ECON 2030 EXAM 1 ROUSSEL EXAM
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Graph - ANS a picture of a relationship between and x and y axis
Relationship between demand and market price - ANS Direct relationship
This facilitates trade, encourages spread of democracy, helps the growth of world democracy -
ANS Market
Macroeconomics - ANS trade can make everyone better off
Microeconomics - ANS results may vary in the business world, this is where the opposition
comes from- the businesses and individuals that are hurt
Production Possibilities Frontier - ANS the boundary, the limit, of what we are able to do (our
ability to make stuff) at a given point in time
Efficiency - ANS getting the most out of something
Economic growth - ANS producing more at a point in time than in previous times. This is a
macroeconomic concept
1
@2026 EDITION ALLRIGHTS RESERVED
, Zero - ANS if one is producing inefficiently than the opportunity cost of producing more will
be
Productivity - ANS output per worker per hour
Absolute Advantage - ANS highest productivity
Comparative Advantage - ANS lowest opportunity cost
Autarky - ANS independence from trade; closed economy; production = consumption. If we
want to consume something we are responsible for making it ourselves
Demand - ANS the behavior of the buyer. The ability and willingness to purchase a good or a
service at various prices. Price does not matter
Supply - ANS behavior of the seller. The ability and willingness to sell a good or a service at
various prices
Transaction - ANS action of buying and selling
Quantity demand - ANS the specific amount demanded at a specific price. Price of good goes
down, demand goes up.
Reservation price (BUYER) - ANS the max price at which a person is willing and able to buy a
good
Income - ANS gives us the ability to buy things
Normal good - ANS (+) in terms of income; clothing, brand names,
2
@2026 EDITION ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Graph - ANS a picture of a relationship between and x and y axis
Relationship between demand and market price - ANS Direct relationship
This facilitates trade, encourages spread of democracy, helps the growth of world democracy -
ANS Market
Macroeconomics - ANS trade can make everyone better off
Microeconomics - ANS results may vary in the business world, this is where the opposition
comes from- the businesses and individuals that are hurt
Production Possibilities Frontier - ANS the boundary, the limit, of what we are able to do (our
ability to make stuff) at a given point in time
Efficiency - ANS getting the most out of something
Economic growth - ANS producing more at a point in time than in previous times. This is a
macroeconomic concept
1
@2026 EDITION ALLRIGHTS RESERVED
, Zero - ANS if one is producing inefficiently than the opportunity cost of producing more will
be
Productivity - ANS output per worker per hour
Absolute Advantage - ANS highest productivity
Comparative Advantage - ANS lowest opportunity cost
Autarky - ANS independence from trade; closed economy; production = consumption. If we
want to consume something we are responsible for making it ourselves
Demand - ANS the behavior of the buyer. The ability and willingness to purchase a good or a
service at various prices. Price does not matter
Supply - ANS behavior of the seller. The ability and willingness to sell a good or a service at
various prices
Transaction - ANS action of buying and selling
Quantity demand - ANS the specific amount demanded at a specific price. Price of good goes
down, demand goes up.
Reservation price (BUYER) - ANS the max price at which a person is willing and able to buy a
good
Income - ANS gives us the ability to buy things
Normal good - ANS (+) in terms of income; clothing, brand names,
2
@2026 EDITION ALLRIGHTS RESERVED
