ECN 211 ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A
◉what do economists stdy? Answer: how people make decisions
about buying,selling, saving, and investing
◉what is economics? Answer: the study of how society manages
scarce resources
- how people interact in markets where prices are determined and
quantities exchanged
◉3 ways the principles are split Answer: - how people make
decisions
- how people interact
- how the economy works as a whole
◉How do people make decisions? Answer: weighing trade-offs
◉what are trade-offs? Answer: to get more of something you like,
you have to give up something else you like
ex, guns and butter
, ◉what is cost? Answer: what you give up to get something
◉what is a marginal change and who uses it? Answer: an
incremental change to an existing plan
- rational people use to make descisions
◉what are incentives? Answer: induces someone to act
◉is trade a competition? Answer: no, everyone can benefit
◉how is the economy organized? Answer: market economy
◉what is a market economy? Answer: decisions made by millions of
firms/households
◉what do they decide in market economy? Answer: what to
produce, how much, and who gets the goods/services
◉what are markets guided by? Answer: self-interest
◉where do markets interact? Answer: in marketplaces where prices
and quantities are determined
QUESTIONS WITH SOLUTIONS GRADED A
◉what do economists stdy? Answer: how people make decisions
about buying,selling, saving, and investing
◉what is economics? Answer: the study of how society manages
scarce resources
- how people interact in markets where prices are determined and
quantities exchanged
◉3 ways the principles are split Answer: - how people make
decisions
- how people interact
- how the economy works as a whole
◉How do people make decisions? Answer: weighing trade-offs
◉what are trade-offs? Answer: to get more of something you like,
you have to give up something else you like
ex, guns and butter
, ◉what is cost? Answer: what you give up to get something
◉what is a marginal change and who uses it? Answer: an
incremental change to an existing plan
- rational people use to make descisions
◉what are incentives? Answer: induces someone to act
◉is trade a competition? Answer: no, everyone can benefit
◉how is the economy organized? Answer: market economy
◉what is a market economy? Answer: decisions made by millions of
firms/households
◉what do they decide in market economy? Answer: what to
produce, how much, and who gets the goods/services
◉what are markets guided by? Answer: self-interest
◉where do markets interact? Answer: in marketplaces where prices
and quantities are determined
