ECON 2030 STERN FINAL EXAM
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Scarcity refers to the situation in which - ANS unlimited wants exceed limited wants
Consider the following statements: Which of the above statements demonstrates that economic
agents respond to incentives? - ANS (Only A) Soda drinkers purchase more soda from a
grocery store that sells soda at a lower price than other rival grocery stores in the area.
Using marginal analysis, how many hours should Ivan extend his hours of operations? - ANS 5
hours
Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a
1920s era weather vane which he expects to restore and sell for $500 once the work is
completed. After having $125, Zane realizes that he will need to spend an additional $200 on
materials to complete the restoration. Alternatively he can sell the weather vane without
restoring it for $200. What should he do? - ANS He should finish the restoration and then sell
the weather vane
Which of the is a normative economic statement? - ANS The price of milk is too high
Which of the following is a microeconomics question? - ANS How will Apple decide on a
selling price for the iPad?
1
@2026 EDITION ALLRIGHTS RESERVED
, What is the slope of the supply of cigarettes? - ANS 0.01
Using the slope that you calculated in question 7, write down the equation for the supply of
cigarettes. - ANS P=4.3 + 0.01*Qs
If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon, what is the
percentage change in price? - ANS 27.8%
The following equations represent the demand and supply for kumquats.
Qd=60-3P
Qs=-20+5P
What is the equilibrium price and quantity of the kumquats? - ANS P*=$10; Q*=30 thousand
Suppose in 2018, you purchase a Ford car made in 2016. Which of the following will be included
in the GDP for 2018? - ANS the fees that you paid to your local Ford dealership
Suppose that a simple economy produces only 4 goods and services: sweatshirts, dental
examinations, coffee drinks, and coffee beans. Assume HALF of the coffee beans are used in the
production of the coffee drinks while the other HALF is sold in stores to final customers. Using
the info in the above table, nominal GDP for this simple economy equals - ANS $9,250
The purchase by the German govt. of an airplane produced in the US is included in US -
ANS net exports
Suppose real GDP was $10 million in some small country in 2018, consumption was $6 million,
investment was $2 million, govt. purchases were $1 million and imports were $2 million. How
much were exports in this country in 2018? - ANS $3 million
Emily is a famous novelist. She buys pens and paper for $20 and writes a novel that she sells to
a publishing company for $500,000. If the publisher prints 1 million copies that sell for $25 each,
what is Emily's value added? - ANS $499,980
2
@2026 EDITION ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Scarcity refers to the situation in which - ANS unlimited wants exceed limited wants
Consider the following statements: Which of the above statements demonstrates that economic
agents respond to incentives? - ANS (Only A) Soda drinkers purchase more soda from a
grocery store that sells soda at a lower price than other rival grocery stores in the area.
Using marginal analysis, how many hours should Ivan extend his hours of operations? - ANS 5
hours
Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a
1920s era weather vane which he expects to restore and sell for $500 once the work is
completed. After having $125, Zane realizes that he will need to spend an additional $200 on
materials to complete the restoration. Alternatively he can sell the weather vane without
restoring it for $200. What should he do? - ANS He should finish the restoration and then sell
the weather vane
Which of the is a normative economic statement? - ANS The price of milk is too high
Which of the following is a microeconomics question? - ANS How will Apple decide on a
selling price for the iPad?
1
@2026 EDITION ALLRIGHTS RESERVED
, What is the slope of the supply of cigarettes? - ANS 0.01
Using the slope that you calculated in question 7, write down the equation for the supply of
cigarettes. - ANS P=4.3 + 0.01*Qs
If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon, what is the
percentage change in price? - ANS 27.8%
The following equations represent the demand and supply for kumquats.
Qd=60-3P
Qs=-20+5P
What is the equilibrium price and quantity of the kumquats? - ANS P*=$10; Q*=30 thousand
Suppose in 2018, you purchase a Ford car made in 2016. Which of the following will be included
in the GDP for 2018? - ANS the fees that you paid to your local Ford dealership
Suppose that a simple economy produces only 4 goods and services: sweatshirts, dental
examinations, coffee drinks, and coffee beans. Assume HALF of the coffee beans are used in the
production of the coffee drinks while the other HALF is sold in stores to final customers. Using
the info in the above table, nominal GDP for this simple economy equals - ANS $9,250
The purchase by the German govt. of an airplane produced in the US is included in US -
ANS net exports
Suppose real GDP was $10 million in some small country in 2018, consumption was $6 million,
investment was $2 million, govt. purchases were $1 million and imports were $2 million. How
much were exports in this country in 2018? - ANS $3 million
Emily is a famous novelist. She buys pens and paper for $20 and writes a novel that she sells to
a publishing company for $500,000. If the publisher prints 1 million copies that sell for $25 each,
what is Emily's value added? - ANS $499,980
2
@2026 EDITION ALLRIGHTS RESERVED
