FOUNDATIONS OF MICROECONOMICS 2026
FINAL PAPER REVIEW QUESTIONS ANSWERS
BUNDLED PRACTICE COLLECTION
◉ consumer goods.
Answer: goods produced for present consumption
◉ consumer sovereignty.
Answer: The idea that consumers ultimately dictate what will be
produced (or not produced) by choosing what to purchase (and
what not to purchase).
◉ consumer surplus.
Answer: The difference between the maximum amount a person is
willing to pay for a good and its current market price.
◉ cross price elasticity of demand.
Answer: measures the responsiveness of the quantity demand of a
good to a change in the price of another good.
◉ diseconomies of scale.
,Answer: The property whereby long-run average total cost rises as
the quantity of output increases (right-most upward sloping part of
the long-run ATC)
◉ demand curve.
Answer: a graph that shows the amount of a product that would be
bought at all possible prices in the market
◉ depreciation.
Answer: the decline in an asset's economic value over time
◉ diminishing marginal utility.
Answer: the point reached when an additional unit of a product
consumed is less satisfying than the one before
◉ economic theory.
Answer: A statement or set of related statements about cause and
effect, action and reaction
◉ economics.
Answer: the study of how individuals and nations make choices
about ways to use scarce resources to fulfill their needs and wants
, ◉ efficiency.
Answer: producing what people want at the least possible cost
◉ elastic demand.
Answer: the percentage change in quantity demanded is greater
than the percentage change in price in absolute value
◉ elasticity.
Answer: a measure of responsiveness that tells us how a dependent
variable such as quantity responds to a change in an independent
variable such as price
◉ equilibrium.
Answer: the point at which quantity demanded and quantity
supplied are equal
◉ entrepreneur.
Answer: a person who organizes, manages, and takes on the risks of
a business
◉ equity.
Answer: (n.) the state of being just, fair, or impartial; fair and equal
treatment; something that is fair; the money value of a property
above and beyond any mortgage or other claim
FINAL PAPER REVIEW QUESTIONS ANSWERS
BUNDLED PRACTICE COLLECTION
◉ consumer goods.
Answer: goods produced for present consumption
◉ consumer sovereignty.
Answer: The idea that consumers ultimately dictate what will be
produced (or not produced) by choosing what to purchase (and
what not to purchase).
◉ consumer surplus.
Answer: The difference between the maximum amount a person is
willing to pay for a good and its current market price.
◉ cross price elasticity of demand.
Answer: measures the responsiveness of the quantity demand of a
good to a change in the price of another good.
◉ diseconomies of scale.
,Answer: The property whereby long-run average total cost rises as
the quantity of output increases (right-most upward sloping part of
the long-run ATC)
◉ demand curve.
Answer: a graph that shows the amount of a product that would be
bought at all possible prices in the market
◉ depreciation.
Answer: the decline in an asset's economic value over time
◉ diminishing marginal utility.
Answer: the point reached when an additional unit of a product
consumed is less satisfying than the one before
◉ economic theory.
Answer: A statement or set of related statements about cause and
effect, action and reaction
◉ economics.
Answer: the study of how individuals and nations make choices
about ways to use scarce resources to fulfill their needs and wants
, ◉ efficiency.
Answer: producing what people want at the least possible cost
◉ elastic demand.
Answer: the percentage change in quantity demanded is greater
than the percentage change in price in absolute value
◉ elasticity.
Answer: a measure of responsiveness that tells us how a dependent
variable such as quantity responds to a change in an independent
variable such as price
◉ equilibrium.
Answer: the point at which quantity demanded and quantity
supplied are equal
◉ entrepreneur.
Answer: a person who organizes, manages, and takes on the risks of
a business
◉ equity.
Answer: (n.) the state of being just, fair, or impartial; fair and equal
treatment; something that is fair; the money value of a property
above and beyond any mortgage or other claim
