OLE MISS ECON 202 FINAL EXAM
MCGINNESS QUESTIONS & UPDATED
ANSWERS ALREADY GRADED A+
LATEST VERSION
What is economics? - Correct Answer ✔✔ the study of choice under the condition of
scarcity
What is the difference between microeconomics and macroeconomics? - Correct
Answer ✔✔ MICROECONOMICS = the study of individual decision making by firms and
individuals
MACROECONOMICS = the study of aggregate behavior, including unemployment,
inflation, recessions, and other economy-wide phenomenon
What is opportunity cost? - Correct Answer ✔✔ the forgone best alternative to any
activity
What is absolute advantage and comparative advantage? - Correct Answer ✔✔
ABSOLUTE = ability to produce more with the same or more resources
COMPARITIVE = ability to produce with less opportunity cost
What is the difference between demand and quantity demanded? - Correct Answer ✔✔
DEMAND = the relationship between quantity demanded and price
QUANTITY DEMANDED = the number of units buyers are willing and able to purchase
at a given price
What is the Law of Demand? - Correct Answer ✔✔ As the price rises, quantity
demanded falls. There is a negative relationship between price and quantity demanded
What happens to demand when price changes? - Correct Answer ✔✔ If the price of the
good increases, quantity demanded decreases. The Demand Curve does not shift when
price changes!!!
How do you find a market demand curve? - Correct Answer ✔✔ summation of all the
individual demand curves in a given market
How does income/wealth affect demand curves for normal or inferior goods? - Correct
Answer ✔✔ Higher income = more purchases of normal goods
Lower income = more purchases of inferior goods
How does a change in the price of a substitute affect the demand curve? - Correct
Answer ✔✔ When the price of a substitute good decreases, the quantity demanded for
, that good increases, but the demand for the good that it is being substituted for
decreases
How does a change in the price of a complement affect the demand curve? - Correct
Answer ✔✔ When the price of a good that complements a good decreases, then the
quantity demanded of one increases and the demand for the other increases
What are the determinants of demand? - Correct Answer ✔✔ Income, price of related
goods, preferences of buyers, future expectations of buyers, number of buyers
What is the difference between supply and quantity supplied? - Correct Answer ✔✔
Supply = The relationship between quantity supplied and price
Quantity Supplied = The number of units sellers are willing and able to provide at a
given price
What is the Law of Supply? - Correct Answer ✔✔ As the price rises, quantity supplied
increases. There is a positive relationship between price and quantity supplied
What happens to supply when price changes? - Correct Answer ✔✔ If the price of the
good increases, quantity supplied increases. The Supply Curve does not shift when
price changes!!!
How do you find a market supply curve? - Correct Answer ✔✔ Adding together the
individual supply curves of all firms in an economy
How do the costs of production shift supply curves? - Correct Answer ✔✔ Higher cost =
less supply
Lower cost = more supply
How do changes in input prices and technology affect supply curves? - Correct Answer
✔✔ If input prices are lower, production will cost less and more goods can be supplied.
If technology is cheaper, production will cost less and more goods can be supplied.
What are the determinants of supply? - Correct Answer ✔✔ Costs of production,
weather, price of alternative goods, future expectations of sellers, number of sellers
What is the equilibrium price? - Correct Answer ✔✔ Equilibrium price is the market price
where the quantity of goods supplied is equal to the quantity of goods demanded.
What happens when the market price is below the equilibrium price? - Correct Answer
✔✔ When the market price is below the equilibrium price, quantity supplied is less than
quantity demanded, creating a shortage
What happens when the market price is above the equilibrium price? - Correct Answer
✔✔ When the market price is above the equilibrium price, quantity supplied is greater
than quantity demanded, creating a surplus.
MCGINNESS QUESTIONS & UPDATED
ANSWERS ALREADY GRADED A+
LATEST VERSION
What is economics? - Correct Answer ✔✔ the study of choice under the condition of
scarcity
What is the difference between microeconomics and macroeconomics? - Correct
Answer ✔✔ MICROECONOMICS = the study of individual decision making by firms and
individuals
MACROECONOMICS = the study of aggregate behavior, including unemployment,
inflation, recessions, and other economy-wide phenomenon
What is opportunity cost? - Correct Answer ✔✔ the forgone best alternative to any
activity
What is absolute advantage and comparative advantage? - Correct Answer ✔✔
ABSOLUTE = ability to produce more with the same or more resources
COMPARITIVE = ability to produce with less opportunity cost
What is the difference between demand and quantity demanded? - Correct Answer ✔✔
DEMAND = the relationship between quantity demanded and price
QUANTITY DEMANDED = the number of units buyers are willing and able to purchase
at a given price
What is the Law of Demand? - Correct Answer ✔✔ As the price rises, quantity
demanded falls. There is a negative relationship between price and quantity demanded
What happens to demand when price changes? - Correct Answer ✔✔ If the price of the
good increases, quantity demanded decreases. The Demand Curve does not shift when
price changes!!!
How do you find a market demand curve? - Correct Answer ✔✔ summation of all the
individual demand curves in a given market
How does income/wealth affect demand curves for normal or inferior goods? - Correct
Answer ✔✔ Higher income = more purchases of normal goods
Lower income = more purchases of inferior goods
How does a change in the price of a substitute affect the demand curve? - Correct
Answer ✔✔ When the price of a substitute good decreases, the quantity demanded for
, that good increases, but the demand for the good that it is being substituted for
decreases
How does a change in the price of a complement affect the demand curve? - Correct
Answer ✔✔ When the price of a good that complements a good decreases, then the
quantity demanded of one increases and the demand for the other increases
What are the determinants of demand? - Correct Answer ✔✔ Income, price of related
goods, preferences of buyers, future expectations of buyers, number of buyers
What is the difference between supply and quantity supplied? - Correct Answer ✔✔
Supply = The relationship between quantity supplied and price
Quantity Supplied = The number of units sellers are willing and able to provide at a
given price
What is the Law of Supply? - Correct Answer ✔✔ As the price rises, quantity supplied
increases. There is a positive relationship between price and quantity supplied
What happens to supply when price changes? - Correct Answer ✔✔ If the price of the
good increases, quantity supplied increases. The Supply Curve does not shift when
price changes!!!
How do you find a market supply curve? - Correct Answer ✔✔ Adding together the
individual supply curves of all firms in an economy
How do the costs of production shift supply curves? - Correct Answer ✔✔ Higher cost =
less supply
Lower cost = more supply
How do changes in input prices and technology affect supply curves? - Correct Answer
✔✔ If input prices are lower, production will cost less and more goods can be supplied.
If technology is cheaper, production will cost less and more goods can be supplied.
What are the determinants of supply? - Correct Answer ✔✔ Costs of production,
weather, price of alternative goods, future expectations of sellers, number of sellers
What is the equilibrium price? - Correct Answer ✔✔ Equilibrium price is the market price
where the quantity of goods supplied is equal to the quantity of goods demanded.
What happens when the market price is below the equilibrium price? - Correct Answer
✔✔ When the market price is below the equilibrium price, quantity supplied is less than
quantity demanded, creating a shortage
What happens when the market price is above the equilibrium price? - Correct Answer
✔✔ When the market price is above the equilibrium price, quantity supplied is greater
than quantity demanded, creating a surplus.
