economists use for illustrating the process of individual choice in a situation of
scarcity is the _________________, sometimes also called the opportunity set, a diagram which
shows what choices are possible.
Select one:
a. budget constraint
b. consumption set
c. income cap
d. original budget - Correct Answers a. budget constraint
Which of the following would most likely shift the production possibilities curve inward?
Select one:
a. an increase in the number of hours factories are in use
b. a decrease in the average number of hours worked per week as the labor force chooses to
enjoy more leisure time
c. an increase in the production of capital goods
d. technological progress - Correct Answers b. a decrease in the average number of hours
worked per week as the labor force chooses to enjoy more leisure time
|a-b
| c\ e
|__f_______d_____
,Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of
production depicted is:
Select one:
a. Point D
b. Point B
c. All points on the production possibilities frontier are equally efficient.
d. Point C - Correct Answers c. All points on the production possibilities frontier are equally
efficient.
_________________ refers to the total number of units that are purchased at that price.
Select one:
a. quantity demanded
b. quantity
c. supply
d. market quantity - Correct Answers a. quantity demanded
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can
conclude that:
Select one:
a. Goods X and Y are substitute goods.
b. the price of Good Y will increase.
c. Goods X and Y are complement goods.
d. Goods X and Y are normal goods. - Correct Answers c. Goods X and Y are complement goods.
When __________________, a firm will supply a higher quantity at any given price for its
output, and the supply curve will shift to the right.
Select one:
, a. there is a population increase
b. prices rise
c. equilibrium is achieved
d. costs of production fall - Correct Answers d. costs of production fall
|///
| e/ /a /
|_/__/___/_________
Refer to Figure 3-3. A change from Point A to Point E represents a:
Select one:
a. decrease in supply.
b. decrease in quantity supplied.
c. increase in supply.
d. increase in quantity supplied. - Correct Answers a. decrease in supply.
According to the law of supply:
Select one:
a. there is an inverse relationship between price and the quantity supplied.
b. there is an inverse relationship between price and quantity demanded.
c. there is a direct relationship between price and quantity demanded.
d. there is a direct relationship between price and the quantity supplied. - Correct Answers d.
there is a direct relationship between price and the quantity supplied.
Which of the following are most likely classified by economists as consumer durable goods?
Select one:
a. stocks, bonds
