Ivy Software - Fundamentals of Economics Exam
2026/2027 NEWEST VERIFIED QUESTIONS WITH
DETAILED ANSWERS
• Factors of Production -✓✓ Encompass all productive resources used to produce
goods and services. Land, Labor, Capital, Entrepreneurial Ability
• Opportunity Cose -✓✓ What you give up to get something
• Production Possibilities Frontier -✓✓ A model of a two- good economy that
shows how much the economy can produce using all its factors of production
effeciently
• Increasing Opportunity Cost -✓✓ As more and more of an economy's factors of
production are employed in the production of a good, the economy must sacrifice
the production of other goods at an increasing rate
• Absolute Advantage -✓✓ One has the lowest production cost relative with whom
they're being compared
• Comparative Advantage -✓✓ One has the lowest opportunity cost relative with
whom they're being compared
• Demand Schedule -✓✓ A table showing the relationship between price and the
quantity of a good that buyers are willing to buy
• Demand Curve -✓✓ A picture of the way an individual responds to changing
prices of a good
, • Demand Function -✓✓ A relationship between independent demand variables,
such as the price of good X and the price of a substitute good Y, and the dependent
variable, the quantity demanded of good X.
• Law of Demand -✓✓ As the price of a good increases, ceteris paribus, the
quantity demanded of the good decreases.
• Market Demand Curve -✓✓ The horizontal summation of individual demand
curves yields the market demand curve.
• Market Demand Schedule -✓✓ The market demand schedule is a table that is
calculated by summing up how many units of a good buyers are willing to
purchase at every market price.
• Price Elasticity of Demand -✓✓ A measure of the relationship between a
percentage change in the market price of product and a consequential percentage
change in the quantity demanded of a product
• Cross Price Elasticity of Demand -✓✓ A measure of the relationship between a
percentage change in the market price of product X and a consequential percentage
change in the quantity demanded of product Y
• Income Elasticity of Deman -✓✓ A measure of the relationship between a
percentage change in income and a consequential percentage change in the
quantity demanded of a product.
• Supply Schedule -✓✓ A table showing the relationship between price and the
quantity of a good that sellers are willing to produce.
2026/2027 NEWEST VERIFIED QUESTIONS WITH
DETAILED ANSWERS
• Factors of Production -✓✓ Encompass all productive resources used to produce
goods and services. Land, Labor, Capital, Entrepreneurial Ability
• Opportunity Cose -✓✓ What you give up to get something
• Production Possibilities Frontier -✓✓ A model of a two- good economy that
shows how much the economy can produce using all its factors of production
effeciently
• Increasing Opportunity Cost -✓✓ As more and more of an economy's factors of
production are employed in the production of a good, the economy must sacrifice
the production of other goods at an increasing rate
• Absolute Advantage -✓✓ One has the lowest production cost relative with whom
they're being compared
• Comparative Advantage -✓✓ One has the lowest opportunity cost relative with
whom they're being compared
• Demand Schedule -✓✓ A table showing the relationship between price and the
quantity of a good that buyers are willing to buy
• Demand Curve -✓✓ A picture of the way an individual responds to changing
prices of a good
, • Demand Function -✓✓ A relationship between independent demand variables,
such as the price of good X and the price of a substitute good Y, and the dependent
variable, the quantity demanded of good X.
• Law of Demand -✓✓ As the price of a good increases, ceteris paribus, the
quantity demanded of the good decreases.
• Market Demand Curve -✓✓ The horizontal summation of individual demand
curves yields the market demand curve.
• Market Demand Schedule -✓✓ The market demand schedule is a table that is
calculated by summing up how many units of a good buyers are willing to
purchase at every market price.
• Price Elasticity of Demand -✓✓ A measure of the relationship between a
percentage change in the market price of product and a consequential percentage
change in the quantity demanded of a product
• Cross Price Elasticity of Demand -✓✓ A measure of the relationship between a
percentage change in the market price of product X and a consequential percentage
change in the quantity demanded of product Y
• Income Elasticity of Deman -✓✓ A measure of the relationship between a
percentage change in income and a consequential percentage change in the
quantity demanded of a product.
• Supply Schedule -✓✓ A table showing the relationship between price and the
quantity of a good that sellers are willing to produce.
